Bank of England

Bank of England warning over debt: Borrowing puts UK at risk of Venezuela-style collapse, official warns

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– Bank of England warning over debt: borrowing puts UK at risk of Venezuela-style collapse, official warns:

Britain cannot afford to borrow more without jeopardising the country’s financial stability, a senior Bank of England official has warned.

Richard Sharp said the Government had already borrowed an extra £1 trillion since the 2008 financial crisis.

Borrowing more could put the country at risk of suffering from a collapse similar to that experienced by Venezuela, he suggested. Mr Sharp, a member of the Bank’s Financial Stability Committee, spoke just days after Philip Hammond announced a £25?billion spending spree in the Budget and at a time when the Labour Party is advocating borrowing an extra £250?billion.

His comments, which will be seen as a warning to the Chancellor not to loosen the purse strings too far, mark a departure for the Bank, which usually steers clear of commenting on Government finances.

…

H/t reader squodgy:

“Well, if that isn’t a warning, nothing is.

Obviously the MSM have just been given the nod to start to gently herd us into a pre-collapse pen of propaganda, letting us know incrementally that we are at the precipice.

Other newspapers here are letting us know the range of medicines & treatments available from the once beautiful NHS, is being curtailed and rationed, and care for the elderly is being cut.

Can’t beat selfish, hard skinned Conservatives to show no empathy, nor incompetent Labour/Liberals to waste money faster than a man with ten arms.

No hope!”

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Inflation could blow multi-billion pound hole in UK finances

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– Inflation could blow multi-billion pound hole in UK finances:

High inflation could cost the British Government tens of billions of pounds in extra interest payments because so much of its debt is index-linked.

More than one-third of gilts – excluding those bought by the Bank of England – are linked to the retail price index measure of inflation.

Read moreInflation could blow multi-billion pound hole in UK finances

“Nothing Else Matters”: Central Banks Have Bought A Record $1.5 Trillion In Assets In 2017

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– “Nothing Else Matters”: Central Banks Have Bought A Record $1.5 Trillion In Assets In 2017:

Central banks have bought a record $1.5 trillion of financial assets in just the first five months of 2017, which amounts to $3.6 trillion annualized, “the largest CB buying on record.”

…

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Secret Recording Implicates Bank of England In Libor Rigging

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– Secret Recording Implicates Bank of England In Libor Rigging:

While it may seem like yesterday, it was nearly five years ago that the Libor scandal first broke, and with it brought scandalous suggestions that none other than the Bank of England was implicated.

As we first reported in July 2012, according to Barclays then CEO Bob Diamond, it was high level individuals at the BOE who may (or may not) have been aware that Libor had been “manipulated” and were (or were not) also active in the setting process:

Read moreSecret Recording Implicates Bank of England In Libor Rigging

Bank of England policymaker hints higher interest rates may be needed for ‘star performer’ UK

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– Bank of England policymaker hints higher interest rates may be needed for ‘star performer’ UK:

Interest rates may need to rise “soon” to keep a lid on inflation if the UK economy continues its “remarkably solid and stable” performance, according to a top Bank of England policymaker.

Kristin Forbes will use a speech in Leeds on Wednesday to say signs of an imminent slowdown in the economy are “as yet few and far between” as she describes the UK as a “star performer” relative to other major advanced economies.

Policymakers upgraded their forecasts for growth over the next three years in the Bank’s February Inflation Report and said the unemployment rate was likely to remain below its pre-crisis levels for the rest of the decade.

Read moreBank of England policymaker hints higher interest rates may be needed for ‘star performer’ UK

BoE Governor Mark Carney Admits: Low rates may spark reckless borrowing, says he is ‘fully aware’ of the risks of the policy

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Bilderberger George Osborne appointed Mark Carney (Freemason, Goldman Sachs, Bilderberger) to be governor of the Bank of England.

H/t reader squodgy:

“Classic Poacher turned Gamekeeper.

Can you believe this man?

As a senior cog in the Bank that co-ordinated, mastered and milked the sub-prime debacle of lending money to unworthy risk borrowers, then fed off the QE process, he is now telling the lenders (while interest rates are still rock bottom) that they are lending too much…..

Unbelievable.”

– Low rates may spark reckless borrowing, admits Carney: Bank chief says he is ‘fully aware’ of the risks of the policy:

  • Bank of England Governor Mark Carney was speaking last night in London
  • Called low interest rates – 0.5 per cent since 2009 – a ‘tremendous burden’

Ultra low interest rates could damage the economy by encouraging excessive household borrowing, Mark Carney admitted last night.

