Comments on: Cuckoo banks threaten the public spending nest http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/ Incisive and topical campaigns and commentary on today's issues and tomorrow's problems Thu, 24 May 2012 13:47:51 +0000 hourly 1 By: Colin Hart http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/#comment-13262 Colin Hart Sat, 28 Mar 2009 13:24:27 +0000 http://www.johnredwoodsdiary.com/?p=3235#comment-13262 The FE farce is one of a number of stealth cuts now going on. The same thing has happened to the Regional Development Agencies. Whatever we feel about these quangoes, the issue is one of accountability. Their budgets are cut by administrative fiat from the centre, without any reference to Parliament. They are made to take the blame and Ministers get off scot free. Once upon a time Parliament used to vote the money and would have debated whether it should be subsequently cut. It's what happens in the US Congress. Time we started to do something similar, give up on the idea of 'independent' agencies and restore ministerial responsibility. The FE farce is one of a number of stealth cuts now going on. The same thing has happened to the Regional Development Agencies. Whatever we feel about these quangoes, the issue is one of accountability. Their budgets are cut by administrative fiat from the centre, without any reference to Parliament. They are made to take the blame and Ministers get off scot free.
Once upon a time Parliament used to vote the money and would have debated whether it should be subsequently cut. It’s what happens in the US Congress. Time we started to do something similar, give up on the idea of ‘independent’ agencies and restore ministerial responsibility.

]]> By: Monetising the deficit - will Brown use the nuclear option? : newsjunction.co.uk http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/#comment-13261 Monetising the deficit - will Brown use the nuclear option? : newsjunction.co.uk Fri, 27 Mar 2009 20:43:12 +0000 http://www.johnredwoodsdiary.com/?p=3235#comment-13261 [...] To add insult to injury the foolish bailouts and quasi-nationalisation of the banks means we are two large banks (near bankrupt ones) with a medium sized government attached, which isn’t an attractive [...] [...] To add insult to injury the foolish bailouts and quasi-nationalisation of the banks means we are two large banks (near bankrupt ones) with a medium sized government attached, which isn’t an attractive [...]

]]> By: TomTom http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/#comment-13260 TomTom Thu, 26 Mar 2009 08:23:39 +0000 http://www.johnredwoodsdiary.com/?p=3235#comment-13260 <i>Instead of printing Gilts, we should just print the money, it’s still the same worthless paper, why borrow it.</i> Because they are printing "high-powered money" by injecting it into the banking system to work on the Credit Multiplier so it expands through fractional-reserve banking by 10-15 times the injection. Simply printing bank notes has no real impact when you are billions in the hole. The problem remains huge contingent liabilities in poorly-valued bond holdings that banks used as collateral for Credit Expansion and the fact that some of these bonds may not even be genuine since they were packaged portfolios of individual contracts with documentation up to 15,000 pages long with each bond. Who knows which customers will default on car loans in a bonmd packaged with student debt, credit card debt and car loans ? Instead of printing Gilts, we should just print the money, it’s still the same worthless paper, why borrow it.

Because they are printing “high-powered money” by injecting it into the banking system to work on the Credit Multiplier so it expands through fractional-reserve banking by 10-15 times the injection. Simply printing bank notes has no real impact when you are billions in the hole.

The problem remains huge contingent liabilities in poorly-valued bond holdings that banks used as collateral for Credit Expansion and the fact that some of these bonds may not even be genuine since they were packaged portfolios of individual contracts with documentation up to 15,000 pages long with each bond.

Who knows which customers will default on car loans in a bonmd packaged with student debt, credit card debt and car loans ?

]]> By: rik http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/#comment-13259 rik Thu, 26 Mar 2009 02:05:04 +0000 http://www.johnredwoodsdiary.com/?p=3235#comment-13259 Excellent article yet again. Tell me, how is it that the labour party has managed to turn all the peoples anger away from their management of the economy and shift it all onto the banks? Now it seems that Sir Fred Goodwin is the only person to blame for the crisis the country is in. If Gordon Brown feels so strongly " that values such as "honesty, integrity and working hard" may have been absent from the financial system in recent years. Why did he allow it all to happen for so long on "HIS WATCH"? Excellent article yet again. Tell me, how is it that the labour party has managed to turn all the peoples anger away from their management of the economy and shift it all onto the banks? Now it seems that Sir Fred Goodwin is the only person to blame for the crisis the country is in. If Gordon Brown feels so strongly ” that values such as “honesty, integrity and working hard” may have been absent from the financial system in recent years. Why did he allow it all to happen for so long on “HIS WATCH”?

