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The Business Online: Astonishing Attack On Bank Of England:

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'Astonishing attack on Bank of England: 'Incompetent, sloppy and suffering from mental paralysis'':

http://thebusinessonline.com/Stories.aspx?...8C-E965ADD4A571

THE Bank of England has been accused this weekend of incompetence, mental paralysis and disgraceful sloppiness in an extraordinary critique by a top economic consultancy.

The astonishing mauling, by leading London-based forecaster Lombard Street Research, uses unprecedented language and accuses the Bank's monetary policy committee (MPC), led by its governor Mervyn King, of producing research worthy only of the rubbish bin.

The attack, which comes as new figures reveal that the UK's economic performance has collapsed amid rising taxes and red tape, suggests a growing discontent with the conduct of economic policy in the City of London.

[...snip...]

Lombard Street Research believes the Bank should focus more on the surge in the value of cash circulating in the economy and that it should be more decisive in fighting inflation. Usually, senior City figures are much more circumspect and deferential in their treatment of the Bank of England, even when they disagree with it.

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Guest Charlie The Tramp

Always amazed me at the silence of all these economists when the MPC cut rates to 3.5% in July 2003. I remember being at a meeting with my accountant when the news broke and we both looked at each other with astonishment. Watch the borrowing take off now he commented, and how right he was.

The reason we are in the s**t today. I truly believe that the cut in August orchestrated by Brown`s men is now regretted by the MPC.

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Guest Charlie The Tramp

We'll see by what the next move is......

In the hands now of the Global CBs

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Always amazed me at the silence of all these economists when the MPC cut rates to 3.5% in July 2003. I remember being at a meeting with my accountant when the news broke and we both looked at each other with astonishment.

Yes and they did this in the knowledge that HPI was running at an annual rate of over 20%. Surely it should have been bloody obvious that a bubble was well and truly underway in the housing market.

Hopefully at some point in the not-too distant future, the Bank of England and the Government will be held collectively responsible for this reckless and irresponsible behaviour.

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We shall see.

Yes we shall see, but WHAT will it prove:

a ) that folks here have a better understanding of the economy than you think, or,

b ) the BoE is just a branch or the Treasury.

Well?

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'Astonishing attack on Bank of England: 'Incompetent, sloppy and suffering from mental paralysis'':

http://thebusinessonline.com/Stories.aspx?...8C-E965ADD4A571

Astonishing language, but it confirms what people have been saying on here for a while: the economy in this country is in a pretty bad state.

Next year is going to be very, very interesting: consumer confidence slipping further, inflation and unemployment rising, house prices dropping...

Hold on tightly, this WILL get bumpy...

Edited by Plastic Elastic

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Forgive me for being a bit thick but what does "the surge in the value of cash circulating in the economy" mean? I take it it means inflation, but why use those words?

The broad money supply, more money chasing the same goods = inflation and the money supply has been growing upwards of 11% the year to October, the monetarists are no doubt pissed.

Asset price inflation is hard to contain, eventually is spills over into the real economy.

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Guest Bart of Darkness

Hopefully at some point in the not-too distant future, the Bank of England and the Government will be held collectively responsible for this reckless and irresponsible behaviour.

I'd like to think so too but this is Britain after all.

They'll probably all end up with comfortable pensions, directorships and Quangos which will keep the money pouring in long after they leave their current positions.

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I like reading the business, but I don't rate this article what-so-ever. Most of the things they mention are totally out of the MPC's control, if anything they are doing a good job having being given a bum deal by the chancellor who does control the majority of the problems mentioned.

Besides, I suspect that all we are seeing now is a soft patch and like the BoE I expect things to pick up in 2006.

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The King has no clothes, the BOE have no policy other than to create debt to keep the appearance of a stable and gorwing economy. The inflation targeting was ripped up and thrown in the bin years ago, primarily with the shift to the ******* offspring of HICP.

Who would invest in a country like this - not many aboviously and they still won;t invest whils the returns are whittled away by hidden inflation and at any point in time the consumer driver could go over the edge of the cliff.

The rate cut of summer 2003 was an appaling act of short-termism to keep the economy trundling along on debt for which the whole of the BOE remit should have been consigned to the scrap heap, together with the MPC.

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Besides, I suspect that all we are seeing now is a soft patch and like the BoE I expect things to pick up in 2006.

Perhaps, and a stronger economy means interest rates are only going to go one way.

(up, that is, in case you didn't know)

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I like reading the business, but I don't rate this article what-so-ever. Most of the things they mention are totally out of the MPC's control, if anything they are doing a good job having being given a bum deal by the chancellor who does control the majority of the problems mentioned.

Besides, I suspect that all we are seeing now is a soft patch and like the BoE I expect things to pick up in 2006.

careful there.what the BoE mean by things picking up is a weaker sterling helping our FTSE companies "improve" their earnings.

domestically,the country is fooked.....what is happening is a re-adjustment to GDP being generated from uk high street to overseas.

GDP looks the same,but it's dire times ahead for uk consumer.

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  • 301 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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