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On Mervyn King's Apology That Central Banks Are Destroying The Middle Class' Standard Of Living

Tyler Durden's picture




 

Recently, BOE head Mervyn King came out with a very surprising warning to his compatriots, accompanied with an apology that our own Ben Bernanke will never offer, namely: "I sympathise completely with savers and those who behaved prudently
now find themselves among the biggest losers from this crisis.
" Of course, the US central bank believes it has completed its third mandate job now that the US stock market, not to mention commodities, are starting to be reminiscent of the parabolic phase of the Harare stock market. But back in Europe, even as the EURUSD is surging (killing the dollar, and the primary driver behind US stocks) now that it is accepted that the continent will proceed with its latest full on ponzi scheme and have the EFSF acquire insolvent bonds, even as the ECB proceeds to raise rates, things are getting worse. This is precisely what King warned about in a speech that not surprisingly got absolutely no coverage in the US. Luckily, here is Simon Black's take on the very surprising speech by King which confirmed that the only beneficiaries of Bernanke's policies continue to be the top 1% that make up the financial oligarchy.... as always.

A stern warning from a central banker, by Sovereign Man

Mervyn King is Britain’s chief central banker and a key figure in the
global financial system. Last week, after surprising reports surfaced
that the British economy had once again contracted in the 4th quarter of
last year, King delivered a stern, sobering message to his country:

- “In 2011, real wages are likely to be no higher than they were in
2005… One has to go back to the 1920s to find a time when real wages
fell over a period of six years.”

- “The Bank of England cannot prevent the squeeze on real take-home
pay that so many families are now beginning to realise is the legacy of
the banking crisis and the need to rebalance our economy.”

- “The squeeze on living standards is the inevitable price to pay for
the financial crisis and subsequent rebalancing of the world and UK
economies.”

- Furthermore, inflation may rise “to somewhere between four per cent and five per cent over the next few months.”

- “The idea that the MPC could have preserved living standards, by
preventing the rise in inflation without also pushing down earnings
growth further, is wishful thinking.”

- “[U]npleasant though it is, the Monetary Policy Committee neither
can, nor should try to, prevent the squeeze in living standards, half of
which is coming in the form of higher prices and half in earnings
rising at a rate lower than normal.”

- “I sympathise completely with savers and those who behaved
prudently now find themselves among the biggest losers from this
crisis.”

To summarize, one of the world’s leading central bankers has looked
his country in the eye and admitted that he is completely powerless to
prevent the inevitable decline in living standards that will result from
years of reckless behavior.

It’s amazing that someone in his position would be so terse, so
direct in his appraisal of the situation; by nature of their positions,
central bankers are serial liars who must continually deceive the public
in order to set expectations and carry out their agenda.

King’s statement may be a sign that England is finally on its last
leg. Fiscally, the country is in a similar situation as the US and
Europe– in debt up to its eyeballs, hemorrhaging cash, and quickly
losing the confidence of the international community.

Unlike Europe, the US, and even Japan to a degree, England lacks
reserve currency status in any measure that matters… so without a line
of foreigners to buy its debt regardless of the fundamentals, the UK has
been forced into its day of reckoning before the others.

Meanwhile, Europe and the US continue to spin unjustified confidence;
Angela Merkel and Nicolas Sarkozy have pinkie-sworn that they will not
let the euro fail, and Barack Obama’s State of the Union address
provided a temporary ‘feel-good’ blip that the government is going to
fix everything.

People should not be fooled, however, into thinking that the US,
Europe, Japan (and those nations which depend heavily upon them) will
fare any better than England.

Because of its place in the global pecking order, England has less
control over its financial destiny and has had to face the music first,
but it will not be the only member of the Western hierarchy to fall.

Europe is in a desperate situation to continue bailing out bankrupt
members of the eurozone even though the price tag will soon become
larger than the monetary union can possibly bear, all while stimulus
pressures and strained pension programs create challenges even for the
‘healthy’ euro nations.

Meanwhile in the US, the government plans to continue running
trillion dollar deficits for the next several years with no end in sight
to runaway spending, not even considering the upcoming carnage that
will occur when cities and states start to go bust, or social security
runs out of money.

Japan is probably in the worst shape of all, simultaneously suffering
both a fiscal and demographic crisis. Japan’s debt, well over 100% of
its GDP, has already been downgraded by the rating agency monkeys, and
its population is slowly disappearing due to low birth rates and
inhospitable immigration policy.

The best case that these countries can hope for is to suffer the same
fate as England: a significant reduction in standard of living.

There is an opportunity now, however, for everyone to assess their
basic vulnerabilities and take steps to mitigate what may lie ahead.
This may include seeking work overseas, expanding a business to broader
services in new markets, moving assets to safer jurisdictions, reducing
system dependency, etc.

 

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Tue, 02/01/2011 - 14:05 | 924322 HUGE_Gamma
HUGE_Gamma's picture

umm weekly Obama bucks for beer

Tue, 02/01/2011 - 14:05 | 924323 I think I need ...
I think I need to buy a gun's picture

of course u won't hear it in the US the "Fast money guys" just told me to short gold.

 

The Dow keeps going up everyday the dollar is weaker. Maybe we can see dow 50000 and the dollar index negative 200.

 

the system is broken lets get a new one.

Tue, 02/01/2011 - 14:09 | 924340 thepigman
thepigman's picture

In the US, Bernanke and the banksters

just lie about it.

Tue, 02/01/2011 - 14:12 | 924355 thepigman
thepigman's picture

Look at our fraud market going straight

up every day.

Tue, 02/01/2011 - 14:14 | 924366 thepigman
thepigman's picture

Obviously, no real people are involved.

Just banksters and hedge funds along

for the ride.

Tue, 02/01/2011 - 14:28 | 924415 redpill
redpill's picture

Up 150 points as the Middle East melts down. Can't make this stuff up.

