The People’s Ā Bank of China is cutting interest rates and creating Ā more liquidity in markets to boost growth. They did not buy up bonds Ā in past years and have low inflation.Growth is around 5%
The Fed, the US Central Bank , is busy selling bonds at a loss but does not send the bill to the Treasury Ā and taxpayers. Meanwhile the Administration and Congress has boosted the budget deficit by $1 trillion to offset the contractionary effects. Growth hit 5% but is now slowing as the stimulus Ā fades.
The ECB is not selling bonds at big losses, though it made the same mistake as the Bank of England in printing too much and causing inflation. They do not want to weaken their economies more.
The Bank of Japan is still creating more money and buying more bonds, with low inflation.
Only the Bank of England is continuing to tighten into a downturn with large sales of bonds, sending huge bills for the losses to taxpayers.
Why?
March 10, 2024
Sir John asks why? There is only one answer: incompetence
March 10, 2024
Why, the Bank is stuffed with incompetent leftwaffe staff who don’t actually work for Britain.
They believe we should be in the EU and have to make Brexit look a failure. Much like the rest of government employees and MPs. Good to see treacherous May standing down.
March 10, 2024
precisely.
March 10, 2024
A bit like Useless Khan saying cars under London ULEZ scrappage scheme can be used in Ukraine! How does using the same car in another country help the planet? A scam.
Kwartang makes clear today OBR now setting govt.economic policy! Scrappage scheme of quangos need to start in earnest!
March 10, 2024
Couldn’t have put it better myself !
March 10, 2024
As to May Sunak said she was āa relentless campaigner, a fiercely loyal MP to the people of Maidenhead who defines what is means to be a public servant.ā
Alas she campaigned and delivered appalling things the insane Net Zero agenda, the Windrush scandal, the Brexit vote means sweat FA to Theresa May, Lies and the Brexit Treachery that cost the country Ā£billions. She even incompetently threw away her majority. A relentless person with a broken compass is worse than an incompetent one with a broken compass. Net zero perhaps the biggest of her appalling disasters. She did however deliver opt out organ donations.
March 10, 2024
She forgotā¦But dreadful to the nation and her party.
March 10, 2024
Yes, but specifically, 2 deficits, trade and budget.
We depend on other countries to accept Ā£ for $,ā¬ and others. If they see an economy for ever weakening they will stop buying it, again. Remember we’ve had to be bailed out before by the IMF.
March 10, 2024
You can see the currencies used for imports and exports at
https://www.gov.uk/government/statistics/uk-trade-in-goods-by-declared-currency-of-invoice-2022/uk-trade-in-goods-by-declared-currency-of-invoice-2022#currency-of-invoice-summary
See how little Chinese yuan is used. The Chinese prefer to get paid in US Dollars. it has got circa 3,000 billion of them stashed in various forms, at the US FED!
March 10, 2024
Thatās changing. All Russian/Chinese trade is now done in yen or roubles. The USD is being dumped by the BRICS and global south.
Another feather in Bidenās dunces cap.
March 10, 2024
Would it not be Renmimbi, rather than Yen?
And looking at curves, to talk about ādumpedā is a bit rich? Ever studied 1st and 2nd order derivatives in secondary school?
asiahouse.org 22/05/2023 āthe RMB rise and its accelerated use in global trade financeā.
RMB use was at 4.5% in March 2023 trading exchanges and that might be due to a decrease in the use of the Russian Rouble in commercial exchanges.
See also statista.com āShare of currencies held in global foreign exchange reserves from Q1 1999 to Q2 2023ā.
March 10, 2024
Thanks, helpful data. The effect of our trade deficit and money printing, can be seen in Ā£ to $ exchange rate https://www.macrotrends.net/2549/pound-dollar-exchange-rate-historical-chart
The difference between our money printing and US federal reserve printing is that the US$ is the preferred currency for international trade. We’re heading for trouble if we don’t show economic responsibility. Starmer will take us back to the IMF I think.
March 10, 2024
The only thing that is holding Sterling at its present level is the BoE base rate. If the UK had loads of unique manufactured goods and services to sell, that foreigners where eager to buy, they would be exchanging their own currency for Pounds Sterling to buy them.
The fact that Sterling’s exchange rate is long term falling, is evidence that foreigners are now only interested in taking a punt on UK residential and commercial property; which is so easy to “flip” under UK legislation, and little else.
A country that issues its own currency should never be in a position where it needs to borrow in an IMF basket currency to pay for its trade deficit.
March 11, 2024
Hefner – no I meant Yuan. In 2923 and denominated in USD Russia China trade was $240 billion and all conducted in Yuan or Roubles.
Trade this year has increased.
The Middle East oil producers are no longer selling oil for USD. They trade in other BRICS currencies.
The USD is being DUMPED AS THE RESERVE CURRENCY. That means that the USD 34.5 TRILLION debt is going to land in the laps of US taxpayers. It will rush them.
There may be trouble ahead ā¦.
March 10, 2024
Indeed. And the UK is hugely uncompetitive due to high taxes, net zero, rip off energy
Stanley Johnson really is a deluded, socialist & scientifically ignorant fool (on energy, net zero, the EU, China, Economicsā¦) on GBNews about 10.50 this AM. He even says he might vote Labour if Starmer says he will re-join European Environmental Agency. Everything that is wrong with the fake Conservatives in one man.
An English graduate it seems. Boris for all his faults (another net zero loon perhaps due to his theatre studies deluded āgreenā wife) at least turned out rather more sensible than his father.
March 10, 2024
but sensible enough to buy his son a meal-ticket for life at Eton!
March 10, 2024
Or are they selling off fossil linked bonds to invest in greencr*p?
āWhy?ā often = āWhat are you up to?ā
They will bring us all to penury.
March 10, 2024
+1
March 10, 2024
Peter
Wake up dude.
Bailey is an ardent Europhile. Starmer is an ardent Europhile. Bailey wants to keep a lid on economic growth by keeping rates at a level that damages growth, the Tories are blamed thereby upping the possibility of a pro-EU Labour government.
