Bank of England gets called out

[Mega]

http://www.telegraph.co.uk/finance/n...recasting.html

Everyone is now focused on the rate of inflation here in Blighty. Kraft whom just bought our largest sweet manufactor & then reduced the size of its choc bars by 14% but held the price sez its down to inflation.

If the BOE thought they could just tell "Pork pies" about inflation & get away with NOT lifting rates they are going to be VERY diss-a-pont-ed. All the Middleclass news papers in the UK are now kicking off about it.

Just like the FED & ECB the BOE flooded the 2000-2010 with "Cheap" money. Their Gold/silver surpession scam is blown. If they try to bulsh*t they get called & risk capital flight into PM's or other base eleiments.........We have the internet now & the knowage of living though the 70's!

My feeling is that FED/ECB/BOE etc will get pushed into a conner. THey try to lift a bit & claim they covered the inflation or claim its just a "Spike". This won't wash & as it becomes day to day attacks they have to react...........regardless of the dire effects it will have on the unwashed masses whom suddenly find that spending their lives running credit balances that would frighten a 3rd World goverment & watching "X-Factor" was NOT what they should have been doing!

Mike

[Starving Steve]

Re: Bank of England gets called out

The longer that gold stays around the $1400 level and oil stays pushing $90, the credibility of all economists running central banks is dimishing. The story is becoming incredible! The bastards waited until the memory of the Arthur Burns mess --- the stagflation of the 1970s was forgotten--- and then they pulled the same stunt again.

Students should be closing-down university economics departments. The lesson of the 1970s will be re-learned, unfortunately.

Mervyn King and Ben Bernanke should resign. Marc Carney should resign. How much can the public take?

Arthur Burns gave LBJ the Vietnam War. He financed it with cheap paper-dollars. Then the silver dollars vanished in America. Then the coin shortage began. The silver coins vanished. Then the gold-window at the Fed was closed. Then the gold rush began. Then came the housing bubble of the 1970s, plus rising inflation. Then came double-digit interest rates. Then came the hard-landing of Paul Volcker. Then came Margaret Thatcher and Ronald Reagan in politics. And then it all passed.......

Then entered supply-side economics, Alan Greenspan, Mervyn King, endless wars, and cheap money. And everything was supposed to grow. The bubbles returned.

Time passed, and nothing was learned. NOTHING AT ALL!

Heads should roll in economics departments and in central banks. Let's begin with the resignation of Bernanke and Treeshet and Mervyn King. Good-riddance!

But the central-banks heads won't resign, so sloooooooooowly oil will go to $90-$100. Then comes sloooooowly higher oil, the old high, then a new all-time high, etc. QE will continue. The tinkling and fiddling will never end, so gradually this whole thing becomes a farce. The central bankers never saw a bail-out they didn't like, etc.

All hell is going to break-loose! Yes, I own energy stocks: the more politically-incorrect, the better I like them.

[Chris Coles]

Re: Bank of England gets called out

iTulip is, if anything, a home for the contrarian, and so it is with this report.

The problem may well be an uncontrolled FED, but I have to stand up to be counted for Mervyn King; he is the scapegoat, not the driving force behind the mess the UK is in.

The Bank of England is the servant of the UK Civil Service. King cannot do anything without the direct instruction from what we colloquially name "The Government". Yes, he is supposed to be a free agent, but in truth he is not. The entire economy here in the UK has been driven by the failed policies of the Civil Service, who, in turn, advise the "Political government". Note the small "g".....

Our trashed economy is entirely the responsibility of the one group who have so effortlessly kept the spotlight on everyone bar themselves. So, as far as I am concerned, keep Mervyn King out of it.

[Mega]

Re: Bank of England gets called out

The BOE was stacked with yes men, even so they were not over keen on risk, thus the FSA was bought in being by Gordon Brown to "short circult" the BOE & allow MEGA risk taking..........i wonder why they did it?

Was there some cunning plan that they were trying on?........or did the just F*ck up?

Oh yes more "Unexpected" (by everyone except Itulip crew) News:-
http://www.telegraph.co.uk/finance/e...cord-high.html
Mike

[Chris]

Re: Bank of England gets called out

What worries me is that if Jim Rickards and EJ are correct and the US revalues gold to get back on the gold standard, that the UK will be royally shafted. The entire economic management of the UK has been a disaster for over a decade. From Gordon Brown's decision to sell gold at the bottom of the market to the BOE's low interest rate environment - it's been a total mess.

We are getting closer to the high inflation EJ predicted. How long can the central banks artifically hold rates down for before inflation hell breaks loose?