True And False With Mervyn King

Mervyn King is the governor of the Bank of England, namely England's chief central banker.

In a recent speech, he spoke to the populace like little children, handing them a series of convenient facts, excuses, lies, circular logic, and disinformation to get them to buck up and start acting, well, more British.

That is, quit complaining, and keep a stiff upper lip.

"In 2011, real wages are likely to be no higher than they were in 2005... One has to go back to the 1920s to find a time when real wages fell over a period of six years."

True.

"The Bank of England cannot prevent the squeeze on real take-home pay that so many families are now beginning to realise is the legacy of the banking crisis and the need to rebalance our economy."

False. If the Bank of England ceased engaging in fractional reserve banking, there would be no need to rebalance, and no need to prevent a squeeze on pay.

"The squeeze on living standards is the inevitable price to pay for the financial crisis and subsequent rebalancing of the world and UK economies."

True. Fractional reserve banking makes it inevitable. Thus the central bank can hidie in plain site, guilty but never accused.

"The idea that the MPC (Monetary Policy Committee) could have preserved living standards, by preventing the rise in inflation without also pushing down earnings growth further, is wishful thinking."

False. A blatant lie. Uses the power of suggestion to condition the listener. This is psychological warfare, plain and simple.

"The MPC neither can, nor should try to, prevent the squeeze in living standards, half of which is coming in the form of higher prices and half in earnings rising at a rate lower than normal."

True. You Are All Screwed. And Don't Look To Us For Help.

"I sympathise completely with savers and those who behaved prudently now find themselves among the biggest losers from this crisis."

False. This is perhaps his most chilling statement. He rubs salt into the wounds, and deliberately insults the worst victims of all, branding them The Biggest Losers, as if he takes pleasure in it.

Be careful of central banking in any form. Central banking is letting the fox guard the chicken coop. We need a return to honest banking. Demand it.