Gold Investment Index Page

Contents
Main Page
Krugerrands
Krugerrand Information
Krugerrands For Sale
Sovereigns
Sovereign Information Sovereigns For Sale
Year 2000 Sovereigns
Gold Bars
Bars Information
Bars For Sale
Half Sovereigns
Half Sovereign Information
Half Sovereigns For Sale
Year 2000 Half Sovereigns
About Us
Our Selling Terms
Order Form UK
Order Form USA

Copyright Theft
Perhaps we should be flattered by the number of people including dealers who continually infringe our IP (Intellectual Property) rights by using our copyright images, but we do not find it amusing, and will take legal action against any copyright thieves.

Best Way To Invest bestwaytoinvest.com
Best Way To Invest bestwaytoinvest.com, Units A B 18F, Wang Cheong Building, 249-253, Reclamation Street, Yaumatei, Kowloon 00000, Hong Kong
via their website, claim:

Is Gold Still a Good Investment Now That the Election is Over and the Bailout is Happening

David Leja
The Bank of England (BoE), nicknamed the “the Old Lady of Threadneedle Street,” is over 300 years old. Contrary to its name, however, it has evolved since its inception to match rapidly changing, and sometimes highly adverse, macroeconomic conditions to become the modern institution it is today.
Birth of the BOE
By the middle of the 17th century, the British saw the potential for an increase in global trade. To facilitate a commercial revolution, however, they needed liquidity. They drew inspiration from their longtime global commercial rivals the Dutch (specifically, Amsterdam’s Wisselbank) whose sophisticated banking system had brought the Dutch lowlands to pre-eminence in the economic order of that day.
The argument for the BoE was strengthened by financial desperation on the part of the British government. A series of wars left Britain financially destitute. A widely respected private merchant, William Paterson, offered to become the government’s central banker and rescue it from financial collapse. In return for a Royal Charter, he granted a loan of 1.2 million pounds through the Bank. The money-starved British government would require an accompanying loan with every charter renewal. As time went on, the Bank of England loaned more money to the constantly warring British government, and became more and more deeply indebted to its bankers.
The BoE also had rights as a commercial bank. Its duties ranged from financing trade endeavors to taking in deposits and issuing currency. The Bank proved crucial in the English acceptance of “credit,” an innovation still in its infancy at the time.
The Revolution of Credit
The early 1800s constituted the formative years of the BOE.
1994 bank Of Englnad (sic) Commemorative Gold Two Pounds
From 1756 to 1815, Britain was on a full war footing more often than it was at peace. First, it fought the Seven Years’ War with France. Although France was devastated, Britain’s major prize of North America revolted only 15 years later, dragging Britain into another costly war with France and the colonial rebels. Six years later, the French monarchy went bankrupt, and the new French government declared total war on the rest of Europe. From 1789 to 1815, the British state, already stretched perilously thin, was pushed to the brink of bankruptcy.
As the war with France pushed Britain to the breaking point, the BOE began inflating the currency. Smaller banks also issued their own notes. Inflation skyrocketed, and public confidence in banking institutions weakened. As weaker banks defaulted, widespread panics and crises followed.
These pressures were confronted first in 1833 when the BoE’s notes were made legal tender; they would be guaranteed by the British state, reassuring the public and restoring confidence in the system. The 1844 Bank Charter Act established a BoE monopoly on inflation, banning smaller banks from issuing their own notes. The Act required that each bank secure any deposits at more than 13 million pounds with gold. These measures went far to restore sagging confidence in the British banking system, and were also quite ahead of their times; only a few years earlier, American banks had independently issued their own notes, and blown up in a massive inflation and liquidity bubble and caused the sharpest contraction of the first half of the 1800’s.
As for the numerous banking crises of the mid-19th century, the BoE responded when they bailed out Baring Brothers in 1890 which was on the verge of insolvency after making bad investments in Argentina , with a 17 million pound loan. They averted a n economic catastrophe that arguably would have collapsed the entire English private banking system, much like Long Term Capital Management would more than a century later. The BoE’s adroit crisis management gave it enormous credibility as an anchor of stability at the high tide of the Industrial Revolution.
Modernization
By 1946, the BoE had all the makings of a central bank. Its functions included preserving both monetary and financial stability. Most of the Bank’s interests were out of the commercial business, especially after taking on the task of rebuilding post-WWII Europe. It was nationalized by an act of Parliament.
By this time, the pound had been taken off the gold standard. Both gold and foreign exchange reserves were held by the Treasury. The BoE was the Treasury’s adviser, agent, and debt manager. The Bank had little autonomy; it was among the least independent of the major central banks until 1997.
As post-war controls were lifted in the 1950s, an interest in monetary policy took off. The high inflation of the 1970s and 1980s, along with the rise of Milton Friedman’s Monetarism, catalyzed renewed interest in monetary policy. This movement resulted in the introduction of monetary targets in England. Yet, the responsibility of price stability had yet to be assigned. It was delegated among many government agencies. But in 1997, the government announced that it would transfer full operational responsibility for monetary policy to the BOE.
This action in 1997 gave the Bank the ability to manipulate interest rates. Having gained operational independence, many of its responsibilities had to be transferred to government agencies. The government debt management along with cash management had to be transferred to the UK Debt Management Office. Regulation and supervision of the banking industry was given to the Financial Services Authority. The BoE’s only roles would include stable monetary policy and financial stability being England’s lender of last resort.
Today, the decision to set interest rates resides in the Monetary Policy Committee. It consists of the governor, two deputy governors, two executive directors, and four outside experts. At the moment, Mervyn King leads the Committee.
The BoE is mandated to keep prices stable and to maintain confidence in its currency. It accomplishes this through an inflation target of 2%. Any figure above this target will result in a restrictive stance by the BoE; anything below will require an accommodative move. The BoE meets monthly to discuss monetary policy while consulting the CPI as their measure of inflation.
Even though the BoE has been “independent” since 1997, there are provisions that challenge this. As it turns out, interest rate decisions are not entirely up to the BoE. If “in extreme economic circumstances” and “for a limited time period”, the government can overrule the Bank. This option has never been exercised and it is highly unlikely that it will.
Another challenge to the BoE’s independence is the set inflation target. They have no jurisdiction therefore must comply to the chancellor of the Exchequer’s standards (the equivalent of the US secretary of the Treasury).
This website and its content is copyright of BestWaytoInvest.com - © BestWaytoInvest 2009. All rights reserved.

