Tuesday, January 13, 2009

We don’t need no accountability

Who needs a balance sheet anyway?

The Bank of England has been issuing its balance sheet weekly for the last 165 years, and they have now decided that doing so is just too restrictive and inconvenient. The Government is set to throw out the 165-year old law that obliges the Bank to publish a weekly account of its balance sheet – a move that will allow it theoretically to embark covertly on so-called quantitative easing. The Banking Bill currently passing through Parliament, abolishes a key section of the 1844 law which originally granted the Bank the sole right to print UK money. Some have warned that the move means “there is nothing to stop an unreported and unmonitored flooding of the money market by the undisciplined use of the printing presses.”

Posted by little professor @ 09:59 PM (2595 views)
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46 thoughts on “We don’t need no accountability

  • Shock doctrine. Take advantage of a crisis to pass any laws deemed necessary.

    Even if the present BoE and present government are careful with the printing presses, this opens the floodgates to future, less scrupulous regimes.

    The Bank said it will still publish details of its balance sheet, but, significantly, the data – the main indicator of the extent of quantitative easing – will not be presented until more than a month has elapsed. [my emphasis]

    Imagine a government which prints tons of money right before an election, but doesn’t reveal the fact until “more than a month” later – i.e. well after the election. What’s the point in having an independent BoE if they can get away with things like that?

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  • The Bank of England doesn’t have the sole right to print UK money. There are three banks in Scotland – Bank of Scotland, Royal Bank of Scotland and Clydesdale, and four banks in Northern Ireland – Ulster Bank, Bank of Ireland, Northern Bank and First Trust Bank.

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  • jonb – We’re referring to quantative easing, not actual printing of banknotes. The Royal Bank of Scotland can’t add zeroes to its balance sheet at will.

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  • Dangerous Brown.. I will do whatever it takes to get us out of this recession,

    crunchy.. and into a depression. Printing on a massive scale is a done deal and I would not be suprised if the full extent is not

    documented with perhaps the intention to reduce circulation at a later date. The possibility would not suprise me.

    The way things are unfolding nothing will. This is looking like a cheaters desperate last throw of the dice. S..t or Bust.

    God help us!

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  • The current term for this monetarist policy is “quantitative easing”, which for the non-Nobel economists among us can be translated as increasing (easing) the money supply. And like all convenient buzzwords it sound a doddle of a process and we wonder why its not being done already.

    Last week Darling told the FT that he was “considering” quantitative easing, meaning Britain’s central bank, the Bank of England, could begin “buying” long-term government securities, Treasury bonds, corporate bonds and other asset-backed securities. In effect, printing money, because with the threat of deflation creeping up, isn’t that something the government should be looking at?

    SundayHerald.

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  • If anyone can make this “quantitative easing” easier to understand I am all ears.

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  • tyrellcorporation says:

    Unbelievable good fortune for Labour that this mess is relatively Global. It allows them the opportunity now to print money in secret to pay for all their profligacy over the last decade.

    The Tories should be going berserk as Labour are just about to turn a craap hand into a royal flush – and all for the common good too!

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  • flintster1994 says:

    Man can fly to the moon(maybe?)

    Yet he cant run an efficient and fair economy. Or can he?

    I know; human nature, greed and all. Is it that simple?

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  • 78. Malct said…and Merry Xmas to you crunchy

    Wednesday, December 24, 2008 03:32PM The Times: Bailiffs get power to use force on debtors

    Little professor I am getting sick and tired of your silly little game.

    Please, if you can’t be adult enough to admit you were wrong about me don’t bother posting me. It would be no great loss.

    I don’t call you little creep so I would evpect the same courtesy from you.

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  • What I want to know is why change it from 1 week to 4 weeks? What can be achieved in the extra three weeks? Will they ‘print’ (ie add an extra 0 to the books) on the 1st of the month, do ‘something’ with it for a month, then delete it at the end of the month. Why 1 week to 4 weeks. I can’t see the point.

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  • mark wadsworth says:

    @ LP, comment 8.

    That’s a good link. That chap knows his stuff.

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  • flintster1994 says:

    Just a crazy thought.

    I imagine that most will agree that life must have been “slightly” harsher in 1000ad than it is now; on our petit isle anyway.

    Then along came the industrial revolution and all(to simplify history).

    Did we maybe make a mistake?

    Is it time to reset?

    Yeez I’m grasping at straws! But it is important to think outside the box sometimes. Am I wrong?

