Debate Magazine

Crony Corporatist Speaks Out

Posted on the 08 March 2016 by Markwadsworth @Mark_Wadsworth

I fundamentally disagree with Mr Carney.  The act of exiting the EU may in the very short term lead to some uncertainty and fluctuations in the price of Sterling and the UK stock and Gilt markets.  But once it dawns on the capital markets that we are not paying out lots of money to the EU and are not on the hook for various bailouts and that we are not obliged to do all the mad and expensive interventions that the EU requires and crucially we can set out own banking solvency and capital requirements I think that Sterling will strengthen.  This is of course not necessarily good news for UK trade but it will excellent for paying off all those government debts.
And Carney has also said that as a consequence of this uncertainty he will need to flood us with liquidity.  Oh really?  IMHO the 'real' reason to do this is to have lots of lovely cheap credit land on people in a burst of joyful feel goodness and encourage high spending on toys and stuff. Bread and Circuses.
In any event Mr C has a woeful track record in money and interest rates. Commentators have been saying for years that its interest rate policy has been useless.  And it has managed to mis-use quantative easing  Deliberately?
Overall markets - that's me and you and bloke on the Clapham Omnibus by the way - hate uncertainty.  But they are really pretty quick to sort out the truth once things are clear. (Actually, I love uncertainty.  It's opportunity).
Dan Hannan is pretty good on this.
This is just Carney doing his corporatist bit for the global self defined elite.  'Elite' my arse.

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