Tue, 02/01/2011 - 14:38 | 924449 thepigman
thepigman's picture

You'd think they'd be smart enough

to make it a less obvious fraud.

Tue, 02/01/2011 - 14:45 | 924480 redpill
redpill's picture

Bernanke, Bold As Love

Tue, 02/01/2011 - 14:50 | 924506 Bastiat
Bastiat's picture

Yeah and a limp dick attempt at an after hours pullback in metals.  Rumbling on the launch pad.

Tue, 02/01/2011 - 14:58 | 924537 Sudden Debt
Sudden Debt's picture

Looks like you got yourself here a real conversation going he?

 

Tue, 02/01/2011 - 16:21 | 924902 Dr. Sandi
Dr. Sandi's picture

Crap. I invested the family fortune in fraud because it was doing so well. It had almost more than tripled when we decided to cash in.

Unfortunately, we haven't seen the check yet, and the guy that sold it to us is on Vacation.

Since Thanksgiving.

Tue, 02/01/2011 - 14:49 | 924448 Devout Republican
Devout Republican's picture

Hi

Tue, 02/01/2011 - 15:03 | 924475 Devout Republican
Devout Republican's picture

Getting long here on USD/MXN on the retest of the lows.  Between the commodity (food) squeeze and Export Land Model cross, our southern neighbor may look like Egypt in a short time.

G'luck and bye y'all

ETA: Long @ 11.9948

Tue, 02/01/2011 - 16:30 | 924938 ConfusedIdiot
ConfusedIdiot's picture

DR, please elaborate on the Xport Land Model cross. I too am long the dollar on this break below 12.00. My only argument for this was watching the Mexico Bolsa and Mex corporate  uptick directly in consequence of the US stimulus programs buying Mex. This stim effect is over and therefor I am in the dollar over the MXN. Any insight would be appreciated.

CI

Tue, 02/01/2011 - 18:47 | 925505 Devout Republican
Devout Republican's picture

Thank you for asking.  Look at http://www.theoildrum.com/node/7425 also google Chris Martinson's crash course.  There is a vid describing the ELM in detail. 

I feel pretty confident about this trade in particular because if I'm wrong then the USD would be worthless and billions of people around the will be starving and rioting.

I don't think "the powers that be" will let it get to that.  (If they value their heads)

Of course your species has run itself out of cheap energy.  So the inevitable may be happening as I type, in which case its all moot but potatoes, beans and water.

I am not devout nor a republicon.

Tue, 02/01/2011 - 14:31 | 924420 Captain Kink
Captain Kink's picture

it's the 1st of the month! The market must make it's prescribed move!  all is well! (sarc)

Tue, 02/01/2011 - 14:26 | 924339 Mr Lennon Hendrix
Mr Lennon Hendrix's picture
Platinum takes Off

Platinum had been still above $1800 like a spider on prey.  Something may have just tripped the wire, and that something is time.  The other levels were set and the trap sprung.  Platinum will lead out ahead of gold, silver, oil, ahead of the dollar and all fiat for the last lap of the race to the bottom.

Platinum's production plateaued in '09.  That is a long time when demand continues to surge.  It is not used as bullion as much as it is an industrial.  It is hard to mine, it only grows with sister metals, and is more rare than silver.  Platinum, like silver and gold, is indestructible and lasts for basically ever.  It too is the perfect wealth preserver.

How many races until the masses catch on and the average Joe owns precious metal?  Well, the time may have dawned on the silver market.  Demand for silver is higher than ever.  Gold is the popular one when it comes to using it as monie, but platinum may have its time next.

PS, WTI is about to pop one dollar...

Tue, 02/01/2011 - 14:51 | 924512 Flakmeister
Flakmeister's picture

Good Day Mr. Hendrix...

  My favorite factoid about Pt, is that annual world production is approximately a 6 ft cube.

  I agree that Pd and Pt are under appreciated, to this end I have been accumalating a number of PGM miners and explorers. So far, so good.

 

Tue, 02/01/2011 - 14:56 | 924530 Dr. No
Dr. No's picture

FYI, Pt is used by the medical device industry since it is one of the few biocomaptible metals.  I do not know the volume of use, but it consumption, not recycled.

Tue, 02/01/2011 - 16:28 | 924933 DosZap
DosZap's picture

Flak,

(I may be off here), but I believe that Platinum is 82x's more rare than Gold.

Tue, 02/01/2011 - 19:31 | 925646 Flakmeister
Flakmeister's picture

  Production ratio is about 82.... Pt is as rare as gold but mineable ores are extremely rare

http://en.wikipedia.org/wiki/Abundance_of_elements_in_Earth%27s_crust

SWC is the best way to play the PGM complex. A wonderful unique deposit in the good ol' USA

 

Tue, 02/01/2011 - 16:32 | 924944 trav7777
trav7777's picture

all platinum ever is like a 20' cube.

a 6" cube of this shit weighs like 165lbs.  I wear a Noble around my neck as a tribute to this metal. 

Only denser shit out there are iridium and osmium.

Pt rightly should be priced probably 5-10x POG, but the Russians have been selling stockpiles into the market.  I think that Pd being less than gold is a true mispricing.  If you click a few links you see that Pd and Pt have roughly equivalent production stats and given their similar industrial usage profile, I can't find much of a reason for the pricing mismatches.  Either Gold is overpriced or Pt and especially Pd are underpriced.

Tue, 02/01/2011 - 16:29 | 924935 trav7777
trav7777's picture

Pt goes apeshit when Russia works through its stockpiles that it has been selling.

There are like 2 significant sources of Pt in the world, Bushveld and some Russian production at Norilsk.  <6Mtoz annually, a fraction of gold.  Pd has similar production stats, IIRC; dunno why it's so undervalued vis a vis.

