Wednesday, September 05, 2007

The Elephants are Back at the Waterhole

And there you were thinking that although the Americans and the Europeans are up the spout with counterfeit money, good ol' Blighty had managed to avoid the curse of legal tender scrip.

But, alas, it seems we're about to get 'layered' under yet another splurge of non-existent 'wealth', causing further long-term disruption to our economy by fooling entrepreneurs and investors with lower-than-real interest rates, causing them to falsely believe there are more savings in the economy than actually exist, and thereby causing them to build up a really pop-tastic inflationary bubble. If Gordon times it nicely, this bubble may explode just on cue after the next General Election. Good old, Gordon. He's such a card with this 'independent Bank of England' nonsense. What I love about this centuries-old state counterfeiting scam, is the language which wraps it in such a seeming swathe of 'sensible' business speak. Let's try to process this spam back into real terms:

The Bank of England has finally stepped into the liquidity crisis by offering to inject additional short-term cash into the system, but has ruled out taking action to address the escalating problems in the medium-term, three month debt markets.

"Offering to inject" - Crikey! The Bank of England really are heroin pushers, promising the banks who buy Government bonds that it will print up whatever they need, in counterfeit cash, to fool their customers even longer that they invest wealth wisely.

The Bank will provide about £4.4bn into the credit markets next week if overnight rates continue to be "unusually high". If the problem persists it has the option of injecting similar amounts in each of the following weeks.

Now that we've announced this splurge of fake wealth, you guys can all relax and stop trying to fix it yourselves. We'll be along with the wheelbarrows next week. Please help yourselves. Oh, and if that's not enough, we'll be along indefinitely until you're sated with paper. And in the meantime, could you be so kind as to keep buying up Gordon's government bonds so he can keep paying all of his state-client tax consuming parasites with money stolen via the back door of inflation, from tax generators.

The move should "relieve some pressure on interest rates for overnight borrowing which have" in the past month "been unusually high relative to bank rate," the central bank said. "The Bank's objective is that interest rates on secured overnight borrowing should be close to base rate."
"Thank goodness the Old Lady of Threadneedle street has offered to bail us out with all this paper rubbish," said one banker. "It should fool the taxpayers a bit longer, and enable us to have nice big fat bonuses at Christmas, as usual. If they print us enough, we should even be able to buy up some more of that nice Mr Brown's UK government bonds with the same rubbish they give us, less bonus cash, of course!"

Intervention has been long awaited by City financiers, who have accused the central bank of being "Victorian" in its handling of the crisis.
Gladstone used to let the wealth of the people fructify in their pockets. How old fashioned! Much better to steal the wealth of the people via the back door of fiat currency inflation. Make mine a double in "The Old Doctor Butler's Head"!

And so state-fed inflationary growth continues, with young people being unable to buy homes, with real-term wages decreasing, with people needing to work longer into their old age, and with more parents needing to leave their children in the hands of state carers so they can get out and earn enough of this rubbish paper scrip to pay off their mortgages from the same banks who are robbing them via the back door of Bank of England "cash injections".

And just look at those numbers. £4.4 billion pounds! And by the time fractional reserve banking kicks in, that will turn into an extra £44 billion pounds floating around the economy. And they're going to do this every week, until the banks are off the hook. Let's say that's 10 weeks, for fun. That will be an 'injection' of an extra £440 billion pounds into the economy, over a three month period. If that goes on for a year, that would be £2.2 trillion counterfiat pounds appearing as-if-by-magic from thin air, benefiting the City and the Government, but correspondingly screwing the rest of us by exactly the same sum.

Thanks, Bank of England. It's so nice to know you can open the floodgates, whenever you need to, to bail out risky investors from the holes of their own devising, especially those who buy up all those bonds from Gordon. Nice one.

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