BANKING CRISIS

The crisis panic measures taken between 2007 to 2010 by the Bank of England "to save British banks and the real estate economy" include:
  • lending to banks and semi-nationalization
  • quantitative greasing
  • bank rate of 0.5%
  • stealth devaluation of sterling
Criticism of these actions is best analysed by US critics - see ECONOMISTS, in particular the good economists who have access to independent TV channels.
In Britain, the BBC is a propaganda mouthpiece for government. To view the best take on "the crisis", please look under Journalists at our copies of the KEISER REPORT (Stacey Herbert & Max Keiser).
Begin at the latest recorded, courtesy of Moscow's RT channel.

The increase in the UK's national debt as a result of the above actions is around £ 220 billion [1], creating a 2009 national debt of over £ 1 trillion or 72% of GDP ---

                             *PER UK FAMILY THIS WORKS OUT AS AN ADDITIONAL DEBT OF £ 9,000

Compare this debt to what property owners have grabbed under New Labour

House equity.
In 1997 was- £ 870bn. [3]
10 years later in 2007 it was £ 2.8 trillion

               In the past 10 years, actual real housing assets have not grown very much despite a ten year
               building boom. However the supposed "value" has trebled during this 10 years!! Household
               financial assets have increased by 69% over the period resulting in cozy feel-good liberation
               for lucky millions with property and financial investments, who have watched their average
               household wealth doubling over the past 10 years. Those living in prime locations have seen
               property assets soaring even five-fold.

               Net household wealth (including financial and property assets) is estimated at £ 6.7
               trillion in 2007, i.e. it has doubled since 1997. Housing now accounts for 41% of net household
               wealth, up from 27% in 1997.

UK oldie home owners have collectively trousered an extra £ 2 trillion of equity in their homes since 1997-2007

                            THE TOP FEW MILLION OLDIES HAVE POCKETED OVER £ 500,000 EACH

So much for inflation being kept under control by former Chancellor Gordon Brown. Asset value inflation, i.e. property prices, have risen due to special tax treatment as a BENEFIT for well place oldies, headed by Royalty, Dukes, Archbishops, the rest of the Establishment including MPs and your Lordships and last but not least a few million oldies squatting in the best city and country locations.

For many millions of us, we might as well be trying to survive in an economic Sahara.

                                   Time the piggies' banks -the banks of mum and dad - were prized open.

                The UK economy is their cock-up, so count us out in fixing it. We're looking out for our own
                generation. Their property swindle has been exposed.

               1. They must use this loot to look after their own generations of losers, those millions who they have                      deliberately excluded.

               2. Sweating property assets is not as easy as the swindle of tax free capital gains. Expect property prices                     to fall as they mess up.

               3. This will be hugely beneficial for us.They will be forced to rethink wealth creation. Good idea to give us                     a chance to recycle part of their property wealth into new ventures.

               4. Without being able to count on their soft property gains and future tax free capital, they will have to
                   re-learn how to cooperate, i.e. to pool locally scarce capital and invest in businesses and good local                    infra - which creates real wealth and capital gains that are real.

BanksIt will test them but they are wealthy...

unlike Soviet oldies who lost out over and over again.

Firstly as they built their first industrial economy 100 years ago, secondly as they rebuilt after Nazi destruction and thirdly as they reconstitute after getting burnt within the US and UE global market fantasies.

Since WW2 British oldies have become conditioned (brainwashed) into embracing our own fat, "soviet" nanny. Nanny has seduced millions of middle class "OLDIE-HAVES" away from self help. Previous initiative and sturdiness has been steadily eroded by government interventions. Savings promises, pension mirages, tax "exemptions" and other "financial innovations" are all poisons which accelerate financial power to London.

                 "Devil's wheel"

This has deactivated the banks of Mum and Dad (and Grandma and Granddad). Since 1945 nanny has intervened in everything from diets to motorcycles to steel production and always made matters worse.

               In the so called "social" spheres the best analysis of this home grown disaster is the book
               "The welfare state we're in" by James Bartholomew.

With respect to localized saving and investment to create new local enterprises, wealth and jobs, the state through its intervention, regulation, compulsion and tax concessions has seduced millions of middle class savers into London-centric pension funds with high charges and returns more due to tax concession than wealth creation.

Thus the spring water of local bottom-up new business creation (individual savings) has been cut off. The millions of fountains of local self-help have been nationalized and replaced by a few hundred state supervised pension dams providing high returns for thousands of oldie City advisers and higher penthouse prices along the Thames.

See Samuel Smiles' "Self Help"(1859) which could not have anticipated "nanny states", which would channel savings into highly managed "pension dams". At the same time as ruining local future cash crops, these dams would of course provide gold-plated, index-linked pensions for those, including civil servants, who supervised these dams.

It's a no brainer



Thus co
mpetition is no longer about enterprise (i.e. creating new products, wealth and jobs) but about ensuring that the London-centric dam supervisers get competitive salaries, bonuses, severance packages and gold-plated pensions.