I have no doubt Labour and Starmer will take the UK back into the EU. Starmer is a dyed in the wool slithery snake. You wouldn’t trust him with your granny’s savings. CPS politicisation, taking the knee, backing the bigotry and Marxism of Corbyn and representing some proper dodgy extremists when a QC.
Labour will get back in because the voter is CLUELESS, naive and utterly without appreciation. They’re not stupid though merely lacking in relevant information. Unfortunately the Tories aren’t prepared, out of understandable fear, to fully expose the head of the snake, Starmer.
I still believe the Tories can be saved from oblivion by someone who defiantly opposes the racialisation and wokery we see around us. That person is not Johnson. The party so desperately needs to a Neo-Thatcherite
March 10, 2024
It occurred to me that a pro Tory newspaper ( or more than oneā¦ Iām not certain) put a stop to Kinnockās ambitions of being PM. ( He gained much solace in the EU I expect)
The paper issued an extremely stark and powerful message.
Why canāt that happen now? Maybe because all the newspapers ( all the whole media) are left wing and ( with a few exceptions) SO IS THE TORY PARTY!
March 10, 2024
Your last sentence is the solution, BUT who fits the description…..before the end of this year. So..there is, presently, no competent PCP member.
March 10, 2024
And you write that on John Redwoodās blog? šš¤£š¤Æ
March 10, 2024
Is that saved this year, in this GE, or are you thinking of a phoenix ?
All the indicators are of major Tory casualties all over the country.
March 10, 2024
Wellā¦the poor old tories arenāt quite burnt toast yet!
But if you actually read my comment you would learn that I have no hope whatsoever for them.
March 10, 2024
I replied to DOM.
March 10, 2024
MT
Oh sorry!
Mea culpa.
March 10, 2024
Bailey is an appropriate name for someone needing bailing out.
March 10, 2024
The DT were testing the waters yesterday with a lengthy article about the potential return of the Fat Oaf or Lord Dave of Greenshill Lobbying. Looks like Nadine Dorries’ speculation a few months ago that Sunak may stand down later this year may be on the money.
March 10, 2024
Sunak must go, nothing he promises will be believed. The return of Lord Cameron of Greensill of Libya was evil & idiotic. Cast Iron liar, fake EU skeptic, low tax a heart but ever high taxes in practice. I will stay on and deliver on the Brexit referendum outcome he lied.
But I will not even prepare for a leave result and then I will abandon ship like a pathetic spoilt child.
Gross and evil negligence and dishonesty. He had such a good opportunity to deliver too. Not helped by his throwing his first sitting duck Gordon Brown Election half win.
March 10, 2024
LL,
Cameron now giving away Ā£1 million of our taxes to Libya to stop immigration from Africa into Libya!! This is what Gaddaffi warned them about! Cameron caused this by his regime change!!
JR, how more stupid can your govt and party be? You need to oust Sunak for any chance of not being made extinct.
March 10, 2024
The UK is not going back into the EU. They would have to ditch the Maastricht Treaty for that to happen, and they aren’t going to do that specially for the UK.
March 10, 2024
I donāt believe they are going back in either, they donāt need us to, they will bill us on the side for all the ājointā projects our sneaky politicians will agree to, they will fix our vat and tax rates by agreement and blame āNorthern Irelandā even though it is nonsense. One way or another they will get our 30bn EUR each year and our politicians are just ready and waiting which is why the BoE are out to wreck rather than grow, its also why the papers have been briefing that pensioners are worse off this year.
John, at the end of the day itās your Treasury, a Tory treasury allowing all this to happen.
Reply It is not my Treasury! When did I last agree with their analysis. Ministers could change it if they wanted toln
March 10, 2024
AT,
Uni party will not formerly enter EU again but will sign up to more EU lopsided agreements, give away our money to EU, give away our territorial waters and act in lock step to EU as a vassal state. Sunak has paved the way with his EU sell out agreement, give away N.Ireland, border down Irish Sea and Labour will continue.
March 11, 2024
I agree, Hope. Carney today conjoined with Labour, the talk over the weekend of Olly Robbins wanting back in the UK machinations with the EU and the over-excitement of the Remain side about Starmer.
Good news is suppressed, and bad news is hyped.
CityAM have said the UK economy is set to take its first steps out of recession this week, I checked on my regular news sites to see if it was reported there that the recession was as shallow as the BoE governor thought it would be, no, nothing.
Is there anything about the UK signing a trade MoU with the State of Texas (one of the biggest economies in the World) in the BBC? The Ā£ hitting the highest value in seven months against the $ and is performing better in2024 than 90% of global currencies?
March 10, 2024
Starmer will not take us back in fully by name, but he will do everything else but that. But then Sunak with his dire Windsor Accord is just as bad.
March 11, 2024
They’re waiting for the Ukraine war to be declared over …. and then they’ll move swiftly to create a two-tier structure. The federalised Eurozone; and the Associated Tier, outside the Eurozone, to include the UK, rump-Ukraine, remaining EFTA nations, Turkey and – in due course, the north African nations bordering the Med.
It’s why they’ve kept us umbilically attached – we’re effectively already in the Associated Tier.
March 10, 2024
Well Thatcher and Boris both fell for the climate alarmist lunacy.
We need a party that will pause immigration and pause net zero for (at the very least) 5 years, cut red tape, cut taxes, go for cheap reliable on demand energy (it is 1/3 of the price in the USA) and halve the size of government.
March 10, 2024
There is such a party. Itās called Reform.
March 10, 2024
No, the voters will vote for Labour to get the useless Tories out.
Labour will be worse but at least the Tory party can be re-built…built back better, lol…as a Conservative party..
March 10, 2024
No, it’s not incompetence. It’s deliberate. They are “on a mission” …. the questions which need answering are (a) why? and
(b) who benefits?
March 10, 2024
What if the Henny Pennys in govt. actually believe all the greencr*p doom?
What if the lockdowns were really about monitoring the effects of closing down the world? Plus a soupƧon of population reduction?
Destroy capitalism. Destroy growth. To save the planet! ( Nevermind edging us towards nuclear destruction).
