Has one of the big banksters been caught telling the truth? The Governor of the Bank of England admits the UK is facing what could be its worst financial crisis ever

 

By David Noble

None other than Sir Mervyn King governor of the bank of England has confirmed what many of us already knew, That this is the most serious financial crisis the country has ever faced. David Cameron is said to be livid with him after sending out a message to bring on the can-do optimism just 24 hours before. Well I am sorry Mr Cameron I disagree, we can’t do. The way I see it we have 2 choices which are the equivalent of dying by a quick death (Default on the debt and prosecute those responsible for creating it, being my choice as this debt is not ours in the first place) or dying a long slow painful death (by continuing with these outrageous austerity measures and supporting the banking industry until total collapse is achieved). Ask anyone who is being tortured which one they would choose. No matter what, we are facing a painful uncertain future.

According to Mervyn Kings own figures the bailout of the UK banks in 2008-2009 cost £1.3 trillion. Despite this bailout it seems the banks are once again in trouble. So where did this bailout money go and why has it not solved the banking crisis? Let’s start by looking at where this money went, well Stephen Hester of RBS (Royal Bank of Scotland) got £11million last year. Not a bad reward for failure when in any normal job you would be facing the sack. But as you might now be realising, those with jobs at the top of the banking industry don’t have normal jobs. Despite being bailed out by the tax earners hard earned money bringing hardship onto the rest of us these chaps are still living the good life. Something like 13billion of the bailout money was paid out in bonuses to the very people who have put us in this mess while the rest of the money disappeared into the bowels of the financial institutions.

Now that there are no longer enough public money to bailout these criminal banksters once again, they have come up with another answer. The bank of England will simply create more money (75 billion of QE) While this may sound like a good idea, it’s not. The last round of quantitative easing (QE1) placed £200 billion in the banks accounts in 2009. The downside to this is that it increased inflation to 5% which is what always happens when governments print money. So while the bankers are paying themselves huge bonuses the rest of us are made even worse off. Why is it that all the answers to this financial mess that we find ourselves in seem to make us poorer while those responsible for the problems get richer?

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