Ex-Bank Of England boss: UK is neglecting deep problems with economy
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- Опубликовано: 29 сен 2024
- Britain is neglecting deep problems with its economy because of its fixation with Brexit, former Bank of England governor Lord Mervyn King has told Sky News.
Lord King said there would have to be a new election and new parliament to resolve the crisis - and said their Brexit strategy should be "just do it".
Speaking on the fringes of the International Monetary Fund's annual meetings in Washington DC, the former governor warned that the global economy - including the UK - risked becoming trapped in a "great stagnation" with incomes paralysed for years.
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Funny how he argues that the outcome of Brexit in the long run doesnt even matter but the process of getting to that outcome is very damaging. Refreshing point of view.
In 2016 referendum
It was stay with Eu treaty or leave Eu , it wasn’t stay with Eu treaty or let’s have another Eu treaty ,
LEAVE MEANS LEAVE
But the 'deal' is to pretend to leave! Otherwise the EU would not have agreed.
Mike Newland Hear Hear.
Central banks print fiat money out of thin air and pump it into economy to stimulate it. People give real resources for paper money.. How long can this continue? The system by design devalues everyones money by 3% every year through inflation. The global debt is 60% higher than in 2008. This party is coming to an end. Humanity needs independent money. Currency should be separated from the state so politicians and central banks couldn't control it. Bitcoin Cash (BCH) is aiming to achieve this goal as it's decentralized peer to peer electronic cash for the world.
@Jim Raza But it has something that Fiat money has trouble to provide. Scarcity.
We aren't saving enough?
We ain't got no *ducking money.
People having to buy necessities on credit cards
What's wrong with this journalist not butting in nor interrupting his interviewee while he is talking!! Clearly this is not the BBC!!!!
He dare not do so - Lord Mervyn King is a towering financial intellect. Any interruptions from the journalist would deny him the chance to talk to Lord King in the future.
@@WOTArtyNoobs A BBC idiot was interrupting Noam Tsomsky in an interview I unfortunately watched. He was also trying yo guide the conversation!
this is the mind of a banker not a mind of a normal man
He was terrible at his job when the proverbial hit the fan. He sat and talked endlessly and did nothing.
What is your mind? That of a Brussels technocrat?
No comments on the 10,000 bn the state owes for pensions
No comments on the 4-5,000 bail out cost included in the deal for Deutsche bank and others when they go bust. But its his banker mates ...
but we can find 39 billion for juncker and his mates !
@@rumples2698 It's not 39 bn. It's 100 bn just for his pensions.
The real cost of Boris's deal is in the trillions.
Apart from the NHS, he hardly mentioned a single real physical thing outside of the abstract and imperfect money models that fail so often. Were still living in the backwash of the 2008 tsunami that he and his chums either failed to predict, or deliberately refused to warn the little people about. Empty retail everywhere, infrastructure falling apart, underemployment the new norm.
No mention of public housing building, or transport, or even a green industrial revolution that could fuel jobs and investment growth.
Imagine how many jobs and wealth can be created everywhere in a decentralised energy system - wind, solar, bio-gas, tidal, small scale hydro, etc, etc. A serious, deep recycling industry, likewise.
Maybe the privileged technocrats don't want real,long term, workable solutions because their astrological waffle would no longer be required...?
He is a very clever man one of the few and nice with it too
Really? He's that clever, he was caught with his pants down at the 2008 crash, didn't even see it coming, and then helped pay the financial criminals who caused it with lavish funds and helped the government make the poor pay for the crimes of these criminaly inept bankers.
@@tonebonetones who did see it coming?
I think also. MP's want to remain as they have no career after leaving. The only place is in the EU parliament. Useless people.
How can countries grow their economies and save the planet at the same time? I'm not sure we can have both.
In the long term it's possible, given the will to do it. Right now, whatever we may do as a nation to cut emissions, other countries such as the USA, China and Australia (yes, Australia) continue to rely far too much on fossil fuels which are the biggest polluters and pay lip service to the environment - too many vested interests. I am not optimistic.