Here's a random google link on annual production of PGMs thru 08

http://www.indexmundi.com/en/commodities/minerals/platinum-group_metals/platinum-group_metals_t5.html

Tue, 02/01/2011 - 14:09 | 924344 mule65
mule65's picture

1-Star

Tue, 02/01/2011 - 14:10 | 924345 whatz that smell
whatz that smell's picture

pinkie-swear, bitchez!

Tue, 02/01/2011 - 14:43 | 924477 PeterSchump
PeterSchump's picture

The best evidence that al-Qaeda is paid for by the banksters is the lack of banksters eliminated on 9/11.  This is but a diversion.

Tue, 02/01/2011 - 14:12 | 924356 redpill
redpill's picture

I don't think people want his sympathy so much as his head on a pike. While Egypt is trying to come out of the middle ages politically, maybe it's time for the West to take a brief vacation back in time.

Tue, 02/01/2011 - 14:32 | 924422 downrodeo
downrodeo's picture

+1 , exactly right. This is probably why he is trying to create the sense of some sort of understanding or solidarity between himself and the masses. He likes his head where it is. "I sympathise completely..." with that.

Tue, 02/01/2011 - 14:41 | 924463 redpill
redpill's picture

And right before the end it will be the worst. As the curtain falls on the current crowd of central bankers, they'll give some last desperate wads of cash to their cronies in hopes they can steal every last penny from the populace as they can before finally being dragged away from the printing machine. Unfortunately for this SOB and fortunately for the UK citizenry, the British printing machine has a lot less ink than those at the Fed and ECB.

Tue, 02/01/2011 - 14:38 | 924452 cossack55
cossack55's picture

Brief vacation, my ass.  The question is:

Should the blade be made of gold/platinum/silver or should the blade be counterweighted by bags of FRNs, thus making it quicker to reset for the next banksta scum?

Tue, 02/01/2011 - 14:13 | 924361 dick cheneys ghost
dick cheneys ghost's picture

the chairman has no clothes.

 

all eyes on pakistan

Tue, 02/01/2011 - 14:13 | 924362 Jason T
Jason T's picture

OT: 1st of the month.. I just remembered.  That's why stocks are soaring.

Tue, 02/01/2011 - 14:13 | 924365 Commander Cody
Commander Cody's picture

Just keep borrowing til you can't, live large for the moment, and default when it suits you.  That's the new normal.  Isn't it?  The responsible people will pay, and ain't that a bitch, eh Mervyn, bankster scum.

Tue, 02/01/2011 - 14:15 | 924373 Henry Chinaski
Henry Chinaski's picture

mea culpa, bitchez!

Tue, 02/01/2011 - 14:16 | 924375 AccreditedEYE
AccreditedEYE's picture

Gotta applaud the man for speaking the truth.. Take heart Mr. King. What the Keynesian fools have yet to realize is First In / First Out. Hope you can become an example of good behavior in a world full of mediocrity. (and that's being generous)

Tue, 02/01/2011 - 14:20 | 924393 redpill
redpill's picture

It's not admirable to capitulate when you're already beaten. If he had said this 2 1/2 years ago it would have been worthy of applause. Now it's just pleading guilty.

Tue, 02/01/2011 - 14:27 | 924410 AccreditedEYE
AccreditedEYE's picture

What is admirable is standing against the Bernanke mandate when so many others bow down to it. (I've got news redpill, EVERYBODY is beaten, they just haven't woken up to that fact yet)For once, speaking the truth and trusting that people can take it rather than simply try to spin. That's admirable.

Tue, 02/01/2011 - 14:43 | 924428 redpill
redpill's picture

I think you're missing the point. He's not standing up to the Bernanke mandate, he's been following it. The only difference is he is running out of track, and sees that the end is finally coming for the UK.  He's not "admirably" speaking the truth, he's trying to save his own ass and pretend he is not completely culpable for what will be happening.  In the scheme of things, it's probably better for the Brits that they are forced to face reality sooner than the US and the rest of Europe, since the longer the charade continues the more painful the withdrawal will be. We're not so lucky in the US, we still have some time to go before our financial bender finally comes to a sobering end. For those of us who know it will, it's a sickening thing to watch, like seeing an alcoholic slam cheap vodka out of a plastic jug before being dragged away to rehab.

The closer to the end we get, the grosser it becomes, until it's "just one drink left, make it counnttt!" and we have to pray it doesn't finally kill us.

Tue, 02/01/2011 - 14:43 | 924479 AccreditedEYE
AccreditedEYE's picture

Red, I'm not condoning the man's/UK's past monetary behavior. Yes, he has been following right along. But at last, finally, someone speaks truth. That's all I'm admiring.

The sooner nations stop playing games and address their issues (either by choice or by force) the sooner we can get the multi-year process of moving forward again. There is a lot of pain ahead and admitting the truth and accepting it for what it is will move us through it all that much faster.

Tue, 02/01/2011 - 14:50 | 924491 redpill
redpill's picture

It's no more admirable than Jeffry Dahmer apologizing that he prefers the taste of human flesh from his jail cell in hopes of getting out of prison early.

Tue, 02/01/2011 - 15:49 | 924768 mirac
mirac's picture

You nailed it...psychopaths never admit guilt.  It is always someone elses mistake.  Any comment of sympathy for the middle class came from a script writer.  Don't imagine he'll take a 25% cut in wages to help out his fellow Brit or cutail his wonderful governemnt pension...nope

Tue, 02/01/2011 - 14:16 | 924377 UglyPatheticPauper
UglyPatheticPauper's picture

Remarkable!!  Looks like someone found their conscience.

Tue, 02/01/2011 - 14:27 | 924408 bunkermeatheadp...
bunkermeatheadprogeny's picture

Just a clip, we didn't see the whole speech. Perhaps it was a prelude to the need that commoners need to just chin up.

