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Carney warns about popular disillusion with capitalism

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BBC:Carney warns about popular disillusion with capitalism

Quote

The Bank of England Governor Mark Carney has warned that people will turn their backs on free and open markets unless something is done to help those left behind by the financial crisis.

In a speech, he said: "Globalisation is associated with low wages, insecure employment, stateless corporations and striking inequalities."

In many advanced economies there are "staggering wealth inequalities," he added.

He told his audience that politicians and central bankers must act to ensure people do not lose faith in the current system.

"Turning our backs on open markets would be a tragedy, but it is a possibility," he said.

Quote

Mr Carney acknowledged in his speech that there were losers from the policy of low interest rates, he said: "The thrifty saver and the rich asset holder are often one and the same."

"Just 2% of households have deposit holdings in excess of £5,000, [they have] few other financial assets, and don't own a home.

"So the vast majority of savers who might have lost some interest income from lower policy rates have stood to gain from increases in asset prices, particularly the recovery in house prices," he added.

 

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Is he turning into a HPC'er?

He even said (the BBC missed this out for some reason):

Quote

In a speech given at Liverpool's John Moores University, Mr Carney went through a number of examples of the growing inequality in the UK.

Among them was what he described as a "growing disparity between older homeowners and younger renters".

He said that, while a typical millennial earns £8,000 less during their 20s than their predecessors, those over 60 have seen their incomes rise at five times the rate of the rest of the population since 2007.

http://news.sky.com/story/boe-governor-mark-carney-in-globalisation-warning-10684635

Edited by sisyphal

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I saw this and was going to start a ne thread as it's important. First, this is politicking and he has no business in meddling in this. Second, he has it wrong, it's not just the poor and disenfranchised who are getting a little cynical about 'free market globalisation'. Its begining to impact on the middle class too

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Acknowledging there is a problem costs nothing. Doing something about it will hit the wealthiest in society that's why nothing is ever done to rebalance. Talk is cheap.

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"free markets" is this a joke?...its the meddling and distortion of markets to suit one group v another that creates the problem. This website wouldn't exist if we had free market in resi property without government /boe sanctioned distortion. Carney is the problem...unbelievable he can stand up and warm us of the dangers of his own actions . A pantomime.

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5 minutes ago, One-percent said:

I saw this and was going to start a ne thread as it's important. First, this is politicking and he has no business in meddling in this. Second, he has it wrong, it's not just the poor and disenfranchised who are getting a little cynical about 'free market globalisation'. Its begining to impact on the middle class too

If the referendum was ten years later i think the percentage voteing to leave would have been massive for this very reason ...they would not be alright jack

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The 'middle class' are too stupid to realise that working for a living makes them working class. Shiny car on DEBT and pile of bricks on DEBT doesn't alter the fact they're working until they're 70.

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13 minutes ago, t1234 said:

Acknowledging there is a problem costs nothing. Doing something about it will hit the wealthiest in society that's why nothing is ever done to rebalance. Talk is cheap.

This

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9 minutes ago, thewig said:

The 'middle class' are too stupid to realise that working for a living makes them working class. Shiny car on DEBT and pile of bricks on DEBT doesn't alter the fact they're working until they're 70.

We've had this discussion 10 times before on here....the're not really middle class, they just....idiots.

The biggest con the bankers have played is getting people en masse to believe they are middle class and to go out and spend/invest/take on debt as if they are top of the pile.

 

Edited by TheCountOfNowhere

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I think what some people are missing is that the referendum was akin to a game of 'deal or no deal'

There is a box left that contains either £1 or £50,000 - do you gamble?

The remainers already have an offer on the table of £25k - of course they don't gamble - why would they?

What they don't understand is that many of the brexiteers only have an offer of £50 currently. They have little to lose. They will gamble.

The problem the PTB have is that they have created far too many people that only have the £10 offer. Had they let them have £10k or even £5k, fewer would have taken the risk. 

 

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2 minutes ago, thewig said:

The 'middle class' are too stupid to realise that working for a living makes them working class. Shiny car on DEBT and pile of bricks on DEBT doesn't alter the fact they're working until they're 70.

I've met some of the truly middle class. They are more likely to drive an older car. They might flaunt their wealth though, but if they do, it will be bought and paid for.  The fur coat and no nickers type of middle class are those that think they have escaped the working class and are holding on by their fingernails 

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1 minute ago, TheCountOfNowhere said:

We've had this discussion 10 times before on here....the're not really middle class, they just....idiots.

The biggest con the bankers have played is getting people en masse to believe they are middle class.

 

^ this...

