Reform plan raises fears of Bank secrecy The Bank of England will be able to print extra money without having legally to declare it under new plans which will heighten fears that the Government will secretly pump extra cash into the economy. 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 â 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." It comes after the Bank's Monetary Policy Committee cut interest rates by half a percentage point, leaving them at the lowest level since the bank's foundation in 1694. With the Bank rate now at 1.5pc, most economists suspect the Government and Bank will soon be forced to start quantitative easing â directly increasing the quantity of money in the economy â in a drastic attempt to prevent a recession of unprecedented depth. Although the amount of easing is likely to be limited, news of this increased secrecy will spark comparisons with Weimar Germany and Zimbabwe, where uncontrolled use of the central banks' printing presses ultimately caused hyperinflation. The Bank said it will still publish details of its balance sheet, but, significantly, the data â the main indicator of the extent of quantitative easing â 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of the law, if the Bank were to have embarked on a policy of quantitative easing last month, the figures on this would not be published until the end of this month.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. In the US, where the Federal Reserve has already cut rates to close to zero and started quantitative easing, the main way to track its purchases of securities and the expansion of its balance sheet is through precisely these same weekly accounts. "Quite why the Bank has to keep its operations so shrouded in secrecy is a mystery to me," said Simon Ward, economist at New Star. "This [reform] will make it much more difficult to track what the Bank is doing." Among the details which will no longer be published are those revealing the extent to which London's banks are using the Bank's deposit facilities â a yardstick of pressure in the financial system. Debating the issue in the House of Lords recently, Lord James of Blackheath, a Conservative peer, said: "Remove [this] control and there is nothing to stop an unreported and unmonitored flooding of the money market by the undisciplined use of the printing presses. "If we went down that path we would be following a road which starts in Weimar, goes on through Harare and must not end in Westminster and London. That is the great fear that the abolition of that section will bring about â but the Bill abolishes it." source: http://www.telegraph.co.uk/finance/...Reform-plan-raises-fears-of-Bank-secrecy.html Telegraph 10 Jan 09 By Edmund Conway, Economics Editor
UK is following in the wrong footsteps! :eek: Excerpt from an unknown origin: "If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." Thomas Jefferson Founding fathers wrote into Article I of the U.S. Constitution: Congress shall have the Power to Coin Money and Regulate the Value Thereof. In 1930 America did not lack industrial capacity, fertile-farm land, skilled and willing workers or industrious farm families. It had an extensive and highly efficient transportation system in railroads, road networks, and inland and ocean waterways. Communications between regions and localities were the best in the world, utilizing telephone, teletype, radio, and a well-operated government mail system. No war had ravaged the cities or the countryside, no pestilence weakened the population, nor had famine stalked the land. The United States of America in 1930 lacked only one thing: an adequate supply of money to carry on trade and commerce. In the early 1930's, Bankers, the only source of new money and credit, deliberately refused loans to industries, stores and farms. Payments on existing loans were required however, and money rapidly disappeared from circulation. Goods were available to be purchased, jobs waiting to be done, but the lack of money brought the nation to a standstill. By this simple ploy America was put in a "depression" and the greedy Bankers took possession of hundreds of thousands of farms, homes, and business properties. The people were told, "times are hard," and "money is short." Not understanding the system, they were cruelly robbed of their earnings, their savings, and their property. World War II ended the "depression." The same Bankers who in the early 30's had no loans for peacetime houses, food and clothing, suddenly had unlimited billions to lend for Army barracks, K-rations and uniforms! A nation that in 1934 couldn't produce food for sale, suddenly could produce bombs to send free to Germany and Japan! With the sudden increase in money, people were hired, farms sold their produce, factories went to two shifts, mines re-opened, and "The Great Depression" was over! Some politicians were blamed for it and others took credit for ending it. The truth is the lack of money (caused by the Bankers) brought on