The Governor of the Bank of England also said he is ‘fully aware’ the policy is not without considerable risks, putting ‘a  tremendous burden’ on the Bank as it battles to restore the economy to health.

Speaking at the Mais Lecture in the Cass Business School in London, Mr Carney warned: ‘An environment of relatively low and predictable interest rates could encourage excessive risk taking in financial markets and by households.

Read moreBoE Governor Mark Carney Admits: Low rates may spark reckless borrowing, says he is ‘fully aware’ of the risks of the policy

Mark Carney Defends The Bank of England: “We Are Not Robbing The Poor To Pay The Rich”

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– Mark Carney Defends The Bank of England: “We Are Not Robbing The Poor To Pay The Rich”:

In a speech delivered at the Liverpool John Moores University on Monday, Bank of England head, and former Goldman partner, Mark Carney defended his central bank’s near-zero borrowing costs which have been increasingly criticized by local politicians ever since the Brexit vote, claiming that central bank monetary policies have not been the cause behind wealth transfer.

Read moreMark Carney Defends The Bank of England: “We Are Not Robbing The Poor To Pay The Rich”

Bank Of England Governor Warns Of ZIRP/QE “In Perpetuity”

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– Bank Of England Governor Warns Of ZIRP/QE “In Perpetuity”:

Just yesterday we wrote about how central banks are “running out of road” to be able to provide any meaningful incremental “stimulus” to the economy (see “Bridgewater Calculates How Much Time Central Banks Have Left“).  As Bridgewater’s Ray Dalio pointed out, at some point in the not so distant future, the ECB and BOJ will have purchased every eligible security possible.  Even if the central banks do continue to expand the scope of their existing programs, eventually they will simply run out of securities to buy.

Ok fine, central banks are “running out of road”, however at the same time they are terrified to rip (or even peel) the band-aid off. This has put the system in an unstable equilibrium: on one hand, central bankers – as even they admit – need to hand over the growth impulse to governments, yet on the other hand, they are terrified of even the smallest change to the status quo as they know they may undo some 7 years of “wealth effect” creation overnight.

How much longer can this charade continue?

Read moreBank Of England Governor Warns Of ZIRP/QE “In Perpetuity”

BOE Cuts By 25 bps To Record Low 0.25%, Boosts QE By £60 BILLION to £435 BILLION Including Corporate Bonds; Gilt Yields Crash

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– BOE Cuts By 25 bps To Record Low 0.25%, Boosts QE By £60 BN Including Corporate Bonds; Gilt Yields Crash:

As expected, the Bank of England unanimously cut rates by 25 bps to a record low 0.25%. However in a somewhat surprising move, the BOE also expand its QE by £60 billiion to £435 billion in a 6-3 vote, of which up to £10 billion will be in the form of corporate bond purchases, as we previewed last night. Overall a very dovish decision, with Mark Carney providing more monetary stimulus than many had expected, sending sterling plunging and the FTSE100 surging.

Read moreBOE Cuts By 25 bps To Record Low 0.25%, Boosts QE By £60 BILLION to £435 BILLION Including Corporate Bonds; Gilt Yields Crash

“Crazy” – The Complete Story Of Debt, In A 40 Minute MUST-WATCH Video

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– “Crazy” – The Complete Story Of Debt, In A 40 Minute Video:

Real Vision TV’s Grant Williams offers a true look into what is known as an absurd debt level and unimaginable central bank manipulation.  Less than a week ago we highlighted Grant’s comments on commodities.  Although the information contained in the video below is nothing new to Zero Hedge, we do enjoy the way the information is presented.  Set aside some time to listen as Grant tells a story about debt and the current investment landscape.

Grant sees people “with more power than you can possibly imagine” as the ones responsible for experimental economics that led the world down a path of self destruction. 

“I don’t think there is any argument about whether or not the central bankers of the world should have done something in 2008.  The question is ‘should they still be doing it 8 years later‘?”