After all ā¦talk of Climate Lockdowns followed swiftly on the heels of covid.
They should all go out and contemplate the blossoming Spring. It is coming with no help from them. Their insignificance is breathtaking.
March 10, 2024
The BoE surely were involved in ditching Truss. Blaiming her for the economic mess they and Sunak as Chancellor had created with their QE, lockdowns and other economic lunacies.
March 10, 2024
+1
March 10, 2024
There speaks the generous Englishman again. Canāt believe evil when he sees it and lays the blame at āincompetenceā.
Peter – THEY KNOW WHAT THEY ARE DOING! Not only on the economy but in the boatloads of burdensome aliens.
March 10, 2024
Indeed, while in charge of the FCA Andrew Bailey (History) made everyone in the UK one size only personal overdrafts of circa 40%. Mine jumped from base plus 2% to 39.9% this the same for all regardless of credit risk. What sort of economic moron thought this was a good plan? Why do the competition authorities not act to ensure a fair market here? The same banks charge less than 1/4 of this overseas.
March 10, 2024
Or they have an agenda such as they seemed to have when burying Truss and giving her the blame for their and Sunakās huge economic incompetence.
Andrew Rosindell MP just now on GBNews voters āyou many not be happy with everything we (The Conservatives) are doingā.
Wrong mate they are not happy with anything you are doing. We need 180 degree U turns on tax levels, the size of government, net zero, energy policy, red tape, the dire Windsor Accord, the dire NHS, legal and illegal immigration levels, real incentives to workā¦ Sunak and Hunt must go.
The only reason to vote Tory is that Labour will be even worse and even more misguided with their evil politics of envy, even more vast tax grabs and the anticompetitive mugging of private schools (Gove too). But essentially the same mad agenda as the current fake Tories.
March 10, 2024
Voting Tory will not bring about any policy changes. The Party has been captured and indeed any vote for any of the existing Parliamentary parties will be taken by these parties to be a vote to continue with mass immigration and Net Zero.
March 10, 2024
@Peter Gardner +1
Then of course the all got above inflation wage rises
March 10, 2024
The governor seems to have enough money from taxpayer’s in the kitty to award themselves an inflation busting pay rise.
March 10, 2024
I thought it was 4% pension increase was 8.5% and that wasnāt called inflation busting this week? The NMW/NLW went up 10% last year, 10% this year you canāt keep pushing the floor up and expect much more qualified and capable people to have their pay held down.
March 10, 2024
Given the tax increases you need above inflation rises just to break even. They also get loads of fringe benefits at the BoE like private health and dental care. No such benefits for NHS doctors or nurses!
March 10, 2024
Why indeed?
They are doubling down. Is it to save face? Is it because they can do whatever they want? Is it incompetence? Is it because they actually want to damage our economy and if so, why? (Net zero? WEF?).
It would be interesting to hear your thoughts.
March 10, 2024
The BOE seemingly has only one aim, to keep inflation at 2% or less. Growth of the sconomy does not seem to be their concern. Nor does it appear to be the concern of the Treasury, the OBR, or even the government. All they are good at is reducing the wealth of every tax payer and expanding the dependant society. Consocialism is an utter failure unless failure is your aim.
March 10, 2024
Good morning.
Why ?
Because the BoE’s mandate is to cut inflation. Inflation created by the Little Usurper in Number 10 whilst he was Chancellor to that big fat idiot, Alexander. That’s why !!
We are paying the price for our own largess. Do people really think that staying at home and not working, or ‘eat out to help out’ was a costless exercise ? No ! There was a price to be paid and now we are paying it.
When you have an economy that buys more than it sells, like energy, and those purchases are in US Dollars, when you debase your own currency like we are doing its value falls and those US Dollars, and thereby the goods, cost more.
There is much to be said about independence both in energy and food. Yet we deny ourselves the former by making it illegal to use our own natural resources and import more people than we can feed, we are heading for a very nasty storm.
PS Thanks for allowing that link from yesterday.
March 10, 2024
@Mark B +1
Its clear the UK’s top management(Sunak/Hunt) is incompetent, they ultimately run the BoE, the OBR and all the Quangos. They don’t understand managing expenditure despite all the talk(they still refuse), their form of management style is to keep taxing and taxing to pay all their mistakes off.
March 10, 2024
The truth is power has been shifted so much that all MPs of all parties are today just observers of the PM (and regional leaders) and civil servants running the country.
Democracy has been subverted by the leaders belief that autocracy and technocracy are better than democracy. So pet projects of NetZero, Lockdowns, woke ideology and mass migration destroy the country. Last weeks Irish referendum, EV car sales, balkanisation of cities, childrenās mental health all prove the leaders vision is creating a Soviet or Maoist style dystopia.
March 10, 2024
yes a gradual shift taking place to install a dictator.
March 10, 2024
@Mickey Taking – we are left with no choice at the GE but to get rid of the lot of them even the good MP’s that are hiding away.
March 10, 2024
We need to scrap The Royal Prerogative!
March 10, 2024
And the appointed House of Lords. The real Lords have long gone. Shut the door on their House and shut the Bishops up too!
March 10, 2024
Agree wholeheartedly.
March 10, 2024
Agree
March 11, 2024
That gets my vote. We need a complete clear out of the dross appointed since Blair politicised the Upper Chamber.
March 11, 2024
The hereditary peers showing up sometimes in the Lords at least ought to have inherited some impartial brains. The enormous numbers of failed politicians, others in their dotage, those who bought their title, a few who walked the dogs….are there mostly to continue with political power over the Bills.
March 10, 2024
@Javelin +1
March 10, 2024
My question from the headline below. Why is an MP and not a climate activist the head of a watchdog? The head of every watchdog (except the political watchdog) MUST be an MP.
ā The head of the Governmentās climate watchdog told officials to ākillā a negative news story with ātechnical languageā, The Telegraph can disclose…ā
March 10, 2024
If I was an MP I would be calling on MPs of all colours to go on strike in order to get their power back. This would start with ensuring
– An MP is in charge of every watch dog.