Tue, 02/01/2011 - 14:39 | 924453 The Limerick King
The Limerick King's picture

Not all Central Bankers are liars

First lighting then putting out fires

But for those unlike Merv

Klepto lies they still serve

May their gonads meet dull locking pliers. 

 

Tue, 02/01/2011 - 14:45 | 924485 Sophist Economicus
Sophist Economicus's picture

Ouch!

Tue, 02/01/2011 - 14:18 | 924385 Wynn
Wynn's picture

In some previous incarnation Mervyn must have worked the rack in the tower of London, calmly telling the victim to grin and bear it, as he tightened the ropes.

Tue, 02/01/2011 - 14:19 | 924388 thepigman
thepigman's picture

Contrast this with the US where the

bankers and the street are hell bent on

stealing anything you have left.

Tue, 02/01/2011 - 14:20 | 924390 Cdad
Cdad's picture

It’s amazing that someone in his position would be so terse, so direct in his appraisal of the situation

Not if you knew an Englishman...one over the age or forty.  It is not surprising at all. 

As for a comparable American...I'm afraid they are all but dead.  They die each day with the WWII generation...leaving us with what we call the Baby Boomers...who are the originators of arbitraging everything around them to death.  Never has the world known as more selfish generation of folk than these.

You can still catch a whiff of old America in some of the gen X crowd, those that grew up humble enough to know that their education system had let them down.  However, even most of that crowd is clueless now and searching for the white Iphone 4.

Just bring on the zombie apocalypse already, please.  Or the fire hoses, please.  Anything but the status quo during the biggest financial crime in the history of the world.  Anything but the 100% sure Ben Bernanke.

Tue, 02/01/2011 - 14:27 | 924409 thepigman
thepigman's picture

The coup de grace is lying

about the economy and sucking them

into this market.

Tue, 02/01/2011 - 14:47 | 924496 Cdad
Cdad's picture

LOL Pigman...you gonna out lie an American baby boomer?  I think not...depending on what your definition of the word "not" is.  A baby boomer can destroy the entire nation's economics for the paltry sum of $1,000 per month and claim he was owed it.  A baby boomer could eat his own children and tell everyone he was trying to save the Earth.  A baby boomer can order up Oxycontin from a doctor for a hang nail [on a $10 co pay] and later bitch about how bad the health care system is. 

I could go on...but why.  Their legacy is all around us now for all to see, vanity over truth, beauty over substance, humanism over faith, fiat over sound money, crony capitalism over free markets, tort over tort reform...and on and on and on... 

 

 

Tue, 02/01/2011 - 15:09 | 924583 TruthInSunshine
TruthInSunshine's picture

Cdad, you are to logic & reason what Hairy Wang is to illogic & insanity (and urinal cakes).

You are both ambassadors in your own right.

 

Tue, 02/01/2011 - 15:46 | 924718 Cdad
Cdad's picture

Truth,

Thanks...I think...although I don't much like being mentioned in the same sentence as the Wang...or urinal cakes...so....

I like to think I am the colorful ambassador for undiluted truth.  The thing about lies and deceit...those things are heavy to carry.  Anyway, there is no longer time to lie about the US dollar.  It is being intentionally devalued strictly for the purposes of bankers and politicians.  That is the undiluted truth [sans the usual comedy routine...'cause I am pissed off today].

Anyone, X'er or Boomer, who does not understand this fact...or does nothing try thwart those on this genocidal path [as Tyler puts it] should get acquainted with the top 100 things one needs to know to survive the zombie apocalypse.  For as soon as that white Iphone 4 comes out, and the lines form, that is going to be the tell...that, and baby boomers moving on to eating grandchildren, too.

Tue, 02/01/2011 - 16:14 | 924870 TruthInSunshine
TruthInSunshine's picture

I believe that you're correct about the generational thing, and I'm an Xer.

There is NO doubt in my mind that as every bubble I've seen in my lifetime before it, this new, fantastic, and absolutely frightening fiat bubble built on a foundation of entitlement (literal and figurative), will come crashing down with energy and speed that will eclipse that of its ascent.

You and Cognitive Dissonance are two of my favorite commentators, but that's probably due to 'confirmation bias,' as you two speak to my thoughts so often.

Tue, 02/01/2011 - 16:27 | 924928 Cdad
Cdad's picture

Truth,

Here here to bubbles and burstings [although this Fed induced bubble is the worst one I have ever seen]. 

On confirmation bias and who says what in here, right back at you.  We ought keep an eye on each other.  We should probably fight. 

So get some damn therapy, brother Truth, and quit blaming everything on your mother...you Gen X scum bag!

cdad

Tue, 02/01/2011 - 16:37 | 924962 trav7777
trav7777's picture

Boomers trying to eat grandchildren are going to have to go through the Xers they made into latchkey kids of broken homes to get to them.

Tue, 02/01/2011 - 17:09 | 925105 Cdad
Cdad's picture

LOL!  How true.

Just subcontract out parenting...so that both parents could work 60 hours a week to buy more Chinese made crap...so they could feel successful...while also making divorce popular.  Sweet!

[No, Bastiat, my parents are not divorced.]

Tue, 02/01/2011 - 15:20 | 924628 Big Corked Boots
Big Corked Boots's picture

cdad: +1 from a gen X who gets it.

Tue, 02/01/2011 - 15:48 | 924763 Cdad
Cdad's picture

Roger roger. The tapestry is tall and wide...so I'm not at all sure what any actual argument would be about...but one will come anyway, I expect.  Chime in when you hear it.

Tue, 02/01/2011 - 15:22 | 924642 MachoMan
MachoMan's picture

We already had tort reform...  it didn't do anything...  medical professionals are still milking the shit out of insurance.

Tue, 02/01/2011 - 16:35 | 924950 ConfusedIdiot
ConfusedIdiot's picture

CD, please do not hold back. Tell us how you really feel about the boomers.

