Bill Cara

The UK Prime Minister’s resignation points to the need for an honest conversation about the role of the Bank of England

October 20, 2022

Rate increases by the Bank of England are killing UK pensions. So the government under PM Truss decided on a compensatory fiscal policy to radically cut taxes. Then her Finance Minister says the budget can’t allow her to do that. It’s a matter of who goes bankrupt first, the government or the owners of gilts (UK bonds).

But which party is really at fault here is not one in Parliament. It’s the Bank of England. I place the blame squarely on ex-BoE Governor Mark Carney (2013-2020), who arrogantly maintained a zero-interest rate policy while his friends were getting rich using borrowed funds to buy air-filled equities. This is the same Mark Carney who, together with BlackRock’s Larry Fink, has convinced governments to shovel the ESG concept down the throats of global investors while they and their friends get rich there too.

It’s time that voters in democratic countries wise up to those who use the government to their advantage. Governments must take control of monetary policy away from privately owned central banks and then be accountable to the voters for monetary and fiscal policies. Only when accountability matches responsibility will stability return. Until then, all we get are smokescreens and lies.