Comments on: That’s no independent Bank

By: Adrian Peirson

Adrian Peirson — Thu, 30 Oct 2008 22:53:23 +0000

When they have forced us into reposession, we can then be Greatfull to our Govt that they will decide thiat we can keep our once Private houses and instead, we and our children can pay the state rent Forever.
This is all deliberate. These events were predicted over two yrs ago.

Welcome to Gulag Britain.
http://www.order-order.com/2008/10/renegade-econo…

By: matt

matt — Thu, 30 Oct 2008 20:41:35 +0000

The world's central banks are operating in concert. It is global centralized economic planning……aka communism.

By fixing the cost of borrowing, independent from market conditions, they are micromanaging national economies, or rather they are resource allocators.

The cost of borrowing was kept way too low in Britain and America for several years by basing inflation statistics on the CPI, a totally useless inflation yardstick as it takes no account of money supply.

The Federal Reserve and the Bank of England, with the full connaivance of the Bush and Blair/Brown adminstrations have allowed the mother of all credit bubbles to develop.

Now they have contracted the money supply and are British and American people are going to be asset stripped.

It's a crime worthy of revolution but most people don't realize they've been totally conned.

By: mikestallard

mikestallard — Thu, 30 Oct 2008 18:56:57 +0000

Under Ken Clarke, I had the impression that the Bank of England was in charge of the money system. With a quiet word here and there in the right places, catastrophe could usually be averted by the all important Governor. Now there is the FSA, the MPC, even the Chancellor all sort of interfering and when there is a huge problem looming, it is always the other person's fault.
Why this happened – EU advice? Bureaucratic thinking? Gordon Brown's obvious love of the complicated? – historians will, no doubt discuss.
The other problem is trust – something which I do not think the Labour Party understands. Financial professionals in this country have a fine record. They have been at it for years, too. But by portraying them as bonus eaters and fat cats out for a swindle, this trust has been undermined.
Hence – all power to the Government!
What a shame that they are in no way worthy of it.

By: adam

adam — Thu, 30 Oct 2008 16:03:54 +0000

I heard on the news yesterday in a very minor piece that the chancellor had or is thinking of, i forget which, telling the BofE it is no longer obliged to meet the inflation target.

I feel this is big news. The policy to tackle inflation was always going to fail with non monetary driven inflation. Oil prices drove consumers goods and bills up, the banks only response was raising interest rates.

So low income families were hit with higher bills and more expensive goods and then on top of that those on variable mortgages or renewing fixed rates faced higher payments

The goverment has failed the very people they would claim to represent. Darling is admitting that.

By: Pete Chown

Pete Chown — Thu, 30 Oct 2008 11:12:37 +0000

“However, recent events have also shown that there is merit in the US system where the Fed has a clear duty to consider output levels as well as inflation …”

You can certainly “consider” output levels as well as inflation, but of course you can’t control both at once. There is no reason why the right interest rate for inflation should be the right interest rate for growth. If you were asked to consider both growth and inflation, a compromise is the best you could hope for.

How do you think this compromise would work in actual numbers? Would you want to see inflation staying around 5%, for example, or should it be allowed to go even higher to keep the economy growing? Do you think you could do this without a sterling crisis and a large rise in government borrowing costs?