The BoE Will Be Graced with a Superhuman Governor

Yesterday the financial press was aflutter with reports about the nomination of the current chairman of Canada's central bank, Mark Carney, as the new governor of the Bank of England.

Most of the reports were gushing about the alleged ability of this central planner, to,  well, plan better than his peers. Apparently he is needed now to 'rescue' the UK. A good example for this is this article at Bloomberg, from which we quote a few excerpts below:

Carney is a fantastic central banker,” Edmund Clark, chief executive officer of Toronto-Dominion Bank (TD), Canada’s second-biggest by assets, said in an interview yesterday. “He’s clearly been recognized around the world for that, and so Britain, from its point of view, did a smart thing.”

A day after watching one of his four school-age daughters play ice hockey in downtown Ottawa, Carney, 47, was named yesterday by U.K. Chancellor of the Exchequer George Osborne as the first ever foreigner to run the 318-year-old Bank of England and its youngest boss in more than half a century.

“We needed the best, and in Mark Carney we’ve got it,” Osborne said at the end of a 10-week official search after the Canadian’s virtually unique blend of experience in banking, policy making and regulation beat out other contenders.


Carney “is head and shoulders above the other candidates,” David Blanchflower, who helped set U.K. interest rates until May 2009 and now teaches at Dartmouth College in Hanover, New Hampshire, said yesterday on Bloomberg Radio’s “The Hays Advantage” with Kathleen Hays and Vonnie Quinn. “He’s going to come in with a big broom and sweep clean at the Bank of England, which is what is needed.”

“In an environment of international financial regulation, having somebody who has a strong track record in that is clearly important,” Donovan said. “The nationality is entirely incidental.”


(emphasis added)

Well, we do believe that 'nationality is entirely incidental' when someone has been with Goldman Sachs for 13 years. Ex-Goldman employees have taken over important regulatory posts all over Europe after all, including the presidency of the ECB.

Hundreds of articles in style and tone of voice akin to the above have appeared in the financial press yesterday. We have yet to come across even a single critical remark. It astonishes us to no end that central bankers have become such exalted figures in our modern society. How can bureaucrats inspire such unrestrained awe? Consider some of the statements above.

See, he is human (watching his daughters play ice hockey), but in reality, this bureaucrat is a regular super-human. What would we ever do without irreplaceable, exalted personalities like him? How could the market economy ever function properly without such people 'directing' it?

Allegedly Carney has left Canada in ruddy economic health. No-one deigned to mention that Canada owes its seeming economic health largely to high commodity prices these days, which to be sure owe far more to the actions of Ben Bernanke and the PBoC than to Mark Carney. What is 'incidental' is that Carney happened to occupy the post of central bank chairman in Canada just as this phase of high commodity prices occurred.

However, what will this 'giant of central banking' (he was voted 'central banker of the year' by some magazine a year or two ago) really leave Canada with?

How about: the biggest credit bubble in the country's history, one result of which is that over 30% of Canadians confessed in a recent survey that they have trouble sleeping due to worries about their huge debts?

How about a real estate bubble that has in places grown to such proportions as to stand as almost unique in human history? A bubble that absolutely dwarfs the real estate bubble that has come to such ignominious grief in the US and elsewhere?

His 'great feat' consists of having nudged the central bank's administered interest rate to all of 1%. Well, BFD. We realize of course that in order to arrive at this carefully planned, 'just right' one percent interest rate, countless meetings had to be held and reams of economic statistics had to be poured over. And yet, it is almost certain that this interest rate deviates from the natural rate indicated by society-wide time preferences and therefore distorts prices across the economy and causes malinvestment– which as it were should be blindingly obvious considering the real estate bubble.

We should not cower in awe before these bureaucrats, who have on the whole probably held back economic progress by decades and created untold misery in many regions of the world, while in the main greatly benefiting the banking cartels over which they preside.

