Comments on: The Bank of England is still fighting the wrong dragon http://johnredwoodsdiary.com/2008/08/09/the-bank-of-england-is-still-fighting-the-wrong-dragon/ Incisive and topical campaigns and commentary on today's issues and tomorrow's problems Wed, 23 May 2012 13:35:04 +0000 hourly 1 By: mikestallard http://johnredwoodsdiary.com/2008/08/09/the-bank-of-england-is-still-fighting-the-wrong-dragon/#comment-5150 mikestallard Sun, 10 Aug 2008 18:38:17 +0000 http://www.johnredwoodsdiary.com/?p=1264#comment-5150 May I interrupt here? I have been asking myself for ages this question too: why do all our politicians go along with the EU? Is the answer that politics is all about alliances and making friends and doing deals? If you offend people, then all this goes out of the window. You are an immediate failure. It is absolutely obvious that the key players - France and Germany - are not going to stop supporting the EU - biofuels, windmills, Napoleonic foreign policy (without the army) and the CAP and Euro stability too. Look at how they are behaving over ireland to take just one example: fanatics! And they are not open to negotiation either. So the easiest thing is to go along with them. Smile and wave! It was, of course, the "No No No" speech of Mrs Thatcher that caused the queue of men in suits who got rid of her. Hence the reserve and - yes - cowardice of the current politicians. May I interrupt here?
I have been asking myself for ages this question too: why do all our politicians go along with the EU?
Is the answer that politics is all about alliances and making friends and doing deals? If you offend people, then all this goes out of the window. You are an immediate failure.
It is absolutely obvious that the key players – France and Germany – are not going to stop supporting the EU – biofuels, windmills, Napoleonic foreign policy (without the army) and the CAP and Euro stability too. Look at how they are behaving over ireland to take just one example: fanatics! And they are not open to negotiation either.
So the easiest thing is to go along with them. Smile and wave!
It was, of course, the "No No No" speech of Mrs Thatcher that caused the queue of men in suits who got rid of her.
Hence the reserve and – yes – cowardice of the current politicians.

]]> By: William B. http://johnredwoodsdiary.com/2008/08/09/the-bank-of-england-is-still-fighting-the-wrong-dragon/#comment-5149 William B. Sat, 09 Aug 2008 23:33:56 +0000 http://www.johnredwoodsdiary.com/?p=1264#comment-5149 There appears to be a common theme linking this subject and the comments about Caroline Flint's public performances. Both evidence the government's lack of any apparent strategy. Lurching from crisis to crisis by announcing possible solutions and saying they are all being reviewed is hopeless. Within minutes of the current Chancellor suggesting a possible relaxation of Stamp Duty the blogosphere was awash with calls for him to make a decision because he had just frozen the housing market, and so it has proved. There are times when decisions must be made quickly and then changed quickly if they backfire, this requires someone to raise his head above the parapet and take the lead. I am sure the lack of strategic thinking is a direct consequence of Mr Brown simply not being one of nature's leaders. I am sure we have both seen the same at our cricket clubs, Mr Redwood, there are some who are natural captains and some who just can't do it even though they may be good players. Those, like me, who couldn't lead Bill Clinton to a pretty intern, are best advised never to put ourselves forward, if we did it would be a disaster for all. What a dreadful state of affairs we are witnessing. There appears to be a common theme linking this subject and the comments about Caroline Flint's public performances. Both evidence the government's lack of any apparent strategy. Lurching from crisis to crisis by announcing possible solutions and saying they are all being reviewed is hopeless. Within minutes of the current Chancellor suggesting a possible relaxation of Stamp Duty the blogosphere was awash with calls for him to make a decision because he had just frozen the housing market, and so it has proved.

There are times when decisions must be made quickly and then changed quickly if they backfire, this requires someone to raise his head above the parapet and take the lead. I am sure the lack of strategic thinking is a direct consequence of Mr Brown simply not being one of nature's leaders. I am sure we have both seen the same at our cricket clubs, Mr Redwood, there are some who are natural captains and some who just can't do it even though they may be good players. Those, like me, who couldn't lead Bill Clinton to a pretty intern, are best advised never to put ourselves forward, if we did it would be a disaster for all.

What a dreadful state of affairs we are witnessing.

]]> By: mikestallard http://johnredwoodsdiary.com/2008/08/09/the-bank-of-england-is-still-fighting-the-wrong-dragon/#comment-5148 mikestallard Sat, 09 Aug 2008 16:59:46 +0000 http://www.johnredwoodsdiary.com/?p=1264#comment-5148 Interesting that yesterday in the paper we read about a poor lady who, although she was a wonderful, careful person, was evicted by the ogres at Northern Rock. I suspect that the people who are evicted will not be voting Labour. So, why not just give it away, as you suggest? Is it because the Labour (still?) have faith in nationalised industry? Why is England so rich? I am puzzled. What do we actually produce? And why is the pound so strong? What does its power rest in? As far as I can see, we don't manufacture anything much, our agriculture doesn't really feed us and we buy in most of our stuff, like power, from abroad. We do not exploit our (rich) mineral deposits any more. So why should there be an upturn if we do not deserve it and have not worked for it? Reply: We are asset rich because many foreigners come and spend huge sums on buying London property assets, and we still generate substantial income from traded services. Interesting that yesterday in the paper we read about a poor lady who, although she was a wonderful, careful person, was evicted by the ogres at Northern Rock. I suspect that the people who are evicted will not be voting Labour. So, why not just give it away, as you suggest? Is it because the Labour (still?) have faith in nationalised industry?
Why is England so rich? I am puzzled. What do we actually produce? And why is the pound so strong? What does its power rest in? As far as I can see, we don't manufacture anything much, our agriculture doesn't really feed us and we buy in most of our stuff, like power, from abroad. We do not exploit our (rich) mineral deposits any more.
So why should there be an upturn if we do not deserve it and have not worked for it?

