I
Ā
The scale of Bank losses
In the budget figures we were told the Bank of England’s bond buying and selling will end up losing us Ā£102 bn. In its early phases the Bank sent the Treasury profits of Ā£124 bn, so on these OBR estimates there are astonishing total losses coming of Ā£226 bn. As of March 2024 Ā the Treasury had had to pay the Bank Ā£49 bn to cover losses to date, so another Ā£179 bn could become due if the OBR has Ā got a forecast right.
These losses are huge and unacceptable. A substantial portion of the loss is avoidable. The government needs to have urgent discussions with the Bank to slash these costs. Other major Central Banks including the US are not receiving any bail outs from Treasury whilst Ā China and Switzerland Ā did not buy too many bonds in the first place. The ECB Ā which made similar mistakes with bonds to the UK is now containing the losses much better with a different approach.
There are two simple changes needed.
1 Stop selling bonds in the market at low prices. The bonds repay on maturity when the Bank will get more for them than current prices, so stop selling.
- Copy the ECB approach to payments of interest to commercial banks on their deposits at the Central Bank . The Bank of England is losing too much on the costs of remunerating the reserves placed with it by Ā the commercial banks compared to the interest it gets on the bonds. As the rate paid to banks is a managed rate fixed by the Central Bank cut the losses.
These changes would lead to a good improvement inĀ the public sector deficit x Bank of England, the measurement they use to control the economy, and to lower mortgage rates.
April 9, 2024
Good morning.
One has to ask the question. Why is the BoE doing this ? Who benefits ?
I was under the impression that Bonds were raised to cover government spending due to poor tax receipts etc. Perhaps a little naive, but that is my thinking. If so, then all the government has to do is either raise more taxes and / or cut spending.
Perhaps some of our financial ‘wizzes’ here could explain ?
April 9, 2024
@ Mark B ā recall there are some very wicked people at the Bank and in HM Treasury.
April 9, 2024
Government, through the BoE creates and destroys (removes from circulation) money according to the needs of the economy, or Money Supply. QE creates. QT destroys. When the BoE receives money from sales of Gilts or from Treasury loss make up, ie tax revenue, it destroys that money. The BoE/Treasury currently believe there is too much money in Ā£ floating around the system and so is removing it quickly to bring down inflation. The Losses are as imaginary as the value we put in the Ā£.
Reply Taxpayers pay the losses. That is not imaginary
April 9, 2024
Indeed far from imaginary. But then Andrew Bailey while at the FCA gave everyone rip off personal overdraft rates of 40% to even 78% at one bank regardless of credit risk. Proving the man is totally incompetent at banking. He read history I believe.
April 9, 2024
So William Wragg has finally resigned as chair of the Commonsā public administration and constitutional affairs committee and also quit his post as the vice-chair of the 1922 Committee. About time too. Why are so many Tory MPs of such dire quality and so few even Conservatives.
April 9, 2024
Heās still an MP, serving his constituency and collecting Ā£95k …no doubt a book next
April 9, 2024
And he allowed co-op bank to to change the terms of it’s lifetime PIB which cost the holders a lot of money and shouldn’t have been allowed.
April 9, 2024
I’d have thought he read the Beano.
April 9, 2024
Rishi Sunak has warned that allowing children to change their gender identity could have an impact on their wellbeing, before the publication of a landmark report into the issue.
Gosh this Sunak man really is a genius. What next will he catch on that the āunequivocally safeā Covid vaccines āmightā have killed and harmed millions worldwide as all the statistic seem to indicate? Has he asked someone competent to look at the stats yet or is he continuing telling the state to try cover this all up? The latter it seems.
What on earth made Sunak dig up Lord Cameron of Greensill, Libya? The man who called the sensible Conservative wing āfruitcakes and closet racistsā and then failed, in an act of gross negligence, to even prepare for a likely leave vote and then he abandoned ship like a spoiled child. Did Sunak not think the Tories were already unpopular enough? He idiotic statements about Trump will come back to bite him too. Not that he will be in power by then.
April 9, 2024
It’s pathetic that we’re even having this whole transgender discussion.
Bring back National Service like in Sweden. National Service is primarily NOT about defence but a RITE OF PASSAGE TO MAN-UP YOUNG MEN.
