Mar 23

Some good news for Britons what happened in Cyprus and what was proposed cannot happen here. This is because it already has. claim since 2009 the Banks have benefited/stolen/been handed £200 Bn by the suppression of interest rates. A big haircut.

We are still pouring in what conservatively £75 Bn a year plus QE into our banks -> in the form of loan guarantees, insuring their deposits for free, low rates to allow savers and borrowers to be ripped off, paltry fines for criminal behaviour, allowance of borrower rates loan sharks would be embarrassed by etc etc.

The £ itself has shrunk 15% and is set to fall further (were I over dramatic I’d say plunge) even as we run short of energy which is also rising in price. When fuel prices spike that is a further hair cut for people facing an effective inflation rate of more than CPI/RPI.

That we have not had a single crisis and the middle class still suffer money illusion from their house prices does not mean we’ve not had a more severe haircut than 10%. We’ve had 15% from the currency alone.

Indeed without the safety net of the Euro and an economy in thrall to Banking and House Prices as wealth creation stagnation maybe a dim hope for most Britons.

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