the depression, and adequate money ended it. The people were never told that simple truth and in this article we will endeavor to show how these same Bankers who control our money and credit have used their control to plunder America and place us in bondage. When we can see the disastrous results of an artificially created shortage of money, we can better understand why our Founding Fathers insisted on placing the power to "create" money and the power to control it ONLY in the hands of the Federal Congress. They believed that ALL citizens should share in the profits of its "creation" and therefore the national government must be the ONLY creator of money. They further believed that ALL citizens, of whatever State or Territory, or station in life would benefit by an adequate and stable currency and therefore, the national government must also be, by law, the ONLY controller of the value of money. Since the Federal Congress was the only legislative body subject to all the citizens at the ballot box, it was, to their minds, the only safe depository of so much profit and so much power. They wrote it out in the simple, but all-inclusive: "Congress shall have the Power to Coin Money and Regulate the Value Thereof." Instead of the Constitutional method of creating our money and putting it into circulation, we now have an entirely unconstitutional system. This has resulted in almost disastrous conditions, as we shall see. Since our money was handled both legally and illegally before 1913, we shall consider only the years following 1913, since from that year on, ALL of our money has been created and issued by an illegal method that will eventually destroy the United States if it is not changed. Prior to 1913, America was a prosperous, powerful, and growing nation, at peace with its neighbors and the envy of the world. But - in December of 1913, Congress, with many members away for the Christmas holidays, passed what has since been known as the FEDERAL RESERVE ACT. (For the full story of how this infamous legislation was forced through our Congress, read The Creature from Jekyll Island, by G. Edward Griffin or Conquest or Consent, by W. B. Vennard). Omitting the burdensome details, it simply authorized the establishment of a Federal Reserve Corporation, with a Board of Directors (The Federal Reserve Board) to run it, and the United States was divided into 12 Federal Reserve "Districts." This simple, but terrible, law completely removed from Congress the right to "create" money or to have any control over its "creation," and gave that function to the Federal Reserve Corporation. This was done with appropriate fanfare and propaganda that this would "remove money from politics" (they didn't say "and therefore from the people's control") and prevent "Boom and Bust" from hurting our citizens. The people were not told then, and most still do not know today, that the Federal Reserve Corporation is a private corporation controlled by bankers and therefore is operated for the financial gain of the bankers over the people rather than for the good of the people. The word "Federal" was used only to deceive the people. Once unthinkable, now unstoppable. Obama-lama
The ONLY reason they want to operate as secretly as possible is because they understand that the public knows how damaging run away money printing not only can be but is LIKELY to become... and they don't want to face accountability for their actions. Same as when the Fed stopped publishing M3 stats. We're all in deep doo doo.... And it's the Gummint, the Banks, and other GREEDY BASTARDS fault!
Just think about it. Who holds most of the the dollar denominated reserves? Why, foreign banks of course. When our patron saint, Uncle Bernie, decides to crank up the printing press and thereby depreciate the value of the greenback, do you think these foreign banks will just sit and watch as their IOUs become worthless? Hell no! They will counteract Americans by flooding the market with their own currencies. Eventually, every damn currency will become so devalued that it will lead to a global inflation on a massive scale.
Well inflation wouldn't be a problem if every country in the world inflated their money supplies at the same rate. It becomes a problem when a single currency becomes devalued compared to the other currencies.
They will jump in to help!! The prime minister said 2008 would be remembered as the year in which "the old era of unbridled free market dogma was finally ushered out". http://www.guardian.co.uk/politics/2009/jan/01/gordon-brown-new-year-message If free markets are "finally ushered out", that means some sort of collectivistic, socialistic or other non-capitalistic regime where citizens are second-class by default. And to drive the point home: http://www.infopackets.com/news/cen...super_database_of_every_person_in_britain.htm Once unthinkable, now unstoppable Obama-lama
Except it's not true, there will be inflation, but CURRENCIES will remain stable. But inflation will be off the charts.