All over the world, in so many different cultures, some form of national service has existed as a rite of passage. We need to restore this more than ever as our men are turning into women psychologically. Real men are PROTECTORS (of their families). PROVIDERS. LEADERS. This is what national service plays a key role in.
And National Service should be fun too not just challenging. And a great place to learn to bond with others, communicate and work in a team. As well as just getting up early, making your bed, and being hygienic and dressing well. And to become WORKERS. And PATRIOTS.
Also, women don’t want to marry men who are like women.
It’s a no brainer. But our right-wing parties across the West are so brainwashed, from one degree to another, by just economics that they’ve forgotten the fundamentals of what it means to be a Conservative – and that without the raw material (i.e. hard-working men and women who are supportive of their husbands and good mothers), you’ve got no-one to work in your economy productively and well (unless you pull in immigrants but that’s only a short-term solution that creates huge problems for the future) plus your costs in healthcare rocket as so many people are depressed and / or physically well etc costing our NHS zillions as well as huge impact on productivity – and so our tax payers paying massively for all this. Can’t go on. Something’s got to give. So National Service just seems like a pretty sane, traditionally Conservative thing to do.
(And not long National Service but some months – and voluntary work – i.e visiting the old, cleaning up canals and rivers from rubbish etc – for those who don’t want national service – about 90% of boys will choose national service and 90% of girls will chose voluntary work).
Reply Do try and relate to the discussions the rest of us are having. Compulsory national service is not going to happen.
April 10, 2024
Thanks.
Yes to staying on topic
But no to your claim National Service necessarily won’t / can’t happen.
April 10, 2024
Lastly, I’m a big fan of Sir John Redwood but he’s probably too much influenced by / connected with the likes of Nigel Farage, Richard Rice and Ben Habib for comfort. I might be wrong.
I want the Tory Party to stay together, grow stronger – and not to allow the WOKE / socialist Labour / Lib Dems back into power. Meanwhile, we reform our Tory Party to incorporate more cultural Conservatism and for it to become the type of Tory Party Mrs Thatcher would be pleased with.
Reply I am not connected to or influenced by Reform. My views on key issues have not changed.
April 9, 2024
Sir J. If Treasury needs more money, it just has to issue Gilts, but to the investment community not to the BoE. Presumably Treasury are in agreement with the Gilt disposal programme. Better to spend/waste less than borrow (Gilts) more.
April 9, 2024
Helicopter money (scam cash not backed by tax receipts and bonds bought by anyone other than the BOE using ghost liquidity) financed furlough in 2020 and now Europhile and pro-Starmer (pro-EU) Bailey wants his pound of flesh. The more cash spent on bond sale losses the less cash available for tax cuts at the next GE thereby limiting the Tories options.
That Bailey fella wants the UK, well GB now NI’s been carved away, back in the bosom of the EU. It’s that simple
Not sure why John won’t highlight the fact that Starmer does intend to take the UK back into the EU
April 9, 2024
Would wars and plagues be more difficult or impossible for the govt. if the BoE were private?
Or I guess that anyway, at the merest mini crisis govt. would take all banks into its power-mad grasp?
Legalised monopoly on money.
Control of all things economicā¦freedom to implement any mad policy.
Gone woke!
April 9, 2024
Marx was extremely keen on centralised banks ā¦as a first step to doing away with private property.
April 9, 2024
I daresay he would have liked ESGs too!
Is that why BoE keen to ditch trad bonds?
April 9, 2024
The private (oligarchic)financial sector is also very keen on central banks!
April 9, 2024
+1
April 9, 2024
Mitchel
Iād have thought theyād prefer something a little more discreet.
Maybe to avoid asset freezing?
April 9, 2024
There’s a transcript of a very good recent interview with Dr Michael Hudson,covering some complex issues related to conventional debt and money creation and the BRICS alternatives-subjects he is very well placed to comment on- on his website,www.michael-hudson.com/watching the world divide in half/5 April,2024.
April 9, 2024
He does but than Sunak seems to too. It will be done and already is (in all but name in the short term).
April 9, 2024
In order for the UK to go back into the EU, they will have to revoke the Maastricht Treaty. Our debt to GDP is way to high to qualify for joining. The EU isn’t going to do that just for the UK.
