TheCountOfNowhere Posted October 18, 2016 Share Posted October 18, 2016 Quote Link to comment Share on other sites More sharing options...
onlyme2 Posted October 18, 2016 Share Posted October 18, 2016 Look at at Carney's choice of words, describing himself as a "technocrat". Same as wording used by Junker. Unelected, unaccountable and answerable to none, even the PM, and no doubt working in their own interests. Quote Link to comment Share on other sites More sharing options...
GreenDevil Posted October 18, 2016 Share Posted October 18, 2016 http://www.bloomberg.com/news/articles/2016-10-17/carney-to-ignore-inflation-jump-as-november-rate-cut-forecast Quote Link to comment Share on other sites More sharing options...
spyguy Posted October 18, 2016 Share Posted October 18, 2016 27 minutes ago, onlyme2 said: Look at at Carney's choice of words, describing himself as a "technocrat". Same as wording used by Junker. Unelected, unaccountable and answerable to none, even the PM, and no doubt working in their own interests. BoE should aim to run a safe, managed financial system. Central banks trying to run the economy is applied macro-economics. Macro economics is a load of mumbo jumbo junk - as admitted by the head macro economist. Quote Link to comment Share on other sites More sharing options...
darkmarket Posted October 18, 2016 Share Posted October 18, 2016 Interesting link from Bloomberg's Gadfly today to the full list of BoE corporate bond purchases (direct .xls download link, opens in browser on tablet): http://www.bankofengland.co.uk/markets/documents/cbeligiblesecurities.xls "This is compounded by the BOE selecting what is indeed an odd list of corporate bonds for potential purchase. It's hard to see the political argument for the U.K. central bank lowering the cost of funding for the German railway system, to take one example. And traders are scratching their heads on how to deal with tiny securities, such as Birmingham Airport's 105 million-pound issue. Whatever the merits of bolstering foreign companies with cheap cash, the separate question is getting them to visit Britain for their bond sales. And the argument isn't compelling." https://www.bloomberg.com/gadfly/articles/2016-10-17/bank-of-england-corporate-bond-program-falters-on-sterling-slump All entirely based on data, judgement, something, no doubt. 13 hours ago, interestrateripoff said: Bank of England Deputy Governor Ben Broadbent said the central bank would not raise interest rates for the sake of meeting its 2 percent inflation target if it risked hurting the economy Fortunate that we have an independent, purely technocratic Bank to stop ideological politicians trashing the currency. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 18, 2016 Share Posted October 18, 2016 55 minutes ago, GreenDevil said: http://www.bloomberg.com/news/articles/2016-10-17/carney-to-ignore-inflation-jump-as-november-rate-cut-forecast That is truly insane. Have they lost their minds ? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 18, 2016 Share Posted October 18, 2016 The BOE should never buy corporate bonds. This is just criminal IMHO Quote Link to comment Share on other sites More sharing options...
One-percent Posted October 18, 2016 Share Posted October 18, 2016 3 minutes ago, TheCountOfNowhere said: That is truly insane. Have they lost their minds ? It's going exactly to plan. Impoverish the masses whilst their rich buddies make out like bandits Quote Link to comment Share on other sites More sharing options...
spyguy Posted October 18, 2016 Share Posted October 18, 2016 35 minutes ago, TheCountOfNowhere said: The BOE should never buy corporate bonds. This is just criminal IMHO Whne QE started, Buttonwood (The Economis) pointed out, correctly, that the biggest problem is QE is how you get out of it. QE/Zirp is an experiment to dig technocrats out of a mess theyve created. They have no way out, bar the distruction of the financial sector. Noone asked what could go worng and what is the cost of QE/ZIRP. Quote Link to comment Share on other sites More sharing options...
billybong Posted October 18, 2016 Share Posted October 18, 2016 (edited) ^ bloomberg link Quote Mark Carney himself has publicly skirmished with May, saying officials won’t “take instruction” from politicians after her recent comments highlighting the costs of ultra-loose monetary policy. Everyone knows he only does what the squid tells him. He's well on course to destroying Britain like they destroyed Greece - and countless other countries. The sooner he's sacked the better - along with Hammond the property speculator. Edited October 18, 2016 by billybong Quote Link to comment Share on other sites More sharing options...
