Carney Carnage

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I’ve been out of the country for a while, Poland actually but glad to be back; it was -18 and warmed up to zero while I was there – so cold then!

Anyway I’m back now with a brand new Bank of England Governor Mark Carney imported fresh from Canada.  I’ve got no problem with his nationality he’s either up to the job or not and where he was born, male or female,  black, white, brown, or yellow I don’t actually care. If I’m being honest I’d have had M Legarde, intellect of a genius and looks to boot.

Mr. Carney is, so he makes out a team player.  Governance by committee no less, he will not be an Emperor or Monarch but will act in pursuance of the team spirit.  He’s all for consensus  well ain’t that just cute.  Back down here in commercial world we have leaders and followers and the leader falls if he/she doesn’t lead, its all about results.  Don’t get me wrong I’m in favor of teams and team spirit but from the off this sounds like he’s lining up his get out clauses before the money trains even set off.

Never-the-less it does seem like he intends on a monetary policy shake-up but he’s planning on not being in the political pocket.  Politicians can ask and if it works for him then he’ll do it.

But what about failure?  Well he expects to fail!  He’s human.  Not so sure I really want to know that one of the most powerful bankers in the world is going to fail, perhaps the team thing isn’t so bad after all.  Maybe the logic of crowds is the way to go, maybe not but its not been tried before so, way to go!

His salary is gonna raise some eyebrows no questions about that.  £874000.00 salary + £250000.00 housing allowance.  No pension!  Actually this is what the last one cost roughly speaking, just he’s getting the cash and bit towards a house.  Check-out the housing prices in London and then understand he’s got to move from Canada to UK, I’m okay with those figures.  When he’s gone, no long-term pension to keep paying either and it’ll all be taxed, hey seems fair to me.

Conservative MP David Ruffley said he was comfortable with Carney’s pay package. “You will paid considerably less than recent England football managers and likely to have more success.” I think that just sums it up about right, especially if you’re a sports fan you’ll understand the comment all the better.

His decision was I also note influenced by his family needs.  A 5 year deal will see one child finish school and the younger child will potentially have 2 years to reintegrate into a French school again.  So again, he scores well with me on the personal front. Families are important, some might think they want somebody committed to the job 24/7, well I don’t, I really like the fact he comes across as human.  He might understand the plight of ordinary working people.

He has also spoke about his previously favorable comments regarding the Occupy Wall Street movement.

The former Goldman Sachs banker agreed that the perception that bankers have not paid the price for the 2008 financial crash was “a catalyst” to the worldwide protests of the Occupy movement.  “It wasn’t just the fact that the financial crisis triggered a very sharp recession here as well as in the US, but that the senior-most officials in those financial institutions appeared to escape unscathed and not pay the price.  In fact, in many of the institutions that failed, some of the CEOs received large payouts prior to their demise.”

Now this guy is starting to speak to me here.

Turning to the thorny issue of the 2% inflation target he again demonstrated his intelligence.  He suggested that we all should have an understanding of the time-line for return to sub-2% inflation and an understanding of the implications for employment and output.  He is plainly hesitant to commit on a pre-set target which for quite considerable time now has not been achieved.  The question is, is the target appropriate?

I can only conclude that Mark Carney is a reflective type, he may not move ultra quickly but when all’s considered and his team have okayed action it does look like his strategy will win out in the end.

A good appointment in my humble view.

Take heed world Mark Carney is at the helm, I wish him well.

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