April 9, 2024
They have all breached that particular red line.
However we would have to give up Sterling to rejoin. They will find a way for us to be subject to their laws without being a member.
April 9, 2024
That warm bosom of the EU has gone bust, with Brexit hanging down like wet paper bags on their reflection now. Freedom of the UK is more attractive after our separation, now that we can generate our own power and warmth independently.
Keir Starmer attempted to force us to stay after our people had chosen to leave. His intent is too weak against the mighty will of our people.
April 9, 2024
An other dreamer!!
April 9, 2024
I suspect Starmer would settle for ever closer alignment. What he would do if Europarl is no longer dominated by the left is an interesting question.
April 9, 2024
ecfr.eu 23/01/2024 āA sharp right turn: A forecast for the 2024 European Parliament electionsā.
April 9, 2024
I tend to agree with you assessment
April 9, 2024
My understanding is that tax receipts should cover āday to dayā spending. Bonds are sold to raise money for long term projects like infrastructure.
The thing I donāt understand is:
1) Governments (or āthe stateā) create money in the first place
2) This money circulates in the economy and some people acquire a lot of it
3) The government then borrows some of the money it created in the first place from the people who have amassed a lot of it ā¦. and
4) Pays them interest on it
On the face of it, it sounds like the economics of the madhouse.
April 9, 2024
‘long term projects like’ HS2, Nuclear power, reservoirs, pot-hole fixing, scrap yards for ICE cars.
April 9, 2024
Don’t ask silly questions MarkB. You’ll confuse things.
The main point of the Marxist BoE is to bring down democracy ready for One World Government headed by the UN and WEF.
Net Zero is also a major feature in bankrupting the West in favour of the BRICS.
April 9, 2024
Since bond sales have a similar effect as does increasing interest rates, might the Bank have to adopt a higher for longer approach if it ceases such sales, thereby making plain the scale and consequence of its error in creating too much money hitherto? Perhaps it worries few will notice its bond loss folly whereas interest rates are keenly monitored?
On point 2. I recall seeing the ECB being criticised for failing to adequately compensate banks for reserves deposited, thereby imperilling Eurozone bank profitability. I am uncertain how much that would be a factor now and in the UK.
April 9, 2024
So we still use OBR estimates
who have got their estimates wildly wrong for some time.
We have a chancellor moving his deck chairs in the hope we have confidence in what he is doing.
Poor old tax payers. We are the mugs paying for all this mismanagement.
Soon we will be allowed to vote in a General Election. Will this make any difference?
April 9, 2024
It will make no difference, Bob, if even after a crushing defeat the Tory party has the same leadership, the same sort of front bench figures, and the same people running Conservative central office. They will just hope to ‘bounce back’ and regain the support of a gullible public, once a spell in power makes Labour unpopular again. What they could do instead is change their current policies – high migration, high taxes, big subsidies for renewables, aggressive foreign policy posturing against America’s designated enemies, inadequate spending on the non-nuclear part of the military budget to back up that aggressive foreign policy posturing, etc. etc. But that would need a new set of politicians able to think through where the priorities for this country should lie. At the moment, we’re seeing more of that from Reform UK than we are from the Conservatives.
April 9, 2024
Absolutely. Things are about to get a lot worse. The eventual collapse of the state under its own weight is about to get accelerated by a Labour government.
April 9, 2024
The UK will not be reformed(or Reformed);it will indeed collapse.Bring it on;smash the system!
“There are times when creation can be achieved only through destruction.The urge to destroy is then a creative passion.”Mikhail Bakunin,1842.
April 10, 2024
Not if we TRY and implement a cultural reform of Conservative values (via churches, media, arts, education – which is losing out big time to WOKE / socialism) and spread into our country – including reintroducing National Service at a VOLUNTARY level first, seeing what happens, and making it much SHORTER and more useful (and fun) than old National Service (which was still great).
April 9, 2024
If the new Government has any sense it will dump the OBR, and whittle down the ‘bank rate’ committee of all its members and start again.
April 9, 2024
Someone’s on a commission or someone’s enacting a political grievance. This usually explains illogical behaviour
April 9, 2024
Other times it can be pure incompetence, ego!
