Bank of England's Carney spells out no-deal Brexit hit to UK

[webfact]

Bank of England's Carney spells out no-deal Brexit hit to UK

By David Milliken and Andy Bruce

 

The Governor of the Bank of England, Mark Carney arrives at an FT event in London, Britain February 12, 2019. REUTERS/Hannah McKay

 

LONDON (Reuters) - Bank of England Governor Mark Carney warned on Tuesday of the potential shock to Britain's economy from Brexit which could serve as an "acid test" for countries around the world trying to respond to the challenges of globalization.

 

The United Kingdom is on course to leave the European Union on March 29 without a deal, unless Prime Minister Theresa May can convince the bloc to amend the deal she agreed in November and then sell it to skeptical British lawmakers.

 

"We shouldn't be under any illusions," Carney said, answering audience questions after a speech at a Financial Times event. "A no-deal, no-transition Brexit would be an economic shock for this economy ... and it would also send a signal globally about the prospects of refounding globalization."

 

"In many respects, Brexit is the first test of a new global order and could prove the acid test of whether a way can be found to broaden the benefits of openness while enhancing democratic accountability," he said.

 

Carney said a successful Brexit deal could lead to a new form of international trade built on a better balance between local and supranational interests.

 

But a no-deal Brexit would hit living standards in Britain, at least in the short term, and a fall in the value of the pound would not solve the economy's problems as suggested by some Brexit supporters.

 

"That's part of the necessary adjustment mechanism but it is not a step to prosperity. It is a hit to income," Carney said.

 

SLOWDOWN

Carney, a Canadian, has previously warned of the risks that Brexit poses to the United Kingdom, the world's fifth-biggest economy, earning him the ire of some anti-EU campaigners.

 

"People are tired of Carney's gloomy, inaccurate, anti-Brexit predictions," said Richard Tice, co-chairman of campaign group Leave Means Leave. "Does he want us to fail so he is proven right? It's time he resigned and went home."

 

By contrast, John McDonnell, the would-be finance minister of the main opposition Labour party, said Carney's remarks showed why the government should take a no-deal Brexit off the table.

 

Most of Carney's speech focused on the outlook for the global economy. He said growth was likely to stabilize at a new, slower pace, although China, trade wars and rising protectionism threatened the "delicate equilibrium".

 

Britain could be seen as a "leading indicator" of a reversal of globalization and if that uncertainty took hold elsewhere, it could undermine the global economy, Carney said.

 

Rising debt in China was also a "significant and growing" risk. But the most likely outcome was that the world economy would not slow much further, he said.

 

"While there are pockets of risk and global growth is still decelerating, the combination of the policy response and the state of the current imbalances in advanced economies suggest that global growth is more likely than not to stabilize eventually around its new, modest trend," Carney said.

 

He also took a swipe at U.S. President Donald Trump who said trade wars were "good, and easy to win" last year. "Contrary to what you might have heard, it isn’t easy to win a trade war," Carney said.

 

(Writing by Andy Bruce; Editing by Gareth Jones and Alison Williams)

 

-- © Copyright Reuters 2019-02-13

[Laughing Gravy]

No sensible person listens to this idiot who clearly supports the elite and the UK staying in the EU.

 

1 hour ago, webfact said:

"People are tired of Carney's gloomy, inaccurate, anti-Brexit predictions," said Richard Tice, co-chairman of campaign group Leave Means Leave. "Does he want us to fail so he is proven right? It's time he resigned and went home." 

Yes sums it up. all of his doomsday predictions didn't come true so why would anyone believe this clown.  The worst governor for the Bank of England ever. Mervyn King is right about Carney.

 

 

[timbothaivisa]

They keep flogging this poor horse's dry bones. My only fear going forward is that the public goes back to sleep after Brexit, leaving the Quislings to get back to subverting democracy again

[Kwasaki]

2 hours ago, webfact said:

Carney, a Canadian, has previously warned of the risks that Brexit poses to the United Kingdom

As a remainer why would he say anything constructive, get rid of him.

