exiges Posted November 24, 2011 Share Posted November 24, 2011 Apologies if this is a repost http://www.thisismoney.co.uk/money/news/article-2065069/Bank-Englands-Tucker-admits-chose-let-inflation-soar-crippling-levels.html?ito=feeds-newsxml The Bank of England could have prevented the crippling rise in living costs but ‘chose not to’ despite the squeeze on household finances, a top official admitted last night. Deputy Governor Paul Tucker said inflation was allowed to soar as part of a desperate effort to prevent another recession. His comments will shock millions of households struggling to make ends meet as the price of everyday goods rockets. Despite base rate staying at historic low, home loan costs soar as euro crisis hikes mortgage rates Banks and building societies to come clean over real savings rates The Government borrowed £6.5billion in October, down from £7.7billion in the same month last year, after a sharp jump in VAT revenues. But in a blow to George Osborne, the Bank of England’s latest Systemic Risk Survey found the risk of financial crisis in the UK is at its greatest since 2008 as the eurozone debacle threatens to spiral out of control. Inflation has been well above the 2 per cent target for much of the past few years and is now running at 5 per cent. The Bank usually raises interest rates to curb inflation but has held them at an historic low of 0.5 per cent since March 2009. In a speech in London, Mr Tucker said life would have been even tougher if the Bank’s monetary policy committee had hiked interest rates. While the committee could have avoided the increase in inflation, ‘we chose not to – had we done so, spending in the economy, activity and employment would all have been squeezed’. Quote Link to comment Share on other sites More sharing options...
Timm Posted November 24, 2011 Share Posted November 24, 2011 I like Mr Tucker; he says it like it is. Who can forget: “Subject only but crucially to confidence in their soundness, banks extend credit by simply increasing the borrowing customer’s current account, which can be paid away to wherever the borrower wants by the bank ‘writing a cheque on itself’. That is, banks extend credit by creating money.” Quote Link to comment Share on other sites More sharing options...
_w_ Posted November 24, 2011 Share Posted November 24, 2011 What a gutless hypocrite. "Deputy Governor Paul Tucker said inflation was allowed to soar as part of a desperate effort to prevent another recession." should read "inflation was engineered to soar" "Mr Tucker said life would have been even tougher if the Bank’s monetary policy committee had hiked interest rates." should read "if the Bank’s monetary policy committee had not lowered interest rates to nothing and injected tons of money." The gutless wimp would like to pretend it sort of happened outside of their control. What happened to brave and honorable men in this country FFS. Quote Link to comment Share on other sites More sharing options...
'Bart' Posted November 24, 2011 Share Posted November 24, 2011 This fills me with oh so much confidence in those who are setting economic policy. Asleep at the wheel Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted November 24, 2011 Share Posted November 24, 2011 the maths say that each uk household is in govt debt to the tune of £880,000 and rising fast. its said that by april 2012 each household will owe 1 million. inflation is their only option left. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted November 24, 2011 Share Posted November 24, 2011 The Bankrupt of England’s latest Systemic Risk Survey? Wonder if this analyses the risk from the effects of Systemic lying and screwing with the economy by the Bankrupt of England, which they have done for every year since their "independence"? Quote Link to comment Share on other sites More sharing options...
rented Posted November 24, 2011 Share Posted November 24, 2011 The Bank of England could have prevented the crippling rise in living costs but ‘chose not to’ despite the squeeze on household finances, a top official admitted last night. Nice to have delusions of control. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 24, 2011 Share Posted November 24, 2011 This was not their choice to make. Quote Link to comment Share on other sites More sharing options...
inflating Posted November 24, 2011 Share Posted November 24, 2011 This fills me with oh so much confidence in those who are setting economic policy. Asleep at the wheel i n f l a t i n g Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted November 24, 2011 Share Posted November 24, 2011 The other thing I'm concerned about re the BoE is the Groupthink an institution like this automatically encourages. Whilst we know that Bank policy set by the democratic process is also less than ideal, the fact that these people are unelected and have 'career paths' within the belly of the thing makes things rather difficult to change. Whenever there is a problem or something has gone wrong, it will always be the same people in place trying to fix it and give their own spin on the thing. After all - where were the clever Mr King, Mr Tucker and Mr Haldane when the whole thing was developing. Why the hell didn't they do anything? And when a new political lot get into office, the Bank's priority seems to be to bring the politicos round to their way of thinking, which, given their academic and apparently deeply knowledgable background, is very difficult to counter if you are a relatively young and broad based political team. The political parties almost need to develop their own set of experts to try and counteract this process and provide decent challenge to the (ar*se covering) Groupthink.. You forget that GB crippled the scope of the BoE in favour of a useless tripartite system designed to lead to failures of oversight. King got the overall responsibility back (I believe), but has little choice but to inflate for reasons of "economic stability" (ie preventing revolution). Quote Link to comment Share on other sites More sharing options...
_w_ Posted November 24, 2011 Share Posted November 24, 2011 So why didn't this undemocratic body tell people this was what it was doing? Rather than surreptitiously at the same time stuffing their pensions with index linked gilts. I mean it was clear to those in the know - but what about everyone else? It is not right they 'lied' to the British people. People can have no confidence in either their actions or their pronouncements from hereonin. It is a key task of a central bank to lie to the public, to inflate without them knowing in particular. It's their job. They are not supposed to be caught lying though. The termination of the central bank's independence by the bankers in government probably explains this particular moan and claim to have been doing 'the right thing' all along. Quote Link to comment Share on other sites More sharing options...
