Initially I just quoted an excerpt that I thought would give the jist of the entire article. But as I read through the piece by I realized it is stuffed full of half truths and false remorse. I am now posting the entire article and interspersing my comments throughout.
Article and comments:
“In some of his strongest language yet, Mervyn King today claimed the fall in households’ living standards was the fault of the financial services sector and he expressed sympathy that innocent families paying the price.
“The people whose jobs were destroyed were in no way responsible for the excesses of the financial sector and the crisis that followed,” he told MPs on the Treasury Select Committee.
GUIDO COMMENT: So, what’s going on here. Genuine heartfelt remorse? A moment of candor?
In most aspects, he said, the economy had been on a sound footing before the crisis. Previous downturns were often caused by inefficiencies or weak management and were useful opportunities to improve systems. “None of that applied in this crisis,” he said. “We had quite a successfully operating economy.”
GUIDO COMMENT: And there you go. It didn’t take long for Mr. King to come clean. His is not remorse nor is it candor. What Mr. King is doing is staging contrition. But it is not genuine. It is meant to placate the masses. By any measure anyone measuring the health of the economy prior to the crisis, would have found little to nothing healthy about it. What there was, was the ability of the banks to expand credit markets. If that’s Mr. King’s only measure to gauge the health of an economy then, yes, the economy would have been healthy at that point. But as anyone that has ever managed a budget can tell you, if your debts are increasing at a faster rate than your revenue and your intrinsic wealth you will soon be taken to jail.
The people who are now suffering “did not get bonuses of the scale people in the financial sector got”. The financial crisis may have occurred two years ago but, as austerity measures kick in, “the cost is now being felt”, he said.
It remains “a big political problem”, he added: “I’m surprised the real anger hasn’t been greater than it has.”
GUIDO COMMENT: Crocodile tears folks. Mr. King is seeking forgiveness.
The Governor also warned that living standards may be permanently lower than where they would have been under the economy’s trend growth rate before the crisis. “The evidence of the past is that the impact of a [financial] crisis like that persists for many years,” he said.
GUIDO COMMENT: Funny how Mr. King is aware of the historical background of financial crisis but, like all central bankers and official economist world wide, was unable to see this one brewing.
“You may not get it back for very many years if ever. It’s a very real hit on living standards. That’s why it is important to take the issue of financial stability very seriously.”
GUIDO COMMENT: He truly sounds sorry does he not? Let’s see what he proposes.
Making a personal commitment, he said he hoped to ensure the banks would never again be allowed to cause a recession of the scale just witnessed. “I joined the Bank of England 20 years ago today,” he said. “I don’t want to leave until we have a framework in place to ensure we don’t have to go through this again.”
GUIDO ROMERO: Number 1 rule of getting away with murder: show contrition, make puppy eyes and ask for forgiveness and then ask to stay in place to put things right.
The Governor also expressed concern about the legislation being enacted to give regulators greater powers on bank supervision. He said the Bank would have preferred a new Act rather than amendments to the existing law, but that he was satisfied with the current plans.
GUIDO COMMENT: Isn’t that precious. Mr. King is satisfied with current plans. Not one sentence ago, he pledged to stay on till he sorted this whole bloody mess out. But, you know, though he would have preferred a new act current plans are ok too… Which of course begs the question… why should he stay in place then if legislation being enacted is satisfactory?
Andrew Tyrie, chairman of the TSC, suggested the current plans are a “pig’s ear of a legislative process”.
The biggest change to banking supervision, Mr King said, would be to “move to a regime that does countenance failure but does not cause havoc with the financial system”. Regulators will pay closer attention to whether a bank can fail safely rather than continue with “excessively detailed scrutiny of the big banks”.
GUIDO COMMENT: The price of eggs in china shoves numerous pallistairs under the legislation of corporate mandated social fung shui. That’s a long worringstall for research in the quantum strands rabble.
His position appeared to contradict that of his future deputy governor Hector Sants, currently chief executive of the Financial Services Authority, who has said the new regime would have a “low tolerance for failure”. Mr King said: “I don’t think that’s where we are now.”
Mr. King basically wants to stay on and change little or nothing. That’s the jist of his speech. No mention of the monetary system, no mention of fiat money, no mention of fractional reserve banking no mention of anything that in fact is a prime mover in our boom-bust economic cycle. Nothing. Just crocodile tears.
Unless of course Mr. King is not aware of what debt based fiat money is and what are the laws that govern this type of monetary system. Though unlikely I suppose it is possible. Possible in the same manner that it is possible that the sun will not rise tomorrow.
Let the banks fail. Withdraw all your funds from the major banks. Close all your lines of credit with the major banks. Make use of small community banks or just keep the cash in a safe at home. Buy one coin and one ingot of silver each. Just stash them away till this whole unGodly mess washes over.
Tags: Bank of England, credit markets, criminal government, fiat money, fiduciary duty, Financial crisis, fractional reserve banking, malicioius intent, Mervyn King, state mandated fraud, white collar crime