Home » Posts tagged "Bank of England"

Tag Archives: Bank of England

Haldane: Bond bubble is the biggest threat to financial stability


Via City A.M., Bank official: Bond bubble is the biggest threat to financial stability | City A.M.. OUTSPOKEN Bank of England official Andrew Haldane warned yesterday that the bursting of a bond bubble is the biggest threat to the world’s financial stability. Haldane, the Bank’s executive director of financial stability, told the Treasury Select Committee that central banks’ massive asset-buying programmes have created significant risks. “If I were to single out what for me would be the biggest risk to global […]

Tags: , , , ,

The madness of contemporary economists


The Bank of England is considering negative interest rates to “stimulate” the economy, together with more QE. It’s one thing to pay a bank for safe-keeping and other services, another for the central bank to manipulate the credit markets as a whole. It is explicitly a policy of expropriating savers, of which there is much to be said on another occasion. Allister Heath provides sensible comment here. What the Bank of England is trying to do is restart the money creation process […]

Tags: , , , , , , , ,

Good and bad economic news


Today, we learn, Europe’s leaders are poised this morning to cut the European Union’s budget for the first time in its 56 year history following a major victory for David Cameron. Great news and congratulations to the Prime Minister and the negotiating team. Let’s hope MEPs don’t block it. On the other hand, In his first public appearance in the UK, Mark Carney, the current Governor of the Bank of Canada, said Britain might benefit from a commitment to keep […]

Tags: , , ,

If the Treasury Committee rejects the new Governor, the House must have a binding say


I’m not excited about the appointment of a new Governor of the Bank of England. The money power is one too pervasive and too dreadful to be trusted to an individual or a committee: the prospects of tens of millions of people ought not to depend on the talents and character of an individual or a small group. With Richard Cobden, I believe managing the currency and interest rates is an impossible task. That’s a minority view these days but […]

Tags: , ,

A confession from the Governor?


In his Cardiff speech last night, Sir Mervyn King admitted the Bank of England’s short term policies “appear diametrically opposed to those needed in the long term.”Sir Mervyn still believes that ulta-low interest rates have prevented the recession becoming a depression. However he confessed that such low interest rates prevent bad investments from the boom years unwinding and prop up failing firms surviving on cheap credit, thus postponing the recovery. I could point out that I have been saying this for years. Although that […]

Tags: , ,

← Older posts