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Please vote as per the poll - not what you think the poll should be. If you want a different poll then by all means set one up. I fully understand GB sets the inflation target and appoints the MPC but I do not accept he controls the MPC.

Edited by Financial Planner

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The "control" bit is debatable! He steers them which is a form of control. They ultimately set the rates based on his "steering"

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I fully understand GB sets the inflation target and appoints the MPC but I do not accept he controls the MPC.

I fear that the choice you have given us may be a little too stark.

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I'd agree that he steers interest rates through the MPC selections and ONS inflation figures. Look at the recent selection for the MPC, that chap has voted to reduce rates in the Shadow MPC Times poll, I think that had a lot to do with his selection.

But... I think when someone is on the MPC, they will probably do what they want and not be influenced by GB. That's where the inflation figures are probably slightly fudged by GB, for example Champagne, how that was recently added to the inflation basket, yet duty was frozen on it in the last budget.

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Guest Charlie The Tramp

I fully understand GB sets the inflation target and appoints the MPC but I do not accept he controls the MPC.

Last August`s voting pattern made me think. Gordon`s 5 appointees voted to cut while the executives voted for a hold. No, Gordon does not control the MPC, but it appears his appointees do. :unsure:

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If the decision to raise is marginal I think he obviously has some hold over certain members, but when the case is cut and dry nobody wants their reputation ruined so they will have to go with the market.

YOU CAN'T BEAT THE MARKET

its as simple as that

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With a Parliamentary Inquiry being pursued on the issue it will be interesting to see how far the Tories and Lib-Dems get in exposing Gordon's manipulation of vital data to suit his political ambitions. My guess is it is for this very reason the Inquiry has been set up.

With the entire world moving rates up it is extremely suspicious that Mervyn, an otherwise shrewd observer of financial reality, would be a dove in an inflationary enviroment such as the UK where fuel costs, travel, local government taxes, and other vital necessities such as housing are well beyond the rate of inflation.

NuLabour are a powerfully controlled party with executive powers having been exercised like no other government in recent memory. Gordon is at the very heart of the NuLabour power machine and it is inconceivable that he would hand over the reigns of the economy to an independent bank.

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http://money.guardian.co.uk/businessnews/s...1823427,00.html

Government braced for rate rise
Larry Elliott, economics editor
Tuesday July 18, 2006
The Guardian
The government was softening up the public today for an increase in interest rates after soaring gas and electricity bills pushed the annual rate of inflation to its highest level since Labour arrived in office more than nine years ago.
With prices for domestic energy rising by almost 30% in the past year, the cost of living in the year to June was up by 2.5%, according to the consumer prices index -up from 2.2% in May and a far worse outcome than the City had expected.
Ed Balls, the economic secretary to the Treasury, responded swiftly to the news that inflation was running 0.5 points above the government's 2% target. "At this time of global uncertainty it is important that policymakers remain vigilant to the risks and forward looking in their approach. Today's inflation data confirm the need for such vigilance in the face of such risks," Mr Balls said.

This article about sums it up. The government (Gordon) sets the target. They decide when to prepare (soften up) the public for a move. The government (Gordon) remains vigilant. Not a word about the BoE or Merv who do not set policy. The "policymakers" are Gordon and the lads at the Treasury.

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In the interests of fairness, I am saying nothing about the outcome of the poll ... but when will the poll be considered as 'over' so we can comment on your constant challenges to RB's assertions?

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In the interests of fairness, I am saying nothing about the outcome of the poll ... but when will the poll be considered as 'over' so we can comment on your constant challenges to RB's assertions?

Comment anytime sir. He is wrong and so are all of you who say that GB controls the MPC - that is the only thing I am talking about. I agree with everything you guys say about GB and the MPC and inflation and IRs. But not control. In fact to me its obvious he doesn't control the MPC.

Edited by Financial Planner

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[delurk] Hello,

The BoE is a private company (Company No. RC000042). Ownership of the whole of the existing capital stock of the Bank was transferred to the Treasury Solicitor's Department in 1946. If you own a company, don't you control it?

Slightly off topic, does anyone know how the Memorandum of Understanding for Financial Stability between the Treasury, BoE & FSA was changed in March 2006?

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The MPC bases its decision on government numbers - we all know inflation is way above 2%, I think it's probably nearer 7% for things we actually need and use. Who changes the CPI basket ?

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If GB appointed 5 known interest rate hawks to the MPC via the various routes he has to appoint members what would that do? If you think it would increase the liklihood of increases you're right irrespective of whether GB has any "control" over them once they are on board. If GB does not appoint hawks or appoints doves what is that doing? It is decreasing the liklihood of increases. To that extent he controls the MPC.

He also controls certain members through his patronnage - I do not believe many MPC members are not "talked to" in some way about matters by the Treasury boys. Nothing improper implied at all - just the way the world works - it is difficult for an appointee to keep taking decisions which make your boss unpopular and risk his job. Fact.

The only ones who show real integrity are those with nothing to lose (eg Merv among a few others) who can get better jobs later in the City or academe on the back of it and are not enslaved to the Govt remaining in power.

In fact, I think the first real test of the independently appointed MPC is approaching - how to deal with the world raising rates and inflation bubbling up. A real test of which MPC members have the balls to do what is right for the country not the presidente (elect).

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Strong influence is more apt. I voted that he controlled the MPC because:

a. Outside extreme circumstances this influence gives the same results as "control"

b. the term control is too black and white. No they arent controlled with hypnosis, drugs or puppetry but they are manipulated. Depends on what you define as "control". I determined it not to mean the MPC was filled with sequestered zombie economists.

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Comment anytime sir. He is wrong and so are all of you who say that GB controls the MPC - that is the only thing I am talking about. I agree with everything you guys say about GB and the MPC and inflation and IRs. But not control. In fact to me its obvious he doesn't control the MPC.

Well it is clear you are very much in the minority, so next time RB asserts that Gordon Brown 'controls' the MPC, maybe you can let it pass - because most people agree with him.

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[delurk] Hello,

The BoE is a private company (Company No. RC000042). Ownership of the whole of the existing capital stock of the Bank was transferred to the Treasury Solicitor's Department in 1946. If you own a company, don't you control it?

Welcome.

Why is this such a difficult question to answer?

It is because there is little transparency in this area of government.

There is a whole bunch of seemingly conflicting facts which are designed solely to

confuse anyone trying to determine the answer to it.

It's an utter joke that we are told, it's:

1. nationalised

2. independent

3. has its board of directors appointed by "the crown" (a private corporation)

And then people deride me as a nutter when I suggest elites have purposefully designed

it this way so that people will waste their time arguing the point, and never come to a

definitive conclusion.

Elites would probably piss themselves laughing reading this thread.

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  • 338 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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