MP criticises party leaders for 'easy money' policies (From Bucks Free Press)
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MP criticises party leaders for 'easy money' policies
3:04pm Tuesday 25th September 2012 in News By Lawrence Dunhill
MP criticises party leaders for 'easy money' policies
WYCOMBE MP Steve Baker has criticised the monetary policies being followed by his party leaders – saying the economics learned at university by George Osborne was “wrong”.
Speaking alongside German economist Detlev Schlichter last week, Mr Baker said the coalition Government is still taking advice from economists who failed to predict the financial crash five years ago.
The pair hit out at the continued creation of ‘new money’, or Quantitative Easing, by the Bank of England and Federal Reserve – arguing it creates huge distortions in the economy and will lead to further financial shockwaves.
Beaconsfield-based financial advice firm 2hwealthcare staged the event at Buckinghamshire Golf Club on Wednesday last week, with about 80 of their customers and guests in attendance.
Mr Baker, who co-founded economic think-tank The Cobden Centre, said the Labour government had helped cause the financial crash by tripling the money supply while in office.
But he also hit out at his colleagues in the Conservative Party for injecting even more digitally-created cash into the economy.
Mr Baker referred to a ‘Keynesian consensus’ among the current generation of economists - telling the meeting that Chancellor George Osborne is “very badly advised” and “any system he learned at university would have been wrong”.
And he told the Bucks Free Press afterwards: “It’s time he stopped listening to the same economists that didn’t see the crisis coming, and starting listening to those that both saw it coming and foresaw the general pattern of events."
He believes Quantitative Easing is a way of “bailing out banks surreptitiously” and has built a system which is dependent on 'easy money' and creates social injustice.
Introducing his new book called Paper Money Collapse, Detlev Schlichter said the continued creation of new money will eventually lead to a “super correction” in the financial system.
He acknowledged the recent rounds of QE would stimulate short-term growth, but said they would only succeed in delaying the pain, as well as risking "inflationary meltdown".
Mr Baker writes regular blogs on the economic situtation (see related links).
Comments are closed on this article.
Comments (7)
3:26pm Tue 25 Sep 12
Mr Silent Majority says...
4:58pm Tue 25 Sep 12
J B Blackett says...
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That's why they cannot grasp or even contemplate what ordinary people lives are like. Or what the public think about major issues or how they cope daily or what they think of the people who 'rule over us' etc.
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I think the description clueless might be deemed to be a compliment to our 'rulers'.
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The occasional condescending visits to the constituencies and even more occasion so-called 'surgeries' in no way imparts the correct information in the right direction. Illusionary and Self-deluded PR for ensconced members
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At least Steve Baker took the right tactical decision to move into the actual area he represents. Unlike previous Wycombe MPs who chose to live miles and miles away.
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As long as the old self-appointing gangs of people are running politics , business and finance are still in place - nothing will change as they have the coveted system they themselves evolved/designed to their own advantage. So why should they change ?
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Bob Diamond , Fred the Shred , Rupert Murdoch and all their ilk are in charge and they are not easy to shift as long as their political mates in it with them.
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Perhaps Mr Baker has at last seen through the financial fog of gobbledygook spouted by bankers etc. Something a lot of ordinary folk saw through a long time ago.
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Still Mr Baker is only a politician and perhaps a bit slow on the uptake. A bit late, I'm afraid. And also 'wise after the event' with the horse bolted through the very door that our 'wonderful' politicians left wide open.
6:02pm Tue 25 Sep 12
geoffW says...
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His timing show that this has little to do with what is best for he country and more wht is best for his political career.
7:57pm Tue 25 Sep 12
Mr Silent Majority says...
9:14am Wed 26 Sep 12
Darren Hayday says...
The system is not set up in our (the people/voters) favour but rather the political elite and their money masters.
Also Steve Baker is a career politician now and is looking out for his own interests rather than the people he is supposed to represent.
It is easy to see that DC will not win the next election with a Conservative majority, so those within the party are either looking to replace him after the event and or which horse to back.
Look at all of these past few years that have been wasted with paying back the deficit rather than growing our economy.
Yes the Labour government did spend all of our money (as so to stay in power for longer) and yes we all have been shafted by the City and Wallstreet - as will continue unless there is a real change in the system.
I think that I'm at a point where I see Capitalism failing in the same way that Communism did.
I think that we do need a new system, whereby the people come up on top rather than big business.
Who's going to kick it off and get started with ideas and action?
1:16pm Wed 26 Sep 12
Voyeur says...
Just what we need in Mr Baker - an engineer lecturing us all on economics.
2:02pm Wed 26 Sep 12
J B Blackett says...
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It wouldn't be so bad if they were in the least skilled or knowledgeable about their sphere of influence. But they are not. They will have a different Ministry/lot to run in a few months - so why bother doing the job probably or learning anything new
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It's not just this hopeless clueless arrogant lot - but the previous hopeless clueless arrogant lot and the next previous hopeless clueless arrogant lot etc.
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Why can't we have people skilled and actually knowing themselves about the subject they pretend to understand (which they patently don't). And not just being continuously briefed by their friends in the upper echelons and similarly educated personnel of the Civil Service.
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They all make a very nice living at it and end up with inflation proofed pensions and 'honours' - and that includes their Civil Servants too.
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These people have by default stolen our hard won democracy off the people but that is now vanishingly small nowadays and the ordinary folk have no influence on what happens at all. Absolutely none.
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Do not not believe any of the current crop of English politicians - they are a bunch of proven liars - expenses , secret agendas and deals , bare-faced lies about wars , bankers , demographics , student fees , pensions , 'justifiable' conflicts and 'necessary' deaths of British citizens , - the list is endless.
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What is needed are unselfish not greedy or self-interested people without vested interests - and there are not many of them in this Government or the Opposition.
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We (the plebs) want and need honest , thoughtful and decent people to run things governmental and are on OUR side. Not gang members of self-selecting cliques.
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Is that too much to ask ?