- Published on Monday, 02 June 2014 10:09
Mark Carney was one of the keynote speakers at last week's Inclusive Capitalism conference, talking about how capitalism's excesses are in danger of "killing the goose that laid the golden egg", ie. devouring itself as more and more people suffer reduced purchasing power while wealth and income migrate from the majority to the few. If people don't have money to spend, what will drive the economy? Yet more borrowing perhaps.
Did someone say housing bubble? Record low interest rates fuel the boom in house prices but when rates rise, highly indebted mortgagees and consumers are at risk of financial ruin as banks foreclose on their houses.
One of the justifications of the capitalist system is that as the tide (of prosperity) rises, all boats (people's fortunes including the poor) rise. However, as we know, when the tide goes out, we can see who's naked.
Carney was hailed as the golden boy of central banking, having presided over the Bank of Canada and supposedly kept the Canadian banking system "safe" through the 2008 sub-prime crisis. The reality belies the myth and as a Goldman Sachs alumnus, there is little doubt whose interests he serves as Governor of the Bank of England and Chairman of the Basel based Financial Stability Board.
Mark Carney – A Canadian View by Mike Gold with comment from Nadine Lumley