Comments on: Back to the 1970s - Darling talks instead of acting http://www.johnredwoodsdiary.com/2008/01/07/back-to-the-1970s-darling-talks-instead-of-acting/ Conservative Party Member of Parliament for Wokingham Fri, 21 Nov 2008 06:16:28 +0000 http://wordpress.org/?v=2.6.2 By: Steven Baker http://www.johnredwoodsdiary.com/2008/01/07/back-to-the-1970s-darling-talks-instead-of-acting/#comment-16308 Steven Baker Tue, 08 Jan 2008 19:08:46 +0000 http://www.johnredwoodsdiary.com/2008/01/07/back-to-the-1970s-darling-talks-instead-of-acting/#comment-16308 I'd like to agree with Mike. A novice regulator has been allowed to "improve" - for which read "tinker with and clumsily centralise" - the regulatory regime in a period of grotesquely easy lending, which - amazingly! - has led to large but ill-defined risks to the economy. I blogged on the subject of the FSA's inadequacy in November 2006. I wish I had been wrong: http://www.stevebaker.info/wp/?p=16 I’d like to agree with Mike. A novice regulator has been allowed to “improve” - for which read “tinker with and clumsily centralise” - the regulatory regime in a period of grotesquely easy lending, which - amazingly! - has led to large but ill-defined risks to the economy.

I blogged on the subject of the FSA’s inadequacy in November 2006. I wish I had been wrong:

http://www.stevebaker.info/wp/?p=16

]]> By: mikestallard http://www.johnredwoodsdiary.com/2008/01/07/back-to-the-1970s-darling-talks-instead-of-acting/#comment-16289 mikestallard Mon, 07 Jan 2008 19:46:12 +0000 http://www.johnredwoodsdiary.com/2008/01/07/back-to-the-1970s-darling-talks-instead-of-acting/#comment-16289 It seems to me to be obvious that the Bank of England is the right organisation to deal with banking. It knows, after hundreds of years' experience, what to do in a crisis. People know they can talk in confidence to the Governor without it going any further. Also they know that he will do everything in his power to keep the banking system afloat. He is, moreover, right there in the thick of it, easily available. Not one of these things is true of either the Chancellor of the FSA. Secondly, why is inflation bad? It is awful for OAPs like me. But it is excellent for the economy as prices abroad slump. And it is excellent for home owners and buyers too as their properties become a really good investment. Inflation figures have been fiddled - we all know that (2.1%!!!) and people like MPs are having to bargain to keep up. But, why not? Swings and roundabouts. It seems to me to be obvious that the Bank of England is the right organisation to deal with banking. It knows, after hundreds of years’ experience, what to do in a crisis. People know they can talk in confidence to the Governor without it going any further. Also they know that he will do everything in his power to keep the banking system afloat. He is, moreover, right there in the thick of it, easily available.
Not one of these things is true of either the Chancellor of the FSA.

Secondly, why is inflation bad? It is awful for OAPs like me. But it is excellent for the economy as prices abroad slump. And it is excellent for home owners and buyers too as their properties become a really good investment. Inflation figures have been fiddled - we all know that (2.1%!!!) and people like MPs are having to bargain to keep up.
But, why not? Swings and roundabouts.

]]> By: Bazman http://www.johnredwoodsdiary.com/2008/01/07/back-to-the-1970s-darling-talks-instead-of-acting/#comment-16288 Bazman Mon, 07 Jan 2008 19:46:07 +0000 http://www.johnredwoodsdiary.com/2008/01/07/back-to-the-1970s-darling-talks-instead-of-acting/#comment-16288 Arguing against Rip-off energy companies all in an unofficial cartel is hardly arguing against the weather. The price of oil is a red herring. The 'market' does what it can get away with. I saw this one coming and went for a deal offering a price fix until 2008 in November. 'Fix' sounded about right. Arguing against Rip-off energy companies all in an unofficial cartel is hardly arguing against the weather. The price of oil is a red herring. The ‘market’ does what it can get away with. I saw this one coming and went for a deal offering a price fix until 2008 in November. ‘Fix’ sounded about right.

]]> By: Brian Tomkinson http://www.johnredwoodsdiary.com/2008/01/07/back-to-the-1970s-darling-talks-instead-of-acting/#comment-16281 Brian Tomkinson Mon, 07 Jan 2008 14:46:33 +0000 http://www.johnredwoodsdiary.com/2008/01/07/back-to-the-1970s-darling-talks-instead-of-acting/#comment-16281 Whilst sharing your views of the alarming similarities between this Labour government and that of the 1970s, I am far less sanguine about the inflationary threats facing us. Perhaps you would elaborate on your statement that "The international background is much less inflationary today". In some ways it could be said to be worse. Does anyone really believe any of the inflation indices, which have been concocted to present a confusing picture and thereby deceive people? This year will see mounting pressure for wages and salary settlements above whatever inflation figure is chosen. This country's economy is, sadly, heading right back to where it was before Margaret Thatcher was elected in 1979, when she began the slow and painful process of putting it onto a sound basis. Reply: We agree that in the short term food and energy prices will move inflaiton upwards. We all tend to see the high inflation in purchases which we have to make - petrol, heating oil or gas, Council Tax - and discoutn the lower prices available for discretionary tiems. I still think inflation will drop in a few months time after an uncomfortable winter. Whilst sharing your views of the alarming similarities between this Labour government and that of the 1970s, I am far less sanguine about the inflationary threats facing us. Perhaps you would elaborate on your statement that “The international background is much less inflationary today”. In some ways it could be said to be worse. Does anyone really believe any of the inflation indices, which have been concocted to present a confusing picture and thereby deceive people? This year will see mounting pressure for wages and salary settlements above whatever inflation figure is chosen. This country’s economy is, sadly, heading right back to where it was before Margaret Thatcher was elected in 1979, when she began the slow and painful process of putting it onto a sound basis.

Reply: We agree that in the short term food and energy prices will move inflaiton upwards. We all tend to see the high inflation in purchases which we have to make - petrol, heating oil or gas, Council Tax - and discoutn the lower prices available for discretionary tiems. I still think inflation will drop in a few months time after an uncomfortable winter.

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