Domain Lookup

Domain Name: BESTWAYTOINVEST.COM
Registrar: MONIKER
Registrant [1591433]:
Brad Shulman bshulman@mywealth.com
Online Courses LLC
32 Old Slip
Floor 10
New York
NY
10005
US
Administrative Contact [1591433]:
Brad Shulman bshulman@mywealth.com
Online Courses LLC
32 Old Slip
Floor 10
New York
NY
10005
US
Phone: +1.6466661605
Fax: +1.6468628854
Billing Contact [1591433]:
Brad Shulman bshulman@mywealth.com
Online Courses LLC
32 Old Slip
Floor 10
New York
NY
10005
US
Phone: +1.6466661605
Fax: +1.6468628854
Technical Contact [1591433]:
Brad Shulman
Online Courses LLC
32 Old Slip
Floor 10
New York
NY
10005
US
Phone: +1.6466661605
Fax: +1.6468628854
Domain servers in listed order:
PDNS3.ULTRADNS.ORG
PDNS2.ULTRADNS.NET
PDNS5.ULTRADNS.INFO
PDNS6.ULTRADNS.CO.UK
PDNS1.ULTRADNS.NET
PDNS4.ULTRADNS.ORG
Record created on: 2006-06-13 15:36:03.0
Database last updated on: 2009-03-16 01:44:35.65
Domain Expires on: 2010-06-13 15:36:03.0

Pseudo Expert Advice Site
We believe that Best Way To Invest bestwaytoinvest.com is one of a rash of pseudo expert advice websites which have appeared in recent years. Most of them fail to clearly state who operates them, what expertise or qualifications they possess, and we believe all such sites should be treated with caution if not suspicion.

Copyright Notice
Please see our "Copyright" page for further information.

Copyright Infringements Remedies
Our suggested draft remedies for copyright abusers dependent on category - competitors, bloggers, pseudo-expert & advice sites acting as eBay & Google portals, eBay & other auction site sellers.

Other Copyright Abuse

Other Copyright Abuse

Our Images
We have shown our own image of a Rothschild 50 Gram gold bar so that you can compare.

Our Opinion
We have a very low opinion of other dealers who steal our images, and use them to compete with us. It is dishonest. We could sue these people, possibly for thousands of dollars, but it costs time and money, and even though we would win and be awarded costs, we might not be able to recover the costs if the copyright thieves turned out to be impecunious or insolvent. That's why we have decided to give these crooks some free advertising our our website, something which we do not normally provide even for payment.
Best Way To Invest.Org are not dealers, so we are more restrained in our thoughts about them. It does appear to us, however, that the site is unlikely to be run purely for the benefit of the public, and we presume that it is financed by income from advertising, links, sponsorship, or similar, in which case, it is a commercial site.

Other Web Sites
All comments about copyright also cover content of all our other websites including, but not limited to:-

Best Way To Invest bestwaytoinvest.com
Best Way To Invest bestwaytoinvest.com Buy Gold Bars Page

Our Images
Our 1994 Bank of England Tercentenary Gold Proof Two Pound Coin Obverse Photograph
Our 1994 Bank of England Tercentenary Gold Proof Two Pound Coin Obverse Photograph

 


"Tax Free Gold" website is owned and operated by Chard (1964) Limited
32 - 36 Harrowside, Blackpool, Lancashire, FY4 1RJ, England. Telephone (44) - (0) 1253 - 343081; Fax 408058;
E-mail: Contact Us  The URL for our main page is: taxfreegold.co.uk

EV SSL Certificate