– A committee of MPs is in charge of every regulator.
– An MP is the managing director of every quango and deregulated body.
March 10, 2024
And why do you think that present MPs are guaranteed to have more than two braincells allowing them to be āin chargeā of watch dogs, regulators, quangos and deregulated bodies? A large number of UK MPs have practically zero experience of anything outside politics and even there a large fraction of them are simply the bleating sheep moved around by the whips. With a bit of luck, local voters might get someone willing and properly involved in constituency work, but even so that is not obvious as a non-negligible number of them seem to think they heard a ānational callā.
You have a very rosy view of our MPs.
See Isabel Hardman, āWhy we get the wrong politiciansā, 2018, revised edition 2022.
March 10, 2024
hefner :
Whilst I agree with your analysis of the competence of MPs, particularly on the subjects of net zero and energy, I donāt find the competence of the civil servants in the various public institutions to be any better.
For instance, the Chief Scientific Officer to The Treasury has an MA in foreign languages and literature.
Why?
March 10, 2024
hefner prefers unelected technocrats to our democratically elected representatives.
It’s the elite’s idea that they know best.
Writ large.
March 10, 2024
Sorry MiB, No, I would prefer people with a score of years in a profession/job/business before presenting themselves to the voters. In some other countries, there are senior doctors and surgeons becoming Minister for Health (Is that what Hancock was?), or head teachers or university professors leading Education (is that what Ms Donelan is?), or an engineer once responsible for the railways in charge of Transport (was Grayling ever such a thing?). And all these people, having been once ātechnocratsā were then properly democratically elected by voters.
You might want to be a bit more curious and checking what is happening in other countries,
Clue: L. Schwartzenberg, B. Kouchner, A. Buzyn, F. Braun, M. Penicaud, N. Belloubet, E. Borne, C. Bechu, etc
It seems that it is only in the UK (England in fact) that youngish āgeneralistsā (ie, often PPE) are elected as MPs and then if lucky will go to various positions changing ministries every few months to few years.
March 11, 2024
hefner
The idea that for example, a Doctor would automatically be better as a Minister for Health is a false one.
Management of multi billion pound organisations, such as government departments needs people with good management skills.
There are plenty of the kind of sector specific qualified people you want in organisations like the Environment Agency or the Bank of England or the DVLA or HMRC for example, yet they don’t seem to be very well run.
March 11, 2024
!!! As if the day-to-day management of multi-billion pound organisations like a Ministry were the remit of the Minister.
And even assuming that your world bears any resemblance with the actual world do you really think that the average MP would be the best person to manage such budgets?
My driving licence had to be renewed last month: I got the new one in nine days. It looked to me rather efficient.
The dealing with my successive tax self-assessments by HMRC has improved enormously over the last ten years. It is not perfect, but last tax year it was clearly able to deal with various unusual features due to a death close to me, inducing the sale of a house, the donation of some of the proceedings to children and grandchildren, various āinvestmentsā and charity donations.
At least for this year, I would not complain about DVLA or HMRC.
Finally, your last sentence about the Environment Agency or the BoE appears to call for āsector specific qualified peopleā. Isnāt that a call for some kind of ātechnocratsā?
March 11, 2024
Martin in Bristol – – I agree the prospect of a GP heading up a Health ministry fills me full of horror.
March 10, 2024
@Javelin – it doesn’t happen that way because this Conservative Government has taken the lead and demonstrated their contempt for parliament, the Country and its People – so the chain below follows that lead. For it to happen as you suggest, an elected house and government in charge Sunak/Hunt would have to step up and manage – something they have refused to do at all levels.
March 10, 2024
Agree
March 10, 2024
One can only conclude that all the levers of power are being used against us to destroy the country economically and ensure our dependency.
Meanwhile as the BofE forges ahead with digital currency, sending out messages that we must forget cash, Norway and Sweden are legislating to keep cash.
March 10, 2024
Why? Because it is in THEIR interests (personally) to do it.
The next question therefore is WHY is it in THEIR interests to do it?
I suspect it has a great deal to do with their prospective future employment opportunities …. in the IMF/WEF and other globalist organisations.
And that is also why Hunt and Sunak are allowing them to do it.
March 10, 2024
Miscalculated didnāt they? Putin has beaten the Globalists and they will have no power to distribute largess. But they will face the angry mob.
March 10, 2024
Someone called Tom Sharpe wrote a laughable article in the DT yesterday with the headline “How the Ukrainians are defeating Russia.”
I had to check the date to make sure …. but no, it wasn’t 1 April.
March 10, 2024
I saw Tom Sharpe and thought of his hilarious book series called ‘Wilt’.
Wonderful fun.
March 10, 2024
LA :
Putin was provoked into into invading Ukraine so that the cost to the West to support the war in Ukraine would economically and then militarily weaken the West.
March 10, 2024
Thanks Donna for going beyond where Sir John usually stops. I’d ask not only why, but who? We know about Andrew Bailey, but it’s also worth having a look at his deputy, Ben Broadbent. Before taking up the post, he was a senior economist at Goldman Sachs, and a professor of economics at Columbia University in the US, after previously holding a scholarship to Harvard. With that sort of CV, he’s an ‘anywhere’. He’s due to be replaced by a new deputy BoE governor in July, so I dare say he has in mind for his next job the sort of employer you suggest.
March 10, 2024
“Why?”
I don’t know, but is it because great importance is placed on inflation and they are doing all they can in that department?
March 10, 2024
Probably because the BoE knows the truth about the parlous state of the nation’s finances.
Sunak – who printed more money than any Chancellor in history – is digging himself and the party into a deeper hole by recomending that benefits for single mothers etc be slashed to pay for abolishing NI. There are no votes for the Conservatives in this suggestion, as today’s Opinium poll shows.
Rachel Reeves, the Shadow Chancellor, has pointed out that Hunt would need to cut benefits by ~ Ā£47bn to pay for this policy.
March 10, 2024
The money printing happened during the covid lockdown. No doubt you were in favour of lockdown, wanted it to be stricter and go in for longer and wanted even more money printing borrowing subsidies etc?