CI

Tue, 02/01/2011 - 14:35 | 924435 Creepy Lurker
Creepy Lurker's picture

+++++++

 

Spoken like you just escaped from my head. I despise the Boomers.

Tue, 02/01/2011 - 14:53 | 924521 Cdad
Cdad's picture

I hear ya, creepy lurker.  Although I gots to say that picture is, well, creepy.

Those boomers could have had it all...and decided to go ahead and have it all.  And it is clearly in their planning to consume and shat out ALL before they die.  As for dying, they have no plans for that as they force the nation to bankrupt itself on new drugs and therapies designed extend their lives forever while, as previously mentioned, bitching about how bad the health care system is. 

And folks wonder why healthcare is so expensive.  None of them ever seem to make the connection to the boomers.  Think of the most hypocondriacle person you know...Boomer?  I thought so.

 

Tue, 02/01/2011 - 15:01 | 924546 Bastiat
Bastiat's picture

Hey moron: we paid into SS all our lives to support those things for our parents.  Very few boomers have gotten or will get much of it back.  Do you lump together those who whose lives were destroyed by Vietnam and those who put their lives on the line to stop it?  Those who put their lives on the line for civil rights?  Do you have all people born between certain dates in the US without regard to race or religion.  Just checking. 

Are your parents boomers?  Have you considered therapy?

Tue, 02/01/2011 - 15:40 | 924671 Cdad
Cdad's picture

Hey Bastiat:  about the whole SS thing...sorry you were the last chump to pay in who actually thought he would get something back.  It has been a tool of the redistribution crowd since its inception, and us Gen Xers understood long ago that the program would not be there for us. 

About soilders, I have their back no matter what generation we are talking about...including you if it is the case.

As for civil rights, a few walked that path for all the right reasons, and they are remembered well by history.  Unfortunately, in my lifetime, that cause was corrupted by progressives...and I'm sorry if you are learning that just now.  Good luck with your epiphany.  Did you vote for Obama?

As for my parents, they were quite modest in their means, but they too fell for the state, spending everything they could get their hands on and not worrying about...NOW.  But I don't need therapy, nor is the nature of this conversation personal [as you have clearly taken it] but instead much wider in its application, questioning  what is left of America in the passing of the Boomer generation...but go ahead and get all pissed off it you like.  My guess is you will prove my point by time you are done calling out names.

Tue, 02/01/2011 - 21:18 | 925910 BigJim
BigJim's picture

OK. So please point to the blameless generation. The doughboys who signed up to the WWI slaughter, and who voted in the twats who created the breeding grounds for the Nazis, and ushered in the Federal Reserve? Or maybe Lincoln's generation, who happily smashed the printing presses and jailed dissidents without trial and eagerly joined the slaughter of the 'civil' war? Or how about the guys who signed up to invading the Philippines, and then massacring the inevitable indigenous resistance?

Or the previous generations that cheerfully swallowed the idea it was ok to grab millions of people from the coast of Africa, transport them thousands of miles on a journey a large percentage of them would not survive, and then work them to death in sugar plantations throughout the carribean?

Or eagerly slaughtered the native Americans? Or the Iraqis, or Afghans?

Please, please, let us know who this blameless generation is, so we can fall to our knees in genuflection.

Tue, 02/01/2011 - 16:41 | 924982 trav7777
trav7777's picture

Fuck civil rights...how in the hell could you put that one up on the shelf as a trophy?

Giving the thug class "rights" was one of the worst moves of the last century.  I mean, how much more "diversity" do we need before we completely destroy ourselves?

Tue, 02/01/2011 - 20:30 | 925684 Mark McGoldrick
Mark McGoldrick's picture

You should strap your ass on a one-way rocket to another planet. 

I never realized how much redneck DNA you have in your blood - what a shame because I used to value your contributions.  I suppose it's really true:  you can take a person out of the trailer park, but you can never take the trailer park out of a person.  

Who inflicts more damage onto this country:  the poor and down trodden with little or no opportunity, or Ivy-league educated Wall Street bankers who turn your labor into casino chips? Who created fractional reserve banking, the minorities?  Who controls the Fed, hispanics?  Who controls Wall Street, negroes in Compton sipping Gin and juice from their front porch?

You're a 50/50 mutt of intellectual elite and redneck garbage.  Take your white cone-shaped hat and shove it up your ass.  

Tue, 02/01/2011 - 14:57 | 924533 Bastiat
Bastiat's picture

Spoken like you just escaped from my head

Seems like a good thing to escape from.

I despise the Boomers

Are your parents boomers?

Tue, 02/01/2011 - 15:03 | 924557 aerojet
aerojet's picture

Oh, go fuck the corpses of your world war two generation, assface!

Tue, 02/01/2011 - 15:12 | 924397 THE DORK OF CORK
THE DORK OF CORK's picture

Ireland will soon be embraced by the BOE - given that the ECB was a frigid cold hearted bitch , the old wife beater that is John Bull may be all that we have left.

Hibernia oh Hibernia what have you done.

en.wikipedia.org/wiki/File:Germany_GB_France.gif

Insert Ireland for France- she is not as classy as France but she gives a good ride.

 

Tue, 02/01/2011 - 14:22 | 924399 hedgeless_horseman
hedgeless_horseman's picture

Nominal returns, bitches!!!!

Tue, 02/01/2011 - 14:22 | 924400 doomandbloom
doomandbloom's picture

there is no way a middle class person can revolt...there is too much to lose.The middle class will often end up blaming themselves for this mess...

isnt it sad?...NO.... only a fool would actually believe that this system works. Only a fool would believe in the American dream. Because nature does not work that way. 

The Top tier and Bottom tier always knew this and they had fun at the expense of the middle tier. So if tomorrow natural selection does happen, guess who will survive...