_w_ Posted November 24, 2011 Share Posted November 24, 2011 You forget that GB crippled the scope of the BoE in favour of a useless tripartite system designed to lead to failures of oversight. King got the overall responsibility back (I believe), but has little choice but to inflate for reasons of "economic stability" (ie preventing revolution). He has none now, two weeks ago monetary policy in this country was entirely politicised and the bank's independence ended. What GB did in part Cameron did in full. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted November 24, 2011 Share Posted November 24, 2011 Got to love the idea inflation prevents recession!!! It's like they are admitting GDP figures are just made up and manipulated. Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted November 24, 2011 Share Posted November 24, 2011 Got to love the idea inflation prevents recession!!! It's like they are admitting GDP figures are just made up and manipulated. We're in the death throes of the current system here ... the name of the game now is for those at the top to loot as much wealth as possible whilst they can and then hope that no-one asks too many questions after the sith hits the fan and they've slipped quietly away. Quote Link to comment Share on other sites More sharing options...
thedude Posted November 24, 2011 Share Posted November 24, 2011 We're in the death throes of the current system here ... the name of the game now is for those at the top to loot as much wealth as possible whilst they can and then hope that no-one asks too many questions after the sith hits the fan and they've slipped quietly away. The Sith! christ, that's all we need Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 24, 2011 Share Posted November 24, 2011 Kate Barker, a former member of the Bank of England's monetary policy committee, is to join the board of Taylor Wimpey. Barker, who served on the MPC from 2001 to 2010 and was a housing advisor to the Government, will join the housebuilder as a non-executive director in April. She is expected to earn £60,000 a year in the part-time role — just the latest she has taken up since she left Threadneedle Street. Barker is a non-executive director of Electra Private Equity and Yorkshire Building Society as well as a senior advisor to investment bank Credit Suisse. Read more: http://www.thisismoney.co.uk/money/markets/article-1712050/Ex-rate-setter-Barker-joins-Taylor-Wimpey.html Quote Link to comment Share on other sites More sharing options...
RichB Posted November 24, 2011 Share Posted November 24, 2011 He has none now, two weeks ago monetary policy in this country was entirely politicised and the bank's independence ended. What GB did in part Cameron did in full. Ermmm... it was only Crash Himself that put in place the masquerade of political neutrality. http://en.wikipedia.org/wiki/Monetary_Policy_Committee Rates since MPC inception: Inflation since MPC inception: Fail in action. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 24, 2011 Share Posted November 24, 2011 The Bank of England itself is one of the biggest obstacles to low inflation in Britain, former rate-setter Andrew Sentance has claimed. http://www.telegraph.co.uk/finance/economics/8806856/Bank-of-England-causes-inflation-claims-former-MPC-rate-setter-Andrew-Sentance.html Quote Link to comment Share on other sites More sharing options...
_w_ Posted November 24, 2011 Share Posted November 24, 2011 Ermmm... it was only Crash Himself that put in place the masquerade of political neutrality. http://en.wikipedia....olicy_Committee Rates since MPC inception: Inflation since MPC inception: Fail in action. I think you're saying Brown started it? Quote Link to comment Share on other sites More sharing options...
_w_ Posted November 24, 2011 Share Posted November 24, 2011 The Bank of England itself is one of the biggest obstacles to low inflation in Britain, former rate-setter Andrew Sentance has claimed. http://www.telegraph...w-Sentance.html There is one set of people more careless about inflation than central banks: politicians. Quote Link to comment Share on other sites More sharing options...
winkie Posted November 24, 2011 Share Posted November 24, 2011 We're in the death throes of the current system here ... the name of the game now is for those at the top to loot as much wealth as possible whilst they can and then hope that no-one asks too many questions after the sith hits the fan and they've slipped quietly away. I doubt they will get away with it entirely......they will only get away with so much, after that it will be highly unproductive to try and extract any more. Quote Link to comment Share on other sites More sharing options...
Game_Over Posted November 24, 2011 Share Posted November 24, 2011 Given that it has been glaringly obvious for quite some time that the policy has been to deliberately engineer inflation This is hardly a big surprise. Quote Link to comment Share on other sites More sharing options...
Conrad Posted November 24, 2011 Share Posted November 24, 2011 Given that it has been glaringly obvious for quite some time that the policy has been to deliberately engineer inflation This is hardly a big surprise. Of course but why are they coming clean now? Better earlier than latter? What do they expect to happen now change of policy soon? Quote Link to comment Share on other sites More sharing options...
Game_Over Posted November 24, 2011 Share Posted November 24, 2011 Of course but why are they coming clean now? Better earlier than latter? What do they expect to happen now change of policy soon? Sorry, but I have no idea And the scary thing is - neither do they. The policy of QE has been greatly assisted by the fact that everyone else is going down the toilet even faster than we are. It has always been my view that the collapse of the Euro is inevitable I also think that in the long run the UK would be better off trading with the rest of the world, rather than being stuck inside a 21st Century Festung Europa But when exactly the Euro will collapse and what the short term (1-5 years) consequences will be is a very difficult question to answer. Quote Link to comment Share on other sites More sharing options...
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