Monday, June 7, 2010
Mervyn King: Talk down inflation to cover-up attempts to inflate away debt
Inflation 'a greater risk to Britain than deflation'
''Inflation is a greater risk to the British economy than deflation, a majority of economists polled by The Daily Telegraph have said. Mervyn King, Governor of the Bank of England, has repeatedly said he expects the spike in inflation ? to 3.7pc in April ? to be temporary. They fear policymakers will try to inflate their way out of the debt crisis. Their concerns are not expected to be reflected in the Bank of England's decision this week on interest rates, with the Monetary Policy Committee expected to leave the rate at 0.5pc.''
Posted by hpwatcher @ 07:48 AM (1555 views)
4 thoughts on “Mervyn King: Talk down inflation to cover-up attempts to inflate away debt”
Add a comment
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
paul says:
Tim Congdon, chief executive of International Monetary Research, said: “Now that central banks realise that Quantitative Easing-type operations can be conducted to stop any recession, inflation is more of a risk than deflation.â€
So is an ex-MPC member now telling us that deflation is never a risk when the central bank has control of the printing press?
Interestingly, the UK media and public were also told that QE wouldn’t be inflationary when the nuclear option was first deployed.
Are we about to see yet another unforeseen consequence of yet another shortsighted monetary policy now? As inflation soars towards double digits, will we witness the Governor’s excuses and thinly veiled apologies to the UK public in third-person language again (as we had in late 2007)?
Let’s see what happens when the MPC makes another ‘decision’ next week. If they raise a quarter point, it’s as good as doing nothing. If they raise a half point its a start. If they raise a full point, we’re on track for returning to normality (1.5% interest rate is still abnormally low by historical standards though).
If they do nothing (again), then well its business as usual on the road to financial ruin.
estrader says:
Mervyn King…Let me think, the name rings a bell…what does he do again?
ReCaptcha: spent revenue
hpwatcher says:
Mervyn King…Let me think, the name rings a bell…what does he do again?
Plays golf?
mrflibble says:
The BoE seem to lag reality by around 12 months. They didn’t cut rates early enough on the way into recession and they have failed to increase them early enough to keep inflation and housing under control. Now Merv keeps wheeling out the same old crystal ball rubbish about how it will all come out in the wash.
What the mystical BoE have achieved with QE and ZIRP is place the housing market right outside the back door of the slaughter house. Sadly any youngsters who got sucked in thanks to the brain dead media ramping will likely be trapped in their purchase for a long long time to come, that’s if they manage to keep hold of it. This country is going to regret re-inflating the housing bubble but hopefully the Sheeple will learn from it.