Tue, 02/01/2011 - 14:27 | 924402 topcallingtroll
topcallingtroll's picture

King is telling the truth. The fall in living standards from past excesses is inevitable. The only question is the easiest way to get.to the new equilibrium with as few casualties as possible. Third world casualties dont count to people.in developed.countries on general, but no one can voice that reality except on the hedge. I hate that naive savers and fixed annuity owners and most whole life policy owners are going.to take more than their fair share of punishment, but tight money and high interest rates right now would turn us into an economic wasteland.

Tue, 02/01/2011 - 14:33 | 924427 thepigman
thepigman's picture

Bring it on. Better than being limp-dicked

Japan for the next 10 years which is

our current course.

Tue, 02/01/2011 - 14:25 | 924403 the rookie cynic
the rookie cynic's picture

Mervyn is a pansy. Our Ben can stop inflation in 15 minutes.

Tue, 02/01/2011 - 14:26 | 924405 Diogenes
Diogenes's picture

Does anyone remember "take a bath year"? In the seventies Go-Go companies would use every trick in the book to make their profits go up year after year, on paper if not in fact. This was to drive up the stock price at a time when everyone was chasing "performance" and "growth stocks".

When the Ponzi tricks could not be sustained another year they would suddenly tell the truth, write everything down to its true value or lower, in fact throw in every piece of bad news they could find. That year the stock would bomb and the year after that the games would start fresh with a clean slate.

Maybe this is England's political take a bath year.

Tue, 02/01/2011 - 14:28 | 924411 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

Mervyn King is on the face of it just like The Bernank,a very nice chap,but also a charlatan and a liar.

He along with the employees of the BofE pension fund moved their pension assets to index linked bonds just prior to the withdrawal of these very same assets to the general public.As if this was not bad enough,he then gets a massive questionable boost to his pension for no apparent reason other than to protect him from the very inflationary effects he has caused. 

Oh,and did I mention,he is also a Villa fan?

http://order-order.com/2009/03/31/bank-of-england-pension-fund-surges-betting-on-inflation/

http://www.telegraph.co.uk/finance/comment/damianreece/8294404/Why-has-the-Bank-of-England-boosted-Mervyn-Kings-pension.html

Tue, 02/01/2011 - 14:32 | 924423 buzzsaw99
buzzsaw99's picture

Finally, a banker with a heart. lulz

Tue, 02/01/2011 - 14:36 | 924442 Zero Govt
Zero Govt's picture

note the double-thick lensed glasses, even with them he can't see anything coming

Tue, 02/01/2011 - 14:41 | 924466 buzzsaw99
buzzsaw99's picture

swervin' mervyn has nice soft hands, like a lady's hands. I wonder if he has a sister? Never mind that, squeal like a pig mervyn!

Tue, 02/01/2011 - 15:18 | 924586 Zero Govt
Zero Govt's picture

"soft hands"... butter fingers more like, this establishment crone couldn't catch a cold!

Tue, 02/01/2011 - 15:20 | 924430 Zero Govt
Zero Govt's picture

a 100% record for failure, including as Regulator not having a clue a £1.4bn bank, RBS-NatWest, was 24 hours from being out of cash and totally insolvent.... sharp as a tack, what a professional!

SHUT THE BOE DOWN

Tue, 02/01/2011 - 14:36 | 924440 Futurist
Futurist's picture

It quite easy to apologise when you have been in receipt of a wad of cash: "The Bank of England topped up Governor Mervyn King's pension pot by £1.4m after deciding to award him an early payout in 2008."

http://www.telegraph.co.uk/finance/personalfinance/pensions/8294253/Bank-of-England-boosts-Mervyn-Kings-pension-by-1.4m.html

And the reason for the 'bonus' nobody knows...

"The Bank could offer no explanation as to why the Court of the Bank decided to bring the Governor to full pension accrual before starting a second term, though it may have been for administrative purposes."

Tue, 02/01/2011 - 14:39 | 924455 Rue
Rue's picture

Nice video for people new to Mervyn and the governments policy of destroying the middle class in the UK:

 

http://www.youtube.com/watch?v=djtnj7oTVwU

Tue, 02/01/2011 - 14:40 | 924459 Racer
Racer's picture

Yes the sheeple pay and the banksters do not have to suffer at all, in fact they get even more money but the rest have to pay for years and years and years

Tue, 02/01/2011 - 14:46 | 924464 Rue
Rue's picture

double post :(

Tue, 02/01/2011 - 14:44 | 924465 gwar5
gwar5's picture

FLASH: Mubarak says he'll step down at next election. Unknown at this time if that will go over with the mobs.

Tue, 02/01/2011 - 14:44 | 924470 Rue
Rue's picture
double post.
Tue, 02/01/2011 - 14:42 | 924474 gwar5
gwar5's picture

Reported Today: Wall Street execs afraid of "Al-Qaeda" attacks.  Bullshit.

Exclusive: Wall Street Execs On New Terror Threat Info | NBC New York

They're looking over their shoulders because of all the little people's lives they're destroying. They're afraid of the consequences of being the destroyers of civilizations and economic rapists. Now they'll no doubt get special protection at taxpayer expense.

Tue, 02/01/2011 - 14:46 | 924489 buzzsaw99
buzzsaw99's picture

spare no expense. we must keep our alien lizard overlords safe.

Tue, 02/01/2011 - 14:55 | 924525 AccreditedEYE
AccreditedEYE's picture

We could save so much time and energy if we just let them in to do the job... LMAO. Do they need directions to 85 Broad?

Tue, 02/01/2011 - 15:10 | 924594 buzzsaw99
buzzsaw99's picture

If they lopped off their hands they would just grow back. lulz

Tue, 02/01/2011 - 15:22 | 924627 AccreditedEYE
AccreditedEYE's picture

Hands? Buzzy, I'm thinking WAY more sinister than hands. :)  Hey, nothing less than they deserve... they felt no remorse at blowing up millions of lives, why should we?

