Thursday, March 3, 2011

BoE Governor makes it clear that there will be no recovery.

King says living standards may never recover from the crisis

The Governor of the Bank of England warned yesterday that living standards may never recover from the financial crisis and that households were only just starting to feel the full impact of bankers' mistakes. "It is not like an ordinary recession where you lose output and get it back quickly," the Governor said when asked if the country would ever recover from a squeeze on living standards on a scale not seen since the 1920s. "You may not get it back for many years, if ever, and that is a big long-run loss of living standards for all people in this country."

Posted by general congreve @ 03:11 PM (2668 views)
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22 thoughts on “BoE Governor makes it clear that there will be no recovery.

  • general congreve says:

    The economy is toast and we are going to inflate your earnings and savings into the dust. Live with it. Love Merv.

    You have to remember that in order to not incur panic in the MSM and general public, Merv is probably telling the truth in the most understated manner possible.

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  • Thecountofnowhere says:

    Image someone with a fixed low income who went and robbed a bank.

    That person could live the life of Reilly for years off that money + their salary.

    One day though, the pot of money is gone and if they don’t rob the bank again then they have to live off their low income.

    Their life style then has to match that low income.

    Welcome to the UK.

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  • sibley's b'stard child says:

    What living standards?

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  • “King says living standards may never recover from the crisis.”

    Welcome to the new world order, as if it needed an excuse for impoverishment.

    Engineered boom and bust it was then. I am rarely wrong, ask techieman.

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  • What living standards?

    You have obviously never been to third world country.

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  • ontheotherhand says:

    It’s all about talking down the wage negotiators. He’s having trouble managing our inflation expectations, so tell people they don’t deserve to have as much spending power as before and fingers crossed they don’t ask for a raise.

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  • general congreve says:

    @3 – True. I’ve been to the dark heart of Africa and seen multitudes with nothing more than a 1-room hut of the most basic design and the old western caste-off clothes on their back to their name.

    A return to the one car family and holidays at the English sea-side would be viewed as devastating here, but we’d still be living like kings in historical and world standards.

    Of course, I’ve bought the necessary insurance, so I don’t plan to accommodate such a drop in UK living standards personally. In fact I plan to see mine rise substantially 😉

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  • sibley's b'stard child says:

    You have obviously never been to third world country.

    Does living in Dagenham count?

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  • reminds me of 1920s america…they thought the party would never end

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  • @Sibley-b-c,

    There are advantages to places like Dagenham, I was born in Shower Hamlets (Bromley by Bow). You get an education like no other….

    Back to subject – I do wish Mervyn would stick to his remit and just try and manage inflation. He’s not chancellor, although he might make a good one (or might not)!

    Rates need to rise, just for the morality of it all…. punishing savers sends out the wrong message in this land overburdened with debt.

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  • Was it ever going to be otherwise – were the prudent ever *not* going to be forced to bail out the reckless? I doubt it. Unfortunately the path of least resistance and most gain was to get the cash ‘rich’ (people with savings) to bail out the paper ‘poor’ (modest income but asset rich).

    The morality of it all is indeed appalling but inevitable. Market forces have and will continue to have nothing to do with any rebalancing because when you control the pack you don’t need to play by the rules.

    What Merv hasn’t yet said is that the reason we have an L-shaped recovery is because he and his MPC chums made it that way.

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  • next time i will be sooooo reckless

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  • “You have obviously never been to third world country.”

    Try Dewsbury, Batley and Bradford, they’re nearer home.

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  • the number cruncher says:

    Mr g I’m with HPW on this one, you have no idea if you think Batley is like the third world

    Having worked in the Philippines and Africa myself I still cannot expunge the memories of seeing dying children on the street. The best third world countries, like Botswana, have far less real poverty because the populace still have fair access to the fruits of the Land. I worked in Namibia for some time and that was awful, but nothing compared to the utter human depravedness that is the Philippines

    The Philippines, having the worst of Spanish and American influence has horrendous poverty due to the complete isolation of the poor from the land by western law and economic policy.

    Fred Harrison tells it much better than myself:

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  • Grump @ 13 said…..

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  • @ 10

    Merv is sticking to his remit – and that is CREATING inflation.

    He’s proved to be rather good at it actually. It suits the ruling elite well, as it acts as a hidden tax on people’s savings.

    They don’t know what’s hit them until they try spending their money and fnd it won’t buy anything. And it’s too late by then.

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  • stillthinking says:

    The living standards that are about to vanish were based on borrowing, so suggesting that living standards are about to drop -now- is not the truth. As they will apparently drop now probably the best way to state, but they dropped many years ago with the difference made up by borrowing.

    That Mervyn feels the need to say things like this though, if you look at these statements through the prism of central bankers only ever saying anything to achieve a change in expectations, is that he wants people to clamp down on spending through fear. He bleats like a goat always with the same aim, “inflation is stable”, “stop spending”. I hope he gets away with it.

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  • The new world orders remit was to bring down the living standards across the west, they are doing exactly that. Emphasis on doing.

    Engineered boom and bust, but most people would prefer to think that the ruling elite don’t have that power of influence. Wrong.

    Keep living in denial folks and pray for better times ahead. It’s now down to a miracle.

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  • 17. stillthinking

    But it’s ok the spend on petrol, insurance, property and energy bills……..

    Have a rethink.

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  • one big difference between poverty in the `UK and abroad, people abroad will work hard under the worst conditions just to eat including recycling half eaten food in the trash and making a rather nice meal from it, back to the UK they will sit on their fat lardy ars&s and moan they don’t get enough benefit handouts

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  • Also, the person with savings is tempted by this ‘saving is a waste of time’ lesson to buy a property and thus, all other things being equal, sustain house prices

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  • @NC

    You miss the point.

    I’m not suggesting for one moment that Batley is remotely like a third world country in living standards but in terms of it’s population it’s more akin to Peshawar or Rawalpindi and I’ve been there (Peshawar)

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