The Stalinist Bank of England
On BBC Radio 4 on Saturday 24th August, Simon Rose from Save Our Savers said this:
"You can actually see the real price of money in other places. Now they’ve decided that it should just be 0.5%, but if you look at the peer-to-peer market for instance, which matches off people who want to borrow against people who want to lend money, well there the rate’s sort of 5% roughly. That is people coming together saying “I’m going to lend some money, what will you pay me”, or “I need to borrow money, how much does it cost”. That is free market capitalism operating, not the sort of crony capitalism with the sort of Stalinist control of the price of money that we get from the Bank of England. People never seem to challenge the idea that the Bank of England should set the price of money, but I find it very bizarre that they do, particularly when we’re seeing the cost of their decisions."
("How You Pay For The City", starting at 4min 20sec. I've transcribed it because BBC iplayer links are not available in all countries and are only up for a short time).
I really can't let this pass. I don't think Rose has the slightest idea what he is talking about.......
The rest of this post can be read here.