March 10, 2024
Quite the opposite Richard, I totally ignored the so called lockdown, and continued to do my own thing!
March 10, 2024
So the budget didn’t move the polling needle one iota, and the next bright idea is a referendum on leaving the ECHR to coincide with the GE. A great idea to cement a Tory victory until we remember how the last referendum result was enacted. So plays right into Reform’s hands. Vote to leave the ECHR and vote Reform to get the job done!
March 10, 2024
Oh it did move the needle. Two days after the Budget, the Not-a-Conservative-Junta declined another 2%, to 18%. Reform went up 1% to 13%.
March 10, 2024
Donna , I always appreciate your responses . It is always good to find someone who thinks and feels the same way .
Bert Young
March 10, 2024
and it will move again as the people realise what an ineffective nonsense this ‘Budget’ was!
March 10, 2024
Yes, but it was a successful hand-over budget, a do nothing don’t rock the boat budget …so labour can have an easy transfer
March 10, 2024
I sometimes wonder if we put the right Bailey in charge of the BoE?
At least Bill Bailey is a professional comedian, and a good one!
March 10, 2024
It seems that, once again, the fate of our brave Ukrainian ally is dependent on the vagaries of the American political system in an election year.
Mr Trump, who is haemorrhaging large amounts of money paying legal bills as he campaigns to regain the presidency, has personally intervened to prevent the House of Representatives from even taking a vote on the lethal aid for Ukraine bill. He has successfully managed to get support for Ukraine linked to immigration (despite very few Ukrainians attempting to enter the US by the illegal southernm route) and many “undecided” voters are deserting him as a result
By deliberately halting American military support for Ukraine, Mr Trump has emboldened the war criminal Putin and his fascist clique in the Kremlin. Trump has gone even further, stating that he would “encourage” Putin to attack NATO members (!!) who are struggling to meet Mr Trump’s demands for more European defence spending
Furthermore, Mr Trump has repeatedly stated that he would take America out of the NATO alliance completely. Clearly, a Trump second coming would be disastrous for European security and we must now start planning for this eventuality. Despite increasing defence spending to Ā£50bn pa, our armed forces have suffered repeated cuts to fighting equipment, warplanes, manpower and RN ships. This trend must stop and to do so we must increase defence spending to 2.5% of GDP and then 3%. The teeth of the British Army must be restored and money must be found for more artillery, replenishing ammunition stores and drones. Lots of drones.
March 11, 2024
Let’s look at what actually happened, shall we, SG? “Former President Donald Trump on Saturday [10th Feb.] said the US should stop providing foreign aid unless it is structured as a loan.” That’s according to CNN, not a news source you’d have a problem with, I don’t suppose. The fact is that the US has poured tens of billions of dollars into supporting Kiev, especially the regime’s much-heralded offensive last year, but with little to show for it. There are better ways of spending your money, surely. It seems to me Donald Trump’s position makes sense: lend money to a country that will pay it back. For that to happen, end the war now while there is still a viable Ukraine, then the US aid will be put into reconstruction of its economy, not wasted on HIMARS, Bradleys and Abrams tanks that the Russians will quickly destroy. The longer the conflict continues, the closer Russia comes to achieving its goal of destroying Ukraine’s military. Trump and many other Americans have understood that it’s best to stop funding failure. They see there’s no point in prolonging a war that is simply making Russia stronger and more experienced on the battlefield. They also see the real challenge to America’s global position as coming from China, and they want to conserve US assets to face that challenge.
Reply A lot of the EU money is lending not grants
March 11, 2024
‘Russia stronger and more experienced’? really? I’d have thought most Russians below the bowing levels in fear of Putin see it as a Russian Vietnam, running away eventually, like the US and they did from Afghanistan etc
March 10, 2024
Why doesnāt Hunt take control of the Bank of England?
March 10, 2024
John who is buying all these bonds at knock down prices? I think this information should be in the public domain. Black Rock, Iran, China or other Middle Eastern Countries? It seems to me that Britain actually doesnāt own much of Britain anymore, perhaps thatās why Westminster appears to be controlled by unelected forces. I would welcome your response.
Regards
Lesley McConochie
March 10, 2024
@Lesley McConochie +1 and why didn’t I get the option?
March 10, 2024
If the Peopleās Bank of England is independent it should look after itself instead of being bailed out by the Treasury every time it makes its many mistakes.
Contrary to what is claimed, the BoE is just another of the Treasury (ie taxpayer) DEPENDANTS.
March 10, 2024
@Bloke +1 – all with this Conservative Government in charge and its management. Yet still refusing the job we sort of (no one voted for them) empowered and paid them for.
March 10, 2024
Chancellor Hunt said that we had turned a corner so what are we concerned about?
March 10, 2024
Actually it is turning 4 corners, and we find ourselves back were we started.
March 10, 2024
Because Hunt’s turned the corner, is driving us up a blind alley, and doesn’t have a reverse gear.
March 10, 2024
Why?
Because so many Prime ministers and Chancellors over the last 14 years have allowed the power to drift from themselves and elected Mps, to those outsides to whom they have given jobs without retaining control, and who have their own agenda.
Thus they do it because they can, and there is no punishment for them, just more and more rewards.
March 10, 2024
@Berkshire Alan – did it drift or was it incompetence, was it them trying badly to distance themselves from being the abject failures the are? They are still the only management we put in control, empowered and paid. They along with all avenues that our taxpayer money drifts too, are still our employees, we have a Government and Parliament that is simply there to manage. We have to sack them all, the good and the bad at the GE with the massive upheaval that entails – just to bring back into focus.
If only we could ban these 5 year terms they have awarded themselves – far to long for anyone’s ego.
March 10, 2024
I agree, in recent decades the 5-year term has shown to be a mad over-tolerance of governing stupidity.
Ditch it for 3 years max. That way the electorate can take action to make feelings known and the door be shown to incompetence.
March 10, 2024
We need urgent scrutiny of OFCOM as they are closing down free speech by attacking what remains of the right-wing media. It is clear to see that certain groups submit OFCOM complaints en masse thus allowing OFCOM to fine any presenters they disagree with unfairly. Why are the Conservatives not acting against this practice as it affects them more than Labour?
