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Mystic Merv Tells China To Buy Tat From The World

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Bank of England governor Mervyn King has called on China to import more to help solve global financial problems.

"Four years after the financial crisis began, the foreign exchange reserve holdings of China are substantially larger than at the onset of the crisis," he said in Liverpool.

It is a theme he is likely to take to next month's G20 summit in Cannes.

He also said it was time to accept that the problems in the global economy were about "solvency not liquidity".

And he stressed the Bank of England's view that UK inflation had peaked.

Official figures on Tuesday morning showed Consumer Price Inflation (CPI) had reached 5.2% in September.

"We expect inflation now to start to fall back," he said.

One of RK's pet favourites that China needs to spend to restore trade balances and hoarding isn't helping. However I'm not sure how Mystic Merv expects the Chinese to break their hoarding habits, even if the party demands it.

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Germany, Japan and China must take greater responsibility for getting the world economy out of the doldrums by boosting demand for imports to help highly indebted countries get back on track, Bank of England Governor Mervyn King said on Tuesday.

The lack of rebalancing between deficit and surplus nations means countries such as Britain have had to support their economies with ultra-loose monetary policy, creating a dilemma between short-term stimulus and a long-term need to cut back spending, King said.

"In the absence of rebalancing, globally and especially in the euro area, we could be facing a recovery that is not merely reluctant but recalcitrant," King said in a speech to be delivered at an event in Liverpool on Tuesday.

Slightly more at Reuters.

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6 December 2006

The richest 1% of adults in the world own 40% of the planet's wealth, according to the largest study yet of wealth distribution. The report also finds that those in financial services and the internet sectors predominate among the super rich.

Europe, the US and some Asia Pacific nations account for most of the extremely wealthy. More than a third live in the US. Japan accounts for 27% of the total, the UK for 6% and France for 5%.

The UK is also third in terms of per capita wealth. UK residents are found to have on average $127,000 (£64,000) each in assets, with Japanese and American citizens having, respectively, $181,000 and $144,000. All data relate to the year 2000.

I'm guessing since the onset of the crisis the richest will have accumulated even more wealth.

Just posted this on the Greek thread, I thought it deserves to go here as well, as clearly the global rebalancing isn't just down to the Chinese, Germans spending their foreign currencies the rich need to get spending as well.

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  • 284 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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