April 9, 2024
It’s a grievance. Against the ordinary people of Britain. Through that prism it all makes sense.
April 9, 2024
Another view of Government in the internet age is the mirror and portrait in Dorien Grey. The portrait of Dorien reflects the ugly reality of Dorienās sins whilst the mirror reflects Dorienās fair young face. The mirror is placed in front of the portrait so Dorien only sees his fair young face.
The political elites wish us to see them as they see themselves in the mirror, as young and beautiful. However the public try to publish their sins and hold their ugly portrait up to their faces. The political elites try to censor and shutdown the public because they cannot believe their acts are not as beautiful as the mirror like sychophants that surround them reflect in their faces. The public see their political sins.
April 9, 2024
The government is drawn from the people that elect it. The people are no better.
April 9, 2024
yes – very much ‘mirror, mirror on the wall who is the fairest?’
April 9, 2024
It appears to be a deliberate policy of demolishing the economy and loading Ā£billions more debt onto taxpayers.
Sunak and Hunt (First and Second Lords of the Treasury) are presiding over it and are ignoring Sir John’s warnings and advice, so it is obviously intentional.
In order to Build Back Better, first you have to destroy everything. This is the means by which the Globalists intend to force a CBDC onto us: first destroy the currency.
Meanwhile the disgraceful, corrupt Wragg has finally resigned from the 1922 Committee but still has the Tory Whip. He obviously has some very damaging information Sunak and Hunt don’t want in the public domain.
April 9, 2024
Donna,
There can be no doubt Tory actions are engaged in deliberate destruction of our society as we know it. Mass immigration is not an accident, importing millions of welfare claimants is of no use to our country. It is to rid us of our nation state, culture and way of life. The Balkanisation of London is nearly complete. Working from home is helping that objective, people are unsafe in London and some of our other main cities because of alien cultures.
April 9, 2024
Re your title, Sir John: Are you thinking that the BoE has any real interest in seeing economic growth? It describes its primary objective as ‘low and stable inflation’. Keeping the lid on inflation (at which it failed anyway) may or may not go along with a growing economy, surely. I’m not an economist, but I have the impression you often get inflation when an economy grows.
April 9, 2024
“Inflation has been slowing across the globe, raising hopes of a soft landing in 2024.” JP Morgan.
All those people quick to accuse this government of creating high inflation are now saying they’re not responsible for inflation falling, it’s a funny old world.
April 9, 2024
What is the bank’s rationale for taking such losses rather than waiting for maturity? Do they say it is cheaper in the long run or is there another declared motive
April 9, 2024
Why don’t we see the news channels, the BBC, do a Panorama special on this? Why aren’t the bank’s governors asking this question on our behalf? Why aren’t they called to a panel of MPs, as people are called to all sorts of ‘select committees’?
April 9, 2024
Based on this situation….surely the BoE are not only incompetent. But also fraudulently mismanaging British citizens money. How much longer will this continue. Before the Treasury take responsibility & heads not just roll but are prosecuted.
April 9, 2024
Jude,
Not at all. Hunt could stop this but chooses not to. Sunak and Hunt have cost us far more than Truss, but no mention in the press. However, the Times and other remainers are dripping about aligning to EU etc etc etc etc.
Control of money, energy, food, water, travel and all by surveillance is the way forward to a Chinese world of authoritarian eutopia that the Tory govt seek. Hunt must be wetting himself with excitement.
April 9, 2024
“Stop selling bonds in the market at low prices.”
This is completely illogical! Would the sellers do that with their own personal finances?
“The bonds repay on maturity when the Bank will get more for them than current prices, so stop selling.” Exactly!
So why, oh why do they keep doing this? Can’t help wondering if they’re trying to bankrupt the country?
April 9, 2024
Taking us back to the 70’s perhaps “IN THE 1970s, Britain was dubbed āthe sick man of Europeā for what possible reason??? Only the figures aren’t backing them up so more squeezes and losses are being applied from Central government.
April 9, 2024
It is a controlled demolition. They are professionals!
April 9, 2024
I guess they are trying to buy headroom for loads more QE in support of Labour’s madcap net zero plans. Remember that ESG is now their mission, never mind the people.
