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Mervyn King 'losing The Plot'

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Raising rates makes assets like gold and other commodities less attractive, and it will push the currency up which would then take a lot of external inflationary pressures away.

Oh hang on, wouldn't that destroy the export led recovery? :unsure:

What to do, what to do. Poor Merv.

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Oh hang on, wouldn't that destroy the export led recovery? :unsure:

What to do, what to do. Poor Merv.

I don't think even Merv believed the export led recovery cr@p - interest rates are where they are because that's where the banks want them.

Mind the output gap.

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I don't think even Merv believed the export led recovery cr@p - interest rates are where they are because that's where the banks want them.

Mind the output gap.

need them. The first priority of the Central Bank is the Banking System.

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Oh hang on, wouldn't that destroy the export led recovery? :unsure:

What to do, what to do. Poor Merv.

It is all smoke and mrros anything earning more devlued sterling due to currency debasement is not a recovery.

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'swiped this from the home page. good to see others now think he's behind the curve (as usual)...

I never fail to be surprised at the failure to distinguish between King, the individual, and the BOE's policy as a whole. Mervyn King doesn't have a free hand... he is constrained both by the remit he has from the Treasury/government - and also by the MPC. When I listen to King, rather than those who comment about him, I consider him to be clued-up, all be it in a very difficult situation. I think it is important to attribute to King only what he says and does... not what people assume he must agree with because it is presented by others as policy.

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I never fail to be surprised at the failure to distinguish between King, the individual, and the BOE's policy as a whole. Mervyn King doesn't have a free hand... he is constrained both by the remit he has from the Treasury/government - and also by the MPC. When I listen to King, rather than those who comment about him, I consider him to be clued-up, all be it in a very difficult situation. I think it is important to attribute to King only what he says and does... not what people assume he must agree with because it is presented by others as policy.

He takes the monthly pay cheques, he therefore agrees.

Plenty of other things he can get up to but doesn't.

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Artemis fixed income manager James Foster says the governor of the Bank of England needs to raise rates now to prevent inflation becoming embedded in the system.

That's EXACTLY what the idiot is hoping to achieve. I've said it before that the (secret) decision has been made to protect the feckless home-owners who bought their highly over-priced rabbit hutches. Stuff the savers and anyone else, it's protect the idiots at all cost. Let inflation rip.

King is speaking with a forked-tongue. High inflation IS his aim.

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Merv's seen what's coming with China in a short while.

Inflation ain't going to be the problem!!

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Guest sillybear2

These are the self-same people who were calling for ZIRP and QE two years ago in order to save their sorry asses, now they're bitching about the unintended consequences. :rolleyes:

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King is clueless. I hate that man.

I think I'm going to hire a grim reaper outfit and stand outside the BoE at the next MPC meeting.

Any ideas for what I can write on a placard?

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Guest sillybear2

King is clueless. I hate that man.

I think I'm going to hire a grim reaper outfit and stand outside the BoE at the next MPC meeting.

Any ideas for what I can write on a placard?

“In the long run, we're all dead.”

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Merv's seen what's coming with China in a short while.

Inflation ain't going to be the problem!!

Maybe.

Although either way I think Merv will end up being right.

By keeping rates low and allowing rampant inflation he destroying the economy. Inflation is deflationary once it causes the second leg down into recession. Then Merv can say "told you so" when in reality he will only be right because he is wrong.

Edited by Pent Up

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King is clueless. I hate that man.

I think I'm going to hire a grim reaper outfit and stand outside the BoE at the next MPC meeting.

Any ideas for what I can write on a placard?

Have a word with this man:

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He takes the monthly pay cheques, he therefore agrees.

Plenty of other things he can get up to but doesn't.

I'd rather have King as Governor than Bernanke or Greenspan or Trichet.

I'd rather have King as Governor than any other member of the MPC.

I'd rather have King as Governor than any past Governor...

While I recognise that there's a tendency towards a fundamentalist hatred of central banking here - I'm happy to separate consideration of whether or not I support a central banking system from the question of how one is run if we assume central banks as a 'given'. I find King the most transparent of central bankers - and, while it requires concentration, he also speaks most clearly and openly about the problems the system faces. I don't think King would consider the BOE to be perfect - but he's in an operational role making pragmatic choices. Perhaps they won't all be for the best - but I'm more confident that King will take the 'least bad path' than I am with the others.

If all the honest people engaged by a dubious system resign, the system is left to the most corrupt and inept. While I can imagine this being an anarchist's goal - it's not what I want. While the system remains, we need the least incompetent, most capable, most honest people filling the most senior positions. If you think there's someone who can do a better job than King as Governor, maybe you could name them?

