January 2023
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What happens to our money when Mark Carnage takes over the BoE?

The new governor of the Bank of England, Mark Carnage moves into his luxury offices in a few weeks. Carnage spent 13 years with Goldman Sachs in its London, Tokyo, New York and Toronto offices. His progressively more senior positions included co-head of sovereign risk; executive director, emerging debt capital markets; and managing director, investment banking. He was involved in Goldman’s work with the 1998 Russian financial crisis. Goldman’s role in the Russian crisis was criticized at the time because while the company was advising Russia it was simultaneously betting against the country’s ability to repay its debt.

Here’s a picture of Mark Carnage:

And here’s another one:

Obviously there are several things Carnage can do to get Britain out of its debt death spiral. But his choices can be simplified into two main themes: Does he hurt the ruling political and bureaucratic elites? Or does he cause huge losses to ordinary taxpayers?

Let me explain briefly. Carnage could try to hold the pound’s value, slowly increase interest rates to a “normal” level and force the Government (Coalition or Labour) to put through the kind of budget cuts I suggested in my blog yesterday. This is what Canada did in the mid 1990s when it cut its debt from 68% of GDP to 29%. But this would be unpopular with and painful for the ruling political and bureaucratic elites.

Carnage’s other option would be to hold interest rates at near zero, print loads of money, keep on buying ever-increasing amounts of the UK’s ever-increasing government debt and do this to the value of the pound:

This would push up prices for ordinary people, who don’t get paid as much as Mr Carnage, our politicians and top bureaucrats. But this would also help inflate away UK government debt. letting whatever government keep on spending and wasting our money, mainly on itself.

And this is what a “low interest rates plus high inflation” policy would do to our savings (blue car on the left) and pensions (red car on the right):

Meanwhile, as Carney does this to the pound:

His former chums at Goldman Sachs could make billions from shorting sterling, just as they did when “advising” Russia.

I think I know what Carnage will do. So, it will be party time for the ruling elites and Goldman Sachs bankers with their massive salaries and inflation-protected pensions and close to disastrous for the rest of us.

(I’ve reduced the price of my latest book GREED UNLIMITED – and there are “only” 900 left of the 1,000 I printed – so hurry hurry if you want a copy)

1 comment to What happens to our money when Mark Carnage takes over the BoE?

  • Soviet Double agent Kim Philby almost became head of M16.
    It was mainly due to the FBI and the Verona de-crypts that he did not.
    So Goldman Sachs have there agent in place who can manipulate the United Kingdom economy to there advantage.

    These are the people who funded Al Gores An Inconvenient Truth in the hope of profiting in Carbon trade swaps.These are the people who made a billion or so after advising the Greek government how to hide figures before joining the Euro zone.

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