April 9, 2024
BoE losses, Covid fraud and Post Office bungling caused reckless waste higher than some countriesā national budgets. Three sensible people in office could have stopped them, or even one non-idiot at No 10 Downing Street.
April 9, 2024
You added these figures together to get Ā£226 billion? If one figureās a loss and the other is a profit, wouldnāt you subtract the smaller loss of Ā£102 billion from the profit of Ā£124 billion for a net profit of Ā£22 billion?
Reply No
April 9, 2024
Why ānoā?
April 9, 2024
Simple questions John
If the Government are not in support of this BOE policy, why do they not stop it.
If the Governor will not stop when being asked to stop by the Government, why is he not being sacked.
If the Government cannot stop or control the BOE, then the Government should admit they are not in control of the Country or Economy, and should say so !.
I simply cannot understand why the BOE want to Crystallise losses now, when in time and at no cost they could satisfy the debt at less cost on maturity, it simply does not make any sense at all.
What am I missing ?
April 10, 2024
You’re ‘missing’ what many others commenting on this site have pointed out again and again: this country is being governed by a wrecking crew. Actually I think you can see that yourself. That truth is ‘missing’ only from the blog you’re commenting on.
April 9, 2024
Why DID Mrs T agree to join the ERM?
She apparently didnāt want to and it was a sort of commitment to the EU.(Didnāt think she liked EU)
And it meant that the BoE could be ābrokenā.
Why did she yield to pressure yet other PMs seem not to?
We must still be experiencing some harm from ERM debacle?
Only recently occurred to me that the despicable leftist behaviour after her death must have meant that she got one Hell of a lot right!
WHY did govt. allow all that?
April 9, 2024
Sir John
Good morning.
So as I read it the Bank of England loses courtesyof the Conservative Government Ā£102 Billion
NHS Budget – Ā£164.9 Billion
UK spending on Defense of the Nation Ā£54.2 Billion
It is the Conservative Government that is taking our money, taxpayer money, taking money out of the Market place, the economy, making us all poorer by refusing to manage how they spend the privileged we lent them. The BoE is a refusal to manage by the Chancellor and this Conservative Government, no one else. The state off the UK economy lays 100% at the door of Sunak and Hunt they refuse to manage expenditure and everyone else has to pay!
Taxation is not good Government, managing expenditure is
April 9, 2024
Spot On IAN-B
April 9, 2024
Why would the bank sell bonds (it has presumably bought in the open market) at a loss?
If it needs money, why not sell new ones?
April 9, 2024
Have you asked the BoE this question?
Have you asked the minister responsible for the BoE this question?
Seems fraudulent to me. Some people somewhere must be making a lot of money out of this.
April 9, 2024
Shorting bonds means that you are opening a position that will earn a profit if the price of either government or corporate bonds falls. Shorting is a form of trading, and it is made possible through financial derivatives such as CFDs and spread bets
April 9, 2024
The BoEās Net Zero policy, initiated by Mark Carney, a former Governor who is now the UN Special Envoy for Climate Action & Finance, is not simply to āstop growthā but to deliberately cause de-growth and impoverishment of the West.
The Government endorses this policy. PM Sunak when Chancellor declared at COP26: āSo our third action is to rewire the entire global financial system for Net Zero.ā
The Government funded UK FIRES Absolute Zero report describes how the Government intends us to be living by 2050 :
https://ukfires.org/impact/publications/reports/absolute-zero/
It is intended that we will be totally electrified, so controlled by smart meters, with most of our energy from unreliable, insecure, chaotically intermittent renewables with no grid-scale back-up.
The reason why these climate activists have no issues with Chinaās CO2 emissions is because China is already an authoritarian state.
April 9, 2024
Absolutely, John.
The Bank may be independent but it is still responsible to the Government and people.
It does not appear to be operating in the interests of either of those parties.
If I were a conspiracy theorist I might think that the Bank has been deliberately acting to undermine successive Conservative leaderships and clear the decks for their mates across the floor of the House. Similarly with the OBR who promote Modern Monetary Theory and probably also think that Joan Robinson provided more to economics than Milton Friedman.