Noallegiance Posted October 18, 2016 Share Posted October 18, 2016 2 hours ago, One-percent said: It's going exactly to plan. Impoverish the masses whilst their rich buddies make out like bandits I used to make out like a bandit but the wife kept complaining so I stopped. Quote Link to comment Share on other sites More sharing options...
billybong Posted October 18, 2016 Share Posted October 18, 2016 Coming next - the BoE's Boot Sale Bond. Quote Link to comment Share on other sites More sharing options...
GreenDevil Posted October 18, 2016 Share Posted October 18, 2016 Bankster Scum, innit. Quote Link to comment Share on other sites More sharing options...
hi5lo5 Posted October 18, 2016 Share Posted October 18, 2016 6 hours ago, TheCountOfNowhere said: That is truly insane. Have they lost their minds ? He got it right, According to the new economic model derived by an Canadian who has zero knowledge on IR, CPI% = Top % of the wealthiest should be supported. 1% CPI means look after the top 1% and gradually grows. The rest of them have to wait for their turn. Markit and Bloomberg are great in influencing the interest rates by meaningless surveys and news. Remember the last time the IR cut? Markit was constantly publishing surveys to look like UK's economy is derailed. Quote Link to comment Share on other sites More sharing options...
onlyme2 Posted October 18, 2016 Share Posted October 18, 2016 17 minutes ago, hi5lo5 said: He got it right, According to the new economic model derived by an Canadian who has zero knowledge on IR, CPI% = Top % of the wealthiest should be supported. 1% CPI means look after the top 1% and gradually grows. The rest of them have to wait for their turn. Markit and Bloomberg are great in influencing the interest rates by meaningless surveys and news. Remember the last time the IR cut? Markit was constantly publishing surveys to look like UK's economy is derailed. Watch the open gob operations emanating from the BOE. No coincidence both Goldman Sachs members have been openly undermining sterling with their "we'll ignore inflation and carry on printing" message in the last week. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 18, 2016 Author Share Posted October 18, 2016 Tesco boss: 'Food price inflation could be lethal for struggling millions' Quote Link to comment Share on other sites More sharing options...
darkmarket Posted October 18, 2016 Share Posted October 18, 2016 Had a closer look at the corporate bond purchases of the BoE. Worried about sub-prime car lending? BMW FINANCE NV DAIMLER AG DAIMLER INTL FINANCE AV GENERAL ELECTRIC CO MOTABILITY OPERATIONS GR TOYOTA MOTOR CREDIT CORP Concerned about successful anti-smoking campaigns? BAT INTL FINANCE PLC IMPERIAL BRANDS FINANCE Anxious about Chinese not visiting your northern powerhouse? MAN AIR GRP FND P Can't sell enough junk food? MCDONALD'S CORP NESTLE FINANCE INTL LTD PEPSICO INC UNILEVER WAL-MART STORES INC Fear recession when you see high street brands go insolvent? MARKS & SPENCER PLC NEXT PLC Thinking twice about those property investments? HAMMERSON PLC SEGRO PLC Troubled by privatised basic infrastructure failing? ANGLIAN WATER SERV FIN BG ENERGY CAPITAL PLC DONG ENERGY A/S E.ON INTL FINANCE BV EASTERN POWER NETWORKS ELECTRICITE DE FRANCE SA ELECTRICITY NORTH WEST ENGIE SA ENW FINANCE PLC LONDON POWER NETWORKS NATIONAL GRID GAS PLC NATL GRID ELECT TRANS NIE FINANCE PLC NORTHERN GAS NETWORKS NORTHERN POWERGRID YORKS NORTHERN PWRGRID HOLDING NORTHUMBRIAN WATER FIN RIO TINTO FINANCE PLC SCOTTISH POWER UK PLC SEVERN TRENT WATER UTIL SHELL INTERNATIONAL FIN SOUTHERN ELECTRIC POWER SOUTHERN GAS NETWORK PLC SP MANWEB PLC SSE PLC SUEZ THAMES WATER UTIL FIN UNITED UTILIT WATER FIN VATENFALL AB VEOLIA ENVIRONMENT SA WALES & WEST UTIL FIN PLC WESSEX WATER SERVS FIN WESTERN POWER DIST EAST YORKSHIRE POWER FINANCE YORKSHIRE POWER SERV FIN Everything is fine, the Bank is technocratic. There's no trouble in the stock market. Your jobs are not at risk. Get out there and consume with confidence. Quote Link to comment Share on other sites More sharing options...