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14 minutes ago, CunningPlan said:

I think what some people are missing is that the referendum was akin to a game of 'deal or no deal'

There is a box left that contains either £1 or £50,000 - do you gamble?

The remainers already have an offer on the table of £25k - of course they don't gamble - why would they?

What they don't understand is that many of the brexiteers only have an offer of £50 currently. They have little to lose. They will gamble.

The problem the PTB have is that they have created far too many people that only have the £10 offer. Had they let them have £10k or even £5k, fewer would have taken the risk. 

 

That`s a great analogy ,sums it all up perfectly ..and this is exactly why the issue won`t go away for a long time 

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Quote

Mr Carney acknowledged in his speech that there were losers from the policy of low interest rates, he said: "The thrifty saver and the rich asset holder are often one and the same."

"Just 2% of households have deposit holdings in excess of £5,000, [they have] few other financial assets, and don't own a home.

"So the vast majority of savers who might have lost some interest income from lower policy rates have stood to gain from increases in asset prices, particularly the recovery in house prices," he added.

Right. So 98% of savers with more than 5k also "own" a house, so it doesn't matter that they aren't getting any money on their savings, because his policies have caused house prices to shoot up uncontrollably, and that's a really good thing.

The bloke's a ******ing ****. 

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He expects people to believe that garbage?  He and his pals wouldn't know capitalism if it stared them in the face - bailouts, subsidies, general thievery of all and sundry and rigged system yes - capitalism no. 

Quote

He said that, while a typical millennial earns £8,000 less during their 20s than their predecessors, those over 60 have seen their incomes rise at five times the rate of the rest of the population since 2007.

Notice the use of the word "earns" for young people but "incomes" for those over 60.  It's very difficult to believe that pensions have risen at 5 times the rate of the rest of the population since 2007 despite the triple lock - unless by some trick of accountancy. 

Edited by billybong

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  1. We don't currently have Capitalism, in fact what we do have is just about as far removed from true capitalism as it's possible to get, we have Socialism... for the banks, the corporations and wealthy holders of assets.

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4 minutes ago, Fully Detached said:

Right. So 98% of savers with more than 5k also "own" a house, so it doesn't matter that they aren't getting any money on their savings, because his policies have caused house prices to shoot up uncontrollably, and that's a really good thing.

The bloke's a ******ing ****. 

That's ok then, they can just sell ther house.  Oh, wait a minute, if they do do, where will they live?  My home has gone up massively. If anything it is detrimental. I can't afford the next rung up, it is out of reach. My kids will never get a foothold on the housing ladder. 

He and they just don't get it do they.  When the sheeple wake up, as they are begining to do, the pack of cards will collapse 

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6 minutes ago, nome said:
  1. We don't currently have Capitalism, in fact what we do have is just about as far removed from true capitalism as it's possible to get, we have Socialism... for the banks, the corporations and wealthy holders of assets.

That's not socialism then, it's theft, pure and simple. Socialism strives for a more equal society and a redistribution of wealth from the rich to the poor. 

 

Redistribution to the rich from everyone else can hardly be classed as socialism 

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Poor old Carnage. Still trying to make sense of the world through the distorted lens of mid-nineteenth century physics. With a bagful of unobservables, forever paying lip-service to the dignity of scientific endeavour without ever understanding what it truly entails.

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The Bank of England and the Labour Party created a mess of messes, when the allowed banks to be self governed.  He's just defending his career record. He can't shift the responsibilities, behind the pain being endured by society by a mess of the elite. They need to be honest about the reasons behind the failure. 

"the UK is facing "sharper disparities" in inequality despite wider global growth, but monetary policy is not to blame... almost all people whose savings income had been hit by low rates had gained from a rise in value of assets."

 

1999 - 2000

Rates were relatively high at 6% to restrict demand

The sale of the UK gold reserves

2000 - 2003

In order to stimulate demand, between 2000 and 2003 rates were pushed down to what was then their lowest level for 25 years.

FSA established [the City regulator]

2003 - 2007

Rates were pushed up into a neutral zone at around 5% and edged towards the restrictive zone by the middle of 2007.

2008 - 2016

Rates were pushed down to a record low of 0.5% to stimulate household spending in the wake of the credit crunch, financial crisis and recession.

Gordon Brown (2008) When the prime minister said "we not only saved the world", when, I think, he meant to say, "we not only saved the banks"

Tony Blair (2013) has admitted his government was partly responsible for Britain's economic strife

FSA with effect from 1 April 2013. Its responsibilities were then split between two new agencies: the Financial Conduct Authority and the Prudential Regulation Authority of the Bank of England.

2016

Base rate was reduced to 0.25% as part of the monetary stimulus package in the wake of post-Brexit uncertainly. 

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