April 9, 2024
It is all down to the people in charge. Andrew Bailey is an incompetent idiot, but. is allowed to be so because we have an equally incompetent Chancellor and PM.
What is Jeremy Hunt’s response when you explain this to him?
April 9, 2024
he would probably say ‘would you repeat the question?’
April 9, 2024
What you have been consistently saying about the Bank’s performance in the bond markets, seems so obvious I cannot understand why everyone on the Government benches is not saying it too, and calling the Bank to account. It appears that things can only be correct if they are complicated.
I suppose it is still more amazing that Labour have not seized with joy on what you are saying, as it would provide funding for an awful lot of their hopeful promises.
Why do you suppose this is?
April 9, 2024
A contempt for Britain (England in particular.) If one looks at any action or policy through this prism then it all makes perfect sense.
April 9, 2024
You have highlighted this absurd situation many times. The more interesting question at this point which I assume you’ll avoid answering is why the Conservative government are quite happy for this situation to continue and will take no action on it at all. I mean Sunak/Hunt must have a reason – what is it ?
OAM a decent article by Wes Streeting on the NHS in the Telegraph criticising “middle-class lefties” opposed to NHS reform and saying that it is wasteful to keep pouring money into a system that’s clearly not working. The key point here is not the substance of what he’s said – no doubt all hot air – but that he’s dared say it at all. No Conservative minister would dare say what Streeting has said – all we get from the likes of Hunt is the suggestion that the NHS is the main thing that makes us all proud to be British. How did we get into a situation where Conservative health ministers appear way to the left of their Labour counterparts ?
April 9, 2024
Not only that they are a leading player in increasing our national debt, which is rising at the rate of Ā£5,170 per second!
At the time of commenting, the total debt is Ā£2, 984, 452, 5nn, nnn
(n* the numbers change so fast to give a clear reading)
Is anybody ever going to be held responsible for creating this debt in all Western nations?
April 9, 2024
See the calculator:
https://www.nationaldebtclock.co.uk/
April 9, 2024
So our debt is almost Ā£3trillion ….is anyone in government or parliament bothered
April 10, 2024
Not at all – it is HMG policy after all to ruin the economy
April 9, 2024
Sir JR, as you’ve been doing so much good work on exposing the true cost of netzero, can you please do an article on the plan that was agreed on by HMG, a couple of years ago but still in force, that would include:
– UK Airports to close by 2029;
– Beef and Lamb to be banned for Human Consumption.
You probably know the report that was compiled for government, called ABSOLUTE ZERO, from UKFIRES – Link follows in reply:
April 9, 2024
Link to ABSOLUTE ZERO report
https://www.ukfires.org/wp-content/uploads/2019/11/Absolute-Zero-online.pdf
April 9, 2024
Can the Chancellor demand this: “Stop selling bonds in the market at low prices.”?
If he can, why doesn’t he?
April 9, 2024
If he canāt then heās not in control
If he wont then heās incompetent
April 11, 2024
Exactly, Glen, is the BoE governor in charge or the chancellor? Because Hunt is in charge and gets the can for this, then he must act.
April 9, 2024
ex head of ofsted to run the inspection of ofsted? oh how we laughed at the transparent corruption of the ruling classes…
April 11, 2024
Its just not good enough iain. Maybe an ex Head of Social services could check the inspection routing of Ofsted but not someone internal of that same organisation or things get covered up.
April 9, 2024
John,
Can you not get an explanation from the Bank of England? The Governor is duty bound to give a full reply to a senior member of parliament like yourself.
April 9, 2024
The Bank used to publish a complete list of all its BEAPFF transactions in a spreadsheet that was updated every time they transacted, accurate to the penny, and a list of current holdings. This is now a secret, and it should not be. Using the spreadsheet it was not difficult to calculate profits and losses on sales, coupon income, and redemption value for the fixed rate issues, and to make suitable assumptions for the index linked ones that they added to the portfolio later.
They also published a model that allowed users to experiment with different assumptions about the winding down of the holdings and the consequences for interest rates which was released alongside an accompanying BEQB article. That has not been updated and is no longer available on their website.