billybong Posted October 18, 2016 Share Posted October 18, 2016 (edited) Somehow one can't help but think that some sort of asset stripper is going to come along and wangle it so that all the BoE bond money will end up in some crooks pockets rather than staying in the company - or at least through a share price spin off. No reason why it shouldn't go straight into director's pockets. It'll be the right thing to do and something to do with the enterprise economy - pensioners and other responsibles will be cheated out of their savings etc again of course. For sure customers won't benefit. Edited October 18, 2016 by billybong Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 19, 2016 Author Share Posted October 19, 2016 Bank of England defends QE as being good for growth http://www.bis.org/publ/arpdf/ar2013e.htm http://www.bis.org/publ/qtrpdf/r_qt1512.htm And yet the BIS disagrees..... Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 19, 2016 Author Share Posted October 19, 2016 British QE to give 300 billion-pound boost to spending - BoE's Haldane LONDON The Bank of England's 435 billion-pound ($534 billion)government bond-buying programme is likely to bring about a 300 billion-pound increase in overall spending in Britain, equivalent to three times annual public health spending, the BoE's chief economist said on Wednesday. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 19, 2016 Author Share Posted October 19, 2016 Hammond says won't change monetary policy after BoE spat LONDON Chancellor Philip Hammond said the government did not plan to change the independence of the Bank of England to set monetary policy after the prime minister criticised the side-effects of low interest rates earlier this month. Quote Link to comment Share on other sites More sharing options...
Maynardgravy Posted October 20, 2016 Share Posted October 20, 2016 16 hours ago, interestrateripoff said: Hammond says won't change monetary policy after BoE spat LONDON Chancellor Philip Hammond said the government did not plan to change the independence of the Bank of England to set monetary policy after the prime minister criticised the side-effects of low interest rates earlier this month. Now we see what May is made of. Not a lot I'm guessing. Quote Link to comment Share on other sites More sharing options...
Errol Posted October 20, 2016 Share Posted October 20, 2016 5 minutes ago, Maynardgravy said: Now we see what May is made of. Not a lot I'm guessing. If the absurd nonsense she is spouting about Russia at the EU meeting is anything to go by, she is a fraud, unfit to lead and totally off her head. Quote Link to comment Share on other sites More sharing options...
darkmarket Posted October 20, 2016 Share Posted October 20, 2016 18 hours ago, interestrateripoff said: Bank of England defends QE as being good for growth http://www.bis.org/publ/arpdf/ar2013e.htm http://www.bis.org/publ/qtrpdf/r_qt1512.htm And yet the BIS disagrees..... From the article: "Although growth and inflation have not taken off dramatically, the Bank of England’s research found QE did boost corporate borrowing, reducing costs for companies and encouraging investment, and thus the economy." It's not just the BIS that disagrees, the Bank's own research disagrees too: "Conclusion In this blog post we find no evidence to suggest that QE boosted bank lending in the UK through a bank lending channel, possibly because the high churn in deposits meant they were not viewed as a stable funding source by banks." https://bankunderground.co.uk/2015/07/17/did-quantitative-easing-boost-bank-lending/ Unless corporate borrowing and bank lending are entirely unrelated, of course. Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted October 21, 2016 Share Posted October 21, 2016 Oops. Not sure that this was part of the plan. Unlike the FLS scheme, the ONS has decided that loans to the financial corporate sector under the new Term Funding Scheme (TFS) are to be treated as illiquid assets and therefore should not be offset against the central bank reserves which are created to fund the loans (which are a public sector liability). As a result, the impact of the TFS on Public Sector Net Debt will be to increase it by the value of the central bank reserves created. This decision will be reflected in the Public Finances Release on 22 November 2016. http://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/articles/economicstatisticsclassificationarticle/statisticaltreatmentofthebankofenglandstermfundingschemeintheuknationalaccountsandpublicsectorfinances Quote Link to comment Share on other sites More sharing options...
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