]]> By: Adrian Peirson http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/#comment-13258 Adrian Peirson Wed, 25 Mar 2009 23:17:04 +0000 http://www.johnredwoodsdiary.com/?p=3235#comment-13258 Instead of printing Gilts, we should just print the money, it's still the same worthless paper, why borrow it. Instead of printing Gilts, we should just print the money, it’s still the same worthless paper, why borrow it.

]]> By: alan jutson http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/#comment-13257 alan jutson Wed, 25 Mar 2009 19:12:14 +0000 http://www.johnredwoodsdiary.com/?p=3235#comment-13257 Yes its excellent. Viewed it before I saw your Blog. About the only good thing to come out of the EU Parliament. The telling factor, how Brown smiled, he's been found out !!!!!! Yes its excellent.
Viewed it before I saw your Blog.
About the only good thing to come out of the EU Parliament.

The telling factor, how Brown smiled, he’s been found out !!!!!!

]]> By: TomTom http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/#comment-13256 TomTom Wed, 25 Mar 2009 18:17:36 +0000 http://www.johnredwoodsdiary.com/?p=3235#comment-13256 The Great Y2K Software Scam in 1999-2000 led Central Banks in the US and UK to splurge liquidity to prevent a supposed Banking Armageddon...........RESULT.........Dot.com Boom The Great Dot.com Boom and subsequent Bust threatened a Banking Armageddon ........RESULT......more liquidity injected into system and the housing market deliberately pumped up to boost bank profitability The Great House Price Boom in UK, USA, Spain creates a Supercharged Credit Multiplier as people borrow against any piece of collateral to consume.........RESULT.......Consumer Boom and Savings Collapse.....China racks up trade surpluses recycled as cheap credit to Western Consumers Great Housing Boom busts and banks fall flat on their faces......RESULT....Bankers tell their hirelings to produce more liquidity to get the show back on the road. So since Gordon Brown took office in 1997 we have had at least THREE major injections of credit into the economy to get us to where we are today......and he wants MORE !!! The Great Y2K Software Scam in 1999-2000 led Central Banks in the US and UK to splurge liquidity to prevent a supposed Banking Armageddon………..RESULT………Dot.com Boom

The Great Dot.com Boom and subsequent Bust threatened a Banking Armageddon ……..RESULT……more liquidity injected into system and the housing market deliberately pumped up to boost bank profitability

The Great House Price Boom in UK, USA, Spain creates a Supercharged Credit Multiplier as people borrow against any piece of collateral to consume………RESULT…….Consumer Boom and Savings Collapse…..China racks up trade surpluses recycled as cheap credit to Western Consumers

Great Housing Boom busts and banks fall flat on their faces……RESULT….Bankers tell their hirelings to produce more liquidity to get the show back on the road.

So since Gordon Brown took office in 1997 we have had at least THREE major injections of credit into the economy to get us to where we are today……and he wants MORE !!!

]]> By: alan http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/#comment-13255 alan Wed, 25 Mar 2009 18:16:25 +0000 http://www.johnredwoodsdiary.com/?p=3235#comment-13255 Mr Redwood. The Conservatives, when elected, MUST do something about these quango's In the NHS there are so many behind which Ministers can hide and blame. So much money could be saved by swift action. Hospitals responsible to the minister direct! No quango's in between. Hospital Trusts in charge of their own destiny, with a management ELECTED by local people. No more jobs for our friends!!! Good luck. Mr Redwood.

The Conservatives, when elected, MUST do something about these quango’s In the NHS there are so many behind which Ministers can hide and blame.

