itshappening
04-08-2013, 03:32 PM
http://www.youtube.com/watch?v=rv5t6rC6yvg
http://www.youtube.com/watch?v=rv5t6rC6yvg
Interesting she mentions monetary policy in this clip and said that the central bank should be accountable to national parliament and rejected the European Central Bank (and the euro).
What she's saying is she doesn't believe in central bank independence and that Parliament should manage the interest rate. She assumes this would be done wisely of course. When she controlled the interest rate it was 7-10% compared to the "independent" Bank of England who are now running a rate of 0.5%.
Direct control of the interest rate by Parliament can also result in a 0.5% interest rate. Indeed the "independent" central bank is under pressure from the politicians in the current era to keep the rate low and so mortgages are more 'affordable' in relation to barely growing incomes and debt expansion can take place.
The lesson: Neither Parliament or the Bank itself should be in control of the interest rate and that the market should set it. The central bank must lose its rate setting ability entirely.
I am grateful for Thatcher and the current crop of corrupt politicians and bankers for making this clear.
http://www.youtube.com/watch?v=rv5t6rC6yvg
Interesting she mentions monetary policy in this clip and said that the central bank should be accountable to national parliament and rejected the European Central Bank (and the euro).
What she's saying is she doesn't believe in central bank independence and that Parliament should manage the interest rate. She assumes this would be done wisely of course. When she controlled the interest rate it was 7-10% compared to the "independent" Bank of England who are now running a rate of 0.5%.
Direct control of the interest rate by Parliament can also result in a 0.5% interest rate. Indeed the "independent" central bank is under pressure from the politicians in the current era to keep the rate low and so mortgages are more 'affordable' in relation to barely growing incomes and debt expansion can take place.
The lesson: Neither Parliament or the Bank itself should be in control of the interest rate and that the market should set it. The central bank must lose its rate setting ability entirely.
I am grateful for Thatcher and the current crop of corrupt politicians and bankers for making this clear.