SINCE Mark Carney became Canada’s Prime Minister-designate, much has been written about his stellar career, from Oxford PhD via Goldman Sachs to central bank supremo, first as Governor of the Bank of Canada (2007-2013) and Governor of the Bank of England from May 2013 to March 2020.
Before anyone jumps to the conclusion that Canada’s economy post Pierre Trudeau’s bizarre and destructive reign is in safe hands should perhaps think again. Carney is equally ideological as became evident during his pro-Green tenure in the UK. Today, as a reminder, we republish Ewen Stewart’s response to the deluded banker’s claim in 2023 that Brexit was to blame for inflation. No, says Stewart, it was Carney. This article was first published on June 19, 2023.
THE sun is shining and I am greatly enjoying being outside, but the Daily Telegraph headline ‘Brexit is to blame for inflation, claims Mark Carney’ is so deluded and wrong that it cannot be allowed to pass.
Carney says ‘he warned us’ this would happen if we voted Leave – and he’s right, and we’re so stupid, and it’s all our fault.
The man is either grossly ignorant of economics or something else – I think you know the word.
Firstly, Brexit has made zero difference either way to inflation, growth or anything so far, so I’m not going to claim Brexit has made us rich. It’s been a deliberate non-event but a useful excuse for a failed elite to pass the blame for their multiple errors.
This Government has refused to deviate in practically any way in terms of regulation other than to gold-plate already absurd policies, increase public spending and taxes to EU levels while merrily ploughing full speed ahead on immigration. All those outcomes disregard the Leave vote and manifesto pledges.
As a matter of fact, trade with Europe has been unaffected, growing on trend; the British economy has done almost as badly but on most measures marginally better than the EU economies Carney apparently adores.
Carney should be ashamed. He was Governor of the Bank of England from 2013 to 2020 and presided over a disaster. His policies are the primary cause of inflation today. The £450billion of QE left on the books on his watch, and interest rates near zero, distorted prices and broke the link between tax and spend.
He had seven years to fix it but he didn’t. He preferred to run a delusional monetary policy storing up today’s problems. It enabled Government to do as it pleased and it has ever since. Many of us explained this at the time and have warned of the day that interest rates would need to rise.
Instead it was compounded by the catastrophic lockdown, admittedly post his watch, but again funded by another £500billion of QE directly undermining faith in sterling.
More, Carney – a chief evangelist for Net Zero as the UN’s current envoy on climate – has consistently argued that financial services products should be tied to climate objectives. Net Zero is directly responsible for the delusional energy policy the UK has and our high energy prices – but to tie pensions, savings and public spending to heavily subsidised intermittent power is, well, rather inflationary as well as risking financial stability.
Mark Carney needs an excuse for his own failings. A moment’s sane thought can see Brexit is the lamest of lame excuses.
I am sorry to say it’s individuals like Carney that are primarily and directly responsible for today’s inflation. Brexit doesn’t even come near. Tragically he shows no contrition, instead doubling down on his own failure.