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  • little professor says:

    malct, your posting style is the giveaway – see the three posts in 18 minutes above. Only our dear beloved malct has quite the same writing style and posting pattern. Don’t be hurt, we all love you really.

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  • MarkW, LP,

    Re the Japan link: the author describes it as “tragic”. But tragic for who? The unemployment rate in Japan is lower than in most Western countries; the crime rate is low; the trains run on time and blisteringly fast; the population are healthy and well-fed; the judiciary are fair; the press is free; the politicians are no more corrupt than anywhere else; house prices are reasonable. What exactly is “tragic” about all this??

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  • 12. flintster1994
    The industrial revolution was not the problem. People could have worked less and reaped the benefits.

    The problem was the industrialists that ran the system. As usual it is the people at the top that largely create the problems.

    The industrial revolution industrialised greed. IMHO

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  • little professor says:

    Oh and malct, your repeated posting of

    78. Malct said…and Merry Xmas to you crunchy

    Wednesday, December 24, 2008 03:32PM The Times: Bailiffs get power to use force on debtors

    doesn’t fool anybody. First of all that was the first appearance of malct since you started posting – strange how all he had to say was happy xmas to you. Also, that malct posted as Malct, i.e. without logging in.

    Everyone knows the original malct account got banned due to relentless NWO-headedness, and you have created this new account called crunchy. It’s still unmistakeably the same guy. Just don’t insult our intelligence by pretending otherwise. Phdinbubbles had you pwned when he caught you stating “this is why I have been banging on about the NWO in so many of my posts” when in fact the crunchy account had never mentioned NWO in its short history.

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  • flintster1994 says:

    Drewster,

    Is this a fact or “propoganderist”(have I just invented a new word?) statistics? I don’t know but in the current climate I seem to question everything these days.

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  • little professor says:

    Drewster – I suppose it’s tragic from an economic perspective. The Nikkei is standing at a fifth of its value in 1989, and house prices are a tiny fraction of what they were in the days where the land under the Tokyo Imperial Palace was worth more than the entire state of California.

    To real people however, their quality of life is unaffected by these economic indicators – they are a healthy, happy and prosperous people.

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  • 13. little professor I dont like bullies and I am prepared to meet face to face to talk this out or whatever.

    Name place and time. I live in the Midlands and I am prepared to meet you half way.

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  • flintster – which fact? I haven’t personally verified any of those figures except the unemployment one, click here for graph of Unemployment in Japan, USA Canada, Western Europe, 1991-2006.

    I can’t find figures for crime, but I’ve always heard that Japan is a very safe country. Wikipedia agrees, although obviously it’s not the most trustworthy of data sources.

    Japan is ranked higher than the USA for freedom of the press: link.

    The rest of it – education, health, fast trains, etc. – I don’t have sources but I’m sure you could find evidence online.

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  • LP,

    The figure that really intruiged me was unemployment. The Great Depression was so great and so depressing because US unemployment peaked at 25%. Japan never saw anything like that in their Lost Decades. Did they only avoid that fate through massive Keynsian spending programmes? Are we at risk of 25% unemployment in the UK or US now? Some commentators seem to think so (Mish for one).

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  • It OK posting lies behind a keyboard little professr but being prepared to face someone with those lies is another matter.
    I am prepared to do that to clear my name. If you are not, then I once again request you to show more respect by calling me crunchy.

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  • flintster1994 says:

    Drewster,

    I’m not knocking Japan, But it seems more common by the day, that people are comparing other countries to their own as a means of showing how their own is failling. I don’t for one minute think that this is some new thought process, but the view is normally upheld through statistics. That is why I find it hard to uphold a comparion. STATISTISCS?

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  • If you have not the balls to meet me little professor you can ring me.
    I can arrange this via HPC.

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  • flintster1994 says:

    It’s not my intention to inflame your current mood Crunchy, but everybody has a diffent way of posting. We need everyone’s views and ideas. Surely you of all people can understand that. That is what will help the majority(myself included) in the end! Come on Crunchy, chill out! And I mean that in the most complimentary terms.

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  • flintster1994 says:

    P.s

    Little P

    You is in a bubble! But thanks for your contributions none the less. Respec!

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  • I have a right to free speech. I have a right not to be undeminded. I have a right to confront bullies in all forms. I have a right to my name.

    This is between little professor and myself. I have a right to sort this out.

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  • flintster –
    Japan is by no means perfect. The long-hours / no-holidays culture of business is one example. When I met JU he explained at length the many flaws of his home country and why he chose to live in the UK.