April 9, 2024
From the evidence Sir John has produced it is essential that the BoE is brought under control ; the sad thing is will it happen ? . For too long the errors of judgement made by the BoE have cost every one of us dear and our pockets have run dry . Sunak is supposed to have a sound economic background but there is little to show for it ; equally his lap dog Hunt has turned the screw on traditional Tory supporters and there is little hope for our manufacturing sector on which so much depends . I plea for change !.
April 9, 2024
Why is the Govt. (BOE) not selling the new bonds that it holds, at the new rate, thereby mopping up excess liquidity without showing losses? Why not just hold the ones that crystallise losses? They are holding some bonds – not selling the all?
When I come to pay off debt, I choose to pay off the most expensive debt I have and retain the less costly. This is the housewivesā equivalent of the BOE bonds. How is it they donāt have the nouse of an ordinary housewife?
In my view this attack on the public is malfeasance in public office.
We could do with a piece from you JR, analysing the position were the BOE abolished. We need to be rid of much of the state sector. Easier to abolish huge swathes of it than cut individual employees.
April 9, 2024
Nobody can make any sense of anything that goes on these days when it comes to the monetarism system.
I would like to ask you about the student debt. At the start of 2024, the treasury reported that student loans are coming up with 7 to 8 billion pounds a month more than they did before and that amount is taken off the monthly debt which comes to about 90 billion pounds a year, if so where was that money being used before or is it just another a counting trick by the treasury to make out to investors that thing better than they are, 90 billion out thin air seem a bit much.
As for the dispute on bonds, I would point out that the bond market moved first to move interest rates up the BOE moved months later and spent most of the time catching up to the bond market, now the bond market has moved down will the BOE cut rates or sit on the fence as usual, BOE is already four months behind a cut or more.
Looking at the situation I would say interest rates will be near zero by the end of this year.
April 11, 2024
Interesting comment Paul
April 9, 2024
These are very sensible suggestions, as per usual. The Bank may act on them once the election is over.
April 9, 2024
“The European Court of Human Rights has made a landmark ruling that governments have a duty to protect people from climate change.” The ruling is binding that includes the UK and our co-called democratically elected parliament has to obey these orders from others.
Rishi Sunak has signed up to this as he believes our democratically elected legislators are not up to the job of administering the UK
Although World Wide it is only those that do not have Governments running their own Countries. The US, India, China, Brazil an endless list of countries that are permitted to do their own thing. It is only for Countries that are unable to do thier own thing and are subordinate to the ECHR
April 9, 2024
If climate change is a thing, the ECHR has passed a judgment that makes a ruling that those Countries under their jurisdiction must enforce those that are causing the rise in World temperature change – to stop. So, by ECHR decree Switzerland in this instance must declare war and attack China to stop them opening their 2 new coal power stations a week for fear of retribution from the ECHR.
Where do they find these numpties? I expect the same place as that gets to breed UK Political Class, the leaders running this BoE the managing Conservative Government and the ever threatening Labour Leadership.
April 9, 2024
Ian B
Yes the World has gone truly mad.
It would appear that the ruling suggests that anyone affected can claim damages from those responsible, not sure how, who from, how they go about it, how much they will be allowed to claim damages for, or how they prove that Climate change is responsible, (given it changes every day) but the ruling has been made.
Why are we allowing ourselves to be governed by such fools, who appear to be completely detached from reality.
April 10, 2024
They will penalise countries for allowing volcanoes to spout next!
April 9, 2024
The move has led to a backlash from the UK Government whose lawyer, Sudhanshu Swaroop KC, told the court that it was effectively turning the ECHR into a legislator.
āasking the court to act as legislators rather than judges and to legislate for a global challenge without having global jurisdictionā.
From the Telegraph – https://www.telegraph.co.uk/world-news/2024/04/09/climate-change-violated-human-rights-echr-switzerland/
The UK Government the UK HoC, Sunak etc think this is a legitimate way to have others ‘rule’ and Country
April 9, 2024
As this is proudly the site for many dissident, anti-conventional opinions, I want to give mine on Gaza.
First, I say it is not Israel that is responsible for the damage it causes – it is Hamas because when they raided, killed 1,200 and took 200 hostages they could anticipate no other response. Israel had previously retaliated to their periodic rocket attacks on Israel with more and better directed rockets. Any state that could do the same would do the same (for instance Turkey’s takeover of bits of Syria due to Kurdish incursions). To pretend otherwise is hypocrisy.
