Wednesday 27 February 2008

Granny Muggers

They're at it again:
Bank of England deputy governor Rachel Lomax yesterday signalled a willingness to cut UK interest rates further to try to counter a painful slowdown in economic growth, but only if people's expectations of future inflation remained anchored.
What on earth does she mean by "anchored"?

Let's see:

"... a temporary spike in inflation did not necessarily mean that members of the Bank's Monetary Policy Committee needed "to tolerate a significant weakening in demand"
Temporary! Who does she think she's kidding? Money supply growth is out of control, and not only in the UK.

And now there are rumours about another bank:

Jitters return to the banking sectors amid rumours of an emergency Bank of England meeting with one of the clearing banks in trouble
Enough of this fiat money nonsense. Why should imprudent borrowers be bailed out by stealing from your granny's savings? We need a commodity based monetary system and we need it now.

1 comment:

David Farrer said...

Comment made on previous template:

David B. Wildgoose
My guess is that the "other bank" may be Royal Bank of Scotland. 
 
Last month they changed the dates on their credit card statements. 
 
This month they've announced that those of us who pay off our accounts in full via Direct Debit will now find that the amount may be taken up to TEN DAYS before the payment due date, (which is when they used to take the money). 
 
That smells like an institution scrabbling for cash in order to keep their fractional reserve liquidity ratios intact.