The planet will be ok. People in Europe will be ok. Many people will die and some species will die out. But that happens. No big deal.
I have nothing to do with this and youtube keeps putting sky news in my recommendations for some reason. I have even blocked the channel and still youtube puts sky news on my recommendations. Not sure what is going on. Anyway downvote and move on.
Hell no mate...brexit is the start not the end.
Global financial collapse not just only Britain
In London there r prostitute houses in soho that don't move. Prostitution is illegal in England. I'd say it beyond setting an example to the word these lot r pedigree. Shameful. Boycott uk today
Yes, and Labour did NOT cause the crash ... The old Tory chestnut
Trust a Banker. Right?
Erm, and this is because the politicians, the media, business leaders and others with money who are obsessed with just their own wealth are neglecting the working classes. We knew all of the institutions we would be leaving but we voted to leave because we wanted to stick two fingers up at the people who seem to think that only they are entitled to survive with continual increases in the standard of living!
Lots of observations of the current state we are in, but no real solutions. The only hope of rapid growth for the UK is to energise our great exporters, financial services and exploit the ability of sterling to devalue against the Euro in order to compete internationally, improve balance of payments, employment and prospects for growth.
Obi wan Kenobi is our only hope.
But we won't get him, we'll get a Tory minority propped up by farage with a disgruntled dup sniping from the sidelines.
Holy crap bro, that was a well thought out comment. I scrolled through 101 comments about how ‘bankers are traitors/ pigs’ to find it...
He just can't bring himself to say we need increased deficit spending.
The whole does the same thing with global economy.
Talking a lot saying nothing much
this man talks a lot of sense. would like to see him move in to politics
He says that the country is sick of brexit, so we should get on with it. Yet 1 million people took to the streets of London yesterday to say that we need to have a final vote. For an educated fellow he sure can't see through the blinkers he has on. Clearly this person is tory through and through. The whole reason we are in this mess is because of people like him. It's a tory idea, it's a tory mess, it's the tory's fault.
Did we see any Brexit supporters out in great numbers NO !!
544 MPs voted to hold a referendum on EU membership. Can't all be Tory.
@@stewartduncan7711 In a vote that was forced upon them by a tory.
@@stewartduncan7711 Nice try though.
@@clairebarlow7874 Brexit supporters aren't trying to get the outcome of the Referendum overturned.
Savings has moved to China (and Germany?) since that is where the trade deficit goes.
Here here
Common sense at last. A very major 'correction' is coming! When who knows? Find a hat (preferrably a hard type) and hold on to it!
first sensible thing ive heard from the meedja
Mervyn King is not the media, he's always been a straight down the line, honest economist.
@@xxczerxx as in reported by the meedja
Maybe when and IF we leave the EU the people of this great country may prosper, because we wont be paying vast amounts of money into the EU to keep Junker and all his cohorts.
Uncontrolled and rapid growth is the philosophy of cancer and therefore it is not necessarily good. What should be happening is that the richest and multinational cooperations should be taxed more and not allowed to put money away in tax-shelters & tax avoidance schemes.
This man’s way of thinking and the prism through which he views the world are the root of the problem.
He thinks like a boomer who is completely insulated from the effects of a crisis. That is why he was so ineffectual during the bank crash.
Viewing economic growth as an inherently good thing is a dangerous idea that should have died off but is still going strong.
Sustainable development needs to replace growth as the primary economic goal of nations if we're gonna survive as a species.
In London there r prostitute houses in soho that don't move. Prostitution is illegal in England. I'd say it beyond setting an example to the word these lot r pedigree. Shameful. Boycott uk today
He was great as Dame Edna, but I don’t find this character funny at all.
Brilliant
People save ? In a country as expensive as Britain? With such poor wages? Not possible??!!
lol exactly. This bloated, overpaid buffoon does not live in the real world.
A lot of people waste money on crap.
Fat cats have nothing but contempt for working people.
@@SaintOsburg - to escape the mundane despondency of their lives??
Leaving might help? With poor wages I mean.
But you'd still need higher interest rates to persuade people to save.
