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Bank of England To Unleash Collapse?
14 June 2014
(EIRNS) — Yesterday Bank of England Governor Mark Carney stated that the BOE could increase rates sooner than expected. This was enough to push the pound sterling up 1 cent to a one-month high. "There is already great speculation about the exact timing of the first rate hike and this decision is becoming more balanced," Carney said. This has been interpreted as setting an earlier date, probably Spring 2015, for a rate increase, instead of 2016. The hike is officially motivated with concerns about the real estate bubble. Carney, himself, said that the rate is dangerous: "The effects of an excessive, or an excessively rapid, tightening of monetary policy could prove damaging and difficult to undo." Popping one bubble means to pop the entire bubble, as the Fed action in 2006 shows. So, why is the Bank of England deciding to provoke a crash by raising rates, at the same time that Carney’s twin at the European Central Bank, Mario Draghi, is apparently doing the opposite? Claudio Celani |