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Monday, January 12, 2009

More fantastic news from the Bank of England

Moin Yahya has been vigilant about documenting the growth and abuses of Leviathan in the UK. Most recently, he noted the Bank of England's latest plans to expand the money supply. Now there's a bill wending its way through Parliament which would allow the central bank to do just that, but without disclosure:

The Government is set to throw out the 165-year old law that obliges the Bank to publish a weekly account of its balance sheet – a move that will allow it theoretically to embark covertly on so-called quantitative easing. The Banking Bill, which is currently passing through Parliament, abolishes a key section of the law laid down by Robert Peel's Government in 1844 which originally granted the Bank the sole right to print UK money.

The ostensible reason for the reform, which means the Bank will not have to print details of its own accounts and the amount of notes and coins flowing through the UK economy, is to allow the Bank more power to overhaul troubled financial institutions in the future, under its Special Resolution Authority.

However, some have warned that it means: "there is nothing to stop an unreported and unmonitored flooding of the money market by the undisciplined use of the printing presses."

[...] The Bank said it will still publish details of its balance sheet, but, significantly, the data – the main indicator of the extent of quantitative easing – will not be presented until more than a month has elapsed. For instance, under the new terms of the law, if the Bank were to have embarked on a policy of quantitative easing last month, the figures on this would not be published until the end of this month.

The reforms, which are likely to be implemented later this year, will make the Bank of England by far the most secretive major central in the world, experts said.

Read the rest.

Of course, any price inflation which follows the secret creation of new money to bailout financial institutions (or any other reason) will be purely coincidental and wholly the fault of unscrupulous money-grubbing retailers.

(h/t LRC)

Posted by Kalim Kassam on January 12, 2009 in International Affairs | Permalink

Comments

The central banks are quite simply nothing more than smoke and mirrors. I wonder how long the great herds will continue to be dazzled by thiese cheap tricks....

And as an aside - The Federal Reserve is NOT Federal and it has NO Reserves.
More smoke...more mirrors...

Posted by: JC | 2009-01-12 5:56:08 AM


......abolishes a key section of the law laid down by Robert Peel's Government in 1844 which originally granted the Bank the sole right to print UK money.
Posted by Kalim Kassam on January 12, 2009

It would be helpful to your readers if you could get your facts straight. The Bank of England has never had the sole authority to print "UK" money. The Acts of Union maintained the right of Scottish banks into perpetuity the right to mint / print money. The Northern Irish banks as well as Crown dependencies and several overseas territories also legally print money. Money printed by the Bank of England is only legal tender in England and Wales.

Posted by: The Stig | 2009-01-12 8:49:02 AM


It's called a one world currency and the banking elites of America, the UK and the EU are demanding it.

Posted by: dan | 2009-01-12 9:05:05 AM



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