Before 2008 we had interest rates around 4-5% on savings. Seems a life time ago.
Invest in the young people of the uk and pay them decent wages , rather than pocketing the money or paying ludicrous salaries to mp's and the bbc.
This man was part of the problem ..
Just get on with it and damn the economic repercussions! 😱😱. I got a feeling this man won't care or feel the economic effects of brexit if unemployment and inflation raises.
Well said Mervyn.
He should be an MP he'd get my vote. Very logical thinking, parliament needs more like minded people.
Duane Dyer yes MPs are no where near as honest nor intelligent.
Silly boy-everybody knows logic has no place in politics! /s
He talks about growing debt ratio's but when they handed out all the cash to the failing bankers back in 2007 credit crunch, he never made the banks pay it back.......why not??
A very good question! Funny how Sky news, indeed all the mainstream media, give the criminals who caused the 2008 crash a very easy ride.
Not only that but he sat on his hands immediately after the global financial crisis, behaving as though he had absolutely nothing to do with the long-term or immediate effects. He sat and talked about it with journalists while he waited for a successor so he could ease himself into a comfortable retirement. It's all well and good to be talking about the economy in hindsight, but why is he talking about Brexit fatigue and getting it over and done with as a former head of the Bank of England? He learnt nothing on his own disastrous watch and does not deserve to be interviewed.
They actually have.
Legalised crooks, wearing suites and ties. If Joe bloggs did a tenth of what these criminals have been doing for decades with the nation's wealth, they would have their heads rolling for all the world to see.
Because Mervyn said, we are in a lower position now than just after the great depression. The country and the banks are only holding off bankruptcy, and they do not have the money to pay us back.
Economic Armageddon is coming That's gonna make the 2008 financial crisis look like a fairytale!
ZZZZZZZZZZ
Correct
@@rumples2698 keep sleeping sheep!
Clarence Merritt maybe socialism is the only alternative?
Says a nobody, yet the former Bank of England says it won't hurt us at all.
Very worrying when the former head of the BoE doesn't seem to understanding banking. It seems he learned nothing from the 2008 crash.
Precisely! This inept buffoon should be in jail, and in China he would be. In the west, governments made the poorest pay for this man's mistakes.
All that this confirms is that austerity has been a failure.
It rather looks that way doesn't it. Government times and time again (both Labour and Tory/coalition) have proven time and time again that they shouldn't be let loose where fiscal management is concerned. Drastic public expenditure cuts never work in the longer term and certainly bring misery on the poor and oppressed of any country. The problem with pain is that it's never evenly spread - the rich get richer and the poor get considerably poorer.
What's coming economically is going to be much worse!
130.000 deaths through Austerity and rolling out of UC , people do not seem bothered by this. Would they feel different even Acknowledge whats been happening , if they were herded up and shot ?
This could b e a family member sometime soon, sobering thought .
@@buzzukfiftythree Labour Debt in Their Tenure of spending is 50bn, so far This Tory / Coalition and now Tory 75bn and rising yet making promises they can not afford too keep . The Sheeple are lapping it up .They Laughed at Labours last manifesto, to buy back Utilities,(only Tories could get away with selling off what was owned by the People) cut tuition fees, etc that would have been 50bn, Tories have exceeded this and still no improvements who here has too wait 3 weeks to get a GP's Appointment, who can actually find a NHS Dentist.....
@@clarencemerritt5003 what for the rich
fractional reserve banking and central banking. these people have no ethical standing to lecture anybody on anything. I'd listen to a murderer on death row before these people.
UBI is long overdue. We need a poltician like Andrew Yang in the US to sort the UK out. Modern, intelligent, non-ego driven and who sees every citizen as equally deserving of prosperity.
Past caring now , we will all get shafted whatever happens
Indeed! The Political class is corupt and plain rotten!
Most of the brits don’t realise what’s financial termoil is coming
Nobody is buying that bullshit propaganda. Only remain simpleton sheep peddle it!
Oh i think we do..if we stay in the EU we are going to suffer paying and bailing out Germany Greece France and Italy, and probably Spain and Portugal. The EU is on the verge of a massive recession!