[Grouse]

1 hour ago, Laughing Gravy said:

No sensible person listens to this idiot who clearly supports the elite and the UK staying in the EU.

 

Yes sums it up. all of his doomsday predictions didn't come true so why would anyone believe this clown.  The worst governor for the Bank of England ever. Mervyn King is right about Carney.

 

 

"No sensible person listens to this idiot"

 

We're not listening to you.

[mfd101]

Constant mentioning of his Canadianess doesn't exactly reassure one as to the rationality of his Brexiter critics ... Xenophobia, anyone?

[Laughing Gravy]

16 minutes ago, Grouse said:

"No sensible person listens to this idiot"

 

We're not listening to you.

Thank you for your genius. I am still waiting for the answers from your the post on the EU. I guess you only answer posts that are easy for you.

 

Anyway who is we're. Speak for yourself and not others.

[steve187]

32 minutes ago, Grouse said:

"No sensible person listens to this idiot"

 

We're not listening to you.

i am

[LucysDad]

40 minutes ago, Grouse said:

"No sensible person listens to this idiot"

 

We're not listening to you.

 

 

Listen to Mervyn King then.

[dick dasterdly]

I could have sworn there was a thread early this a.m. re. carney saying something entirely different?

[Grouse]

20 minutes ago, steve187 said:

i am

I rest my case

[sammieuk1]

Sounds like he has sat on his backstop again stating the bleeding obvious  ????

[Grouse]

15 minutes ago, LucysDad said:

 

 

Listen to Mervyn King then.

Mervyn King!!!????

 

That old retard!

 

You must be joking!

 

He lost his marbles years ago.

 

Have another go

[LucysDad]

2 minutes ago, Grouse said:

Mervyn King!!!????

 

That old retard!

 

You must be joking!

 

He lost his marbles years ago.

 

Have another go

 

 

Mervyn King has more marbles left than you would have in a lifetime.

[Loiner]

https://www.telegraph.co.uk/business/2019/02/12/mark-carney-brexit-acid-test-new-era-democracy-free-trade/


Sent from my iPhone using Thaivisa Connect

[JAG]

1 hour ago, Grouse said:

"No sensible person listens to this idiot"

 

We're not listening to you.

At times it is difficult to listen to one's self, let alone anyone else, with all the squawking coming from the little game bird ...

[Baerboxer]

2 hours ago, Laughing Gravy said:

No sensible person listens to this idiot who clearly supports the elite and the UK staying in the EU.

 

Yes sums it up. all of his doomsday predictions didn't come true so why would anyone believe this clown.  The worst governor for the Bank of England ever. Mervyn King is right about Carney.

 

2 hours ago, Laughing Gravy said:

 

 

Yeah right. All those Brexiters who listen to Barmy Boris, Gove, Farage etc must be much more sensible that anyone who listens to the Governor of Th Bank of England.

 

And pray tell, how come you never applied to be Governor?

 

"Richard Tice, co-chairman of campaign group Leave Means Leave." You think he might be a tad biased?

[Baerboxer]

15 minutes ago, JAG said:

At times it is difficult to listen to one's self, let alone anyone else, with all the squawking coming from the little game bird ...

 

You have an audible computer? 

 

Ah, should have realized. You can't even see through the Shins let alone Barmy Boris, Farage and jolly empire boys! ????

Edited February 13, 2019 by Baerboxer

[Samui Bodoh]

"...Carney, a Canadian..."

 

Hmm...

 

If a Canadian said it, then obviously it must be true!

 

 

 

 

(cue the abuse...)

 

[wombat]

''A no-deal, no-transition Brexit would be an economic shock for this economy''

Bullshit....the back room deals have already been done...nothing gets in the way of trade.
my guess is the BoE is a re-moaner organization at heart

[Ketyo]

"That's part of the necessary adjustment mechanism but it is not a step to prosperity. It is a hit to income," Carney said.

