Bank Board Expresses Unease At King Deficit Comments

[interestrateripoff]

http://uk.reuters.com/article/2011/03/15/uk-britain-bank-idUKTRE72E51X20110315

The Bank of England's supervisory board said that it was uncomfortable with the way Governor Mervyn King's comments on fiscal policy had been used for political means and that the bank should have "shouted louder" to warn of an impending financial crisis.

The chairman of the Bank's board of directors expressed unease Tuesday that King had made comments on fiscal policy that were open to a partisan political interpretation.

David Lees, who chairs the Bank's Court of Directors and oversees its Monetary Policy Committee, was asked by a parliamentary committee about a speech King gave in January in which he endorsed the government's fiscal course.

"I'm not terribly comfortable with that because that's moving away from the general to the particular," said Court chairman David Lees, who otherwise said he was happy with King's remarks on the need for fiscal tightening.

But Brendan Barber, who heads the umbrella trade union body as well as sitting on the Bank's Court, put the blame on the coalition for misrepresenting King's remarks.

"They sought to present his remarks as an endorsement of (their) strategy. I think that was very unfortunate and did risk getting the bank drawn in an unhelpful way in what is a very political debate," Barber said. "I didn't see (King's remarks) as a significant variation from his earlier comments."

The Labour Party has occasionally criticised King for compromising the Bank's independence by apparently endorsing the coalition's budget plans. King says that fiscal consolidation is necessary -- a view shared by all major UK parties -- but that he is neutral on whether taxes are raised or spending cut to reduce the budget deficit.

Trouble is no one was wanting to listen. The party was in full swing and no one wants to listen to the party pooper saying everyone needs to stop drinking as they have work in the morning.

[ralphmalph]

What I found interesting was that Brendan Barber head of the TUC sits on the supervisory board of the BoE.

I wonder how much that pays ontop of his 200K a year.

[billybong]

Trade Unions have their rep at the BoE Court and even Dyno-Rod have a rep there as well under Sir Roger Carr, Chairman of Centrica who own Dyno.

Dyno-Secure Lock and Security services is now wholly owned by the Dyno Group and specialises in:

gaining entry to buildings and cars

replacing/fitting locks and grilles

on-site cutting and safe opening

It looks like one of the only groups without representation are savers - and also beware BoE/Dyno-Secure with their safe opening skills .

Edited March 16, 2011 by billybong