@peter catterall its billions a night lol... but yes" it may amount to trillions if they keepndoing it. And as yiu must be aware, it should have stoped october 10th. Now there is No end in sight. So in essence yes it will result in trillions... ..
Deutsche bank and the bail out MPs are going to agree to with this deal comes in at 4-5,000 bn pounds. 15 years total NHS spending.
@@nouvalari Things we get a vote on, whereas with Boris' deal, we just get to watch. Besides which there is no evidence that the EU is on the verge of a recession.
Growth, growth...when will these people realize that economies can't grow infinitely? What about sustainability and a totally different redistribution of wealth?
Yes, endless economic growth means ever-increasing plundering of our planet, ever-increasing polluting of our planet and ever-increasing global instability . . .
@@jamesneilsongrahamloveinth1301 Exactly. Also, endless economic growth is impossible. We are already able to produce enough food to feed the whole world population. We are wasting enormous amounts of money on weapon and wars. Etc.
For them it is a way to finance states debt and calm the poor saying they give salary increase which leads to money devaluation.
Every year it is the same:
- Increase in taxes. 2%
- small salary increase. 1%
- increase in prices. 3%
Great our GDP has increased 3%
Me made 103 $ this year against 100 § last year. As goverments spendings/ debt is only calculated against GDP even when they say they we are spending less than last year 86% of 100 was 86 §
85% of 103 is 87.55 §. They actually spend more than previous year but ist is OK our economy is growing...
Another challenge is how the uk are going to reinvest money made of the back of the public sector. Especially in advance tech and AI research funded by the public.
This is the paradox: The former BoE Chairman is saying we're not saving enough, and yet the zero-interest rate policies of government has tried to force people to SPEND for growth purposes because they're getting no return on their savings, or very little. So, it goes to prove how disjointed policies are and also how clueless actual economists are. We have to remember
that crashes are inevitable, and this next one will probably affect governments.
Inequality is the underlying problem.
Excessive inequality is the problem.
Ha!
He confirm UK has no savings for vital infrastructure.
And the EU helps out, grants and advice.
Bretards are putting the UK in a coffin. Ignorants.
He is right! Brexit fatigue
"Just do it" is the stupidest possible thing to say, when literally EVERYONE defines "it" differently.
Talk Blocked
incorrect. Article 50 process is clear. WTO is how we trade with our biggest investor who buys the most from us - USA, and where we import the most from - China.
We should have just left by now if not for Theresa May, Hammond, Letwin and other Globalist cronies
Nobody id's saving because the interest rates are too low. Everyone who owns a home is ok, anyone wanting to save for a home can't.
U just cant trust bankers
Don't fight the system.
Leave it.
₿uy ₿itcoin.
Another step towards a cashless society.
If we get a new parliament the same thing will happen almost every time.
Fantastic open and candid speech from Mervyn...
Just do it ! I would like to see this guy sign his will or mortgage agreement without reading it or rushing headlong into it . No way, trust me he has money stashed away or has already sorted out his villa in Spain !!!!
He sounds rational and not a loony leftwing muppet.
He seemed pro Brexit before the vote. This has brought 3 years of waste and crimony on the country. Another 4 or 5 years of negiociation awaits. Why listen to this bloke?
He lives in a bubble
Loony capitalist Muppet
Referendum2 Vote on 1) Leave with a poor Deal or 2) Leave without a Deal
This guys a total contradiction. How are we going to plunge the British economy into a recession by this brexit deal... talking about solidarity etc yea yea but let's get brexit done be independent troubles coming must stick together on the other side of his mouth
Exactly! He talks like a boomer. He knows it's bad for most people, but it won't affect him. He's got his pension and a nice retirement fund.
He knows the damage caused. ...... Oh hang on.
It's project fear!
what a depressive boss!
In the long term everything will be fine
What about the short term?
How long is long term
And how long is the short term
" In the long-term, we'll all be dead." - John Maynard Keynes.
