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Established in [[1694]] to act as the English Government's banker, the Bank of England is the world's eighth-oldest bank with its headquarters in [[London]]'s main financial district, the [[City of London]]. It was privately owned by stockholders from its foundation until it was nationalised by [[Clement Attlee]]'s Labour government in [[1946]]. | Established in [[1694]] to act as the English Government's banker, the Bank of England is the world's eighth-oldest bank with its headquarters in [[London]]'s main financial district, the [[City of London]]. It was privately owned by stockholders from its foundation until it was nationalised by [[Clement Attlee]]'s Labour government in [[1946]]. | ||
| + | ==Gold holding== | ||
| + | ===Czechoslovakia 1939=== | ||
| + | [[Sky News]] reported in [[2013]] that the Bank of England on 21st of March [[1939]] moved [[gold]] from an account of [[Czechoslovakia]] at the [[BIS]], after the annexation of the Sudetenland in [[1938]] and March '39 invasion of the Czech lands, over to an account held by the [[Reichsbank]] of [[Germany]].<ref>https://news.sky.com/story/nazi-gold-moved-and-sold-by-bank-of-england-10438741 saved at [https://web.archive.org/web/20130801062950/http://news.sky.com/story/1122408/nazi-gold-moved-and-sold-by-bank-of-england Archive.org]</ref><ref>https://web.archive.org/web/20130807062236/http://www.bankofengland.co.uk/archive/Documents/archivedocs/wwh/2/p3c9p1292-1301.pdf</ref><ref>https://www.bankofengland.co.uk/archive/bank-of-england-1939-45-ww2</ref> | ||
| + | |||
| + | ===Venezuela 2018=== | ||
| + | [[Reuters]] reported in November [[2018]] that the [[Maduro]] government is seeking to bring 14 tonnes of [[gold]] held in the Bank of England back to [[Venezuela]].<ref>http://archive.today/2018.11.05-145324/https://www.reuters.com/article/us-venezuela-gold-exclusive/exclusive-venezuela-seeks-to-repatriate-550-million-of-gold-from-britain-sources-idUSKCN1NA1Q7</ref><ref>https://www.zerohedge.com/news/2018-11-05/maduro-scrambles-repatriate-venezuelas-gold-after-trump-crackdown</ref> The Bank of England did not fulfill the request and was asking for explanations why the country wants the gold back,<ref>http://archive.today/2020.12.17-223241/https://www.zerohedge.com/news/2019-01-26/bank-england-refuses-release-venezuelas-gold-after-us-lobbying</ref> citing concerns that Mr. Maduro "may seize the gold, which is owned by the state, and sell it for personal gain.<ref>https://www.thetimes.co.uk/article/maduro-scrambles-to-bring-venezuela-s-gold-back-from-the-uk-0p29xp99w</ref><ref>https://zerohedge.com/geopolitical/uk-supreme-court-accepts-guaidos-appeal-control-over-boes-seizure-venezuelan-gold</ref> | ||
| + | |||
| + | ==Inflation target== | ||
On 6 May 1997, following the 1997 General Election that brought a Labour government to power for the first time since 1979, it was announced by the Chancellor of the Exchequer, [[Gordon Brown]], that the Bank of England would be granted operational independence over monetary policy. Under the terms of the Bank of England Act 1998 (which came into force on 1 June 1998) the bank's [https://en.wikipedia.org/wiki/Monetary_Policy_Committee_(United_Kingdom) Monetary Policy Committee (MPC)] was given sole responsibility for setting interest rates to meet the Government's [https://en.wikipedia.org/wiki/Retail_Price_Index Retail Prices Index (RPI)] inflation target of 2.5%. | On 6 May 1997, following the 1997 General Election that brought a Labour government to power for the first time since 1979, it was announced by the Chancellor of the Exchequer, [[Gordon Brown]], that the Bank of England would be granted operational independence over monetary policy. Under the terms of the Bank of England Act 1998 (which came into force on 1 June 1998) the bank's [https://en.wikipedia.org/wiki/Monetary_Policy_Committee_(United_Kingdom) Monetary Policy Committee (MPC)] was given sole responsibility for setting interest rates to meet the Government's [https://en.wikipedia.org/wiki/Retail_Price_Index Retail Prices Index (RPI)] inflation target of 2.5%. | ||
