Straight from the Banker’s Mouth
So there we have it straight from the banker’s mouth — Mervyn King, Governor of the Bank of England has told a British TV channel we — all of us — are living through the biggest financial crisis the world has ever faced.
That is, not the worst in 60 years, not the worst since the Great Depression of the 1930s, but simply the absolutely worst crisis ever in mankind’s whole entire history. What is more he says, it has been this way for the past three years and there is no sign of any let up.
Indeed the good Governor adds that not being a crystal ball gazer, he has no idea how much longer we will have to endure the financial and economic pain.
The world, he implies glumly, is in a desperate, dire, dangerous state and savers and retirees will pay the bill as Central Banks inflate away the massive investment-bank-created/spendthrift-political-policymaking-encouraged debt. Standby for no let up in negative interest rates on savings accounts and runaway Weimar Republic-style money printing, disguised, euphemistically as “Quantative Easing” (QE).
If you hold any assets in pounds sterling you will unlikely be welcoming of the £75 billion of value-eroding currency the governor just dumped into the system “to save it”. (He means of course he has succumbed to the moral hazard — nay blackmail — imposed since he and his ilk socialised rather than letting them fail, the losses of unrestrained and untamed US/UK and now EU banks after their directors perniciously captured regulators, lawmakers and financial authorities). Worse there is no guarantee he won’t have to QE us all again and again and ahead of the inevitable Greek sovereign debt default, his counterpart in the United States will likely soon join this appalling erosion of sound money theory.
Meanwhile Euroland banks have started to go belly up — the Belgian, Luxembourg and French governments taking a major hit with the bankruptcy of Dexia Bank ( Dexia isn’t just a Franco-Belgian basket case; it’s your basket case too).
Also France, though she vehemently denies it, is working on a plan to nationalise several banks in the system — France Working on Contingency Bank Stakes Plan, Figaro Says though of course the terminology that Eurocrats now prefer to use is “recapitalisation” schemes — a euphemism, let us assure you, for nationalisation. Oh yes and of course “recapitalisation” is also a further charge on us, you dear reader and me, and all taxpayers, for where else will government’s get the funds for yet more banking bailouts? Now do you see why the Greeks are revolting!
“This is undoubtedly the biggest financial crisis the world economy has ever faced” – Governor of the Bank of England (see three minutes in on the video).
Thanks Banksters! Do share with us — in the comments — your own views of (or even, if you dare, support for) this shoddy shower.
Footnote: ”How should the euro zone solve its currency crisis? European capitals are currently preparing to inject fresh capital into their banks with some economists arguing that saving financial institutions would be cheaper than propping up entire countries”, Der Speigel reports here. Additionally should you need an argument for why banks should be allowed to fail — rather than blackmail (via moral hazard)– read this pertinent blog: The Case For Allowing Banks to Fail
Update: Now there are signs that Greek Armed Forces are taking a closer interest in the way the Pasok-led government is handling the Greek crisis. As we reported earlier at least one UK economist warned recently that military coups should not be ruled out if Europe’s citizens decide the financial ruin wreaked by political and banking elites has gone too far.
- Debt crisis: as it happened – October 6, 2011 (telegraph.co.uk)
- Financial Headlines from The Telegraph, UK (jhaines6.wordpress.com)
- The Pound declines, falling over one percent against the Euro exchange rate (torfx.com)
- Mervyn King: this may be worse than the Great Depression (talesfromthelou.wordpress.com)
- Bank of England increases QE by £75bn (cnn.com)
- Business blog live: Moody’s cuts Lloyds and RBS credit ratings (guardian.co.uk)
- Governor of Bank of England- World facing worst financial crisis since at least the 1930s “if not ever” (truebluenz.com)
- Bank of England hits the panic button (telegraph.co.uk)
- 24 Hours Short of Total Disaster
- Bungling Politicians bring Euro to Breakpoint
- EU Sovereign Debt is Not Risk-Free
- Euroship Holed Below the Water Line?