July 2024

Carney desperately tries to cause ‘Brexit recession’

You’ll remember how, before the Brexit vote, Mark ‘Goldman Sachs’ Carney – the overpaid, over-promoted Governor of the Bank of England – sycophantically joined his boss (George Osborne’s) Project Fear to scare us into voting to stay in the corrupt, undemocratic, wasteful, economically-stagnant, failing EU.

Mr Goldman Sachs (sorry, I meant ‘Mr Carney’) warned us that leaving the EU would create uncertainty that could deter investment and lead to a recession.

Since then, the crooked Canadian has been frantically trying to talk down and rubbish the British economy to provoke a ‘Brexit recession’ to prove that he was right all along and to punish us ignorant, bigoted plebs for daring to defy the elites’ orders to vote ‘Remain’.

Part of Carney’s efforts to cause a ‘Brexit recession’ have involved ’emergency measures’ supposedly necessary to save the British economy from the ‘Brexit recession’ that he and the elites so confidently predicted. One of these ’emergency measures’ was to halve UK interest rates by an amazing, an astonishing, an astounding 0.25%.

Look carefully at the the graph below and you might just be able to see this cut in interest rate:


There it is. Right at the end. Ooooohh look how big it is! Well, not really.

Um, hopefully you’ll notice that this latest interest rate cut is more than insignificant. It’s tiny. It’s nothing. It’s so small that it’s not going to change anything. It’s not going to lead to businesses investing more. It’s not going to lead to Carney’s absurd claim that this will save over 200,000 jobs.

All it does is feed the Establishment’s narrative that we stupid, EU-loathing, racist bigots who voted ‘Out’ now have to be saved from the results of our reckless ignorance by our omniscient and benevolent rulers.

Meanwhile, the mainstream media do all they can to play down the good news since the Brexit vote:

  • The £ has fallen by about 10% making British exports more competitive
  • This has led to Tata Steel changing their minds about selling a steel works and has thus saved over 2,000 jobs
  • Another company is to invest £77m in a Cornish tin mine – more jobs
  • Drugs giant GSK is to invest another £275m in manufacturing in the UK – another 1,000 jobs
  • Many small companies (the backbone of the British economy) are seeing a surge in exports and are having to hire more people
  • The falling £ has led to a boom in people holidaying in Britain – even more jobs
  • Employment is at the highest level ever (causing more unemployed EU workers to pour into Britain)
  • The FTSE100 is at almost record levels thus boosting the pension pots of those of us who are saving for our pensions
  • Britain will have the strongest growth of any EU country this year

But the way Carney might manage to cause his ‘Brexit recession’ he so desperately wants is by driving up the deficits of British companies’ pension funds for those with salary-linked pensions. A tiddly 0.25% interest rate reduction will have negligible effects on most of us. But just this small fall has increased the FTSE100 companies’ pension deficits from £46bn at the end of July to £63bn just two weeks later.

This means that many companies will have to pump ever more money into their salary-linked pension schemes leaving billions less for investment, growth and job creation. This might even bankrupt some companies – even those not already ruined by Philip and Tina Green so they can buy yet another luxury yacht.

Well done Carney! You might manage to cause your ‘Brexit recession’ after all!

Then you can gleefully crow “I told you so”.

6 comments to Carney desperately tries to cause ‘Brexit recession’

  • Col

    The cost of imported goods needed to make British goods offsets the export value
    Tata Steel is still looking to offload 7,000 jobs
    £77k and £275k, oh wow. Our annual exports to the Eu are £240BILLION.
    The unexpected Brexit means people had already planned their EU holidays – remember the queues at Dover?
    We need those EU workers because our own people dont want the jobs they do. Ever seen a field of Brits picking fruit?
    BIt of a contradiction there with the effects of the FT100. First it is boosting the pension pots at the same time causing a deficit.

  • David Craig

    In answer to the reader’s comment about pensions. There are two types pf pension – defined benefit (final-salary linked) and defined contribution (depending on stock-market performance). With very few defined benefit schemes still accepting members, these schemes tend to buy government bonds to meet their long-term liabilities and so will benefit less from rises in the stock market. In contrast, much of the money in defined contribution schemes will be in the stock market as these schemes have no long-term liabilities. hence a reduction in interest rates will negatively affect defined benefit schemes whereas a rise in the stock market will tend to benefit defined contribution schemes.

    Hopefully that’s clear???

  • Col

    It is. Thanks. I have both and I will say that companies like GSK with former DB plans can well afford them. Shifty Green knew exactly what he was doing when he tossed his BHS plan to the Pension Protection Scheme.
    There is however a third pension plan which is the golden final salary scheme in the Public Sector. A former colleague employed as a wonk in Public Health England told me that they twigged they can retire at 60, take the pension AND keep on working there on full salary until either they are offered voluntary retirement (21 months salary) or compulsary (24 months salary). Now that is really costing us!!!!

  • Peter

    Its a liability employing anyone in Britain. Why as an employer should I be asked to contribute one penny to your pension. I am already bogged down with realms of government employment regulation red tape. If you want a pension then that should be your own responsibility not mine. What with His and Hers months of paid pregnancy leave, weeks of holiday leave and pension liability only a fool would consider starting a business in Britain today. Think yourself fortunate to be employed as myself and so many company’s are considering closing down and moving the operation to the Far East

  • Barry Richards

    The pound is dropping like a stone. Which makes imports dearer. One euro equals a pound now in airports. Brexit is really good for the country. More quantitive easing please?

  • Steve T

    My company’s exports have trebled since Brexit, enabling me to clear a lot of aged stock very quickly and leading to an injection of cash which we are using to invest in new equipment for the company without the need to borrow. No complaints here.

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