Tag Archive for uk vpn

The Bank of England Election Blackout

Over the last few governments, there has been a move to distance the Bank of England from the political process. Successive governments have given it more power to act independently from the ruling party.  It’s a process which has been a success and we will see another aspect  of this during the election process in the UK over the next few weeks.


Although it may be more accurate to say ‘ you won’t see’ as the Bank of England is now in blackout mode until the election is over.  The ‘purdah’ rules came into place at  the dissolution of parliament on the 30th March and  they state that no BoE officials can make public statements until May 7th when the election takes place.

It’s likely to be a frustrating time for business and those in the financial sectors, as the announcements from Mark Carney or any other officials on a host of important committees are an extremely important source of information.  They’ll hear nothing from the Monetary policy committee, the Financial Policy Committee or any of the other bank regulation units that reside under the Bank of England.

Of course, all these functions will still be busy working as normal.  There will still be neutral updates and releasing monthly figures as normal.  The Bank of England will still make all the decisions it needs to such as controlling inflation, setting interest rates and all the other policies it controls.

These ‘purdah’ rules are an important part of the UK’s democratic systems which are designed to maintain the political impartiality of several important sectors of the UK.  They include the UK Civil Service, who are the huge sector of officials that keep the State machinery running.  The idea is that no-one in any of these important sectors can influence the result by making any sort of statement which could have political connotations.

This election might involve an even longer blackout this time as there is a distinct possibility that no single party will win control.   Most of the opinion polls are pointing to a ‘hung’ result which means that some negotiation will be required to form a government with an operating majority.  This would require an even longer blackout than normal as it might be required until a Government is put into place.

The election promises to be hugely exciting with no-one really knowing what will happen.  The pollsters seem genuinely unsure about how it will all unfold, there will though be a huge amount of media coverage.  If you want to follow the various parties and economic implications then the main media company to follow is the BBC.  The British Broadcasting Corporation is renowned for it’s political coverage and you can access it all from their web site and the BBC iPlayer application.  If you are based outside the United Kingdom though you will need to use a UK based VPN such as this one, in order to access the coverage.  It effectively hides your location and routes through a secure UK server in order to access any content only available in the United Kingdom.

Joseph Benyon

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Solving the Global Debt Problem

Debt is now a problem across the globe, despite the problems faced by most of the developed world over the last few years – it seems that nobody is actually learning the lesson.   Even the Governments that are being criticised for their debt reduction efforts like the UK are not actually reducing their debt burden merely slowing down it’s growth.

The Argentine president, Cristina Kirchner waved goodbye with a painful three hour ramble claiming that only Argentina had unlocked the secret to reducing national debt.  Although if the rest of the world followed her crackpot model of making up statistics and defaulting on loans we’d be in an even worse state than now.

The worry is that debt is growing into a world wide epidemic, and it looks like default is going to be the only liable option for many sovereign states.   We have seen Greece’s efforts where ruthless austerity measure have brought the country to it’s knees, whilst falling output has meant  that their debt has actually grown.  What are their options? There seems to be a growing realisation that Greece will simply never be able to repay the debt they have already established – where is the sense in lending them more?

More and more countries are heading in Greece’s direction.  The factors vary, but the list is growing – the latest is Austria which looks in real trouble crippled by a catastrophic banking sector which is billions in debt.

Can you believe that global debt has risen by 17% since the crisis began?  It’s like we’ve all looked at the sorry state of our bank statements and gone on a spending spree to cheer ourselves up!  The reality is of course different, debt levels are in many cases not only unsustainable they are so large there is little real chance of them ever being paid off.  The word bankrupt is very relevant to more countries than you could imagine.

We often look to  the East for salvation, yet in Asia the problem is becoming arguably worse than the Western economies. China increasingly focuses on growth whilst ignoring the strict credit controls that it used to operate under.  China’s overall debt levels are now estimated $28 trillion, which is true is approaching 300% of GDP comparable to the USA when you account for relative output levels.  Don’t take our word for it though, there are articles and opinions on much of the worlds economic press if you look for it, worth investing in a US or UK VPN to get access to the best reporting though.

MAny economist are not actually that concerned, and in some senses as long as output, asset values and wealth are growing then this is probably right.  However this isn’t happening across the board where debt is still growing and growth has stalled.   The very definition of debt requires that it is at some point paid back but this is looking increasingly unlikely in more and more cases.  This credit cycle is something that the world has never seen before and nobody knows how it will come to an end.

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