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gruffydd

Mervyn King's Bank Deposit Slap Down

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What it would do is perhaps make the banks work a little bit harder to try individually to convert some of those reserves into other assets.â€

Foreign currencies in countries that are not run by the mentally unstable leaders backed by economically clueless financiers would be an option.

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Guest Parry aka GOD
What it would do is perhaps make the banks work a little bit harder to try individually to convert some of those reserves into other assets.â€

Foreign currencies in countries that are not run by the mentally unstable leaders backed by economically clueless financiers would be an option.

Not many to choose from now. My basic take on politicians and the like is they are naturally all mental, wanting power over others. It's a no win situation.

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Not many to choose from now. My basic take on politicians and the like is they are naturally all mental, wanting power over others. It's a no win situation.

So says the man whose user-name is 'Parry aka GOD'... ;)

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So, deflation is money supply not growing at historical norm of 6-9%. A historical norm indeed, except in (the now quite short) recent history all that money supply growth was mainly backed by or slushed into shit - yes, shit, lies, ********, corruption, coersion, fraud, tricks, commission hunting deals, company wrecking PE deals, derivatives, poisonous and deceptive investment vehicles via economic and socially damaging total and utter mismanagement. To get back to that money growth ALL those ills will need to return. This is what the target is then, more of the same shit?

http://blogs.telegraph.co.uk/finance/jerem...mpletely-wrong/

On quantitative easing, Mr King said he understood the concerns of those who saw the policy of buying up public debt with newly created money as inflationary. However, growth in broad money in Mr King’s judgement would have fallen precipitously but for QE. Now there are signs that it is picking up once more, though growth in money remains below the historic norm of 6-9 per cent. Deciding whether the QE already applied would eventually come through, or whether more might have to be done to achieve the desired result, was an extraordinarily difficult judgement to make.

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So, deflation is money supply not growing at historical norm of 6-9%. A historical norm indeed, except in (the now quite short) recent history all that money supply growth was mainly backed by or slushed into shit - yes, shit, lies, ********, corruption, coersion, fraud, tricks, commission hunting deals, company wrecking PE deals, derivatives, poisonous and deceptive investment vehicles via economic and socially damaging total and utter mismanagement. To get back to that money growth ALL those ills will need to return. This is what the target is then, more of the same shit?

http://blogs.telegraph.co.uk/finance/jerem...mpletely-wrong/

On quantitative easing, Mr King said he understood the concerns of those who saw the policy of buying up public debt with newly created money as inflationary. However, growth in broad money in Mr King’s judgement would have fallen precipitously but for QE. Now there are signs that it is picking up once more, though growth in money remains below the historic norm of 6-9 per cent. Deciding whether the QE already applied would eventually come through, or whether more might have to be done to achieve the desired result, was an extraordinarily difficult judgement to make.

hmm inflation at 6-9% to keep the ponzi game going

unfortunately the rate needs to rise re exponential growth

then goodbye currency hello chaos

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Guest sillybear2

Err... I thought the whole point of regulatory reform was to force banks to hold more reserves as a cushion against defaults and shocks. Ahh, but obviously not right now, but sometime soon. The same way the UK needs to lower debt levels and improve its savings rate, which is precisely why savers are rewarded with 0.5% base rates.

Actions speak louder than words.

Edited by sillybear2

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King forgot to mention that money supply went bonkers as soon as he got control of interest rates. The great lead up to collapase and the total bastardization of the economy.

0919.h4.jpg

Edited by OnlyMe

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Guest sillybear2
How can he have lost the plot when there's no plot left to be lost?

He's simply read the history books, the establishment is rarely punished for presiding over a near hyper-inflation but everyone remembers a deflationary depression.

No wonder we're friends with Mugabe again, he has truly lead the way.

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Guest sillybear2
King forgot to mention that money supply went bonkers as soon as he got control of interest rates. The great lead up to collapase and the total bastardization of the economy.

i.e. what Merv calls the "NICE Decade".

