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exiges

Mpc In The Dock

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Can you imaging the conversation of the monthly meeting ( this is purely a ficticous conversation and any similarity to living or dead ( stupid ) people is purely coincidental ):

Everyone: What's inflation at.

Swerve: 4.4% this month, up again

Everyone: Isn't our job to keep it at 2%

Swerve: Yes

Everyone: So lets whack up interest rates and force it down.

Swerve: Errr..welll..we'll give it another month, it might be lower in 18 months

Everyone: So 18 months ago you didnt see interest rates going up

Swerve: Err....well...no

Everyone: So yare you admitting you dont have a clue ?

Swerve: Ok, I did see rates going up 18 months ago then, i'm clever me.

Everyone: So why didnt you raise interest rates then.

Swerve: Well, errr, just because.

Everyone: So we can put them up this month then

Swerve: No, im not allowed.

Everyone: Why not, we're not doing our job if we dont

Swerve: My mates told me not to.

Everyone: :blink:

Repeat month on month for 2 years....

So which is it, is the MPC useless/dont have a clue...or do they have a deliberate policy of keeping inflation high ?

Either way the responsibility should be immediately removed from them.

Edited by TheCountOfNowhere

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"A key lesson I learnt from the financial crisis is that economists know a lot less about the economy and how the economy works than many would like to believe."

A bunch of blaggers then. They haven't got a clue.

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Can you imaging the conversation of the monthly meeting ( this is purely a ficticous conversation and any similarity to living or dead ( stupid ) people is purely coincidental ):

Everyone: What's inflation at.

Swerve: 4.4% this month, up again

Everyone: Isn't our job to keep it at 2%

Swerve: Yes

Everyone: So lets whack up interest rates and force it down.

Swerve: Errr..welll..we'll give it another month, it might be lower in 18 months

Everyone: So 18 months ago you didnt see interest rates going up

Swerve: Err....well...no

Everyone: So yare you admitting you dont have a clue ?

Swerve: Ok, I did see rates going up 18 months ago then, i'm clever me.

Everyone: So why didnt you raise interest rates then.

Swerve: Well, errr, just because.

Everyone: So we can put them up this month then

Swerve: No, im not allowed.

Everyone: Why not, we're not doing our job if we dont

Swerve: My mates told me not to.

Everyone: :blink:

Repeat month on month for 2 years....

So which is it, is the MPC useless/dont have a clue...or do they have a deliberate policy of keeping inflation high ?

Either way the responsibility should be immediately removed from them.

I think they spend more time talking about how much money they can earn and their pensions.

They probably last talked about inflation 3 years ago when they agreed to aim for 5% instead of 2%

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Guest sillybear2

"The task of maintaining low and stable inflation was made substantially easier, and we enjoyed a sustained period of economic stability"

Err, no, you simply sat there twiddling your thumbs whilst the biggest credit bubble in human history expanded around you, and when it finally popped it took down the entire system. If that's their definition of "economic stability" no wonder they're f***g lost. If they're still in denial about recent history, and their role in it, how are they meant to prevent a repeat of past mistakes?

Can't we just vote to replace them with a fruit machine? At least we'd know the outcome is random and outside of our control, why pretend otherwise.

Edited by sillybear2

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"The task of maintaining low and stable inflation was made substantially easier, and we enjoyed a sustained period of economic stability"

Err, no, you simply sat there twiddling your thumbs whilst the biggest credit debt bubble in human history expanded around you, and when it finally popped it took down the entire system. If that's their definition of "economic stability" no wonder they're f***g lost. If they're still in denial about recent history, and their role in it, how are they meant to prevent a repeat of past mistakes?

Can't we just vote to replace them with a fruit machine? At least we'd know the outcome is random and outside of our control, why pretend otherwise.

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The BoE was given the job because you couldn't trust governments to keep inflation down as they would always be politically expedient to buy votes - boom and bust so we were told. The BoE wouldn't ever take the easy way out, oh no that much was certain. It would be just like the Bundesbank and the UK would benefit from that.

The BoE has failed with the 2% target - abysmally.

The BoE isn't even trying to target 2%.

The BoE says it can't do anything about inflation because it's being imported.

(As if they didn't know about imported inflation when they took on the job - as if imported inflation is a new thing - as if imported inflation hasn't affected UK inflation since days of yore - as if imported inflation doesn't affect every country in the world - as if imported inflation isn't a subject covered in studies on economics).

The BoE can only be considered to be doing it's job if it is actually trying to target the 2% target.

The BoE has reneged on its job.

The job should be taken from them now. Even the government would do a better job.

Edited by billybong

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Even the government would do a better job.

+1

It seems like the 'independent' BoE is actually achieving the opposite of what it was designed to do.

The whole point of making it independent was to take away the temptation governments have to print money when they want a short term liquidity boost at the expense of long term inflation. Now we have an independent central bank which is creating inflation constantly, and when voters complain to their elected leaders they can just put their hands up in the air and say "not my department".

Merv et al are becoming useful hate figures. They take the heat for inflation away from the government, and in return they receive large salaries and an enormous index-linked pension.

What a corrupt mess.

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  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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