How significant was King's intervention?
Peter Hoskin 9:02am
Looking at this morning's papers, it's hard not to see Mervyn King's intervention yesterday (footage from Sky, above) as a major turning point. It makes the covers of the FT, the Telegraph, the Guardian, the Mail and the Times, and the headlines cut right into Gordon Brown's "everything it takes" bravado (The Times: "Bank to Brown: stop spending").
The Tories will be delighted, particularly as King's warning more or less reflects what they've been saying over the past few months. Suddenly, if indirectly, the case against Brown the Headless Chicken looks a whole lot stronger, while the PM's "do-nothing" retort looks a whole lot weaker. Indeed, you wonder whether the blow that's been delivered to Brown's strategy will prompt a change of tack from Downing St. An apology, perhaps? Or a softer, less bombastic rhetoric? Either way, it could all be too little, too late. We shall see.
Previous
Rob Atkins
March 25th, 2009 9:16am Report this commentIs there any situation for which, according to Brown, the solution is not for the Government to spend more on public services ?
In the boom period, the Government was spending like mad on public services. Now we're in recession, the Government is spending like mad on public services ...
Or is that inevitable under Labour ?
The Huntsman
March 25th, 2009 9:19am Report this commentThe Bank Manager just called 'Time' on Brown's account.
If Labour now continues to borrow, borrow, borrow, (which, given Brown's apparent desire to indulge in scorched earth tactics, seems highly likely) and spend, spend, spend, his administration will surely prove to be the most irresponsible, reckless and damaging to the interests of the United Kingdom that there has ever been.
richardj
March 25th, 2009 9:19am Report this commentThe unelected one gave the Bank of England responsibility for inflation, so the Governor is following the brief. Further unintended consequencies for the acting PM.
Wily Trout
March 25th, 2009 9:23am Report this commentObama's rallying call in The Times warns against a massively state-controlled economy, also not quite on the Mentalist's Message.
Publius
March 25th, 2009 9:43am Report this commentI have a feeling that yesterday's events will be seen as the beginning of the end for Brown.
As an aside, did you notice in the Times editorial today: "Throughout her reign, the Queen had never held an audience with a governor of the Bank – till yesterday, when she met Mr King."
Mike, Brighton
March 25th, 2009 9:48am Report this commentIt's a political disaster for Brown as it both undermines his whole political approach and his electoral strategy.
It's difficult to see how it could be worse.
A small chink of light that shows what are clearly furious rows about the approach to the economic crisis taking place at the heart of government. Brown is clearly prepared to spend whatever it takes, racking up whatever level of debt is needed in order for a futile attempt to both rescue his reputation and political career.
How often in the past has the Governor of the BoE so openly opposed the government economic approach? Followed to it's natural conclusion King may have to resign.
michaelm
March 25th, 2009 10:02am Report this commentA slogan for the Conservatives
BROWN'S BANKRUPTED BRITAIN
Ian C
March 25th, 2009 10:06am Report this commentDarling has now been handed the knife with which to assassinate Brown. His political death is coming and it will be at his own Chancellor's hand.
RobertD
March 25th, 2009 10:12am Report this commentWhat's the point of a regualtor if they resign at the first wiff of confrontation with the regulated. If Brown wants his way he should have to come out into the open and sack the Governor and accept full responsibility for the situation.
Bluebottle
March 25th, 2009 10:25am Report this commentIsn't there someone missing in this spat between King and Brown? Where is Alasdair Darling in all this? Isn't he still supposed to be Chancellor of the Exchequer? Doesn't he have a view or has he ceased to matter? I haven't seen one mention of him anywhere.
Sir Graphus
March 25th, 2009 10:49am Report this commentFunny; Merv King even looks a bit like Geoffrey Howe.
Doug
March 25th, 2009 11:02am Report this commentI welcome the comment about no more spending but for those of us on the right wing King also said there is no room for tax cuts. And he's right in the short term.
Wily Trout
March 25th, 2009 1:14pm Report this commentI see this morning's gilt auction failed. Will Brown step off the airplane and say, 'Crisis - what crisis'?
Back to top