We recommend viewing the entire clip

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https://www.youtube.com/watch?v=CLQsT9BPHpg&pxtry=1

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“When a country embarks on deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul

“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”
– Ron Paul

“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
– John Maynard Keynes

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. … This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
– Alan Greenspan

“Capital must protect itself in every way… Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principle men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd.”
– J. P. Morgan

“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the FED. They are not government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers.”
– Louis McFadden

“It was not accidental [the 1929 stock-market “crash”]. It was a carefully contrived occurrence. … The international bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all.”
– Louis McFadden

“What good fortune for governments that the people do not think.”
– Adolf Hitler

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Bank Of England Unveils First Easing Measures After Brexit

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– Bank Of England Unveils First Easing Measures After Brexit:

In its first official easing act, the Financial Policy Committee lowered the countercyclical-capital buffer rate for UK exposures to zero from .5% of risk-weighted assets in a move that it said would raise the capacity for bank lending to households and businesses by as much as £150 billion. “This action reinforces the FPC’s view that all elements of the substantial capital and liquidity buffers that have been built up by banks are to be drawn on, as necessary” the committee said in a statement.…

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Hitler Was Financed by the Federal Reserve and the Bank of England

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Hitler Was Financed by the Federal Reserve

– Hitler Was Financed by the Federal Reserve and the Bank of England:

Translated by Ollie Richardson, from ru-polit.livejournal

The recent resolution of the parliamentary Assembly of the OSCE fully equalizes the role of the Soviet Union and Nazi Germany at the outbreak of the Second World War, except that it had the purely pragmatic purpose of extorting money from Russia on the contents of some of the bankrupt economies, intended to demonize Russia as the successor state to the USSR, and to prepare the legal ground for the deprivation of her right to speak out against revision of results of war.

But if we approach the problem of responsibility for the war, then you first need to answer the key question: who helped the Nazis come to power?

Read moreHitler Was Financed by the Federal Reserve and the Bank of England

Full-Blown Fearmongering: Bank Of England Warns Of Recession, “Sharp” Sterling Fall If UK Leaves Europe

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keep-calm-and-vote-for-brexit

– Full-Blown Fearmongering: Bank Of England Warns Of Recession, “Sharp” Sterling Fall If UK Leaves Europe:

While the Bank of England voted unanimously 9-0 to keep rates on hold at 0.5%, what the market was far more focused on the BOE’s latest gloomy scenarios about what would happen should the UK vote for Brexit on June 23. The BOE did not disappoint, and cautioned that that sterling could fall “sharply” and unemployment would probably rise, while in the press conference after the announcement BOE governor and former Goldmanite Mark Carney went all the way warning Brexit “could possibly lead to recession.”

That this takes place just days after UK’s David Cameron warned of a World War threat should the UK leave the EU is not surprising: after all the whole point is to scare the UK population into submission and into a vote to stay in the EU.

Read moreFull-Blown Fearmongering: Bank Of England Warns Of Recession, “Sharp” Sterling Fall If UK Leaves Europe

Gold In Vaults Beneath Bank of England Worth $248 Billion?

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gold_bullion_BOE
Stacks of gold bars are arranged on shelves in the Bank of England’s vaults (Credit: David Levenson/Alamy)

– Gold In Vaults Beneath Bank of England Worth $248 Billion?:

The gold bullion or “hidden gold mine” of various nation’s gold reserves stored in the vaults beneath the Bank of England have been covered by the BBC:

Under London’s streets lies a hidden gold mine.

It stretches across more than 300,000 square feet under the City, the finance quarter in the heart of Britain’s capital. There, beneath the pavement and commuters of Threadneedle Street, lies a maze of eight Bank of England gold vaults – each stacked with gold bars worth a total sum of around £141 billion ($200 billion).

Read moreGold In Vaults Beneath Bank of England Worth $248 Billion?

Exposed – How Two Janet Yellen Phone Calls Saved The World

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Full article here:

– Exposed – How Two Janet Yellen Phone Calls Saved The World:

Thanks to the just released February diary of Fed chief Yellen, we now know exactly when she called Bank of England Governor (and former Goldman Sachs employee) Marc Carney and ECB President (and former Goldman Sachs employee) Mario Draghi.

Can you guess when?

The answer:

…

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Former Bank Of England Chief Mervyn King: “Another Crisis Is Certain”

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quantitative-easing

 

Mervyn King

– “Another Crisis Is Certain”, Warns Former BOE Chief:

“The global economy risks becoming trapped in a low growth, low inflation, low interest rate equilibrium,” BOE governor Mark Carney warned, in a speech at the G20 summit in Shanghai. “For the past seven years, growth has serially disappointed—sometimes spectacularly,” he added.

That’s a bit of unwelcome “truthiness” from one of the world’s most powerful central bankers and it comes as his predecessor, the incomparable Mervyn King, warns that a new financial crisis is “certain.”

Read moreFormer Bank Of England Chief Mervyn King: “Another Crisis Is Certain”

Top British Financial Official Warns Q4 Productivity Data To Be ‘Abysmal’

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– “Abysmal” Q4 productivity data for UK:

A top British financial official warned on Tuesday that the data on country’s fourth quarter productivity are likely to be “abysmal”. 