Reply: We are asset rich because many foreigners come and spend huge sums on buying London property assets, and we still generate substantial income from traded services.

]]> By: Derek W. Buxton http://johnredwoodsdiary.com/2008/08/09/the-bank-of-england-is-still-fighting-the-wrong-dragon/#comment-5147 Derek W. Buxton Sat, 09 Aug 2008 15:47:20 +0000 http://www.johnredwoodsdiary.com/?p=1264#comment-5147 I wish I had your confidence that inflation will fall on it own. That will not happen while the EU mandates bi-fuel for transport and our provincial government agrees. We should certainly buy more on the world market but we are in CAP. You do say that we should get out, how? It prevents us doing what is best for our Country to help the French. On top of all that energy prices I am told are higher here than on the continent. Whilst that situation appertains we are stuck with higher prices than should apply, so inflation is built in. This is a no win situation for all those on the lower pay scales, workers, pensioners and those on fixed incomes. Unfortunately, there is nothing to be done while the EU rules the roost, worst of all, with a few honourable exceptions no politician even understands the problem, let alone has an answer. I wish I had your confidence that inflation will fall on it own. That will not happen while the EU mandates bi-fuel for transport and our provincial government agrees. We should certainly buy more on the world market but we are in CAP. You do say that we should get out, how? It prevents us doing what is best for our Country to help the French. On top of all that energy prices I am told are higher here than on the continent. Whilst that situation appertains we are stuck with higher prices than should apply, so inflation is built in. This is a no win situation for all those on the lower pay scales, workers, pensioners and those on fixed incomes.

Unfortunately, there is nothing to be done while the EU rules the roost, worst of all, with a few honourable exceptions no politician even understands the problem, let alone has an answer.

]]> By: Tony Makara http://johnredwoodsdiary.com/2008/08/09/the-bank-of-england-is-still-fighting-the-wrong-dragon/#comment-5146 Tony Makara Sat, 09 Aug 2008 13:09:50 +0000 http://www.johnredwoodsdiary.com/?p=1264#comment-5146 I believe the MPC's decisions are being undertaken with the strength of Sterling in mind. It would be dangerous for the MPC to cut rates at a time when Trichet and the ECB are so hawkish. Once confidence in Sterling is undermined it could be open to a very severe correction sending the cost of imports through the roof. George Soros, who knows about these things, has predicted that Sterling is heading for a big fall. So the BOE is right to try and maintain the purchasing power of the pound at this time, in spite of the implications for restricted liquidity and economic downturn. Reply: The pound has been falling and may fall more, so the policy isn't working. The Euro is now too strong and the ECB are throttling the Euroland economy with their interest rates which are too high as well. I believe the MPC's decisions are being undertaken with the strength of Sterling in mind. It would be dangerous for the MPC to cut rates at a time when Trichet and the ECB are so hawkish. Once confidence in Sterling is undermined it could be open to a very severe correction sending the cost of imports through the roof. George Soros, who knows about these things, has predicted that Sterling is heading for a big fall. So the BOE is right to try and maintain the purchasing power of the pound at this time, in spite of the implications for restricted liquidity and economic downturn.

Reply: The pound has been falling and may fall more, so the policy isn't working. The Euro is now too strong and the ECB are throttling the Euroland economy with their interest rates which are too high as well.

]]> By: harry http://johnredwoodsdiary.com/2008/08/09/the-bank-of-england-is-still-fighting-the-wrong-dragon/#comment-5145 harry Sat, 09 Aug 2008 13:09:01 +0000 http://www.johnredwoodsdiary.com/?p=1264#comment-5145 'The latest figures for the UK and other Western economies confirms that the main threat is falling activity rather than inflation.' If the United Kingdom: (1) Dismantled the Welfare State - Housing, Health etc releasing tens of thousands of wastrel do-nothings into the labour market (2) Introduced a flat tax of say 15%, thus releasing tens of thousands of Uncivil Servants into the real labour market (3) Disassembled the system of regimentation of Capital and Business that presently exists (3a)Left the EU and started to be responsible again for it's own way in the world (4) and most importantly returned to the Gold Standard, then none of the present systematic fiddling around by government would be necessary. What we need is a political party which will advocate these things instead of buggerarseing with windmills, politically correct crap multi-culti trash and suchlike. Any ideas? 'The latest figures for the UK and other Western economies confirms that the main threat is falling activity rather than inflation.'

If the United Kingdom:

(1) Dismantled the Welfare State – Housing, Health etc releasing tens of thousands of wastrel do-nothings into the labour market

(2) Introduced a flat tax of say 15%, thus releasing tens of thousands of Uncivil Servants into the real labour market

(3) Disassembled the system of regimentation of Capital and Business that presently exists
(3a)Left the EU and started to be responsible again for it's own way in the world

(4) and most importantly returned to the Gold Standard,

then none of the present systematic fiddling around by government would be necessary. What we need is a political party which will advocate these things instead of buggerarseing with windmills, politically correct crap multi-culti trash and suchlike. Any ideas?

]]> By: adam http://johnredwoodsdiary.com/2008/08/09/the-bank-of-england-is-still-fighting-the-wrong-dragon/#comment-5144 adam Sat, 09 Aug 2008 11:36:50 +0000 http://www.johnredwoodsdiary.com/?p=1264#comment-5144 Put it on ebay. Someone will pay at least a fiver. Put it on ebay. Someone will pay at least a fiver.

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