Enter the Guv’nor


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“Mark Carney, the new governor of
the Bank of England, could hardly have timed his arrival better. Even before he
launched his bid to revive the UK economy, following years of little or no
growth, data signalled that the recovery is gaining momentum without his help.”

 

       Claire
Jones and Sarah O’Connor, who evidently need to be hosed down with cold water,
in ‘Carney eschews car for the Tube and times his arrival to perfection’, The
Financial Times, 2nd July 2013.

 

 

Everyone loves an early inflation. The effects at the beginning of
inflation are all good. There is steepened money expansion, rising government
spending, increased government budget deficits, booming stock markets, and
spectacular prosperity, all in the midst of temporary stable prices. Everyone benefits, and no one pays. That
is the early part of the cycle. In the later inflation, on the other hand, the
effects are all bad. The government may steadily increase the money inflation
in order to stave off the later effects, but the latter effects patiently wait.
In the terminal inflation, there is faltering prosperity, tightness of money,
falling stock prices, rising taxes, still larger government deficits, and still
soaring money expansion, now accompanied by soaring prices and the
ineffectiveness of all traditional remedies. Everyone pays and no longer benefits. That is the full cycle of
every inflation.”

 

       Jens Parsson,
‘Dying of Money’.




 

It is difficult to know quite
where to start in extolling the virtues of this semi-mythical godlike being who
has just descended to earth to take up his new position at the central bank of
the United Kingdom. His matinée idol good looks ? His twinkling, steely, yet
strangely compassionate eyes ? That cheeky yet cherubic pout ? His being
appointed senior associate deputy minister of finance effective November 15,
2004 at the Canadian federal Department of Finance ? No matter. As legions of
otherwise hard-nosed financial commentators dissolve into girlish transports of
delight at the arrival of this thrusting young buck at the offices of the Old
Lady of Threadneedle Street, there can surely be no likelihood whatsoever that
the fatuous hagiographic sycophancy with which all of Fleet Street and the City
are greeting his appointment will end in anything other than everyone’s
expectations of economic and monetary transcendentalism and an orgiastic
recovery in our national finances being spectacularly exceeded.

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