The announcement was made by the Bank of England Monetary Policy Committee member Kristin Forbes. Nevertheless, she emphasized that the underlying trends were more important than a single data point.

“It looks like fourth-quarter productivity growth is going to be abysmal. That’s part of the trade-off of strong employment growth with moderate overall GDP growth,” Reuters has quoted Forbes as saying at a meeting of the Henry Jackson Society think tank at Britain’s parliament.

Read moreTop British Financial Official Warns Q4 Productivity Data To Be ‘Abysmal’

Bank Of England Economist Calls For Cash Ban, Urges Negative Rates

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– Bank Of England Economist Calls For Cash Ban, Urges Negative Rates:

Just three short years ago, Bank of England chief economist Andy Haldane appeared a lone voice of sanity in a world fanatically-religious Keynesian-esque worshippers. Admissions in 2013 (on blowing bubbles) and 2014 (on Too Big To Fail “problems from hell”) also gave us pause that maybe someone in charge of central planning might actually do something to return the world to some semblance of rational ‘free’ markets. We were wrong! Haldane appears to have fully transitioned to the dark side, as The Telegraph reports, he made the case for the “radical” option of supporting the economy with negative interest rates, and even suggested that cash could have to be abolished.

Speaking at the Portadown Chamber of Commerce in Northern Ireland, as The Telegraph reports, Mr Haldane’s support for a possible cut in rates came as the Bank as a whole has signalled that the next move in rates would be up.

Read moreBank Of England Economist Calls For Cash Ban, Urges Negative Rates

Revolving Door on Steroids – New Bank of England Policymaker Allowed to Retain Financial Interest in Hedge Fund

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Wealth Effect

– Revolving Door on Steroids – New Bank of England Policymaker Allowed to Retain Financial Interest in Hedge Fund (Liberty Blitzkrieg, July 31, 2015):

Can’t a guy enjoy a beautiful Friday in Colorado without being bombarded with another gigantic oligarch scam? I guess not.

Today’s article takes the revolving door theme to a whole other level. It even puts the recent revelation that law firm Covington and Burlington kept an office empty for Eric Holder while he was head of the Department of Justice to shame. You can’t make this stuff up.

From Reuters:

New Bank of England policymaker Gertjan Vlieghe will retain a financial interest in one of the world’s biggest hedge fund firms while he sets interest rates, an arrangement that Britain’s finance ministry said posed no conflict of interest.

Read moreRevolving Door on Steroids – New Bank of England Policymaker Allowed to Retain Financial Interest in Hedge Fund

What Happens When You Hand Over Your Gold To The Bank Of England For “Safekeeping”

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Tower of Basel

– What Happens When You Hand Over Your Gold To The Bank Of England For “Safekeeping” (ZeroHedge, May 1, 2015):

“The Bank for International Settlements is the bank which sanctions the most notorious outrage of this generation— the rape of Czechoslovakia.”

— George Strauss, Labor MP, speaking in the House of Commons, May 1939

“the Bank for International Settlements should be liquidated before it
furnished any more sinews of war to Germany, and that the odd
relationship between the British government and the Bank of England
should be re-examined without delay.”

— “Sees British Hands Tied on Czech Gold,” New York Times, June 6, 1939

When Nazi Germany annexed the Czechoslovak border province of the Sudetenland in September 1938, it immediately absorbed a good part of the country’s banking system as well as most of Czechoslovakia’s strategic defenses. By then the country’s national bank had prudently transferred most of its gold abroad to two accounts at the Bank of England: one in the name of the BIS, and one in the name of the National Bank of Czechoslovakia itself. (Countries had deposited some of their gold reserves in a sub-account at the BIS account in London to ease gold sales and purchases.) Of the 94,772 kilograms of gold, only 6,337 kilograms remained in Prague. The security of the national gold was more than a monetary issue. The Czechoslovak reserves, like those of Republican Spain, were an expression of nationhood. Carved out of the remains of the Austro-Hungarian Empire in 1918, the Czechoslovak Republic was a new and fragile nation. A good part of the gold had been donated by the public in the country’s early years. Josef Malik, the governor of the national bank, and his fellow Czechs believed that, even as the Nazis’ dismembered their homeland, if the national gold was safe, then something of the country’s independence would endure.

Read moreWhat Happens When You Hand Over Your Gold To The Bank Of England For “Safekeeping”