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I'd rather have King as Governor than Bernanke or Greenspan or Trichet.

I'd rather have King as Governor than any other member of the MPC.

I'd rather have King as Governor than any past Governor...

While I recognise that there's a tendency towards a fundamentalist hatred of central banking here - I'm happy to separate consideration of whether or not I support a central banking system from the question of how one is run if we assume central banks as a 'given'. I find King the most transparent of central bankers - and, while it requires concentration, he also speaks most clearly and openly about the problems the system faces. I don't think King would consider the BOE to be perfect - but he's in an operational role making pragmatic choices. Perhaps they won't all be for the best - but I'm more confident that King will take the 'least bad path' than I am with the others.

If all the honest people engaged by a dubious system resign, the system is left to the most corrupt and inept. While I can imagine this being an anarchist's goal - it's not what I want. While the system remains, we need the least incompetent, most capable, most honest people filling the most senior positions. If you think there's someone who can do a better job than King as Governor, maybe you could name them?

Well said that man.

Have a +1.

PS. I wonder what book King will choose to write when he retires?

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Well said that man.

Have a +1.

PS. I wonder what book King will choose to write when he retires?

A Brief History of Fan Charts

(I agree btw)

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Artemis fixed income manager James Foster says the governor of the Bank of England needs to raise rates now to prevent inflation becoming embedded in the system.

That's EXACTLY what the idiot is hoping to achieve. I've said it before that the (secret) decision has been made to protect the feckless home-owners who bought their highly over-priced rabbit hutches. Stuff the savers and anyone else, it's protect the idiots at all cost. Let inflation rip.

King is speaking with a forked-tongue. High inflation IS his aim.

Not quite.

They want inflation, yes.

What they don't want is embedded expectations of high inflation.

This is why they will tinker with the rate soon - to make people expect lower inflation.

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Guest sillybear2

Well said that man.

Have a +1.

PS. I wonder what book King will choose to write when he retires?

"How to rob a bank and get away with it".

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I'd rather have King as Governor than Bernanke or Greenspan or Trichet.

I'd rather have King as Governor than any other member of the MPC.

I'd rather have King as Governor than any past Governor...

While I recognise that there's a tendency towards a fundamentalist hatred of central banking here - I'm happy to separate consideration of whether or not I support a central banking system from the question of how one is run if we assume central banks as a 'given'. I find King the most transparent of central bankers - and, while it requires concentration, he also speaks most clearly and openly about the problems the system faces. I don't think King would consider the BOE to be perfect - but he's in an operational role making pragmatic choices. Perhaps they won't all be for the best - but I'm more confident that King will take the 'least bad path' than I am with the others.

So am I.

If all the honest people engaged by a dubious system resign, the system is left to the most corrupt and inept. While I can imagine this being an anarchist's goal - it's not what I want. While the system remains, we need the least incompetent, most capable, most honest people filling the most senior positions. If you think there's someone who can do a better job than King as Governor, maybe you could name them?

The CB system is corrupt and inept. It doesn't matter who runs it. The executioners axe will take your head off if swung by a happy go lucky family man with an IQ of 165 just the same as if it's swung by a lonely, surly dickhead schizophrenic with an IG of 82.

I agree that king will get more milage out of it, but in no way is this a good thing. As for honest, he can't be by definition.

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"How to rob a bank and get away with it".

Don't you mean "How to rob the entire globe and get away with it". ?

In any event, I suspect that is exactly the book he is itching to publish.

But I'm sure he's not stupid enough to actually do it.

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I never fail to be surprised at the failure to distinguish between King, the individual, and the BOE's policy as a whole. Mervyn King doesn't have a free hand... he is constrained both by the remit he has from the Treasury/government - and also by the MPC. When I listen to King, rather than those who comment about him, I consider him to be clued-up, all be it in a very difficult situation. I think it is important to attribute to King only what he says and does... not what people assume he must agree with because it is presented by others as policy.

I think the remit got thrown out the window some time back in 2009. Personally I think it's become clear that the head of the BoE is a lame duck anyway. He is set two main targets that sometimes work against each other (inflation and stability) and then politicians are free to change the metrics of these targets at will anyway (e.g. switching from rpi to cpi). It also seems the BoE has to base its decisions on projections that are complete and utter sh1te - although how much Merv has to do with the modelling of those projections I don't know.

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Merv's seen what's coming with China in a short while.

Inflation ain't going to be the problem!!

What is coming from China?

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  • 312 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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