"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Tuesday, June 17, 2008

Lord King continues to talk out of his arse... Situation Normal ...Amazing Pictures

This is what Lord King Chairman of the Bank of England said in his annual speech to the great and the good of the City of London at the Mansion House almost exactly one year ago on the 16th June 2007...

"Our central view remains that inflation will fall back this year as the rises in domestic gas and electricity prices last year drop out of the annual comparison, and the recent cuts in prices feed through to household bills."

Since then he has had his term of office extended by a further 5 years. Today he wrote a letter the Chancellor of the Exchequer. His letter started rather abruptly and gave hime some information somwhat at variance with his thoughts just a year ago.

The CPI inflation rate for may ..is 3.3% more than 1 percentage point above our target of 2%.

It didn't get any better

That rise can be accounted for by large and, until recently , unanticipated increases in the price of food, fuel, gas and electricity. These components alone account for 1.1 percentage points increase in the CPI inflation rate since last December

Lord King probably mentioned December as Lord Patel as explained in these post wrote to him about his Mansion House speech on the 4th of January 2008..."Should you seek an explanation from Lord King and the BOE how they, and their serried ranks of Oxbridge double firsts in PPE, economists, econometricians, money jugglers, and forecasters so misread the global and (more importantly) the EU energy market you might contact them at enquiries@bankofengland.co.uk or even enquiries press@bankofengland.co.uk Lord Patel has ... and he will keep you informed of the consequences.

This was mentioned in a post Friday, January 04, 2008 Npower lead the rush with domestic UK energy prices rising over 17% when Npower led the charge putting up the prices of the UK gas cartel. The letter was brief and ..er. ... to the point "Can someone explain how the consistent and constant rise in global and especially EU energy costs had been ignored / overlooked when Lord King made his speech ? Regards Lord Patel PS An early response would be welcome."

Lord Kings reply arrived (eventually) and you can read it here...Friday, February 08, 2008 Lord Patel gets a response to letter to Lord King - eventually ..well a reply from Roger Beaton, Public Information & Enquiries Group which allowed, through the passage of time from Lord Patel's missive to it's reply for Marvellous Mervyn to cover his arse ..."the Governor has already addressed these matters in a speech he gave on 22 January this year. In particular he said “2008 is likely to see higher energy prices, higher food prices and, with a lower exchange rate, higher import prices, pushing inflation above the 2% target. It is possible that inflation could rise to the level at which I would need to write an open letter of explanation, ..." and so it came to pass.

One phrase from Mr Beaton is worth passing on and may be quoted in extenso "There is inevitable uncertainty about the future." ... and so say all of us.

Mervyn ends his leter to the Chancellor today ...

"The MPC remains determined to set interest rates at a level required to bring interest rates at the level required to bring inflation back to the 2% "target"

A pity that Lord Patel's letter did not prompt him and the MPC to an earlier response... he cannot say he was not warned.


Anonymous said...

gas price in Germany goes up approx 15% in august,Electricity will also go up soon.
Petrol costs 1.50€ litre.

Stef said...

and, surprise surprise, we are now being told that interest rates are going to have to go up as a consequence, when everyone in the mainstream press has been telling us over the last few months that they were certainly going to fall

cue the heavily, but not heavily enough, used Jefferson quote...

"If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."

and also the less heavily used quote attributed to Andrew Mellon...

"In a depression assets return to their rightful owners"

this stuff isn't happening as the result of incompetence or chance

Anonymous said...

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Mesothelioma is a rare & uncommon type of cancer which is almost always caused by exposure to asbestos. In mesothelioma, malignant type cells form and develop within the mesothelium. These cells also cover the outer surface of most internal organs. The tissue formed by these cells is called mesothelium. Mesothelioma is most common in the pleura which is the outer lining of the lungs, but it can also arise in the peritoneum or the pericardium which protects the heart.

Anonymous said...

I live in a modern well insulated house in Germany,140square meters(moved out the UK years ago).At the moment we pay €140 a month for gas and electricity so with the recent price increases by EWE I´ll expect to pay roughly €170 a month.Thats 135 quid a month times 12=1620 of her majesties bits of paper in a royal year.Costs us €250 to run the car a month (barring long journeys)
Thank fuck I´m not in debt.

Yep these price hikes are all part of the grandchess board plan.My insight goggles tell me that evil is afoot.The pawns are getting ready to be sacrificed.

Anonymous said...

Yes, the speed of events is strange. It feels as if it's all been contrived. How could mortgages in the USA been given to people on such a scale when it would have been obvious with the downturn in manufacturing that these people would have difficulty making payments. Why here is the government so desperate about extending the detention period for which there is no proof that it is actually needed. But such an extended period would help contain the dissatisfied masses when they start to riot. Or is this measure being put in place in the anticipation of a major war? Often the semblance of stupidity/incompetence/disorganisation (Lord King) is used as the veneer concealing much darker deeds. (Customs & Excise)

Anonymous said...

German Gas and Electricity update.

I just averaged out our usage of Gas and Electricity over the last 5 years.
At current prices we will pay €1850 per year for Gas and Electricity,,fuckin amazing in a decade (assuming no further price increases(not fuckin likely))we will pay nearly €20,000 for our energy.

That´s it Im buying a windturbine.

(C) Very Seriously Disorganised Criminals 2002/3/4/5/6/7/8/9 - copy anything you wish