The same way you can have a "nice" car ride right up until the moment you plunge over the cliff edge at 100mph.

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Guest Parry aka GOD
i.e. what Merv calls the "NICE Decade".

The same way you can have a "nice" car ride right up until the moment you plunge over the cliff edge at 100mph.

NICE. Non-Inflationary Continuous Expansion. Invented by Ed Balls.

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Guest sillybear2
NICE. Non-Inflationary Continuous Expansion. Invented by Ed Balls.

'Nice' was all Merv's work, obviously the "Non-Inflationary" part conveniently ignored the fact one critical asset class just happened to hyper-inflate 300%. Obviously the CPI see's no evil so you cannot measure what you cannot see.

Ed balls came up with "Post-neoclassical endogenous growth theory", i.e. borrowing a ton of money then cripple the next two generations with a public debt nearing 100% of GDP, so annual interest payments of >£60b even exceed the education budget, then quite possibly in excess of the NHS budget once gilt yields inevitably rise.

Obviously you can cowardly sell anyone down the river by declaring "it's the right thing to do" in some desperate act of self-delusion. Your children will thank you for spending more money on bailing out a bunch of parasites that bet wrong at the casino than on their own education.

Edited by sillybear2

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Guest Parry aka GOD
'Nice' was all Merv's work, obviously the "Non-Inflationary" part conveniently ignored the fact one critical asset class just happened to hyper-inflate 300%. Obviously the CPI see's no evil so you cannot measure what you cannot see.

Ed balls came up with "Post-neoclassical endogenous growth theory", i.e. borrowing a ton of money then cripple the next two generations with a public debt nearing 100% of GDP, so annual interest payments >£60b even exceed the education budget, then quite possibly in excess of the NHS budget once gilt yields inevitably rise.

Obviously you can cowardly sell anyone down the river by declaring "it's the right thing to do" in some desperate act of self-delusion. Your children will thank you for spending more money on bailing out a bunch of parasites that bet wrong at the casino than on their own education.

SB's post there, deserves a sincere round of applause.

Well said and good job.

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Guest sillybear2
SB's post there, deserves a sincere round of applause.

Well said and good job.

This is exactly how f**kwits like Brown, Balls and Merv will make their name in the history books.

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Guest Parry aka GOD
This is exactly how f**kwits like Brown, Balls and Merv will make their name in the history books.

You missed one.

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'Nice' was all Merv's work, obviously the "Non-Inflationary" part conveniently ignored the fact one critical asset class just happened to hyper-inflate 300%. Obviously the CPI see's no evil so you cannot measure what you cannot see.

Ed balls came up with "Post-neoclassical endogenous growth theory", i.e. borrowing a ton of money then cripple the next two generations with a public debt nearing 100% of GDP, so annual interest payments of >£60b even exceed the education budget, then quite possibly in excess of the NHS budget once gilt yields inevitably rise.

Obviously you can cowardly sell anyone down the river by declaring "it's the right thing to do" in some desperate act of self-delusion. Your children will thank you for spending more money on bailing out a bunch of parasites that bet wrong at the casino than on their own education.

Hear hear!

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http://blogs.telegraph.co.uk/finance/jerem...mpletely-wrong/

On quantitative easing, Mr King said he understood the concerns of those who saw the policy of buying up public debt with newly created money as inflationary. However, growth in broad money in Mr King’s judgement would have fallen precipitously but for QE. Now there are signs that it is picking up once more, though growth in money remains below the historic norm of 6-9 per cent.

So why didn't he warn five years ago that broad money was growing faster than its historic norm and that the MPC had no remit to address that?

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A foul smell surrounds Merv and this whole debacle. "Forcing the banks to lead" - what a load of old b0ll0x.

Why doen't Merv just get it fixed properly and take back control of the money supply, cutting out the leaches.

What's he waiting for? (a set of balls to grow maybe). :rolleyes:

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