• Disrupting Power Since 2015
  • Donate
  • Login
Friday, May 16, 2025
  • Login
  • Register
Canary
MEDIA THAT DISRUPTS
  • News
    • UK
    • Global
    • Analysis
    • Trending
  • Editorial
  • Features
    • Features
    • Environment
    • Lifestyle
    • Health
    • Money
    • Science
    • Business
    • Tech
    • Travel
    • Sport & Gaming
  • Media
    • Video
    • Cartoons
  • Opinion
No Result
View All Result
MANAGE SUBSCRIPTION
SUPPORT
  • News
    • UK
    • Global
    • Analysis
    • Trending
  • Editorial
  • Features
    • Features
    • Environment
    • Lifestyle
    • Health
    • Money
    • Science
    • Business
    • Tech
    • Travel
    • Sport & Gaming
  • Media
    • Video
    • Cartoons
  • Opinion
No Result
View All Result
Canary
No Result
View All Result

Former Bank of England governor admits financial system is broken & another crash is imminent

Elizabeth Mizon by Elizabeth Mizon
29 February 2016
in UK
Reading Time: 3 mins read
162 10
A A
0
Home UK
319
SHARES
2.5k
VIEWS
Share on FacebookShare on Twitter

Former Bank of England governor Mervyn King, who was the head of the UK central bank in the run up to and during the 2008 crash, has written a book in which he states that he is ‘certain’ another financial crash is coming, and soon, due to regulators’ failure to reform the financial system.

Extracts from the book in the Telegraph show King outlining his insights into what the world’s real financial problems are, and admits that crucial misunderstandings and a failure of the ideas that underpin capitalist economies caused the crash. He goes on to say that if the system is not reformed, which he does not consider it to have been since the current crisis began, another will greet us “sooner rather than later”.

A warning such as this from someone of his particular experience and stature is sure to make an impression. Yet, though King might sound progressive in his statement he makes it very much in line with the status quo, and from a particularly privileged position within it. He is proclaiming, from the boardroom, the changes that need to be made in the ivory tower of economic thought; he makes no reference to the actual changes that would immediately and directly benefit the majority of those living on the ground.

King speaks primarily about the disequilibrium (in spending, trade surpluses/deficits/ interest rates etc.) both within and between countries, but offers no recognition of the culture of elitism, corruption and inequity that the pre-crash capitalist system thrived on. He shows no sign of understanding that economics needs reform because of its impact on the majority’s lived experience, or the destruction that it causes.

Since this side of the system was part of the cause of the crash and, as King states, that system has not changed, it is frustrating to read his warning while it lacks any discussion of the unjust, not to mention criminal, exploitative, and deadly elements of the financial system that remain. As pointed out in the blurb for John Kay’s Other People’s Money (our recommended book below) global finance is:

an industry that mostly trades with itself, talks to itself, and judges itself by reference to standards which it has itself generated.

It is interesting too that King says Britain and the US have done a lot to improve their economic resilience, and that the crash may be more likely to happen in China, for example. King reveals that he got his inspiration from a discussion with a senior Chinese central banker, who told him:

We in China have learnt a great deal from the West about how competition and a market economy support industrialisation and create higher living standards. […] But I don’t think you’ve quite got the hang of money and banking yet.

The extent of King’s understanding of people’s need for reform remains unclear. But we can agree on one thing:

To restore faith in capitalism will require bold action – to raise productivity, rebalance our economies, and reform our system of money and banking.

Though, perhaps we have different economic and moral principles in mind.

Get involved!

-Read Another Angry Voice’s ‘teach yourself economics’ reading list.

-Support the Canary so we can keep providing context for breaking news.

Featured image via Jonny White/Flickr.

Share128Tweet80
Previous Post

David Cameron and Iain Duncan Smith unleash Tory propaganda, against each other (IMAGE, TWEETS)

Next Post

French authorities bulldoze ‘the jungle’, but others are offering a humanitarian response

Next Post
French authorities bulldoze ‘the jungle’, but others are offering a humanitarian response

French authorities bulldoze 'the jungle', but others are offering a humanitarian response

David Cameron’s key argument for remaining in the EU just got destroyed, by facts (TWEETS)

David Cameron's key argument for remaining in the EU just got destroyed, by facts (TWEETS)

Zika virus could leave you trapped in your body

Zika virus linked to "diving bell" syndrome: New evidence

Loudmouth Blairite MP tries stabbing Corbyn in the back, but forgets this vital detail

Loudmouth Blairite MP tries stabbing Corbyn in the back, but forgets this vital detail

Tories face Twitter backlash as they ask Brits to ‘Clean for the Queen’ for FREE

Tories face Twitter backlash as they ask Brits to ‘Clean for the Queen’ for FREE

Trump has just sparked another major national security row
Analysis

Trump just sparked another major national security row – not that he cares

by Steve Topple
15 May 2025
The far-right's latest attack on Jeremy Corbyn is its most preposterous yet - with Lee Anderson leading the charge
Analysis

The far-right’s latest attack on Jeremy Corbyn is its most preposterous yet

by James Wright
15 May 2025
Starmer Rwanda deportation plan
Analysis

Just when you thought Starmer couldn’t stoop any lower – he does this

by Ed Sykes
15 May 2025
Jewish anti-Zionists IJAN respond to police ban on protest against Israeli ambassador
Analysis

Jewish anti-Zionists IJAN respond to police ban on protest against Israeli ambassador

by Ed Sykes
15 May 2025
Social Media Activism: How Grassroots Movements Are Gaining Power Online
Lifestyle

Social Media Activism: How Grassroots Movements Are Gaining Power Online

by Nathan Spears
15 May 2025
  • Contact
  • About & FAQ
  • Get our Daily News Email
  • Privacy Policy
  • Cookie Policy

The Canary
PO Box 71199
LONDON
SE20 9EX

Canary Media Ltd – registered in England. Company registration number 09788095.

For guest posting, contact [email protected]

For other enquiries, contact: [email protected]

The Canary is owned and run by independent journalists and volunteers, NOT offshore billionaires.

You can write for us, or support us by making a regular or one-off donation.

© Canary Media Ltd 2024, all rights reserved | Website by Monster | Hosted by Krystal | Privacy Settings

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • News
    • UK
    • Global
    • Analysis
    • Trending
  • Editorial
  • Features
    • Features
    • Environment
    • Lifestyle
    • Health
    • Money
    • Science
    • Business
    • Tech
    • Travel
    • Sport & Gaming
  • Media
    • Video
    • Cartoons
  • Opinion

© 2023 Canary - Worker's co-op.

Before you go, have you seen...?

Trump has just sparked another major national security row
Analysis
Steve Topple

Trump just sparked another major national security row – not that he cares

The far-right's latest attack on Jeremy Corbyn is its most preposterous yet - with Lee Anderson leading the charge
Analysis
James Wright

The far-right’s latest attack on Jeremy Corbyn is its most preposterous yet

Starmer Rwanda deportation plan
Analysis
Ed Sykes

Just when you thought Starmer couldn’t stoop any lower – he does this

Jewish anti-Zionists IJAN respond to police ban on protest against Israeli ambassador
Analysis
Ed Sykes

Jewish anti-Zionists IJAN respond to police ban on protest against Israeli ambassador

ADVERTISEMENT
Lifestyle
Nathan Spears

Social Media Activism: How Grassroots Movements Are Gaining Power Online

Travel
Nathan Spears

Best Destinations In Spain For A Couples Holiday

Travel
Nathan Spears

Surviving Long Layovers: A Frequent Traveller’s Guide