That Mr. Carney's stint at the Bank of Canada is today fondly remembered and destined to become part of its lore of 'success' is a complete coincidence. Had Mr. Greenspan vacated his post at the Fed just five or six years earlier than he did, he would today also be remembered as one of the 'greatest central bankers ever', simply because his chairmanship coincided with a big boom.

This has nothing to do with the 'planning abilities' of these men. This is not to say that Mr. Carney is not an intelligent and talented man. He undoubtedly is that, which is already proven by where his career has led him. However, it is the height of conceit to believe that anyone can 'plan' the economy, or know what the proper interest rate and the proper height of the money supply should be. These are things that can only be optimally determined by the market. The reality is that we have a socialistic monetary system that is in the process of failing – we are witnessing what are probably its death throes. Carney will now head a central bank that has bought up almost one third of the government debt in issue, not surprisingly to no discernible positive effect. He will likely find out that this sinking ship will prove more difficult to steer than the one he is leaving.



Even Canada's finance minister Jim Flaherty stares in awe at the super-human bureaucrat who is now leaving his employ …

(Photo by Fred Chartrand / The Canadian Press)





Target reached!

We are happy to report that our funding target has been reached – once again, a hearty thank you to all contributors, your support is greatly appreciated!

As a result of us having gotten from A to B, the annoying graphic is hereby retired. However, be aware that the donations button continues to exist. It is actually perfectly legitimate to use it during the non-funding season as well; assorted advantages we have listed that often result from doing so are likewise persistent (i.e., increased happiness, children including you in their songs, potential obtaining of privileges in the hereafter, etc., etc.). Unfortunately we can't promise that it will make the gold price go up, but we're working on that.

Thank you for your support!


To donate Bitcoins, use this address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke


4 Responses to “Mark Carney – Exalted Central Planner”

  • jimmyjames:

    His ‘great feat’ consists of having nudged the central bank’s administered interest rate to all of 1%. Well, BFD. We realize of course that in order to arrive at this carefully planned, ‘just right’ one percent interest rate, countless meetings had to be held and reams of economic statistics had to be poured over.


    I think his greatest feat was the slick transfer of the coming massive defaults from his pet bankers onto the backs of the people via CMHC-


    (warning…this PDF is the most mind numbing piece of garbage you ever did see)

    CMHC’s total insurance-in-force increased to $576 billion at the end of the second quarter of 2012, nearly 2% higher than total insurance-in-force at year end 2011 and 1% higher than in the first quarter of 2012.

    These government insurance guarantees are now close to 1 trillion- in a country with a population of just over 30 million which would be equivalent to about 10 trillion in the US-

  • rodney:

    He will likely find out that this sinking ship will prove more difficult to steer than the one he is leaving.

    The sinking ship reference was the first thing that came to my mind upon reading this news. He would have been ‘clever’, in the sense of rats being the first to abandon ship (the sinking ship of a soon-to-burst housing bubble), if he had left the BoC to pursue some other endeavor. But taking the job at the BoE is his dumbest move ever.

    The reason for that is that a central bankers’ only tool is monetary easing, and it’s not as if the BoE hasn’t tried that in spades. Of course, their hubris will be their undoing, and no one will experience that sooner than Carney.

    Useless and idiotic financial reporters. It will be fun to watch when Carney is universally criticized for his inability to ‘plan’ a recovery in the UK.

  • hettygreen:

    That’s Mark Carney Pater…And Jim Flaherty would stand in awe of a popsicle melting.

    There’s something on offer on the same subject over at Naked Capitalism (November 28 – Marshall Auerback – ‘Bank of Canada Governor is Wrong on Too Big to Fail and Wrong on Canada’s Banking System’). Sorry but I’m having trouble posting a link here.

    I have to say they (our current political hacks and their media minions) have done a stellar job of convincing everyone in this country that our ‘banking shit’ doesn’t stink like everyone else’s.

Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • underpass-libraryThe Baby Boomer Survival Guide (Part I)
      The Yellow Machines Go Silent PARIS – What should you do if you are running out of time and money? This is the question we get from readers over 50… over 60… and sometimes over 70. We baby boomers were famously “na… na… na… live for today.” Now, it’s tomorrow. And many of us – often through no fault of our own – are having trouble making ends meet. At the Diary, we write about the world of money. About economic policy and how it affects you. But what if,...
  • Stockholm-Protest-BannerRefugee Crisis Blowback
      A Sharp Turn in Swedish Politics When we recently discussed Europe's refugee crisis, we mentioned that a sizable political backlash was to be expected and that unfortunately, extreme nationalist parties were likely to be among the main beneficiaries. We also mentioned the situation of Sweden, where the mainstream political parties in an ongoing fit of political correctness bordering on lunacy have apparently decided to transform Sweden into a province of Mesopotamia.   Leader of...
  • U.S. Rep. Ron Paul (R-TX) speaks during the Republican Leadership Conference in New Orleans, Louisiana June 17, 2011.  REUTERS/Sean Gardner (UNITED STATES - Tags: POLITICS)Tell us Ron, What's the Plan, What's the “Austrian” Plan?
      What? No Austrian Prescription? Bloomberg Reporters Cannot Believe It This is truly funny. Ahead of the FOMC decision, Ron Paul, who is well-known as an an implacable critic and enemy of the Fed and a fan of the Austrian School of Economics, was interviewed at Bloomberg as to “what the Fed should do”. What makes it so funny is that the Bloomberg reporters seemingly cannot believe that Austrian economists simply have no “prescriptions” for the Fed. They keep pushing Ron Paul for...
  • SwanUS Stock Market: A Retest or Worse?
      Gray Swans and Black Swans By Monday's close, the S&P 500 Index was closing in on the low established in the August swoon – such a retest was essentially our minimum expectation, as V-shaped rebounds are very rare. The question is now whether it will only be a retest, or if something worse is in the offing. No-one knows for sure of course, but we'll briefly discuss what we are looking at in this context.   Image via NYTimes   It is interesting that as the market...
  • St._Benedict_delivering_his_rule_to_the_monks_of_his_orderThe Baby Boomer Survival Guide (Part II)
      A Lehman Moment for Commodities? LONDON – Today, we continue our philosophical look at what you should do if you are running out of time and money. (You can catch up on Part I here.) Where do we begin? With how to add wealth? Or how to lose it? The way to lose it is simple. You buy something that is not worth the money you paid for it. You are instantly poorer, whether you know it or not.   The pleasingly plump. Illustration by jdeer69     DJIA, daily...
  • doom2Climate Fanatics Run Into Public Relations Snag
      Scientists Turn into Stalinists Last week, we happened  to stumble across a press report about a group of climate scientists so eager to shut up their critics that they want to employ the State's police, courts and jailers for the purpose. Specifically, a group of academic (and presumably tenured) climate alarmists supporting the “CAWG” theory (CAWG=”catastrophic anthropogenic global warming”) have written a letter to president Obama, attorney-general Lynch and OSTP director...
  • 3 EURO FRONTEU Moloch in a Fresh Bid to Inflate
      Brussels Alters Capital Requirements to “Spur Lending” Saints preserve us, the central planners in Brussels are giving birth to new inflationist ideas. Apparently the 2008 crisis wasn't enough of a wake-up call. It should be clear by now even to the densest observers that a fractionally reserved banking system that flagrantly over-trades its capital is prone to collapse when the tide is going out. 2008 was really nothing but a brief reminder of this fact. The political and...

Support Acting Man


Own physical gold and silver outside a bank

Realtime Charts


Gold in USD:

[Most Recent Quotes from]



Gold in EUR:

[Most Recent Quotes from]



Silver in USD:

[Most Recent Quotes from]



Platinum in USD:

[Most Recent Quotes from]



USD - Index:

[Most Recent USD from]


THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Buy Silver Now!
Buy Gold Now!