By Pete Moore On April 27th, 2013 at 12:20 pm
The Rt Rev Justin Welby is only 57 years old, so it looks like many more years of wrong-headed arguments like this:
The Archbishop of Canterbury has launched a stinging attack on the City, describing it as infected by “a culture of entitlement” that has left it disconnected from the rest of the country.
Speaking to the Financial Times, Archbishop Welby acknowledged that standards in the Square Mile are higher than in the past, but he said:
“In banking, in particular, and in the City of London, a culture of entitlement has affected a number of areas – not universally by any means – in which it seemed to disconnect from what people saw as reasonable in the rest of the world.”
I’d agree on the “culture of entitlement” which he mentions. We’ve seen much evidence of that. But he then gets very confused and argues for an entrenchment of that entitlement:
Read the rest of this entry »
By Pete Moore On April 2nd, 2013 at 5:34 pm
“Bernanke is the most dangerous man to hold high financial office in the history of the United States.”
Former Reagan Budget Director David Stockman was out with a blockbuster op-ed in the New York Times over the weekend (State-Wrecked: The Corruption of Capitalism in America). He found time also to be interviewed on Fox. He pretty much nails the Fed’s pumping of the NYSE bubble and the phony economy -
h/t lew rockwell
By Pete Moore On March 5th, 2013 at 6:46 pm
Great news from America!
The Dow hit all-time highs today while house prices are roaring ahead, and all it took was this much newly printed money to achieve it:
That’s all there is to it. There are no market fundamentals in play. All that new money had to go somewhere, and this time it’s the NYSE and housing. Behind it is the greater fool theory, the belief that you’ll be able to flip what you’ve bought at a higher price. There’ll be plenty of greater fools when Ben Bernanke stops the money presses. As well as housing and stocks, fuel and food are racing ahead too. At some point there will be price inflation generally, everywhere, and the only way back from that is for Bernanke to stop printing. That’s when the bubbles pop and the greater fools are revealed. The only certainty is that when it happens some will say that “free markets have failed”.
By David Vance On February 26th, 2013 at 8:28 pm
The last thing we need is to punish savers EVEN further and encourage reckless bank lending and yet, unbelievably, that is exactly what the financial “experts” at the Bank of England seem to be contemplating.
Negative interest rates should be considered as an option to encourage banks to lend to small and medium-sized firms, the Bank of England’s deputy governor for financial stability said today.
Paul Tucker said the dramatic move had been discussed at this month’s rate-setting meeting as an option to help fuel economic growth. Such a move would spell catastrophe for cash-strapped savers, who have already been crippled by rock bottom rates since the Bank of England dramatically cut the base rate to its record low of 0.5 per cent in March 2009.
Lending is based on calculated risk, not largesse. I would encourage banks to be careful to whom they lend. Saving is predicated long term investment and denying oneself short term benefit. At a stroke, Tucker seeks to increase risk taking and punish prudence. Remarkable stupidity, even by Bank of England standards.
By Pete Moore On February 6th, 2013 at 7:12 pm
After cutting jobs when the last inflationary boom went bust, Home Depot has announced that it will be hiring more than 80,000 people this spring. Some jobs are temporary, but many will become permament.
The Bernanke-manipulated housing boom is on big time. Mind how you go.
By Pete Moore On November 13th, 2012 at 12:20 pm
Apparently it’s “a shock”.
The Treasury said the figures were
“disappointing”, but inflation remains far lower than its peak of 5.2pc last September. However there are fears the rate could reach 3.5pc by the middle of next year “great”, because public sector pensions and welfare payments are linked to price inflation, so we’re quids in and the peasants still haven’t noticed that QE is robbing them blind.
I might have misquoted the Treasury there.
By Pete Moore On October 25th, 2012 at 7:36 pm
Wow, this is frank. Maybe it wasn’t for public consumption.
Jamie Dimon, CEO of JP Morgan, was recently interviewed at the Council on Foreign Relations by its president Richard Haass. (That’s the “mothership” where H. Clinton takes her orders.)
Haass: “How worried are you that the bond markets will move against the United States?”
Dimon: “It’s virtually assured.”
He goes on to explain he doesn’t know when, that it could be two years or five years, but it will happen. He thinks the US can still sort out its debts, but if it chooses not to then fiscal discipline will be imposed on it. Even the Wall Street big shots recognise the cliff ahead. When what he says comes to pass (has he been reading ATW?!) there’s no way that the federal government can pay its debts. That’s when the gig’s up. In the meantime, make sure your pension/IRA has no US federal or state treasuries in it.
Watch the video here.
By David Vance On September 21st, 2012 at 9:33 am
Interesting to read that Bank of England Governor Sir Mervyn King has cleared the way for the Chancellor to ditch one of his cast-iron fiscal rules and miss his target to get the national debt under control by 2016.
The Governor of the Bank of England suggested that it would acceptable for George Osborne to break his pledge on debt reduction due to the state of the world economy. “If it’s because the world economy is growing more slowly, then it would be acceptable,” he said. “It would not be acceptable to miss the debt target if there was no excuse for it.” The Governor’s comments followed Prime Minister David Cameron’s refusal in Parliament last week to recommit the Government to the debt goal, and comes amid mounting speculation that the target will be missed due to the slowdown in growth.
This is truly pathetic stuff. I remember meeting Mervyn King some years ago at an economics event and he seemed an owlish but intelligent cove. Clearly he also lacks common sense. UNLESS UK debt is reduced then there can be no growth. Our economy will languish in the fiscal doldrums. Osborne has been too timid, afraid to do what NEEDS to be done. King has failed to speak up over the utterly disastrous fiscal policies of the last Government and now this one. If ever there was a case for Regicide this is it…
By David Vance On August 24th, 2012 at 12:47 pm
As you know, I have been a long term critic of “Quantitative Easing” aka printing money. But the political Left, and the likes of the BBC insisted it was VITAL that this be done. And now, the law of unintended consequences (Or, if you have a brain, the bleeding obvious) kicks them in the posterior!
The Bank of England’s money-printing programme, intended to revive economic growth, has delivered a massive boost to the wealth of the most prosperous 10 per cent of households in the UK while delivering relatively scant returns for the poorest, a new analysis from the Bank indicated yesterday.
You were warned! All QE should stop, it’s a scam pure and simple but getting that across in our Biased media is a challenge and a half.
By Pete Moore On July 11th, 2012 at 8:42 pm
LA TIMES: San Bernardino seeks bankruptcy protection
San Bernardino, facing the possibility of missing payroll, becomes California’s third city in weeks to authorize a bankruptcy filing
First Stockton, then Mammoth Lakes and now San Bernardino discover that you can kick the can only so far down the road. These are just the hors d’oeuvres. The real action begins when cities like Chicago and states like Illinois and California meet reality. It might be one, two or five years away, but they’ll go bankrupt too. When it happens they’ll become extremely unpleasant places to be.