March 10, 2024
It is simple. If Andrew Bailey is not sacked for incompetence, he carries right on being incompetent!
So you can only conclude our feeble PM and Chancellor are happy with what he is doing!
March 10, 2024
@Keith from Leeds – of course the are happy they keep rewarding the BoE with our money, our money just for being incompetent. Then Bailey this wee announces he will reward his staff with an inflation busting pay rise – you couldn’t make it up.
March 10, 2024
Why not ask the question at PMQs?
Reply Because PM would just say he does not comment on the so called independent Bank
March 10, 2024
Sunak does not answer questions anyway, full stop, unless it is to ‘agree with my honorable friend that the government is wonderful and doing all the right things’. It’s a West End Farce, more than Brian Rix could have imagined, complete with trousers falling down.
March 10, 2024
If you allow your Central bank to be run by a failed regulator, what can you expect? And it is also clear from their pay settlement, that there is one rule for B O E employees, and another for the rest.
March 10, 2024
‘Why?’
HM Treasury hides behind the Bank of England’s ‘independence’.āSelect Committees don’t have the focus when grilling the BoE.āCould you run a back-and-forth letter correspondence with the appropriate Deputy Governor to winkle out their public reasoning.āThis may show inconsistencies in their argument, actions contrary to other stated policies, etc.āEach time they give a little more information they’re boxing themselves in.āI don’t suppose you’ll reach the truth but it may help highlight their actions aren’t in the interests of the country but bigger players.
March 10, 2024
Although, I have no doubt that it’s all about maintaining Alignment with the EU Customs Union and Single Market Rules, especially if they want to Rejoin, but there is also one other consideration for Sunak! It’s Sunak the Banker (That’s with a B), and his mates that stabbed Liz Truss in the back! They will also want their Money returned, with Interest! To confirm this; I would like too know who is buying our Gilts, where they are going, and at what discount?
Also; On reading how the details of the Windsor Agreement (WA) turn out to be tying the UK the EU, and under ECJ?
A reflection of the influences involved, the Rejoiners within the HoL?
Is it true we can no long alter VAT/VAT Thresholds, without EU agreement? Cut Corp tax? etc,…
Is it just within NI, or is it effectively, UK wide?
But, I also agree with the others; Unless the Conservative Party removes Sunak and Hunt, AND moves to a Free Market model, ASAP, there is no point! Please note; Moving too a Free Market model does not mean “Trickle Down” nonsense! It does not work, Proven! It will mean we move to make the Economy work for anyone that is willing, cutting State Dependency (with high valued manufacturing for the Poor, Working Poor, and Blue Collar Workers, Cheap Energy Strategy), and ensuring there is Opportunity for all! Yes, Monetary Policy can do a lot (Cheap Mortgages, Finance for big companies, etc,..), but is only a Framework. There are some specific, bottom-up, support needed! But, overall, what’s needed is Reform, Supply-side Reforms and De-regulation, including cultural Reform, Bottom-up Reforms! Access to Capital, Education, Skills, Training, access to the Rule of Law (Contract Law! Or, the Unions will be the only answer for a lot of People), etc,…
This agenda is not going to happen before the next GE, not all of it, but it can be offered?
More generally, the Problems (that are pointed out) within this country, stems from how imbalanced it has become! The System does not work! Especially, through the Blair Years! Well, it is in my mind, any way!
Regards,
RDM.
March 10, 2024
I am sorry to hear of the death of the ex-miner, ex-Labour MP Ronnie Campbell.
To my astonishment he signed and returned our British Declaration of Independence (it is basically the Oath that every MP takes on entering Parliament), committing to vote to assert the British Constitution and thus, impliedly removing the U.K. from the EU without even mentioning the EU.
We intended, once we had a majority in The House, to get one of the signatories to present the BDI Bill as a private members bill, AND TO GET IT PASSED!.
We never managed to get a majority of the House. We did have several members offer to lay down the Bill – so that it would be defeated and we could claim another valiant, failed attempt. But we did not want to fail or to be in the papers. We wanted to win!
Well, we did in the end via a far more dangerous route, and Ronnie Campbell lived to see it.
March 10, 2024
Well, either they are not Bankers! Or they are working for a hostile organisation. Who wishes to destroy the UK.
One thing is clear, the BoE is definitely not working for the British people.
So, the real question is – Why is Parliament allowing the BoE to function this way? Surely Bailey & his motley crew need to be replaced!
March 10, 2024
You know the problem is down to the bloke you have running the set up. Get rid and appoint a person who has common sense and a knowledge of banking. I was a bank clerk in the 1960s and could have done a better job than the one you have had sitting there all these years. I don’t understand how the Tory party which was so good at looking after money has turned into what it has. Stop appointing Eton Mess idiots to positions of power and try a few of grammar school people, if they are still taught the same as I was when you had to pass an exam to gain entry not just have rich parents who could buy a house which was a start to gaining entry to certain schools.
March 10, 2024
It’s good that we have gotten to this final question: – W H Y
It should be clear by now that the Bank, and many others, do not serve the best interests of Britain – They are working on their own agenda.
It’s not hard to extrapolate where the Bank is taking us with their misbegotten policies and tax draining activities.
Where will we end up, economically, if we carry on the path we are going? That should be subject of an article by someone who understands the implications far better than I.
March 10, 2024
” …..with large sales of bonds, sending huge bills for the losses to taxpayers.”
If the taxpayer refuses to pay the bill for the losses then presumably the B of E would no longer sell the bonds.
There is a binding contract in place between the B of E and HM Treasury ?
March 10, 2024
I think there is a binding agreement between HMT and the BOE. A proper inflationary scam of a most Keynesian kind
Reply Do usual contributors here ever bother to read my posts? I have set out at length the fact that the Bank acts as the agent of HMT for the bonds. The bonĀ£ purchasing was all signed off by successive Chancellors. Treasury gave a legal written guarantee to pay the losses on these permitted transactions.
