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Blanchflower Says Bank Of England Risks Choking Off Recovery

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http://www.bloomberg.com/apps/news?pid=206...id=aPqrfZhOKe_Q

July 24 (Bloomberg) -- Former Bank of England policy maker David Blanchflower said the central bank risks cutting the economic recovery short and should expand the program to buy bonds with newly created money.

Any growth in the economy will be “pretty anemic, pretty slow for a year or two,†said Blanchflower in an interview yesterday from Dartmouth College in Hanover, New Hampshire, where he is professor of economics. “My worry is that the tightening comes too soon and people kill off any recovery that’s coming.â€

U.K. government bond yields rose above 4 percent for the first time in more than a month today after policy maker Andrew Sentance said the Bank of England will consider pausing the 125- billion pound ($207 billion) bond-purchase program next month. The British economy will show signs of recovery in the second half of 2009 after contracting for a year, Sentance said.

“It’s very early days to say that you know the endgame is even in sight,†Blanchflower said. The bank should consider spending as much as 300 billion pounds in newly printed money, twice as much as the current total authorized by the government, he said.

Economists expect gross-domestic-product figures due at 9:30 a.m. in London to show a 0.3 percent decline in the second quarter from the first three months of 2009, the least in a year, according to the median of 32 estimates in a Bloomberg News survey. Blanchflower predicted a 0.4 percent drop.

And he said this based on the assumption Q2 GDP would only shrink 0.4%... :o

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http://www.bloomberg.com/apps/news?pid=206...id=aPqrfZhOKe_Q

And he said this based on the assumption Q2 GDP would only shrink 0.4%... :o

£300billion, chickenfeed. Why not just print the 2 trillion that's really needed. :rolleyes:

Lets get it over with so that we can then pop down the shops with a barrowfull of £50 notes for that Warburtons loaf.

Happy days!! :blink:

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Guest DissipatedYouthIsValuable

I think, Blanchflower, you'll find the spelling over here is "anaemic".

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Endgame?

We were at the endgame when this ***** was blowing the bubble.

It is only now that we find out how much damage was caused and now many business sectors were destroyed for good.

Then there is the unemployment, which has been massively increased thanks to uncontrolled economic migration. Again another key proponent of this action.

David "Danny" Blanchflower, a member of the Bank of England's monetary policy committee, has given a speech on the economic impact of immigration. He makes the interesting point that UK population growth over the period 1971-2004 was lower than in most other advanced countries. His broad conclusion is that immigration has eased inflationary pressures and probably lowered Britain's natural rate of unemployment.

The man is a ******ing baffoon.

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There is no doubt in my mind people will look back at this era as the 'age of stupid'

How can so many people be so ignorant of history, economic laws etc?

They aren't ignorant, they are evil.

Greenspan (for example) was basically an austrian or chicago school monetarist. he read mises bits about "inflation steals money from people" and thought - "great, more for me!"

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Oh for f**ks sake!

Blanchflower is a complete and utter t**ser!

Printing money is not creating wealth. Only the temporary illusion of it.

We're heading into the mother of all currency collapses.... in fact multiple currency collapse if this goes on.

It'll be hell, and I thought we already had hell when the housing bubble was being blown up by Blanchflower et al.

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I think, Blanchflower, you'll find the spelling over here is "anaemic".

Man called Blanchflower says Green Shoots are "anemic"

Apt name.

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Man called Blanchflower says Green Shoots are "anemic"

Apt name.

:lol:

you really are an "outside the box" thinker, aren't you? ;)

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They aren't ignorant, they are evil.

Greenspan (for example) was basically an austrian or chicago school monetarist. he read mises bits about "inflation steals money from people" and thought - "great, more for me!"

Blanchettflower has a point...if the aim of the BoE is to stem unemployment and keep the economy moving, then he is merely pointing out what needs to be done.

in this respect he is quite correct.

in another respect, the problem will move to next year, where the cure will be even more drastic.

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:lol:

you really are an "outside the box" thinker, aren't you? ;)

Drink wine from inside a box.

Think, whine from outside a box

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Endgame?

We were at the endgame when this ***** was blowing the bubble.

It is only now that we find out how much damage was caused and now many business sectors were destroyed for good.

The man is a ******ing baffoon.

Don't be a prat. Danny saw it coming when half of the MPC was still bleating on and banging the drum about inflation. He might be a yank but he's pretty clued up.

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Blanchettflower has a point...if the aim of the BoE is to stem unemployment and keep the economy moving, then he is merely pointing out what needs to be done.

in this respect he is quite correct.

in another respect, the problem will move to next year, where the cure will be even more drastic.

Blanchflower has followed something of a pattern - he's neglected short term risks and concentrated solely on medium-to-long-term risks. One might think this is the "smart" thing to do - but... it only appears to be so if you're over-ruled by short-term risks... if anyone listened to him, the real long-term problem would be different (note, not mitigated... just different... maybe even more severe...)

I think the real issue here is that the BoE's remit is wrong. Not only is a symmetric CPI target a retarded concept (as anyone who'd heard of Charles Goodhart could have explained from the outset...) but it is wholly inappropriate to task a body responsible for monetary policy with achieving full employment... a matter that clearly has a lot more to do with fiscal than monetary policy. The problem with employment, as I see it, is that the treasury and government as a whole has used the Tripartite agreement to deflect criticism and pursue negligent policies - to the detriment of the economy... all the time proclaiming 'growth' - an illusion arising from the misguided notion that GDP figures are meaningful independent of systemic debt and bank solvency.

We're now beginning to see discussions of alternative central bank policies... though not from the current government. I think anyone trying to plan today has to assume that, within a year, the monetary policy remit will change radically... This has to impact all discussions about plans for results in the "medium term". The goalposts will be moved.

Edited by A.steve

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Don't be a prat. Danny saw it coming when half of the MPC was still bleating on and banging the drum about inflation. He might be a yank but he's pretty clued up.

you are danny blanchettflower and I claim my £5

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Don't be a prat. Danny saw it coming when half of the MPC was still bleating on and banging the drum about inflation. He might be a yank but he's pretty clued up.

:o

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Don't be a prat. Danny saw it coming when half of the MPC was still bleating on and banging the drum about inflation. He might be a yank but he's pretty clued up.

:lol: Are you a Daily Mail reader?

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Don't be a prat. Danny saw it coming when half of the MPC was still bleating on and banging the drum about inflation. He might be a yank but he's pretty clued up.

So he recommended that we cure the hugh build up in debt by ... er.. er encouraging more debt.

Who's the prat? :lol:

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this guys a genius, just print more money, problem solved!

So, I guess this all adds weight to my earlier posts that the powers that be will stop at nothing to stop deflation happening and eventually we'll see inflation.

Do it BoE! Print that money baby! I'll be quids in, go gold!

Before anyone says there's no direct link between gold prices and inflation I agree, in general. However, this time we'll be talking about wholesale currency devaluation and high, if not hyper, inflation in a stagnating economy. Different set of rules.

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So, I guess this all adds weight to my earlier posts that the powers that be will stop at nothing to stop deflation happening and eventually we'll see inflation.

Do it BoE! Print that money baby! I'll be quids in, go gold!

Before anyone says there's no direct link between gold prices and inflation I agree, in general. However, this time we'll be talking about wholesale currency devaluation and high, if not hyper, inflation in a stagnating economy. Different set of rules.

shame they appear to have stopped...

thats why the BF is bleating

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shame they appear to have stopped...

thats why the BF is bleating

I don't think they'll stop forever. The US is already talking about Son of Stimulus, as long as the Fed continues on it's merry way what the BoE does isn't as important.

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