Government Is Undercutting UK Institutions, Says Former Bank Governor

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Capitalism Is Doomed If Ethics Vanish, Says Bank of England Governor

'We simply cannot take the capitalist system for granted,' says Carney.

THE GUARDIAN: Mark Carney issues strong critique of City behaviour and warns of growing sense that basic social contract is breaking down

Capitalism is at risk of destroying itself unless bankers realise they have an obligation to create a fairer society, the Bank of England governor has warned.

Mark Carney said bankers had operated a "heads-I-win-tails-you-lose" system. He questioned whether traders met ethical standards and said that those who failed to meet high professional standards should face ostracism.

Speaking at a City conference, the Bank's governor warned that there was a growing sense that the basic social contract at the heart of capitalism was breaking down amid rising inequality. "We simply cannot take the capitalist system, which produces such plenty and so many solutions, for granted. Prosperity requires not just investment in economic capital, but investment in social capital."

In a strongly worded critique of City behaviour in the run-up to the financial crisis, Carney said market radicalism and light-touch regulation had eroded fair capitalism, while scandals such as the rigging of Libor markets had undermined trust in the financial system.

"Just as any revolution eats its children, unchecked market fundamentalism can devour the social capital essential for the long-term dynamism of capitalism itself. To counteract this tendency, individuals and their firms must have a sense of their responsibilities for the broader system."

Carney told delegates at a conference on inclusive capitalism in London – which was attended by the former US president Bill Clinton – that big banks had operated in a "heads-I-win-tails-you-lose bubble", with personal gain hotly pursued by bankers. » | Angela Monaghan | Tuesday, May 27, 2014

Mark Carney and His Stupid ‘Forward Guidance’

Mark Carney: Independent Scotland Must Sign Up for the Euro to Join the EU

Mark Carney has warned an independent Scotland would have
to sign up for the euro to join the EU

THE DAILY TELEGRAPH: The Bank of England Governor tells MSPs Scotland would have to join the euro in the "fullness of time".

The Bank of England’s Governor has warned an independent Scotland would be forced to promise to replace the pound with the euro if it wanted European Union membership.

In a major blow to Alex Salmond’s economic case for separation, Mark Carney told a Westminster inquiry that all new applicants to the EU have to join the single currency in the “fullness of time”.

He also told MPs it is a “distinct possibility” the Royal Bank of Scotland would have to move its headquarters south of the Border if there is a ‘yes’ vote in September’s independence referendum.

In triple blow to Alex Salmond’s economic case for independence, the Governor said a separate Scotland’s taxpayers would have to guarantee billions of pounds of deposits held by Scottish banks in England. » | Simon Johnson, Scottish Political Editor | Tuesday, March 11, 2014

Mark Carney: No Need for an Immediate Rate Rise

Mark Carney, Canadian Governor of the Bank of England

THE DAILY TELEGRAPH: Bank of England governor seeks to reassure markets that interest rate rise is not imminent, saying he doesn't want to focus on one indicator

Bank of England Governor Mark Carney has pledged there will be no “immediate” increase in interest rates as unemployment nudges closer to the 7pc threshold in an apparent softening of his forward guidance policy.

He said Bank of England policymakers look at “overall conditions in the whole labour market”, rather than just one indicator, and that any change, when it comes, would be “very gradual”.

The governor, who said that the UK economy was "in a different place" to when he introduced the guidance, added: “We don’t see an immediate need to change monetary policy."

Asked if he would consider lowering the 7pc threshold, Mr Carney added: “There are a broad range of things we could do, I wouldn’t jump to that conclusion … we’re trying to get across is that it’s all about overall conditions in the labour market.

“We wouldn’t want to detract from that focus by unnecessarily focusing on one indicator.” » | Denise Roland | Thursday, January 23, 2014

My comment:

"No need for an immediate rise [in interest rates]" – Mark Carney

No, there is no need for him. He's sitting pretty with his huge salary and exorbitant expenses. The rest of us have to make ends meet from our savings. What a thoughtless, unreasonable man Carney is!

Never in my lifetime can I remember not being able to get interest on my capital that at least equates to the rate of inflation, and then some. Does this man have no sense of true capitalism? Does this man have no sense of economic history?

What an utter disappointment this Governor is! – © Mark

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