We live in hope.. but it won't happen. The Squid prolly owns the CIA. lol 

Tue, 02/01/2011 - 15:25 | 924659 Zero Govt
Zero Govt's picture

"remorse"... yea Barclays Chief Bob Diamond said "the time for remorse is over" but he never had any to start with!

Tue, 02/01/2011 - 16:51 | 925044 trav7777
trav7777's picture

this is the most repugnant shit I've read, I must admit, in a long while.

And know what, given the freakin ethnic monolithicity of the banker class, this whole muslim terrist al qaida threat shit will drive them in to a harmonically reinforcing frenzy.

We simply MUST PROTECT our leechfuck dual passport class from the terrists...put Secret Service around them 24/7/52 on our dime!

Tue, 02/01/2011 - 17:05 | 925092 TruthInSunshine
TruthInSunshine's picture

When I first read that, I though it was written as "Wall Street Execs Threaten New Terror Attacks."

Tue, 02/01/2011 - 20:38 | 925816 palmereldritch
palmereldritch's picture

After a while you can go directly to the subtext

http://video.google.com/videoplay?docid=-9005367754264973286#

Tue, 02/01/2011 - 14:45 | 924483 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

Greetings Dork of Cork from old blighty,just read your previous post regarding the possibility of Ireland "embracing" the Old Lady,and it might be slightly off topic,but the recent post mortem of Irelands decision to give an unlimited bailout to the banks backed by the state - i.e the taxpayer in perpetuity,which was presented to the Irish people as a "failt accomplit",has now been shown to be a massive error of judgement by the Irish Government considering the subsequent reovery of Iceland from a seemingly worse financial position(see links below).

On the subject of Ireland leaving the Euro,I don't think there is a snowballs chance.The ECB have invested far too much time,money and political capital in snaring countries like Ireland to now let them off the hook.

http://www.davidmcwilliams.ie/2011/02/01/a-green-and-golden-opportunity

http://noir.bloomberg.com/apps/news?pid=20601109&sid=a76dlF6szAp4&pos=13

Tue, 02/01/2011 - 17:21 | 925154 Cdad
Cdad's picture

On the subject of Ireland leaving the Euro,I don't think there is a snowballs chance.

Lord Peter,

Ummmm....if the Irish said, "Piss off you Euro fops!" and then went on to dump the Euro, just what do you think Europeans [collectively] could do about it?

At this point in this long and ridiculous struggle, I think I'd throw down with the Irish...while also granting the point that it was a Frenchman that had to bitch slap J. Dimon as he whined about how unfair the lives of bankers are.  I think the Irish [collectively] are a lot tougher than J. Dimon, however.

Fuck the ECB!

 

Tue, 02/01/2011 - 14:45 | 924484 Tic tock
Tic tock's picture

This starts and ends with the disparity in Income.

This whole mess has been a monetary shell-game on an ever-ascending inflationary ramp.

Tue, 02/01/2011 - 14:47 | 924494 Racer
Racer's picture

"I sympathise completely with savers and those who behaved prudently now find themselves among the biggest losers from this crisis"

Not enough to stop the massive bonuses given yet again to the banksters who caused all this.. they were imprudent and greedy, they should suffer as well or rather instead of the prudent people

Tue, 02/01/2011 - 15:07 | 924577 thepigman
thepigman's picture

Ramping the markets with fed money is

yet another variation of bankster theft.

Obviously, they are not in the least contrite.

Tue, 02/01/2011 - 14:50 | 924508 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

Price of BigMac in UK today £2.49,pre Xmas £2.20 a 13% increase,just another "temporary" event Merv?

If so when exactly will the price of said BigMac be returning to £2.20?

Tue, 02/01/2011 - 14:53 | 924517 Racer
Racer's picture

And I bet it is a NotsoBig Mac as well!

Tue, 02/01/2011 - 14:57 | 924534 Johnny Lawrence
Johnny Lawrence's picture

Free pizza for the unemployed in Orlando: http://www.myfoxorlando.com/dpp/news/orange_news/020111-free-pizza-for-t...

Doesn't this pizza place or these bastard unemployed people know the stock market is up?

Tue, 02/01/2011 - 16:16 | 924536 TruthInSunshine
TruthInSunshine's picture

Sounds like Mervyn got a memo from the Bernank & the Trichet to do a fist pump for equity markets, otherwise known as a fool's errand.

I've got a news flash for everyone here, regardless as to what you or Mssr. King have said:

To be liquid right now is to be truly in the cat bird's seat.

If one dares to roll the dice in the casino that is equity markets, go right ahead, but that game will come crashing down, too, so just hope you have the most elegant and efficient exit strategy devised, because you will need it.

Bernanke is simply shortening the timeline for the next big credit yank, too, just when some reasable people are being led to believe credit will continue to expand. Good luck on that!

To be liquid..is to be in the cat bird's seat...even in a sea of digital, but a drought of real, dollars.

The people who now have experience, real time, in the business world, know that I am golden when I say that cash is King, Mervyn.

 

Tue, 02/01/2011 - 16:56 | 925060 trav7777
trav7777's picture

nah, what he's saying is that the standards of living that were fueled by debt are over.

They are going to print to cover a lot of that debt and everyone's lifestyle is going to fall.

I have no clue why anyone marvels or rails against what is an INEVITABLE decrease in standard of living caused by the debt bubble's popping.

Tue, 02/01/2011 - 23:26 | 926182 No More Bubbles
No More Bubbles's picture

 

people are being led to believe credit will continue to expand.

Because it is.  I know of several "deadbeats" who haven't been paying bills for months which are getting NEW CREDIT CARDS WITH BIG LINES $10k to $25k) from Capital One, Citibank & B of A.

 

Tue, 02/01/2011 - 23:31 | 926197 Mark McGoldrick
Mark McGoldrick's picture

Bullshit.

That's not credit - that's a piece of mail in a mailbox sent to every address on a marketing list that just pulls names from some information dump.

