Outspoken island businessman and author Jim Mellon claims Bank of England governor Mark Carney should be fired.
Mr Mellon, 59, says UK prime minister Theresa May should ‘fire’ the Canadian for ‘stupidly’ cutting interest rates.
The Isle of Man resident adds: ‘I am happy to write a short piece for Mrs May if she summons me (in my dreams!) on just how we can turn the UK into the world’s fastest growing major economy, but the first thing she needs to do is to exile Mr Carney.’
Mr Mellon is in the SundayTimes Rich List with wealth estimated at £850 million, and is director of the Isle of Man based Burnbrae Group.
In a hard-hitting ‘Mellon on the Markets’ article for Master Investor, an emagazine for investors and traders, Mr Mellon describes the Bank of England governor as ‘Mark Carnage.’
Last month the Bank of England slashed interest rates to a new historic low of 0.25 per cent
Mr Mellon says: ‘Inflation may appear to be low, but if you are a consumer of services, or of housing, or of coffee shop time, or of public transport, you will not find it to be so.
‘Sure, electronic goods and textiles have been falling in price (not any more though!) and this has masked the true rate of inflation, which is much higher than the official stats suggest.
‘This is why Mark Carney should be fired – at once, preferably.
‘I talked about the plague and curse of academic/investment banking central bankers at the MasterInvestor Show [in London] this year, and how they were manipulating economies into long-term stagnation with their ever running printing presses and distortion of the Wicksellian rules on the true rate of interest and allocation of capital.
‘Well, Mark Carnage is at it again. He has stupidly cut interest rates and reinstated QE at a time when he should be raising interest rates and selling bonds. He left Canada in an almighty mess, and he’s going to do it to the Brits unless Theresa May gets rid of him.
‘What the British govern -ment should be doing is borrowing as much as they can – possibly as much as £1 trillion – at 1 per cent for 100 years, then use the money to cut taxes (corporate tax to zero) and to kick-start infrastructure and really improve education.
‘And by education, I mean continuous education throughout life, because the modern world demands it.
‘We all need to embrace a process of updating our skills; otherwise those darn robots are going to turn us into redundant proles.’
Mr Mellon was writing the article on the train from Edinburgh to London, having just made his 30th visit to the Edinburgh Festival.
He said: ‘Every year, the Fringe gets bigger and wackier, and every year the ticket prices go up – in fact, quite a lot!
‘This ticket price inflation contributes to a noticeable change in the demographics of the audience – i.e. they are getting older (as am I!).
‘When I first started going, tickets were generally a pound or two, and now they are between 10 and 15 pounds.
‘Young people simply can’t afford them, so apart from being denied decent affordable housing and a free education, they are also denied culture.
Mr Mellon praises Janet Yellen, chairman of the powerful board of governors of the American Federal Reserve.
‘Mrs Yellen seems to get it – the world needs interest rates to go back to “natural” levels.
‘This needs to happen before savings are destroyed, productivity goes even further down the tank than it is, and capital stock erodes with old age.
‘I’m pretty sure there will be another interest rate rise in the US this month’.
The full article is at Master Investor.-