Friday, June 15, 2012 – by Staff Report
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Bank of England
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It comes after sharp rises in the costs of mortgages and other loans in recent months as banks struggle to raise money in the midst of the single currency crisis. Sir Mervyn King, the Bank of England Governor, said that the "industrialised world have thrown everything bar the kitchen sink" at the global economic meltdown but that even "bolder action" was now required. – UK Telegraph
Dominant Social Theme: Britain is taking bold action by providing banks with electronic credits they don't deserve and have not earned.
Free-Market Analysis: The Internet has surely helped focus the mind on the insanity of central banking. Now, when we read articles like this, we can translate them immediately.
Mervyn King claims that banks need the aid of the British central bank that he runs and he is prepared to provide banks with additional resources for the good of England, the stability of the system and the solvency of the individual British working family.
Let's translate, shall we? ... In fact, King is about to provide Britain's insolvent banks with a good deal of additional electronic capital. The entire event of recapitalizing these banks shall likely take about ten seconds.
Let us have some more, Sir! We want King to recapitalize us as well. What we understand from King's announcement is that if one makes a bad business mistake and one is a certain kind of bank, one can receive tens of additional millions with the press of a button. Here's some more from the article:
In the annual Mansion House speech in the City, the Chancellor said he was no longer prepared to "stand on the sidelines" and that the radical new "bank funding scheme" will be launched within weeks.
Middle–class incomes at 2005 levels due to inflation and taxes
"We are not powerless in the face of the euro-zone debt storm," Mr Osborne said. "We can deploy new firepower to defend our economy from the crisis on our doorstep. Funding for lending to the family aspiring to own their home and the business that wants to expand...The Government - with the help of the Bank of England – will not stand on the sidelines and do nothing as the storm gathers."
He added: "We are rolling up our sleeves and doing everything possible to protect British families and firms."
The bank funding scheme will allow high-street banks to temporarily "swap" their assets, such as their mortgage books, with the Bank of England in return for money they can loan to customers. It is estimated this could support up to £80bn in new loans.
The Bank of England will on Friday also activate an emergency scheme that offers six-month liquidity to banks in tranches of no less than £5bn a month.
The euphemisms are incredible, aren't they? King is "rolling up his sleeves." He's going to deploy new "firepower." He's "protecting" British families.
No, he's doing nothing of the sort.
He's pressing a button.
And by pressing that button, he's funneling electronic digits to certain cronies running certain banks that are busted. They are busted because of a stupid, corrupt system of monetary stimulation that inevitably leads to recessions and depressions.
Monopoly fiat central banking is nonsense, pure and simple. The Austrian School, if it did just one thing (and it has done much more than one thing), deserves our thanks for explaining how this monstrous system works and why it deserves to be done away with. Finish reading @Source The Daily bell
