Mervyn King is still in his job - but no Mr NICE guy this time

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 just over 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."

Yesterday a year later he was full of doom and gloom in a short speech which failed to mention the total failure of the much vaunted triumvirate of the BOE/FSA and the Treasury to forecast anything ... the exposure of the bankers Balance sheets - more foctional than a Booker Prize winner, the fall of the House of Applegarth, the massive rise in commodity prices, food prices ...


"What we have seen in the past year or so is the culmination of a very large rise in energy and commodity prices..."

"Attention is now turning away from liquidity ... questions of funding and viability of an institution's business plan. For some institutions, that means they are over the worst and for other perhaps not. But I think we have certainly moved some long way down the road." WTF ?

He left it to his Deputy Governor Charles Bean to really piss on everyone's parade ...

"It is plausible to expect the underlying rate of growth of potential to be somewhat lower over the next few years and we have in fact made that assumption in the projections we have published today."

These wankers couldn't tell you when the next bus is due, even if you provided them with a timetable.

They don't even atempt to explain why they got it so wrong last year. This was their May 2007 projection for CPI.



Their core projection for CPI was over 100% wrong !