tcm
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Re: ish, though
The UK idea of a monetary policy comittee MPC was to reduce the amount of obvious pre/post election government interest rate twiddling. Not to absolve all power over the currency.
Currently, if the economy goes to rats, the govt get voted out. Makes no difference if t blair or current govt says ah but those MPC gits set the wrong rate. Eventually, after only a minor amount of it going to rats, the MPC wd get a severe kicking from govt, told not to concentrate on inflation so much, and/or we'd vote in a diffrent govt that would either givem the kicking or take back the responsibilty.
Now, try any of that with the ECB, all of them much more used to being totally and utterly independent of govt's (cos they start wars, whereas the banks pay for them) and they'll tell each govt to bog off and be the govt, and leave the currency to them, thankyou.
Euros isn't a case of swapping the MPC bods for some other bods in Europe. The entire currency wd be controllled by ECB, including money suply, reserves and so on. HM govt has to sign up to a tax regime that doesn't give back a few quid in tax breaks otherwise everyone in that area wd be made richer than the others, and we can't have that now can we? Certainly not. Governments get v worried about the "gap between rich and poor" cos of course, they're daft: but if everyone doubles their salary tomorrow morning, the gap widens by 100%. Note the very much bigger "gap" that will surely arise between uk and poor elsewhere in EC, so taxes will go up again to make everything "fair" from that new standpoint.
Note also that a pre-requisite of a common currency will be for everyone to be allowed free movement, to move to where the jobs are, so we'd best forget the idea of stopping foreign types at the port, and get used to the idea of the UK population getting lots bigger, as we aren't quite as racist as elsewhere and we give out nice dole, free healthcare and free schools and speak english as taught by BBC world service, all the US films, pop music and also taught by every european country from primary school age. We should have no problem with this, as UK wealth has leapt with massive influxes of cheap labour as in 19century, and after war with caribs coming over. But a lower tax and lower benefits regime might be appropriate....but not allowed?
Currently, the "advantages" of an independent bank are marvellously over-trumpeted. Even politicians themselves are saying how great it would be, cos it's all complicated innit, and don't trust politicians to er do what we are sposed to do...
Are there any other countries that have recently adopted the curency of another, exporting the abilty to print money, set interest rates and so on? Yes! Think of counrtries like Honduras and Guatamala. Good eh?
The UK idea of a monetary policy comittee MPC was to reduce the amount of obvious pre/post election government interest rate twiddling. Not to absolve all power over the currency.
Currently, if the economy goes to rats, the govt get voted out. Makes no difference if t blair or current govt says ah but those MPC gits set the wrong rate. Eventually, after only a minor amount of it going to rats, the MPC wd get a severe kicking from govt, told not to concentrate on inflation so much, and/or we'd vote in a diffrent govt that would either givem the kicking or take back the responsibilty.
Now, try any of that with the ECB, all of them much more used to being totally and utterly independent of govt's (cos they start wars, whereas the banks pay for them) and they'll tell each govt to bog off and be the govt, and leave the currency to them, thankyou.
Euros isn't a case of swapping the MPC bods for some other bods in Europe. The entire currency wd be controllled by ECB, including money suply, reserves and so on. HM govt has to sign up to a tax regime that doesn't give back a few quid in tax breaks otherwise everyone in that area wd be made richer than the others, and we can't have that now can we? Certainly not. Governments get v worried about the "gap between rich and poor" cos of course, they're daft: but if everyone doubles their salary tomorrow morning, the gap widens by 100%. Note the very much bigger "gap" that will surely arise between uk and poor elsewhere in EC, so taxes will go up again to make everything "fair" from that new standpoint.
Note also that a pre-requisite of a common currency will be for everyone to be allowed free movement, to move to where the jobs are, so we'd best forget the idea of stopping foreign types at the port, and get used to the idea of the UK population getting lots bigger, as we aren't quite as racist as elsewhere and we give out nice dole, free healthcare and free schools and speak english as taught by BBC world service, all the US films, pop music and also taught by every european country from primary school age. We should have no problem with this, as UK wealth has leapt with massive influxes of cheap labour as in 19century, and after war with caribs coming over. But a lower tax and lower benefits regime might be appropriate....but not allowed?
Currently, the "advantages" of an independent bank are marvellously over-trumpeted. Even politicians themselves are saying how great it would be, cos it's all complicated innit, and don't trust politicians to er do what we are sposed to do...
Are there any other countries that have recently adopted the curency of another, exporting the abilty to print money, set interest rates and so on? Yes! Think of counrtries like Honduras and Guatamala. Good eh?