So much money could be saved by swift action. Hospitals responsible to the minister direct! No quango’s in between. Hospital Trusts in charge of their own destiny, with a management ELECTED by local people.

No more jobs for our friends!!!

Good luck.

]]> By: Jason http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/#comment-13254 Jason Wed, 25 Mar 2009 17:27:47 +0000 http://www.johnredwoodsdiary.com/?p=3235#comment-13254 Two important pieces of information to bring up in parliament today are firstly the fact that the government failed to raise the full amount at its gilt auction for the first time in 7 years. Secondly, the BoE which conducted a reverse auction (ie buying gilts from the market) was covered 1.4x. This, if extrapolated out signals the end of the game for this government. They want to buy gilts to increase the money supply whilst their ability to borrow from markets is becoming increasingly questionable. Coupled with certain tax shortfalls and you have a picture of total incredulity. Something has to give....currently it is sterling. Quantitative easing could also be used to fill the gap in govt finances - simply print the money. This surely is the next step in their ridiculous plan. Every time sterling looks like bottoming - the actions and consequences of this govt persistently stop it dead in its tracks. Anyone listening to Comerade Brown speak to European Parliament or to the US congress could think he is a man in control, who has a good plan etc. Nothing could be further from the truth. The reality is indeed sordid and getting worse. Two important pieces of information to bring up in parliament today are firstly the fact that the government failed to raise the full amount at its gilt auction for the first time in 7 years. Secondly, the BoE which conducted a reverse auction (ie buying gilts from the market) was covered 1.4x. This, if extrapolated out signals the end of the game for this government. They want to buy gilts to increase the money supply whilst their ability to borrow from markets is becoming increasingly questionable. Coupled with certain tax shortfalls and you have a picture of total incredulity. Something has to give….currently it is sterling. Quantitative easing could also be used to fill the gap in govt finances – simply print the money. This surely is the next step in their ridiculous plan. Every time sterling looks like bottoming – the actions and consequences of this govt persistently stop it dead in its tracks. Anyone listening to Comerade Brown speak to European Parliament or to the US congress could think he is a man in control, who has a good plan etc. Nothing could be further from the truth. The reality is indeed sordid and getting worse.

]]> By: mikestallard http://johnredwoodsdiary.com/2009/03/25/cuckoo-banks-threaten-the-public-spending-nest/#comment-13253 mikestallard Wed, 25 Mar 2009 17:03:19 +0000 http://www.johnredwoodsdiary.com/?p=3235#comment-13253 OK, so let's see what is happening here in the (Conservative) Fens, miles and miles away from Mr Brown's government. Our Comprehensive more or less has a monopoly on all secondary education. It has no sixth form. This means that everyone who wants to study A Levels has to go to College. Meanwhile, our local College is being transferred some 17 miles away to March where a new Campus is to be prepared with full Sixth Form facilities. Our local College is being deliberately run down therefore. The best teachers, of course, left ages ago. Today's local paper said that the March Campus is now put on hold. Last week's said that there was to be no sixth form at the Comprehensive. The nearest College is in Norfolk, which is not Cambs. Up to now, it has generously been admitting Wisbech A level people who have 20 miles to travel to get there, if they have a car. If not, the bus takes more or less one hour. So now can you see why people get really upset about "Fred the Shred" and so on? OK, so let’s see what is happening here in the (Conservative) Fens, miles and miles away from Mr Brown’s government.

Our Comprehensive more or less has a monopoly on all secondary education. It has no sixth form. This means that everyone who wants to study A Levels has to go to College.
Meanwhile, our local College is being transferred some 17 miles away to March where a new Campus is to be prepared with full Sixth Form facilities. Our local College is being deliberately run down therefore. The best teachers, of course, left ages ago.
Today’s local paper said that the March Campus is now put on hold. Last week’s said that there was to be no sixth form at the Comprehensive.
The nearest College is in Norfolk, which is not Cambs. Up to now, it has generously been admitting Wisbech A level people who have 20 miles to travel to get there, if they have a car. If not, the bus takes more or less one hour.

So now can you see why people get really upset about “Fred the Shred” and so on?

]]>