Busted: Bankers and The Global Economy

January 23, 2008

Bank of England Politics Among Uproar

“Reductions in the Bank Rate in two successive months might, given the current conjuncture, encourage observers to think that the Committee was focused more on stabilising demand than meeting the inflation target.”

“Mervyn King, the Governor of the Bank of England, who gave warning last night that the UK economy faced its toughest period in more than a decade during 2008.”

London Times Article by Grainne Gilmore

“He gave warning that the Bank was hamstrung in its ability to counter the slowdown because soaring food and energy costs were putting pressure on inflation.”

London Times Article by Gary Duncan

“The US Federal Reserve was accused today of acting recklessly with its dramatic slashing of interest rates.”

London Times article

The Bank of England and most of the Federal Reserve Banking System are struggling in the wake of the subprime loan debacle in the United States. When banks must write-off bad loans, the repercussions are huge because of their accounting system. These write-offs result in dramatic curtailing of the money supply and gradually-spiraling inflation. This is a result of the banking policies themselves as well as the fact that the fiat money the Federal Reserve creates is not based on a gold standard, but on fabricated value. ~ E.M.


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