Once they actually apply for the credit card, they'll get turned down - if they really are deadbeats.

 

Tue, 02/01/2011 - 15:03 | 924553 THE DORK OF CORK
THE DORK OF CORK's picture

Like being savaged by a dead sheep.

Tue, 02/01/2011 - 15:08 | 924584 proLiberty
proLiberty's picture

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

From the last two paragraphs of Gold and Economic Freedom by Alan Greenspan.  1966.

see: http://www.constitution.org/mon/greenspan_gold.htm

Tue, 02/01/2011 - 15:09 | 924589 anonnn
anonnn's picture

I sympathise completely with my victims, but it is my nature.

It's a class-thingy. Survival of the fittest is such a burden on our class...like Divine Right to rule. The horrible privileges we suffer.

The buck stops in the sad little belly of the underclass. Tata. Cheerio. Stiff upper lip.

 

Tue, 02/01/2011 - 15:22 | 924644 TruthInSunshine
TruthInSunshine's picture

Your post reminds me of the imbecilic way the English pay homage to that useless and damaging fraud that is the Queen & her family...

...almost as if someone made a pact with them years ago, after they accepted an offer they couldn't refuse.

..red....shield...something

Oh, I forget.

Tue, 02/01/2011 - 16:55 | 925054 OdinsBeard
OdinsBeard's picture

Damaging?  The royal family is far less damaging to the UK than the crowd of corrupt imbeciles that they have as a Parliament...

 

I'd go so far as to wager that if the Queen had more power (instead of being just a rubber stamp), less stupid legislation would have been passed.

Tue, 02/01/2011 - 17:03 | 925082 The Disappointed
The Disappointed's picture

such a burden on our class...like Divine Right to rule. The horrible privileges we suffer.

Sounds like the rationalization they used for colonialism. White mens' burden and all of that BS while they steal everything of value.

Tue, 02/01/2011 - 15:12 | 924604 ElMoro
ElMoro's picture

King is forced to publicly recognize the truth as larger protests are more likely in the UK. Here in the US, nothing short of nuclear war will stop Bernanke, Obama and the Bailed-Out Frauds from claiming massive success from their policies.

Tue, 02/01/2011 - 15:25 | 924658 e_goldstein
e_goldstein's picture

and Mervyn, I'll be sympathetic when the peasants

prod your ass with pitchforks as they lead you to the guillotine.

oh wait, no i won't. 

Tue, 02/01/2011 - 23:22 | 926171 No More Bubbles
No More Bubbles's picture

+1

Tue, 02/01/2011 - 15:47 | 924760 RockyRacoon
RockyRacoon's picture

Apology?  ...or apologia?   Damn Brits anyhow.

Tue, 02/01/2011 - 15:56 | 924780 Zedge Hero
Zedge Hero's picture

He knows Egypt and Northern Africa are the start of something bigger and who is to blame.  Saving ass while he can, I guess this makes him the messenger and you know what they do with the messenger right? I just wonder who will do it, his buddies or his new found enemies.

Tue, 02/01/2011 - 16:07 | 924834 Josephine29
Josephine29's picture

This speech was actually given a week ago. I notice that reliable sources are cautious about Governor King as he is prone to being economical with the truth.

This is plain wrong as back in 2009 and 2010 he used his own forecasts of low inflation to justify his policy. His forecasts as usual turned out to be wrong. Also if we use his two-year time horizon Mr.King is telling us that back in 2009 he would have been undertaking Quantitative Easing and asset purchases even if he felt that inflation would be over target in 2011! This is a sign of a man who knows that things are going badly and feels that a smudge or two on the history books will help.

 

So relying on what he says as being the truth is not the best tactic......

http://notayesmanseconomics.wordpress.com

Tue, 02/01/2011 - 17:11 | 925112 Zero Govt
Zero Govt's picture

the British economy contracted 0.5% in the last quarter 2010... Deflation Bitchez

Tue, 02/01/2011 - 18:14 | 925360 nohweh
nohweh's picture

How bad can things be.  This same man only weeks ago was pronouncing on the evils of fractional reserve banking.
I believe that the BOE/CITY/CROWN is the biggest string-puller.

Tue, 02/01/2011 - 19:48 | 925686 Rockford
Rockford's picture

Cdad

Enjoyed your commentary on the boomers. As an Xer I have despised this worthless lot for years. My parents were older, and never bought into "the greatest generation" crap.

How many boomers railed and protested aganist their parents in the 60's, then felt guilty and had to make WWII movies and write books about them, i.e. Speilberg, Brokaw.

Wed, 02/02/2011 - 00:53 | 926345 Yen Cross
Yen Cross's picture

 You are quick. Good post.

Wed, 02/02/2011 - 01:25 | 926404 ak_khanna
ak_khanna's picture

The taxpayer funded bailouts for banks lead to lower standard of living for all the citizens of a country except for the beneficiar­ies of the bail outs. The poor people in any country live hand to mouth and do not contribute to tax revenues. The others who earn their living by small businesses or salaries pay taxes at a much higher rate than the rich individual­s or big businesses­. This is due to the loopholes in the taxation system which enable them to declare maximum profits in countries which have the least tax rates. So effectivel­y in the long run the government­s route the money collected as taxes from the middle class of people to the banks so that the bankers can enjoy enormous bonuses. We are in times of privatizin­g the profits and socializin­g losses for those who are well connected to the government­s and the law makers.

 

http://www.marketoracle.co.uk/Article24581.html

Wed, 02/02/2011 - 08:57 | 926758 twotraps
twotraps's picture

Simon darling.............I enjoy reading the articles, and many others you have written.  Fine.  What are you doing about it?  Other than expanding your business into diverse streams and seeking alternative investments??  Way to hit and run, an entire article, finished with one sentence about doing something smarter with your dollar assets??  C'mon man.

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