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Bank of England to gain new powers of secrecy

The website, financialadvice.co.uk reports:

"Saturday 10th January 2009

The UK government is looking to push through a number of changes to the financial industry, one of which will allow the Bank of England to refrain from printing a weekly statement of accounts, and may allow them to hide a number of economic strategies. There are concerns that the move will see the UK government in conjunction with the Bank of England flood the UK market with newly printed money as a means of attacking the recession. However, this may well just be this tip of the iceberg.

Under laws going back hundreds of years the Bank of England has always issued a weekly current account which has allowed analysts and experts to follow the flow of money around the economy and the issue of new loans. By taking away this vital element of regular information from the financial system this could in theory allow the government of the day to hide a variety of economic strategies and economic bailouts.

This news comes only weeks after speculation that the Bank of Englandís independence is in jeopardy because of a number of disagreements with the government over how to handle the economy. It would be ironic to see independence taken away from the bank bearing in mind Gordon Brown has been such an advocate of the policy."

This suggests that maybe they want to surreptitiously act on the recommendations of the EDMs which Austin Mitchell MP has promoted over the last few years: that the government/BoE should create more money to spend into circulation!

Brian Leslie

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