 

No doubt he's right. The UK will be poorer out than it would be if it stayed in. Only the economically illiterate and a few space cadets from the extreme right argue otherwise.

 

But the UK didn't vote for Brexit for economic reasons. It voted for political ones... to control its laws and borders from the incompetent EU which can't protect its borders and the Euro politicians like Merkel who don't see any dangers in that.

 

Carney doesn't care about this...why would he... he's an economist and will probably not live in the UK after leaving his job. 

[blazes]

1 hour ago, Grouse said:

"No sensible person listens to this idiot"

 

We're not listening to you.

Well, to be fair, your comment contradicts itself, since, clearly, you had to listen to him in order to make this comment....

[blazes]

1 hour ago, mfd101 said:

Constant mentioning of his Canadianess doesn't exactly reassure one as to the rationality of his Brexiter critics ... Xenophobia, anyone?

 

A large proportion of the UK population has a family relative in Canada somewhere, so being anti-Carney would not, for most Brits, come under the rubric of "xenophobia". 

Arrogant supporter of the New World Order, yes, but not hatred of foreigners....

[evadgib]

1. Carney picked up British Citizenship some time ago

2. ALL political discussions that I have seen in recent weeks (loads!) are united in saying that forcasts cannot be relied upon as they alway seem to be wrong. The latest Moggcast posted elsewhere says same.

Edited February 13, 2019 by evadgib

[owl sees all]

The Bank of England is a privately owned bank. Carney is simply dancing to the tune of the stakeholders (shareholders).

 

The bank has special privileges and does not have to file any reports what-so-ever. It is protected by the UK official secret's act and just having a list of shareholders can get you arrested.

 

 

Edited February 13, 2019 by owl sees all

[tomacht8]

2 minutes ago, Ketyo said:

"That's part of the necessary adjustment mechanism but it is not a step to prosperity. It is a hit to income," Carney said.

 

No doubt he's right. The UK will be poorer out than it would be if it stayed in. Only the economically illiterate and a few space cadets from the extreme right argue otherwise.

 

But the UK didn't vote for Brexit for economic reasons. It voted for political ones... to control its laws and borders from the incompetent EU which can't protect its borders and the Euro politicians like Merkel who don't see any dangers in that.

 

Carney doesn't care about this...why would he... he's an economist and will probably not live in the UK after leaving his job. 

That's a refreshing pro brexit statement. 

The UK is not in the Schengen Agreement and yet has full sovereignty over its borders. Currently the largest immigrant stream is from the ex british colonies. That is a specific problem of the UK and not from the EU. 

[Bluespunk]

4 hours ago, webfact said:

"People are tired of Carney's gloomy, inaccurate, anti-Brexit predictions," said Richard Tice, co-chairman of campaign group Leave Means Leave. "Does he want us to fail so he is proven right? It's time he resigned and went home."

 

Some people just don't want to face the truth...

[blazes]

9 minutes ago, owl sees all said:

The Bank of England is a privately owned bank. Carney is simply dancing to the tune of the stakeholders (shareholders).

 

The bank has special privileges and does not have to file any reports what-so-ever. It is protected by the UK official secret's act and just having a list of shareholders can get you arrested.

 

 

The B of E did start life (400 years ago?) as a private bank, but it was nationalised after WW2.

[kamahele]

Financial services have already pulled a trillion dollars in assets out of the UK over Brexit fears. This is before it has actually happened.

[from the home of CC]

11 minutes ago, owl sees all said:

The Bank of England is a privately owned bank. Carney is simply dancing to the tune of the stakeholders (shareholders).

 

The bank has special privileges and does not have to file any reports what-so-ever. It is protected by the UK official secret's act and just having a list of shareholders can get you arrested.

 

 

so it's set up to launder money with impunity? not saying it does but that setup suggests criminality (of any sort) would go unimpeded..