Jeremiah: 22 KJV: Weekend Reading

David G. Blanchflower: Recessions Elude Economic Forecasters: "I served on the MPC from 2006 to 2009.... From around October 2007 onward, for many months in a row I started to vote for interest rate cuts, mostly on my own.... Eight people on the MPC had the same opinion, and I had a different one, so there were only two opinions. I felt as if I had the weight of the British people on my shoulders. As the famous Liverpool football club battle cry from the Kop End that sang out loudly the other day in the 4-0 defeat of Barcelona, from the old Gerry and the Pacemakers song, 'Walk on with hope in your heart and you’ll never walk alone'. Some years later, Gordon Brown... apologized for appointing me 'to that awful job'. I still believe Gordon Brown and Ben Bernanke saved the world...

...The governor of the Bank of England had no idea what was going on in the British economy in 2008 as the biggest recession in a hundred years hit. It turned out that when the U.S. sneezed, the U.K. caught pneumonia. Lord King even said this, sitting two seats from me, on the Sept. 11, 2008, a few days before the failure of Lehman Brothers, at another meeting of the Treasury Select Committee meeting: “I do not think we really know what will happen to unemployment. At least, the Almighty has not vouchsafed to me the path of unemployment data over the next year. He may have done to Danny, but he has not done to me.” The unemployment rate had increased from 5.2% in April 2008 to 6.0% in September 2008 and would reach 7.9% a year later. The right answer was that it was going to go up and by a lot...


#noted

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