The darkest hour is just before dawn.
By Daniel at 26 December, 2009, 3:36 am
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The concensus seems to be that all is gloom and doom. The pound is lost, the economy is finished, the debt impossible.
Or is it? O ye of little faith!
The darkest hour is just before dawn.
The Bank of England will do the trick and manage the situation. It has done a brilliant job of stabilising the mess created by the Labour government. It has bought time until the banking crisis has settled. All credit to Mervyn King and his colleagues.
Gordon Brown’s big lie is that he gave the BoE independence, but he took away its ability to regulate the banks, which neutered it and allowed banks to throw caution to the wind under pressure from the US, and indulge in the worst excesses of debt ever seen in Britain.
The role of the BoE should be extended to managing the public finances, as an accountant would regulate a companies accounts (as in, we can’t afford this).
This is a contrarian opinion to the current gloomy consensus. Some might call these opinions propaganda.
The Bank of England has the ability to see the British economy through, and it is not propaganda to say that!
It is individuals and companies that took on excessive debt and inflated asset prices that caused this problem, not the BoE. Now banks have taken away the punch bowl, after the party is over. Now, the foolish virgins will have to live within their means and pay the consequences; government, households and companies.
The newly elected socialist Pasok party Greek government has grasped the nettle (23 Dec), and cut government expenditure. Now it is time for Britain in 2010 to do the same. A regime change, and a government commited to balancing the books are required.
Raise your glasses to Mervyn King and the Bank of England this Christmas and New Year.
There are reasons to be cheerful!
Happy Christmas and New Year.
- Chelyabinsk
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