Mervyn King would make a great Spitting Image character :).
double the debt is the only answer. Debt is growth. Just QE the people and pay off our current debts... then repackaged the debts to a longer time period.
Deal = Treaty - Brexit without the EXIT !
20 years after the great depression included the artificial economic growth of WW2.
The answer to lack of money for infrastructure and the NHS is higher taxes, not chasing phantom growth. Higher taxes fuelling public spending will create real growth and prosperity as they did in the fifties.
All the low tax economy of the last 40 years has achieved is the concentration of wealth in the top 1% and social degredation.
Money needs to circulate to create growth and in the portfolios of the rich it stagnates.
Prior to the ref UK had the second fastest growth rate in the developed world. After the ref UK's growth is among the worst AND we've lost over 20% in value of currency= ordinary people taking pay cut in global terms and devaluing UK assets. Bodes well for the next crisis!
Yeah just ignore the global downturn. Germany is entering recession. The EZ is on the brink.
Really good interview.... well done skynews 👍
👏👏👏👏👏👍👍👍👍👍👍 Well said Mr King!
Quantitive easing print so much money it's meaninless!
Quantitative easing didn't print money it created it electronically. It's dead money sitting in dead accounts in computers. It has little microeconomic effect.
I want to be looking at the ERGs tax returns on the 01/01/20. Let's see how many millions rich politicians hide off shore.
That is why they are so desesperat for the brexit.
@@johnmuthan286 Exactly what are they going to gain for them to be so desperate too get it done. It will not benefit the regular people of this country , and hard working families can not afford to lose £2k a year, these posh twats will not feel the pinch. ASDA already in Process of forcing new less beneficial contracts on their workers , they either sign or are out. Shape of things to come perhaps?
All politicians not just ERG
What he really means is “I’m alright Jack”, no matter what happens.
😉 Ah, the next brexit meme: all of a sudden 'everybody is tired of Brexit'. So, shame on MP's who demand proper info before deciding about the future of their country. So why is this banker talking like this? What is his agenda??
Eric van Dijk
Take a wild guess!
I suspect he's already invested in US investment companies, prepared to buy up parts of the NHS...
3 years they're slow learners
Proper info? The remainer civil servants who drew up Project Yellowhammer didn’t even ask the opinions of the bosses of Calais and Dover ports. It’s pathetic
We're not saving enough because the base rate is too low. There are no savings rates worth mentioning. We have existed for years on a Keynesian ideology of a debt based economy, and kicking the can further down the road which is what we've been doing for more than a decade makes the inevitable correction even worse. Face it now and take the pain, or keep going until the UK is on par with Venezuela. Interest rates must start to go up. Yes there will be loses. But real wealth is created within a sound currency. Dial down public spending, de-regulate commerce, and bring banks back in line to lend to sound business plans with the assurance that they will never be bailed out again.
Most importantly of all, de-regulate shale drilling, release coal to the private sector and eliminate all energy subsidies and penalties. The energy industry is the industry that powers all other industries. When energy is cheap, reliable and plentiful, it is the backbone to everything else. Manufacturing costs are reduced all the way through to consumer goods and health costs.
This last part is accomplished by protecting individual rights and property rights. So reduce government interventionism which reduces lobbyists and activist groups.
Brexit "Just do it" Well, being an ex-banker he would say that, wouldn't he?
He speaks for his generation, who voted overwhelmingly for Brexit in 2016.
@@Seabird41 Arse gravy. Taken straight out of the Sun.
Not the most insightful suspect is Merv
And if there’s another hung parliament?...... how will that help? And yet it’s the most likely outcome given recent polling.
Next time the banks should be nationalised or allowed to fail.
Surely banks should've learned last time
Surely we own the Banks that were bailed out by Taxpayers money so why are we not informed when they award themselves massive bonuses for doing their Jobs. Christ we would all love massive bonuses for turning up to work would we not .
@@clairebarlow7874 nope, not one bit of them.
Check it out, biggest bailout in history and not much benefit to us at all.
