As the Guardian notes this morning:
Uncertainty caused by a global wave of elections, starting this weekend in France, risks destabilising the UK's financial system, the Bank of England has warned.
It would seem that the Bank of England has reservations about the impact of democracy on the economy.
Of course, what they are really saying is that they think that they will have to keep interest rates much higher for a lot longer. That, very obviously to them, is the price that we must pay for having the right to choose our own governments. They, no doubt, think it would be so much better if the whole world were run by central bankers.
Meanwhile, they are going to continue to make sure we all suffer for the right to choose.
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“They [central banks], no doubt, think it would be so much better if the whole world were run by central bankers”.
Of course the politicians think it already is run by central bankers. Rishi Sunak both celebrates the independence of the BoE and takes credit for its decisions because he erroneously believes the Boe reduced inflation.
the real question is; who do Central Bankers really think they are are serving or working for, or dependent on? It certainly isn’t the people of the country they formally serve.
Apologies for repetition.
Neo-liberalism is at base, anti-democratic, independent central banks is code for control by a combo of corporations & commercial banks. This group do not & never have had the interests of people at heart. The media, part of this nexus, is there to confuse citizens and groom them such that the status quo continues. I’m not convinced that those running the show care whether people suffer or not, provided they remain in power.
“Uncertainty .. risks destabilising the UK’s financial system, the Bank of England has warned.”
Translation:
“Bankers will not be able to cream off money from the economy, forcing them to work for a living”
The economy is far bigger than the “financial system”. It used to work quite well thank you, when a single wage-earner in a family could afford to buy a house at 3.5 times earnings, on a 3.5% mortgage fixed for the life of the mortgage. And the NHS worked. And you didn’t need to pump raw sewage into our rivers to make a profit. Nor did the government of the day need to sell off our publicly-owned organisations to subsidise profit for the well-off.”
Call me a cynic if you must, but my initial thought was:
“Bankers seek to keep bankers’ profits high, lazily blame unrelated events for an excuse.”
Cynic
A fascinating look at how orthodox econ theory on interest rates/ inflation is wildly detached from reality, and how corrosive high base rates are to the economy/ society ( especially in the housing sector) and how high base rates are driving inflation. From The Atlantic, but surely highly applicable here. https://www.theatlantic.com/ideas/archive/2024/06/interest-rates-inflation/678802/?fbclid=IwZXh0bgNhZW0CMTEAAR1JoeZPHxizIwEw6tBOC_l-Q0QHm2jiaGGZtl6soEHccUzKVCYGuBmrak4_aem_kLpwZFMpWCG-3onmLS3nNQ
Thank you
Well worth reading