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Mervyn King At The T U C Conference

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Mervyn King at the TUC Conference.

Today, Wednesday, 15 Sept.

I read somewhere that, at the TUC, Mervyn will defend the government plans, explaining that the cuts are necessary. That should be interesting.

Bob Crow, general secretary of the Rail Maritime and Transport union, has vowed to boycott the speech, likening the invitation to "Christians asking the devil to address them".

He said: "This is our congress and I don't think he should have been invited. He is on the side of the bosses - he is not welcome here.

"I haven't heard him offer much support to school dinner ladies, nurses or other public sector workers in the campaign against spending cuts."

http://news.sky.com/skynews/Home/UK-News/Mervyn-King-At-TUC-Conference-Bank-Of-England-Chief-Becomes-Only-Second-Governor-To-Face-Unions/Article/201009315728904?lpos=UK_News_News_Your_Way_Region_7&lid=NewsYourWay_ARTICLE_15728904_Mervyn_King_At_TUC_Conference%3A_Bank_Of_England_Chief_Becomes_Only_Second_Governor_To_Face_Unions

Other news about it: http://www.google.co.uk/search?hl=&q=mervyn+king+tuc&sourceid=navclient-ff&rlz=1B3GGGL_enGB259GB260&ie=UTF-8#hl=en&q=mervyn+king+tuc&rlz=1B3GGGL_enGB259GB260&um=1&ie=UTF-8&tbo=u&tbs=nws:1&source=og&sa=N&tab=wn&fp=da3e0a7a830a4626

EDIT: 12 Noon: It is over now. But thanks to FreeTrader:

Edit: And thanks to winkie:[/b]

Edited by Tired of Waiting

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Bob Crow.... "I'm certainly not going to listen to him"..... sticks fingers in ears and sings la la la la la..... :rolleyes:

Ridiculous little man :lol:.

It is on BBC Parliament - Mervyn has arrived at the TUC Conference, and should speak soon.

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and on a very tasty £140,000 per annum.how he suffers with the people.

#

My first job was in a factory , paid Union subs, everyone did, fact - it's just another racket to steal from workers.

140k wtf he is a total fat cxxt and a champagne socialist.

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It is on BBC Parliament - Mervyn has arrived at the TUC Conference, and should speak soon.

He is speaking now, 11:40AM, on BBC News 24 and Sky New.

Edited by Tired of Waiting

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Just tuned in and the first thing I hear the speccy tw@t say is he will stimulate demand.

w4nker.

Is that in his remit?

Surely given the state of inflation, explicitly in his job spec, he hasn't got enough time for dabbling in other areas?

Peter.

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Thanks FreeTrader.

At noon Mervyn finished his speech, the "questions from the floor" started, but then both channels (BBC and Sky) switched to PMQs - joing BBC 2 on it! Now we have 3 channels on PMQ, and none on the TUC. :angry: Bo!!ocks.

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Missed it. :(

Has he explained to ToW it's the trade imbalances wot done it yet? :rolleyes:

Edit: Ah, great minds hamster.

160dm4o.jpg

Edited by Frank Sidebottom

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A very good speech. Thankyou for the heads up ToW. Everything I've been banging on about (and you've been attacking as being 'racist' and 'protectionist') about trade imbalances and the recycling of capital flows back into our country as the root cause of the financial crisis.

Thankyou Merv.

You've gone very quiet ToW.

(Edit: "Merv said it was not Merv's fault. Case proven". :rolleyes: )

In sovereign countries that have their own currency (such as ours - out of the Euro), the trade deficit is not a cause, but a consequence of a lose monetary policy. If the BoE had been allowed to curb the credit bubble in 2004, all imbalances would have been minimised.

(BTW, Mervyn knows that, as it became clear when he said in that Commons Committee that he opposed Browns' tampering with the inflation index in 2003. Mervyn just though "better" to leave it aside today... I wonder why... :rolleyes: )

Look: There are only 2 ways to pay for thing, including for imports : with cash, or credit. Agree? So:

If the credit/debt bubble had been curbed back in 2004, the trade imbalance would have been impossible.

In other words: if the total national debt (government + households + companies) had not been allowed to go up (sky high! Remember that Mckinsey chart?), then it would not have been possible to have had a trade imbalance.

Editing for clarity: No cash + no credit = no imbalance.

.

