According to the FT, Andrew Bailey, Governor of the Bank of England, told the Jackson Hole meeting of central bankers in the USA yesterday, that:
”Tentatively, the economic costs of bringing down persistent inflation — costs in terms of lower output and higher unemployment — could be less than in the past”.
They added:
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A “soft landing”. For whom?
Not the old. Not the poor. Not the disabled. Not the powerless. Not the unorganised. Not the renter. Not the mortgagee. Not the homeless. Not the weak, easily led; and certainly not the abused. And not the ‘foreigner’, even if they aren’t.
Now used as the basis for a tweet, John. With apologies.
No apology required.
But then they’re not sane. One only need look at the way ‘they’, or their superiors, are running the catastrophic war in Ukraine and what that is doing to the EU and beyond.
Agree entirely, Richard. And no surprise there. I note that his current term as Governor of the BoE runs until 2028 so we’ve plenty more years of this nonsense – unless Starmer and Reeves have the balls to force him to step down early, which I doubt. As a continuation Tory government they may as well stick with an arch Tory at the head of the BoE.
I wonder how many are checking when his apointment runs out and when he will go. Is he considered competent ? Need to bring the BoE game back under government control.
@Ivan Horrocks
“…unless Starmer and Reeves have the balls to force him to step down early,…..”
Why would they. Either of them when they approve wholeheartedly (it would appear) of BofE monetary policy?
If Reeves didn’t approve Bailey policy she would have sacked him on day one of her chancellorship. She didn’t so she does. And her utterances reinforce that approval. The ghost of Thatcher is what Labour voters elected.
Those following the events in the Russian invasion of Ukraine will have seen that a (favoured?) way for the Russians to improve morale in its army is via the “punishment beating” method.
Bailey seems to be following a similar route vis a vis inflation, “keep interest rates high – give the economy a good punishment beating & that will sort out inflation”. The logic applied by Bailey would seem to be very similar to that used by those that, ostensibly, control what passes for the Russian army. Bailey is not insane, just hopelessly deluded, like Reeves and the rest of the LINO line-up.
I was reflecting on the influence of religious fundamentalists in today’s world.
The Wahhabi movement, assisted by huge amounts of oil money, have inspired and funded jihadi terrorists.
Christian fundamentalists in the US impose their views on abortion on American women; support Israeli war crimes and de-humanise the Palestinians; and try to censor any LGBT awareness in schools.
Israeli settlers terrorise Palestinians in the West Bank, destroying property and killing with near impunity.
In a similar way, we have economic fundamentalists who try to impose economic theories on societies, regardless of reality or alternatives. In their way they do as much harm. albeit of a different sort.
We should not tolerate the intolerant.
Richard, I admire your energy with several posts a day and multiple replies. You are doing a great job and the reach of your work is increasing. The seeds may yet yield a harvest.
Thanks
Does he understand the cost of unemployment in terms of destitution, worry, human misery and broken dreams, for the person concerned and their nearest and dearest? How does that weigh in the balance?
Or is he only interested in the financial cost of social security benefits claimed? Humans as unthinking unfeeling machines of production. Just numbers on a spreadsheet?
I wonder if he has ever been involuntarily unemployed himself. Perhaps he thinks of it as a Les issue activity or lifestyle choice, like an extended holiday or early retirement.
He has always worked within the safe embrace of the BoE. This is a man who has never faced a risk in his life.
‘Jackson Hole’.
Does any one find the name of the meeting place for these numpties rather apt?
(That’s about as polite about them as I can be – and to my detractors – ‘ridicule’ is one of the few weapons of the powerless that we are allowed, would you not agree – just look at Hogarth).
It is very apt. Jackson Hole is a place where many rich people live.
Also in Wyoming is Tea Dome famous for a scandal circa 1923 which saw a cabinet minister, Albert Bacon Fall, go to prison for accepting bribes from the oil companies. The next cabinet member to be sent to prison was during the Watergate affair. No one from the oil companies was convicted.
When we think of the role of ‘Big Oil’ in Iraq or trying to downplay climate change, they have a lot to answer for.
I was thinking more along the lines of the ‘hole’ bit to be honest.
But then again, I would, wouldn’t I?
I cannot post what Yanks associate with the word “Hole”! LOL!
🙂
If he were a doctor, he would prescribe euthanasia as the only sure cure for high blood pressure.
BoE “downlifing” deflationary practice is much more like the medieval medical practice of bloodletting.
And based on an equivalent level of knowledge.
There is a special form of the amoral technocratic mindset in which the BoE operate.
It represents their instititutional disregard for collective human welfare, and is akin to corporate manslaughter.
I’d call it out as ‘downlifing’.
Just imagine Bailey doing a stint of community service working with those most adversely affected by his policies! Then imagine him being interviewed after it’s over! Dream on! The very last thing Bailey wants is contact with the plebs, he thinks he’s part of the aristocracy!
Just a general comment Richard,thanks for your comments and insight, on the state of our poltical and financial systems, that are in crisis.
Thanks
David Byrne says:
There is nothing in the Neoliberal plan that provides for greater democracy; no economic growth, no equality, no justice. George Orwell’s dystopian future is creeping up on us.
And, once the UK has been completely asset-stripped, the plunderers will move on to the next target.
His comments remind me of the old joke about a student lacking in education who wants to teach his donkey not to eat too much, So he witholds food from it. When the donkey dies of starvation, he grumbles, “Just my luck! The moment he really learns not to eat, he ups and dies!”
Neoliberalism in a nutshell.