Mervyn King Attacks Fellow Bankers, But Talk is Cheap

By: Nadeem_Walayat

Mervyn King one of the key people behind the failure to regulate the out of control banking sector, the bailout of which risks bankrupting Britain Iceland style as the budget deficit continues to mushroom higher towards £200 billion for the current the fiscal year the consequences of which will trigger a double dip depression for Britain, uttered more words against his fellow bankster's, but as we have seen talk is cheap or rather worthless if not backed up by any real action to hold the bankster's to account.

Mervyn King stated at an Edinburgh meeting of business people that the current regulatory arrangements were impractical and that it was hard to see why government support could not be limited to retail, or utility, banking.

"Anyone who proposed giving government guarantees to retail depositors and other creditors, and then suggested that such funding could be used to finance highly risky and speculative activities, would be thought rather unworldly. But that is where we now are,"

"Our national debt is rising rapidly, not least as the consequence of support to the banking system.

"We shall all be paying for the impact of this crisis on the public finances for a generation."

"To paraphrase a great wartime leader, never in the field of financial endeavour has so much money been owed by so few to so many. And, one might add, so far with little real reform."

A Bankster's Paradise

Meanwhile Mervyn Kings Bankster colleagues are planning to pay out billions of tax payer funds as bonuses following the black mailing of the British Government into engineering a tax payer funded banking system that through several measures allows the banks to make huge profits without ANY effort i.e. commission on selling government debt, the spread between zero interest rates and retail interest rates widening to an obscene level as the below graph illustrates, and not forgetting direct tax payer support in the form of capital injections and the offloading of bad debts onto the tax payers to the tune of £1.4 trillion.

Unfortunately NO political party is willing to hold the bankster's to account for their crimes against the British people, which just illustrates that the real power of the land does not lie in Westminister or in the hands of voters but remains in the hands of the parasitic banking system which is designed to turn everyone, including individuals, corporations and the government itself into perpetual debt slaves!

Even die hard socialists who in years past pumped endless reams of one way propaganda have been hoodwinked into believing the garbage that the banks are too big to fail and to this day continue to spout this nonsense whilst failing to see beyond their noses as to what has transpired over the past 12 months, namely unlimited tax payer monies funneled to the bankster's in exchange for near unlimited tax payer liabilities, all under the mantra of the banks being too big to fail!

Britains Growing Debt Mountain

The Governments budget deficit i.e. net borrowing came in at £15 billion for September, £15 billion in recent years would be the amount the country borrowed on an annual basis let alone a single month which runs to an annualised £180 billion. The current total public debt (PSND) at approx 70% of GDP is NOT at crisis levels, what is at crisis levels is the BUDGET deficit of £180 billion per annum which expands the debt at over 14% of GDP per ANNUM!, it is this which sets Britain on the path towards bankruptcy. Therefore the sooner the government acts, the lower will be the eventual pain as less debt will have been accumulated and the lower the risk of waking up one day in the not too distant future to a Black Wednesday as Financial Markets dumping sterling, UK bonds, stocks and assets Iceland style.

The Conservative party announced cuts of £7 billion at their party conference which is again just a drop in the debt ocean. My Analysis clearly shows that it would require an additional £50 billion a year of spending cuts and tax rises to bring the deficit to under 6% of GDP, £7 billion is not going to do anything.

The politicians following their academic economist guru's continue the mantra of saddling the next generation with debt. However as I have pointed out repeatedly it is not the NEXT generation that will pay the price but THIS generation, because the financial markets are not going to hang around and wait for the children in nursery schools to grow up and take up the debt burden, the markets tend to act in the PRESENT on the basis of FUTURE expectations!

UK Economy Election Bounce into Double Dip Recession

Gordon Brown's prime objective of achieving an strong economic bounce into May 2010 is coming to pass. My on going analysis confirmed a bounce into a May 2010 general election as long ago as February 2009, with more recent analysis confirming this outlook (UK Economy Set for Debt Fuelled Economic Recovery Into 2010 General Election)

Whilst the OECD and other mainstream organisations / press have been busy in recent months revising their economic forecasts, my forecast remains as is and continues to project towards post general election tax hikes and deep public spending cuts that will in my opinion trigger a double dip RECESSION, even DEPRESSION 2011 to 2012 as illustrated by the graph below.

To find out what I expect to transpire over the NEXT 5 years subscribe to my always free newsletter to receive this research in your email box when complete.

Source: http://www.marketoracle.co.uk/Article14388.html

By Nadeem Walayat
http://www.marketoracle.co.uk

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Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on the housing market and interest rates. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 400 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

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