Home > Economy, Great Britain, Labour Party, POLITICS > Bank of England Nitwits.

Bank of England Nitwits.

The chickens are now coming home to roost. Following a regime imposed by the Monetary Policy Committee who in raising interest rates over a short period of time have contributed to what is now a prospect of a serious financial crisis. Agreed the nitwits on the MPC were concerned in regard to inflation they have become as fixated on inflation as those in the 80s on the same committee, different faces, were when the issue was M3 or money supply, those were the days when we were introduced to the Phillips Curve. Economists as ever are divided, most appear to be now in panic mode believing the MPCs decision have gone too far and they are right.

We have a strong economy, employment is growing, the economy is growing, whilst we are now being affected by the American credit crisis as some banks offload bad debt and risks. The impact on all this with interbank interest rates and a reluctance lend to each other, with people finding it even more difficult to obtain mortgages, the MPC must now adopt a steady programme of substantial interest rate reductions. Failure to do so is going to mean foreclosure, property repossessions and a spiraling crisis.

It is now urgent the MPC act, the Chancellor of the Exchequer should also now be quite alarmed and rather than twiddling his toes should be adding to the pressure to reduce interest rates. We are concerned that unless the Government wakes up to this crisis we are going to see people losing their homes in greater numbers and that is hardly a vote winner!

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