| − | The target has changed to 2% since the [https://en.wikipedia.org/wiki/Consumer_Price_Index_(United_Kingdom) Consumer Price Index (CPI)] replaced the [https://en.wikipedia.org/wiki/Retail_Price_Index Retail Prices Index] as the Treasury's inflation index. If inflation overshoots or undershoots the target by more than 1% the Governor has to write a letter to the [[Chancellor of the Exchequer]] explaining why, and how he will remedy the situation.<ref>''[https://www.nber.org/digest/apr98/inflation-targeting-has-been-successful-monetary-policy-strategy "Inflation Targeting Has Been A Successful Monetary Policy Strategy"]''</ref> | + | The target has changed to 2% since the [https://en.wikipedia.org/wiki/Consumer_Price_Index_(United_Kingdom) Consumer Price Index (CPI)] replaced the [https://en.wikipedia.org/wiki/Retail_Price_Index Retail Prices Index] as the Treasury's inflation index. If inflation overshoots or undershoots the target by more than 1%, the [[Governor of the Bank of England]] has to write a letter to the [[Chancellor of the Exchequer]] explaining why, and how he will remedy the situation.<ref>''[https://www.nber.org/digest/apr98/inflation-targeting-has-been-successful-monetary-policy-strategy "Inflation Targeting Has Been A Successful Monetary Policy Strategy"]''</ref> |
Independent central banks that adopt an inflation target are known as Friedmanite central banks. Inflation targets combined with central bank independence have been characterised as a "starve the beast" strategy creating a lack of money in the public sector.<ref>''[https://www.amazon.co.uk/Keynes-Return-Master-Robert-Skidelsky/dp/0141043601 "Keynes: The Return of the Master"]''</ref> | Independent central banks that adopt an inflation target are known as Friedmanite central banks. Inflation targets combined with central bank independence have been characterised as a "starve the beast" strategy creating a lack of money in the public sector.<ref>''[https://www.amazon.co.uk/Keynes-Return-Master-Robert-Skidelsky/dp/0141043601 "Keynes: The Return of the Master"]''</ref> | ||
| − | + | On 3 August 2023, [[Richard Murphy]] tweeted:{{QB| | |
| − | + | :The Bank of England’s inflation target is 2% but no one knows why. There is no evidence to justify that figure. | |
| − | + | ||
| + | :3% or 4% might work just as well. What that means is that the economy is being wrecked to achieve a meaningless goal. | ||
| − | + | :Why, oh why?<ref>''[https://twitter.com/RichardJMurphy/status/1687062000549937153 "The Bank of England’s inflation target is 2% but no one knows why"]''</ref>}} | |
| − | |||
==Government debt== | ==Government debt== | ||
| + | In July 2023, the Bank of England estimated it will require the Treasury to transfer a total of £150bn by 2033 to cover expected losses on the central bank’s [[quantitative easing]] programme, up from a previous calculation of £100bn.<ref>''[https://www.ft.com/content/ee8e33ee-e16e-459b-af32-5709db6874de "UK government faces £150bn bill to cover Bank of England’s QE losses"]''</ref> | ||
| + | |||
On 28 July 2023, [[Richard Murphy]] tweeted:{{QB| | On 28 July 2023, [[Richard Murphy]] tweeted:{{QB| | ||
:"The Bank of England owns £800bn or so of government debt. | :"The Bank of England owns £800bn or so of government debt. | ||
Latest revision as of 08:52, 4 August 2023
 Bank of England  (Central bank)     | |
|---|---|
 | |
| Formation | 1694 |
| Headquarters | Threadneedle Street, London, United Kingdom |
| Leaders | • Governor of the Bank of England • Director of the Bank of England |
| Type | commercial |
| Subpage | •Bank of England/Deputy Governor •Bank of England/Director •Bank of England/Governor |
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based.
Contents
History
Established in 1694 to act as the English Government's banker, the Bank of England is the world's eighth-oldest bank with its headquarters in London's main financial district, the City of London. It was privately owned by stockholders from its foundation until it was nationalised by Clement Attlee's Labour government in 1946.
Gold holding
Czechoslovakia 1939
Sky News reported in 2013 that the Bank of England on 21st of March 1939 moved gold from an account of Czechoslovakia at the BIS, after the annexation of the Sudetenland in 1938 and March '39 invasion of the Czech lands, over to an account held by the Reichsbank of Germany.[1][2][3]
Venezuela 2018
Reuters reported in November 2018 that the Maduro government is seeking to bring 14 tonnes of gold held in the Bank of England back to Venezuela.[4][5] The Bank of England did not fulfill the request and was asking for explanations why the country wants the gold back,[6] citing concerns that Mr. Maduro "may seize the gold, which is owned by the state, and sell it for personal gain.[7][8]
Inflation target
On 6 May 1997, following the 1997 General Election that brought a Labour government to power for the first time since 1979, it was announced by the Chancellor of the Exchequer, Gordon Brown, that the Bank of England would be granted operational independence over monetary policy. Under the terms of the Bank of England Act 1998 (which came into force on 1 June 1998) the bank's Monetary Policy Committee (MPC) was given sole responsibility for setting interest rates to meet the Government's Retail Prices Index (RPI) inflation target of 2.5%.
