Pot meet Kettle

[BrilloPad]

Sir Mervyn King says abandoning inflation target would be 'irresponsible' - Telegraph

Speaking at a CBI dinner in Northern Ireland, Sir Mervyn said: “To drop the objective of low inflation would be to forget a lesson from our post-war history.”

Rich coming from someone who has not met the inflation range for most of the last 4 years. And with QE is stoking up loots of inflation for the future.

[AtW]

Rich coming from someone who has not met the inflation range for most of the last 4 years. And with QE is stoking up loots of inflation for the future.

To be fair he just did what the Treasury wanted, it's not like he is independent thinker or anything.

[BrilloPad]

To be fair he just did what the Treasury wanted.

He is supposed to be independent with a remit of keeping inflation in a certain bound. That the treasury is complicit (they did not force him) is irrelevant.

He had no clue what he was doing - totally out of his depth. Should have been sacked long ago.

[AtW]

He had no clue what he was doing - totally out of his depth. Should have been sacked long ago.

It was small print in the job description - it would be far too dangerous for the Govt to have a central banker who is honest and has a clue

[Robinho]

Merv increased the UK's monetary base by 250% in recent years. Quite staggering really.

But it's alright inflation is only 2%.... as long as we ignore crucial things like, the cost of a mortgage.


The idea of central banks is utterly utterly flawed.

[doodab]

He had no clue what he was doing - totally out of his depth. Should have been sacked long ago.

It wouldn't have helped. None of them have a clue what they are doing because nobody knows how it works. We're only starting to scratch the surface of finding out.

[BrilloPad]

Merv increased the UK's monetary base by 250% in recent years. Quite staggering really.

But it's alright inflation is only 2%.... as long as we ignore crucial things like, the cost of a mortgage.


The idea of central banks is utterly utterly flawed.

Just ignoring mortgage would not be too bad. But food and energy are going up too - largely due to QE. And plenty of food price rises to come soon as a reslt of recent flooding.

[Robinho]

Over time the cost of living should be going down, as things because cheaper and more efficient to produce.

However somewhere along the lines somebody (i'm going to call those people Keynesian) managed to convince us all that deflation was bad and inflation was a sign that we're getting richer. Because of course nobody would ever buy anything if things were getting cheaper, i have in fact forgone replacing my 10 year old computer because i know that next year i'll be able to buy a cheaper one.

The central bank was sold to the people that it would "smooth out the bumbs" and "keep prices stable". But what has happened? the price of almost everything has skyrocketed over the years, and we have witnessed one of the biggest boom/busts ever seen.

That worked didn't it.