Second, it is alleged Israel has broken international law (as has Hamas and Russia). Unlike Israel and its other supporters (who have to deny it for Public Relations reasons). I agree it has. The damage to Gaza housing has been so enormous that it cannot all just be collateral damage. Yet I do not blame Israel – I blame ‘international law’ for being inadequate for this war. International law developed in the aftermath of World War I which like other wars was fought in then traditional terms – there would be a winner and loser and that would settle it. However Hamas have taken hostages and promised and conducted a for ever war. So Israel have to overthrow Hamas. Evidently Hamas is still supported by the population of Gaza – otherwise why haven’t their ordinary fighters mutinied (as even some Russians did) and why is there no Arab Spring ‘ in Gaza as there should be? Israel is right it must ‘sober up’ the Gazan population by hardship.
Furthermore if Israel had just clinically attacked Hamas military targets, Hizbollah would then have little to lose and would have waged war from Lebanon – Hizbollah haven’t because their many enemies in Lebanon would turn on them if they brought similar devastation to Lebanon..
So ‘international law’ is inappropriate within the unforeseen (by it)context of Gaza.
April 9, 2024
@Geoffrey Berg – I get and understand are you are coming from. But āinternational lawā ? Any laws not created by and administered by a democratic process leads to what we see new ‘demigods’ creating ’empires’ in their own image for the sake of empowering their own personal self-esteem and self-gratitude. I don’t have the real answer, everything starts as well meaning and then gets distorted having no control or accountability, but āinternational lawā? Unaccountable and not responsible for anything they get to do. Look at today’s thought from Sir John, the BoE is running to a personal agenda with no transparency, no accountability or responsibility – although technically we are suffering as we have a Conservative Government that is refusing to step up and manage in this instance.
April 9, 2024
Basically I agree with you
April 9, 2024
If Egypt and Jordan had opened their borders to asylum seekers, Hamas would have been snookered. But I see the outspoken Queen of Jordan sits on the WEF Committee.
Hamas and the Queen of Jordan need the pictures of suffering women and children. Itās the price that they feel should be paid to skewer Israel, which is in exactly the same position as is Russia.
Remember that no nuclear power, defending its own territory (or people) has ever been beaten. If Israel is subject to sanctions and has no supply of conventional weapons, it may, in extremis, use its nukes. If it is doomed it may as well take the Middle East with it.
April 10, 2024
Nonsense.Israel and Ukraine are both proxies of the same hegemon.That same hegemon would also like Taiwan to serve a similar purpose in the far east.
Google “from the Nile to the Euphrates”,Biden’s “India-Middle East-Europe Economic Corridor” and the “Ben Gurion Canal”.
Geopolitics drives everything – and in the modern era geopolitics is mostly about control of energy supplies.
April 9, 2024
Quite agree; the Bankās bond losses are unnecessary , enormous and must be stopped. What is the Bankās justification for these losses ? Why isnāt the Treasury reining them in ? What answers are you getting from the Chancellor to your persistent questions on this issue ?
April 9, 2024
Only 82 in 2 boats yesterday
April 9, 2024
and wet through I imagine?
April 10, 2024
but safe and warm now in a hotel
April 9, 2024
Surely one BIG change is required? To remove the Governor and his team from the BoE, NOW and immediately install someone who is fully competent in the position?
How much more can that man waste and wreck before he is deemed, “not fit for purpose”?
Is anyone in charge in Downing Street, these days?
We Brits and Britain itself is facing a crisis, yet those in Government appear oblivious to our demises.
April 11, 2024
Don’t hold your breath. The Government’s continuing damage to the UK by bad policy and inaction makes me wonder whether it is intentional.
April 13, 2024
This is far too daft to be mere incompetence. Just an ongoing plot – partly remoaners keeping us in lock step with the failing EU, partly globalists who believe that all people in the world should be “equal” and the way to achieve that is to impoverish the richer countries. Deep state plot, but always dismissed as a conspiracy theory.
April 13, 2024
P.S. Truss’s book out soon (now?) should make for interesting reading. Truss says there is a deep state which is orchestrating all this.