OnlyMe Posted August 10, 2010 Share Posted August 10, 2010 About time somebody started asking bigger questions about the role of the BOE and the parasites in it. http://blogs.wsj.com/source/2010/08/10/criticizing-king/ The Bank of England’s power over the U.K. economy is growing to an extraordinary degree, eventually to encompass macro-prudential policy. The irony is that under Mervyn King’s governorship, the BOE has been anything but prudent. The case against the BOE stretches back to its independence in 1997. Almost from the moment it was given full authority over setting interest rates, the BOE ensured the punchbowl was spiked and that the booze kept flowing well into the night. ...... A year ago he called savers “stupid” for wondering why they were being made to pay for the BOE’s policy mistakes. Having fleeced them of income through a zero rate policy, he is now robbing them of their capital through the inflation tax in order to spare borrowers the pain of having to make amends and in order to keep bonuses flowing to the bankers. What’s more, he has intentionally set out, through the quantitative easing program, to reinflate the housing bubble and thus protect the interests of speculators. Before the crash, King dismissed warnings about the imbalances the BOE was allowing to build in the economy. Since then, he has dismissed concerns about his indifference to inflation. What’s more, he seems to be agitating for yet more quantitative easing. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 10, 2010 Share Posted August 10, 2010 About time somebody started asking bigger questions about the role of the BOE and the parasites in it. http://blogs.wsj.com...iticizing-king/ snip A year ago he called savers "stupid" for wondering why they were being made to pay for the BOE's policy mistakes. Having fleeced them of income through a zero rate policy, he is now robbing them of their capital through the inflation tax in order to spare borrowers the pain of having to make amends and in order to keep bonuses flowing to the bankers. What's more, he has intentionally set out, through the quantitative easing program, to reinflate the housing bubble and thus protect the interests of speculators. Before the crash, King dismissed warnings about the imbalances the BOE was allowing to build in the economy. Since then, he has dismissed concerns about his indifference to inflation. What's more, he seems to be agitating for yet more quantitative easing. COurse, Bernanke has done a whole lot better, even though his hair is the wrong way up. Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted August 10, 2010 Share Posted August 10, 2010 I'm sick and tired of the lot of them. So far the wizards at the BoE have offered us:- 1. A talked down Pound at every opportunity, dropping Sterling through the floor and causing import inflation. 2. The splitting of Pounds (QE), causing Sterling to dive even further. 3. Near zero interest for 18 months, transferring wealth from saver to borrower. 4. Inflation target missed time and time again, now costing us all. And Osborne wants to hand them more powers, god help us all... Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted August 10, 2010 Share Posted August 10, 2010 The BoE is full of thieving halfwits they've screwed everyone over to help out there banker buddies. Eddie George deliberately stoked a consumer boom in the early part of this decade to avoid a correction. He even had the gall to say someone else was going to have to clear up the mess. He knew what he was doing and is walking free. George is a traitor and should be treated as such. Nothing more than an economic terrorist. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted August 10, 2010 Share Posted August 10, 2010 I wonder if Mervyn King gives a rodent's posterior what anybody thinks about him... He must have a lovely fat 6 figure inflation-linked pension entitlement by now. Just another spineless bankster saying and doing whatever keeps him in the job for as long as possible. Quote Link to comment Share on other sites More sharing options...
Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted August 10, 2010 Share Posted August 10, 2010 Well said Dorkins! Quote Link to comment Share on other sites More sharing options...
huw Posted August 10, 2010 Share Posted August 10, 2010 (edited) I'm sick and tired of the lot of them. So far the wizards at the BoE have offered us:- 1. A talked down Pound at every opportunity, dropping Sterling through the floor and causing import inflation. the pound has been massively overvalued and remains overvalued today (see ongoing UK trade deficit for evidence) 2. The splitting of Pounds (QE), causing Sterling to dive even further. ditto 3. Near zero interest for 18 months, transferring wealth from saver to borrower. such a transfer is baked into a system riddled with with unrepayable debt; the only choice for savers in that currency is naked default, or inflationary erosion. 4. Inflation target missed time and time again, now costing us all. they are trading that goal off with their other mandated goal -- economic stability. We could debate whether that's the right trade off to be making, but frankly the spending power of most people in the UK needs to adjust downward until we get to the point where we're paying our way with wealth instead of debt ... see 1 and 2. A falling currency, coupled with reform to shrink debt-bloated sectors of the economy, is the least painful (overall) way of achieving this. On the broad question raised in the OP: What evidence is there that the BoE spiked the punch bowl? Who set the inflation target and chose (changed) the index by which it would be measured? How did King vote in the meeting that's widely held to have re-ignited the boom by cutting interest rates in August 2005? Seriously, before throwing too many stones, look up the voting record. (missing word) Edited August 10, 2010 by huw Quote Link to comment Share on other sites More sharing options...
libspero Posted August 10, 2010 Share Posted August 10, 2010 I wonder if Mervyn King gives a rodent's posterior what anybody thinks about him. To be fair to him, it IS his job to be unbiased by opinion. As little as the BoE may have done to foresee and prevent the issues we now face, I'd still trust them 10000000 times more than the clowns at the FSA. Quote Link to comment Share on other sites More sharing options...
libspero Posted August 10, 2010 Share Posted August 10, 2010 On the broad question raised in the OP: What evidence is there that the BoE spiked the punch bowl? Who set the inflation target and chose (changed) the index by which it would be measured? How did King vote in the meeting that's widely held to have re-ignited the boom by cutting interest rates in August 2005? Seriously, before throwing too many stones, look up the voting record. +1 Quote Link to comment Share on other sites More sharing options...
Pope Benedict XVI Posted August 11, 2010 Share Posted August 11, 2010 I wonder if Mervyn King gives a rodent's posterior what anybody thinks about him... I'm sure he'll be taken care of in his dotage. Not sure about the rest of us. Quote Link to comment Share on other sites More sharing options...
Tiger Woods? Posted August 11, 2010 Share Posted August 11, 2010 (edited) George is a traitor and should be treated as such. Nothing more than an economic terrorist. An already dead economic terrorist. Sadly, nothing can be done about him. It was truly galling to see him in front of the treasury committee saying that they knew they were blowing a bubble in the housing and asset markets, then a day or so later he was saying to the papers that they were completely shocked and that there was no housing bubble. Hypocrit of the worst sort, but not atypical of our "betters." Edited August 11, 2010 by Tiger Woods? Quote Link to comment Share on other sites More sharing options...
Minos Posted August 11, 2010 Share Posted August 11, 2010 If anyone on here is shocked to discover that a central banker exists only to rob you, then I'm more shocked at you for only just realising it. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted August 11, 2010 Share Posted August 11, 2010 If anyone on here is shocked to discover that a central banker exists only to rob you, then I'm more shocked at you for only just realising it. im shocked that you're shocked that they're shocked Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 11, 2010 Share Posted August 11, 2010 If anyone on here is shocked to discover that a central banker exists only to rob you, then I'm more shocked at you for only just realising it. that was unexpected. Quote Link to comment Share on other sites More sharing options...
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