March 10, 2024
“The bonĀ£ purchasing was all signed off by successive Chancellors. Treasury gave a legal written guarantee to pay the losses on these permitted transactions.”
Sir
I am sorry that I cannot recall … although bond purchases are signed off by the Chancellor … bond sales may be made by the B of E ….. without any input whatsoever, from the Chancellor or from HM Treasury ?
Reply The Bank says it acts as Agent of HMT and HMT pays the bills so of course Chancellor can stop the sales
March 10, 2024
Sir
Thank you.
Above, majorfrustration asked:
“Why not ask the question at PMQs?”
To which you replied:
“Because PM would just say he does not comment on the so called independent Bank”
Please make allowances for my naivety but …. if the B of E says it acts as agent of HMT, might a question at PMQs be directed towards the action (or inaction) of the Chancellor rather than at the action taken by the B of E ?
Reply same answer
March 10, 2024
Everyone who is already of pension age or approaching it, should be seriously alarmed at Hunt and Sunak’s proposal to do away with National Insurance, which we do not pay.
The proposal has clearly not been thought through : The cost is estimated at Ā£46bn a year, so it can only be funded, at least in substantial part, by increasing income tax which, of course we do pay, and at increasingly higher marginal rates by the cynical policy of not updating allowances.
It does not matter what assurances are given, demographics and mismanagement by Bailey, the Treasury, and the OBR, will cause ever-more demands on taxpayers, so we will inevitably face higher income tax bills.
If this policy makes it into the Conservative manifesto, even more older voters will turn to Reform, including me.
Sir John, can you please make this unwelcome development the subject of a piece on your Blog ?
Reply I have written 3 pieces of analysis of this unsolicited and strange development which I will publish starting tomorrow
March 10, 2024
Thank You !
I have also written to my own MP, Chris Chope, about it.
March 10, 2024
reply to reply …I imagine we will all read them with great interest.
March 10, 2024
We should also be asking why we are allowing people who now live and work abroad to buy into our state pension for peanuts, class 2 contributions are only Ā£3.45 a week. This will incur a massive bill in the future when they reach retirement age. These people can receive a full state pension in more than one country whilst we are restricted to just one.
March 11, 2024
This should be stopped immediately Christine.
March 11, 2024
C, ??? These people are very unlikely to get a full STATE pension in more than one country. First, to start with, not all countries have a āstateā pension. Second as UK nationals they might possibly get a bit of the UK state pension by voluntarily paying the Ā£3.45/week. They would certainly have a number of (private) pensions they will have collected over different limited periods with their different employers in different countries. I doubt very much that expat people working successively in different countries would be able to gain enough credit to claim a full UK state pension, specially if their employer is not a UK one.
Re: your comment: How would they be able to pay for several full pensions, most of them requiring 35 to 42 years of payment?
Or maybe they might have become multimillionaires, in which case I guess they donāt care what the UK state pension is.
See
britishpensions.com āState pension rule change: What expat should knowā.
europa.eu 14/09/2023 āState pension abroadā.
fullfact.org 03/07/2019 āThis comparison of pensions in different countries is misleadingā.
March 13, 2024
I know several people who moved to live and work in Spain who continued to pay their UK National Insurance contributions; you donāt need to be in a UK job to do this. They then worked 36 years in Spain to gain a full Spanish pension. Retiring at age 66 gives them a full pension in both countries. I also know someone who moved to the USA who did the same.
March 11, 2024
The consequence of this idiotic action is that I’ve decided to jack-in the “little job” I currently do. I had been planning to keep it going for another year or two, but my State Pension kicks in later this year and since I have alternative sources of income, anything I earn from my “little job” will just go in additional tax.
So I’m joining the ranks of “not economically active.” I refuse to work in order to pay for the lunatic policies they have, and are, pushing on us with no mandate (Net Zero, mass immigration, criminal migrant and the WHO/Covid Tyranny).
March 11, 2024
sadly Donna you have now embraced the plague of disincentive to work and pay the unreasonable taxes.
The Taxman doesn’t seem to consider the effect of ‘jacking it in’ has on the total tax take.
March 10, 2024
Why ? You tell me – youāve been in power for 13 years. Youāve voted in favour of every single budget in that time. You could have legislated to change the way the BoE and OBS operate at any time during the current Parliament. You could have appointed anyone to run the BoE but you chose Andrew Bailey. So, actually, the answer to the question is easy – itās your fault. No amount of deflection and pretending that the Conservative government is somehow an arms-length entity independent of you changes that.
Reply I did not vote for the first Hunt budget
March 10, 2024
reply to reply ….abstained?
March 10, 2024
The BoE are only following instructions
March 10, 2024
but from who?
March 11, 2024
I would guess the IMF/WEF. They want us kept closely aligned with the EU …. mustn’t destabilise the Euro any more than it already is, and ready to join the Associate Union when it’s created.
March 10, 2024
There is nothing to gain in allowing the BoE to continue under its present management and direction . Its huge errors of judgement and management have increased the debt position we face and our integrity in the economic world . To top it all is its recent decision to boost the salaries of its staff at a time when we all face the miserable consequences of the Hunt/Sunak budget . The axe has to fall now to allow the major changes necessary ; if its Boris + Reform so be it .
March 10, 2024
Why?
Should we be even challenging the Establishment economists?
Surely we cannot be deniers that inflation is happening and why should it be that the Establishment economists at the Treasury and the OBR et al have incorrect modelling and hence policies?
March 10, 2024
OR, Why are/were the Economists for Brexit (TM) led by Prof. Patrick Minford even worse in their forecasts?
March 10, 2024
Was Minford worse than the remain economists who predicted recession, huge increases in unemployment, house market crashes and reduced trade?
March 10, 2024
Why, indeed. Just how many errors must the BoE make before the Chancellor decides the Governor is incompetent? Bailey has been a disaster to follow the previous disaster of Goldman Sachs Europhile, Carney.
Like our 21st century Governments, the BoE has not had a real professional running it for multi-decades, and the results are clear for all to see. Dire.