The target has changed to 2% since the Consumer Price Index (CPI) replaced the Retail Prices Index as the Treasury's inflation index. If inflation overshoots or undershoots the target by more than 1%, the Governor of the Bank of England has to write a letter to the Chancellor of the Exchequer explaining why, and how he will remedy the situation.[9]
Independent central banks that adopt an inflation target are known as Friedmanite central banks. Inflation targets combined with central bank independence have been characterised as a "starve the beast" strategy creating a lack of money in the public sector.[10]
On 3 August 2023, Richard Murphy tweeted:
- The Bank of England’s inflation target is 2% but no one knows why. There is no evidence to justify that figure.
- 3% or 4% might work just as well. What that means is that the economy is being wrecked to achieve a meaningless goal.
- Why, oh why?[11]
Government debt
In July 2023, the Bank of England estimated it will require the Treasury to transfer a total of £150bn by 2033 to cover expected losses on the central bank’s quantitative easing programme, up from a previous calculation of £100bn.[12]
On 28 July 2023, Richard Murphy tweeted:
- "The Bank of England owns £800bn or so of government debt.
- "If it sells it now it will lose £150bn.
- "If it keeps it until it’s due for repayment it will lose next to nothing.
- "So why is it so keen to sell?
- "It does Richard.
- "Austerity has been used as monetary weapon before.
- "In fact back to 60 WASPI can tell you that!
- "What strings is the USA pulling?
- "Gordon Brown the Bountiful sold gold at the behest of the USA.[14]
Hector Wetherell McNeill added:
- "He (Gordon Brown) also substituted the British electorate with banks and hedge funds as the main constituency of the Bank of England as shown on the power diagram below."[15]
Employees on Wikispooks
| Employee | Job | Appointed | End |
|---|---|---|---|
| Dido Harding | Non Executive Director | September 2014 | |
| Dennis Weatherstone | Member of The Board of Banking Supervision | 1995 | 2001 |
Related Document
| Title | Type | Publication date | Author(s) | Description |
|---|---|---|---|---|
| Document:Brexit is the villain in accidental death of the economy | Article | 6 August 2023 | William Keegan | The Brexit miscreants who conned the nation just carry on shamelessly, while their replacements, Rishi Sunak and co, take up the banner and Keir Starmer, once a noble remainer, offends his natural followers by ruling out rejoining the EU or even the single market. |
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References
- ↑ https://news.sky.com/story/nazi-gold-moved-and-sold-by-bank-of-england-10438741 saved at Archive.org
- ↑ https://web.archive.org/web/20130807062236/http://www.bankofengland.co.uk/archive/Documents/archivedocs/wwh/2/p3c9p1292-1301.pdf
- ↑ https://www.bankofengland.co.uk/archive/bank-of-england-1939-45-ww2
- ↑ http://archive.today/2018.11.05-145324/https://www.reuters.com/article/us-venezuela-gold-exclusive/exclusive-venezuela-seeks-to-repatriate-550-million-of-gold-from-britain-sources-idUSKCN1NA1Q7
- ↑ https://www.zerohedge.com/news/2018-11-05/maduro-scrambles-repatriate-venezuelas-gold-after-trump-crackdown
- ↑ http://archive.today/2020.12.17-223241/https://www.zerohedge.com/news/2019-01-26/bank-england-refuses-release-venezuelas-gold-after-us-lobbying
- ↑ https://www.thetimes.co.uk/article/maduro-scrambles-to-bring-venezuela-s-gold-back-from-the-uk-0p29xp99w
- ↑ https://zerohedge.com/geopolitical/uk-supreme-court-accepts-guaidos-appeal-control-over-boes-seizure-venezuelan-gold
- ↑ "Inflation Targeting Has Been A Successful Monetary Policy Strategy"
- ↑ "Keynes: The Return of the Master"
- ↑ "The Bank of England’s inflation target is 2% but no one knows why"
- ↑ "UK government faces £150bn bill to cover Bank of England’s QE losses"
- ↑ "The Bank of England owns £800bn or so of government debt"
- ↑ "What strings is the USA pulling?"
- ↑ "Gordon Brown also substituted the British electorate with banks and hedge funds as the main constituency of the Bank of England"
