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

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

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

“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

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

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

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”

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”