March 10, 2024
The Boiler Upgrade Scheme has been criticized for giving well off house-holds a cash bunk of Ā£7,500 to replace their boilers. So as always with this Conservative Government give Taxpayer money away, leaving the poorest in Society to pick up the tab for those with money.
The average cost of a ‘Heat Pump’ installation is said to be Ā£13,000 excluding the costs of bringing the property up to a standard of insulation and plumbing to cope with the equipment. So you need an substantial amount of cash to even contemplate the change.
This Conservative Government loves to talk, loves the sound-bite, the stroking of their personal esteem, what they donāt like is managing our money. The reason the BoE is so diabolically run is because their boss Jeremy Hunt is so incompetent at his job, they know that every miss-step, every blunder he will grab more from the taxpayer to bail them out.
If the economy came before ego, any sane individual would do more to earn more, creating the wealth to fund what ever the future may bring. As it is we have a runaway cabal that give the appearance of stealing from the less well off for a headline.
March 10, 2024
Heat Pumps are not going to take off in the UK unless there are very substantial subsidies. I am talking about at least Ā£10,000 per dwelling. Home owners are not going to see any financial saving, as the HP might reduce energy consumption by a factor of 2/3 but the electrical energy they consume is exactly 3 times the price of gas used by their boiler. !
It’s the same with EVs : the poor level of sales is only taking place because of the large subsidies given to company car drivers. Almost no private buyers are acquiring an EV as their main vehicle: almost all private sales are of smaller EVs used as second or third cars, mainly by women. Very few of those will ever cover enough miles to overcome the higher missions from building them !
March 10, 2024
Chris S :
Itās a falsehood that the CoP (Coefficien of Efficiency) of HPs is 3. It decreases as the outside temperature decreases and is at 2, not 3, when the outside temperature is zero. At lower temperatures still, resistive power is then required to unfreeze the pipes further lowering the CoP. And since the unit is outdoors there is the problem of easy theft and I wonder when it snows how the government expects the elderly or the infirm to be able to go outside and clear the snow off the unit.
Not that all the electricity supplied is āgreenā.
Only an authoritarian government would be forcing through HPs and EVs before the NG is decarbonised and can supply reliable, dispatchable āgreenā electricity. Otherwise electrification in CO2 emission terms is pointless.
Or, perhaps, they are wanting the reduced CO2 emissions to come simply from the decreasing use of energy, aka rolling blackouts?
March 10, 2024
@Chris S – all subsidies, any subsidy are not paid by government, they do not have money, they are paid by the taxpayer. So the less well off fund those that have money.
But as you say HP’s work by consuming lots of electricity, the electricity we don’t have. Then unless homes are built today’s better quality of insulation they can never reach a comfortable level of heating with a HP. The 13k for a heat pump installation is just the start, pre 1990’s homes need upwards of Ā£40k in pre-prepreperation work. So how many years for payback? Another ill thought through punishment by those seeking personal self-gratification
March 10, 2024
A lot of this funding is going to newly built properties and isn’t replacing existing boilers. It makes no sense to switch from a well-performing gas boiler to an inferior product that costs more than twice the price even with a subsidy.
March 10, 2024
What is missed it is Jeremy Hunt that caused the increase in inflation. Taking Corporation Tax up to 25% from 19% was a 30% uplift in costs to Companies. Someone didnāt think!, didnāt think that increase in costs didnāt have to be covered by the Consumer, ultimately a Taxpayer. So, the Chancellor forced consumer prices to rise.
The Chancellor personally caused losses, but then dug in deep to cover his losses from the taxpayer
March 10, 2024
Hi sir John
If this was the private sector he would have been sacked by know,
So why are our representatives (MP’S) and you sir John allowing it or is the unelected prime minister unapproachable.
Britain is just not working it two late
We have past the point of no return
March 10, 2024
Cuts to benefits could be used to fund the abolition of national insurance contributions (NICs) for workers by the end of the next parliament, prime minister Rishi Sunak has suggested in a pitch to voters ahead of the general election. Mr Sunak, whose party trails Labour by a double-digit margin in most opinion polls, insisted that āsignificant progressā could be made towards eliminating NICs during the next parliament after the idea was floated by the chancellor in the spring Budget.
In a Sunday Times interview, Mr Sunak set out his intention to consult on new plans to reduce working-age benefits āto make sure that we can sustainably keep cutting taxesā.
That will go down a storm in General Election year with all the millions now trying to survive on various benefits.
Must be a vote winner, that one.
March 10, 2024
Dear Sir John,
There is no reason why the Bank of England should continue to sell government bonds at a loss and charge taxpayers unless the Treasury wants it to. Perhaps the Treasury mind thinks that the scheme will soon make a profit again, as it did before 2022-23.
As you know, the bonds are held by the Bank of England Asset Purchase Facility Fund Ltd, a Ā£100 company owned by the Bank. The latest BAEPFF accounts confirm that it is ultimately owned by the Treasury. And its continued existence and viability depend entirely on a Treasury indemnity of losses, agreed by an exchange of letters in 2009 with variations since. By another exchange of letters, the Treasury allowed the Monetary Policy Committee to use the company for monetary fine tuning.
In April 2023, however. this power was curtailed when the Chancellor (Mr Hunt) and the Governor “jointly agreed to to reduce the maximum authorised size of the APF ” , again through the usual exchange of letters.
So the Chancellor has plenty of legal power and practical precedent to change the way the Bank operates the Fund if he wants to. It is just a case of :”Mr Hunt, send that letter “.
Reply That is what I have been telling them for many months!
March 11, 2024
Very good question.
What are we going to do about it ?
March 11, 2024
In asking the question “Why?”… perhaps that’s a question for the appropriate minister?
Those FoI questions you keep raising – this is a key question that could be used for.
Hunt might be the one to ask, or the Chief Sec. Ask:
– What is the cost to the taxpayer as a result of the BoE selling bonds at taxpayers’ expense?
– Why is the BoE the only one of the major banks selling bonds in such high volumes?
If the answers are the usual obfuscations, keep going back with follow-on questions. Nil nitus carborundum.