Tuesday, September 28, 2010

Following on from Mr Bean’s savers comment

Altmann says Bank of England decimating pensions

Dr Ros Altmann has criticised the Bank of England (BoE) for chasing short-term growth while "decimating" pensions. The independent policy adviser made the comments after the deputy BoE governor, Charlie Bean, told Channel 4 on Monday that a key aim of the bank's monetary policy was to hit savers hard. Dr Altmann said this was not a side effect of the bank's monetary measures designed to help the banks but a deliberate policy choice. She said: "The economic crisis resulted from too much debt and not enough saving - but short-sighted policy is repeating the same errors by attempting to undermine savers and damaging pensions.

Posted by jack c @ 10:20 AM (1634 views)
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12 thoughts on “Following on from Mr Bean’s savers comment

  • sibley's b'stard child says:

    A pension; what is this strainge beest thou spake of?

    Reply
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  • Th reason BOE have been chasing short term growth is due to political pressure….

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  • hpw – correct – and they’ve been doing it for about 10 years. Let’s face it, it was always going to end like this. IR’s should have gone up as soon as the bubble started. But rocketing house values keeps voters happy. Until it all goes wrong.

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  • I have quiet a lot of respect for Dr Altmann and think this has been said on HPC before as well (low fixed income return = low pension return).
    With the central bank as asset inflater as opposed to a bastion of stability…. What a mess we are in.

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  • Dr Altmann for the MPC!!

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  • general congreve says:

    All looking good. Anotherbrilliant reason for people to seek the safety of gold as the bottom falls out of their pension pyramid schemes. (Strokes golden/silvery cat).

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  • slartibartfast says:

    If the economy is collapsing where do they think the extra pension payments will come from?

    Can we pull it out of a monkeys ass?

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  • sibley's b'stard child says:

    That’s all good and well GC if you’re sat on an ill-gotten STR fund, but what to do when one seldom has a pot to pish in by the month end?

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  • who stole my pension? says:

    It’s interesting that the BOE wants to hit savers hard. The savers will then remove their money from the banks and the banks will then be hit hard! One does wonder how stupid can the BOE be, but there again this is a bank that admits is doesn’t get it (see http://www.managementtoday.co.uk/news/870476/we-had-no-idea-admits-bank-of-england-boss)

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  • The BoE, and by proxy the government, can’t keep this scam up for an extended period, because they are harming the economy, which is decreasing tax income, increasing expenses, and their debt will become unmanageable without a higher rate of inflation!

    Bullion was my response to this abuse of savers.

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  • Slartibartfast says:

    If you take your money out of the bank. Where would you put it?

    Corporate bonds? That would spur capital investment. But it’s kind of like taking Mr Beans advice and spending it.
    Carry trade? Good returns but pound suffers.
    Under the bed? No
    Housing? No
    Shares? Another asset bubble.
    Banks mostly just stick excess savings in bonds. Sucking on the public teat. Nobody wants that.

    Least worst choice then.

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  • gc @ 6: Another brilliant reason for people to seek the safety of gold

    Yes, yes, do seek safety in the most volatile asset class.

    http://img375.imageshack.us/img375/9421/gold5yeartriangle.jpg

    Just time it right. At present it is a crowded trade.

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