0:59 ‘in the long run’. Does he mean on a scale of 1000 years? In the short run (5-15 years), it is disastrous. In the medium run (15-50 years), it is less so (probably). Agree with him on the political and constitutional consequences, which have been and still are disastrous.
Really good interview !
Is because the uk is the wellth who? Is spending to gb ?
Why does this interviewer seem so clueless and confused. Am sure he’s not, but it’s a strange style to have.
Sky !!!Quick !!! Quick !!! ...Another 20ml of steroids needed in that fear project ...
There is no reason to expect anything but low growth for the next decade.
Who made him the governor? ........."it will have no effect on the uk economy"......... Let's exit first and reap its 'reward' and than think of the future.
By the way with the lowest level of individual savings for a country what happens to entrepreneurs and borrowing isn't ideal for a long term growth as dynamics of business have changed to an accelerated business cycle. In lay mans terms by the time it's time to reap its time for a slowdown. Wow
Neoliberal economic policy has resulted in overblown property bubbles wherever it's been implemented. Currently the US, UK and Australia all have critically overinflated bubbles ready to pop. Coupled with the overinflation of pretty much all asset classes at present & it doesn't end well.
He's complaining about the current chaos caused by Brexit, but why did he advocate Brexit in the first place?
Lord Mervyn King should know exactly how
wealth is generated, how income is generated
and how the nation flourishes. He is an
educated man and sees where in the world
this happens and why it happens there.
It is the people who, with their work and efforts,
work these miracles. As long as people - for
whatever reason - sit back and demand
salvation from their government or the central
bank, the nation will slowly and surely
disappear into insignificance.
In the past, armed conflicts helped. Today
this is no longer recommendable.
This is the person who watched the 2008 financial crash coming down the road!
No! Way!! Am I going to take this fellow seriously!!
He's failed history!!
About time we got rid of Austerity (a con) and claimed the hundreds of billions back from the 1% and stopped all contracts with people and businesses in tax havens. There should never have been austerity, we shouldn't give money to the rich, there is no such thing as trickle down and workers need proper contracts with essential rights including sick pay and holidays. We need to regain the name social security and get rid of the idea of benefits.
They're asking a senior economist would didn't see the crash of 2008 coming.
He can’t expect what they did in 2005. The growth can’t continue unless there is great destruction. There are several countries we can modernize to do some growth but nothing like the past.
Central Bankers always talk sense when they are retired, never when they are still in a position of power.
Too much immigration has undermined pay putting a massive downward force on wages for too long. That also means that working rights are also undermined because immigrant workers aren't worried about rights because they never had to fight for them. This has been good for employers but disastrous for workers because it means that they cannot have wage inflation that allows them to produce enough to save. Also the amount of debt people are actively encouraged to rack up means they have to accept liw wages with poor terms and conditions just to pay back the debt. Work contracts are short therefore the potential for stability decreases along with the chance to save for anything let alone plan for retirement. The world, the country, businesses and corporations fed by greedy stupid CEO doing stock buy backs thus creating debt against the assets and the people in debt traps is going create a destructive death spiral for everything and the route cause is central banks and their puppet politicians who no longer listen to the electorate but only to their pay masters ie banks and corporations. The whole thing is a sham and the people running it are crooks.
We live in a world where rich people are storing wealth in offshore accounts causing the Miser effect where money in not being worked into the world system creating jobs which would boost the economy. The rich are getting richer and everyone else lives day to day.
As long as money exists nothing will change. Mans quest for wealth removes ones focus. Focus that could be used to better ourselves and those of future generations.
Central planning is the problem and these comment sections are quite literally full of people demanding more and more of it, they are the real problem. it all collapses when the supply is no longer there to meet the demand and this is a very good thing, as rates rise the economy will restructure in ways that are impossible when rates are artificially low, no more living in illusions.
How can people save when the work has gone to China Japan Eastern Europe Korea. Give people a chance not rob them then call them racists thugs
we need much lower taxes and abolish all taxation apart from income tax. we need to go back to the gold standard instead of having a currency that is speculated on and a double stamp duty on second homes to combat the housing shortage. we need a complete halt on unskilled immigration