Tag Archives: MPC

Double Agent Kim Philby had the distinction of being tasked by MI6 to catch himself.

 

The Governor of the Bank of England, Mervyn King  appears to have managed the same trick.

His Quantitative Easing programme has created too much cash in the markets. That cash has been used by the speculators to zero-in on commodities.

Consequently, commodities have risen in price to ridiculous levels.

Governments appear to believe that it is mostly demand which is fuelling the commodity price rises – it is not – it is rampant speculation by City screen monkeys.

The rise in commodity prices has fuelled inflation which Mervyn King and his Monetary Policy Committee are supposed to control through the increasingly blunt and redundant instrument of the Bank Base Rate.

Create inflation and then be paid to control it. Nice work – if you can get it.

(Meanwhile in the USA, Ben Bernanke and the Federal Reserve continue the economic equivalent of pouring more petrol on a rapidly dying fire)