Edited by Tired of Waiting

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Missed it. :(

Has he explained to ToW it's the trade imbalances wot done it yet? :rolleyes:

Edit: Ah, great minds hamster.

160dm4o.jpg

I'm guessing it will be on iPlayer sooner or later.

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Best line he used to the ~TUC was "Accept the cuts or fail your children."

That's not exactly what he said is it?

Through your failure to listen and to think, you will go to your grave having learnt nothing in this life.

As soon as two entities trade out of balance, the 'credit' has been created by that very act.

A system that curbs trade imbalances rather than putting up interest rates that punish citizens and businesses needlessly is clearly preferable.

If I wanted to read about this, what would be the best thread to start with?

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In sovereign countries that have their own currency (such as ours - out of the Euro), the trade deficit is not a cause, but a consequence of a lose monetary policy. If the BoE had been allowed to curb the credit bubble in 2004, all imbalances would have been minimised.

(BTW, Mervyn knows that, as it became clear when he said in that Commons Committee that he opposed Browns' tampering with the inflation index in 2003. Mervyn just though "better" to leave it aside... I wonder why... :rolleyes: )

Look: There are only 2 ways to pay for thing, imports included: with cash, or credit. Agree? So:

If the credit/debt bubble had been curbed back in 2004, the trade imbalance would have been impossible.

In other words: if the total national debt (government + households + companies) had not been allowed to go up (sky high! Remember that Mckinsey chart?), then it would not have been possible to have had a trade imbalance.

How would it have been curbed?

Edited by Alan B'Stard MP

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Through your failure to listen and to think, you will go to your grave having learnt nothing in this life.

As soon as two entities trade out of balance, the 'credit' has been created by that very act.

A system that curbs trade imbalances rather than putting up interest rates that punish citizens and businesses needlessly is clearly preferable.

Push up interest rates and make the country a good place to put your foreign wonga.

I wonder how the banks would have serviced all this wonga without being able to lend it out.

;)

Edited by Alan B'Stard MP

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That's not exactly what he said is it?

Bank of England governor Mervyn King warns unions accept cuts or 'fail your children'

Meryn King, the Governor of the Bank of England, has urged the unions to accept public sector reforms and jobs cuts by warning that anything short of tackling the UK's record Budget deficit would “fail the next generation”.

.......

“There was nothing fair about the financial crisis. It was caused not by problems in the real economy; it came out of the financial sector. But it was the real economy that suffered and the banks that were bailed out,” he said. “Your members, and indeed the businesses which employ them, are entitled to be angry.”

The telegraph headline.

I think Mystic Merv is being a little disingenuous here about the causes, there are quite clearly real problems in the "real" economy which the massive expansion of debt helped to paper over the cracks off.

The structural issues that where in the economy remain and now somehow we have to finance a bank bailout which was a result of idiots trying to paper over the structural cracks with debt.

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Through your failure to listen and to think, you will go to your grave having learnt nothing in this life.

Please don't be rude. I wasn't in my post to you above. This time let's try to have a calm and civilised talk here.

As soon as two entities trade out of balance, the 'credit' has been created by that very act.

I'm sorry, but you are confusing cause and consequence. if a buyer doesn't have cash nor credit, the transaction can't happen.

A system that curbs trade imbalances rather than putting up interest rates that punish citizens and businesses needlessly is clearly preferable.

Look, let's start from where we agree. Back in 2003-4 inflation was picking up, and the credit bubble was growing to dangerous levels. The BoE was planning to curb it, by increasing IR in 2004. But Brown blocked it (RPI x CPI). Right? So:

If Brown had not blocked it, the base rate would probably have been about, say 1% higher from 2004 to 2008. Not "punishing". But that would have increased mortgage rates from say 5%aa to 6%aa. - enough to curb the credit/assets bubble (and MEWings), as it would increase monthly mortgage payments by some 15%!

The HP bubble is linked to the credit bubble. And both with the huge expansion of credit to UK households. And with pushing sterling too high. All of these increased aggregate demand, fuelled by credit. That allowed the trade imbalance too.

Edited by Tired of Waiting

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How would it have been curbed?

Monetary policy. Keeping RPI would have helped. And also FSA regulation on mortgages, like minimum deposits, or multiples of income. Not difficult. Brown (Ed Balls?) just didn't want to curb it in 2004, with a general election in 2005.

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