    But I don’t understand why shrill economists and bloggers are shrieking about the dangers of a Japanese-style lost decade. It seems that the last two decades have been fine for most ordinary Japanese.

    The only slight problem is that the falling stock+housing markets has decimated pensions, forcing everyone to work longer in life. However their demographics (rapidly ageing population) meant that most Japanese would have to work longer anyway. Indeed it can be argued that their falling markets were caused by the demographics, not the other way around.

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  • flintster1994 says:

    Yes you do.

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  • It’s nice to know If push comes to shove little proffesor and people finally stand up together when it really matters that people like yourself

    will lead the way, Instead of hidding behind a keyboard. You are offending a person that can be relied upon. That is what angers me.

    You are welcome to meet or ring me to sort this out. Just let me know when.

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  • Home Counties Expat says:

    Dear people

    I’ve been living in Japan for a few years now.

    I would say 100% that despite the low crimerate in Japan, England would be a much happier to place in which to live.

    The low crimerate in Japan comes at a sacrifice. People here have to obey their superiors without question. If your boss says you have to come in early and clean the office with no pay then you do it. If your boss says you have to work unpaid overtime then you do it.

    Most Japanese work 11/12 hours a day, with the last 3/4 hours unpaid. Most Japanese have only a few days holiday every year, then have to bring back loads of souvineers to show their employees that they are sorry for taking time off. If you take a day off to go to a funeral, you’ll have to make it up. Employees are asked to relocate at a moments notice and live at oppoistte ends of the country to where their families are living. If you question what the boss says then you are out of a job, and won’t get employed anywhere else again since it’s thought very bad to change jobs in Japan. Your boss has in effect complete and total power over your entire life.

    I’m out here because I love the job I’m doing and can’t do this kind of work in the UK. If I could do what I’m doing in the UK, I’d be back like a flash. (I’m running my own English school luckily so I can get around the work as a slave mentality)

    And how come the media are making such a big fuss about house prices going down 10% over the last year. They were going up by 20% almost every hear since 1996. They’ve got a long way to come down yet!!! When I can home for Christmas the prices were still WAY over priced. Oh yes, and the interest on my bond with be slashed too in a couple of months. What are this government flaming well playing at.

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  • charlie brooker says:

    @flintster1994

    Did we quantitatively ease too soon?

    I wonder why.

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  • Crunchy,
    I don’t care if you’re malct or not. The stuff you’ve posted since joining has generally been of good quality. That’s all that matters here.
    (For the record, I didn’t think malct should have been banned in the first place. Wasn’t quite so keen on p4ac, but no point ruffling feathers.)

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  • 30. flintster1994
    32. charlie brooker

    I am no fool. I suffer from dyslexia but I more than make up for this in other areas.

    The offer to ring or meet me also applies. I hate the spineless! It is the cause of most problems.

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  • Thanks drewster

    But I do care. I have the right to my name and will fight for it if needed.

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  • little professor says:

    OK, will meet you at the lions in Derby on Saturday at 12:30, malct. Looking forward to it 🙂

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  • 36. little professor said…OK, will meet you at the lions in Derby on Saturday at 12:30, malct. Looking forward to it :
    Please forward post code, dont know the area. Is that am or pm?

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  • Little prof we can exchange mobile numbers through HPC if that will help.

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  • The internet is not the best place to set up a meet I will forward my mobile number and we can arrange this over the phone.

    My number will be in the inbox ” feedback mailbox” I will email it shortly.

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  • Little professor… That would be a good meeting date. You will be able to rule him out as well.

    Ring me in the morning.

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  • Little Professor I have been up checking malct posts. He does not fit my profile. Thank f//k

    1 he longs to be liked.
    2 he is submisive, very.
    3 he sounds much younger than I
    4 he is like a wild puppy dog perhaps living with mummy.
    5 he is not as lazy in he’s writting as I
    6 he is no where near as defensive or aggresive about putting hes ideas across in arguements.

    The person who posted under Malct is a wind up merchant. I noticed one other post but cant locate it.
    I did wonder why Malct did not post in defence of me being mistaken for him. That I thought was low.
    You are correct about the maclt and Malct name I did not notice. I am writing this crap so when you ring me I will not have to go through it again. and it is on the record in black and white.

    Please ring me. Do not mistake me for this person. You will be a mile out.
    Personally If I were banned from anywhere I would consider it a favour and move on..

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  • Still waiting for that call mate.

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  • Stick to the keyboard then big man.

    “crunchy” none other., Sorry seems to be the hardest word.

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