Author Topic: The Government is robbing us!  (Read 3067 times)

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The Prophet

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The Government is robbing us!
« on: November 02, 2015, 01:35:16 pm »
Low interest rate theft
The Bank of England must see it has been a mistake to push down interest rates so low for so long.
The Bank of England has says Bill Bonner in MoneyWeek. “not committed an error, it has committed a crime. Theft and fraud being the ones that spring to mind, though a good prosecutor could probably include counterfeiting and embezzlement too! Throw in money laundering and conspiracy and they are looking at 10 to 20 in the big house.”

So savers young and old are being financially penalised for being prudent and planning for their future. Are we savers not entitled to recompense? Instead of earning a decent rate of interest on our savings we get the artificially ultra-low rate that is being fiddled by the Bank of England.

This is not just a simple of economics, it is actual theft. Someone who has carefully managed to put away £100,000 in 2007 would have earned £28,000 in interest since then, had the interest rate been 4%. But if he got just 1% (or perhaps even less) he would have got just £7,000!  Where did his £21,000 go?  It went to help those that pay net interest, not those that earn it.

The government debt, I refuse to say National Debt anymore as it has been created wholly by the government, not its citizens, has soared and nothing can stop it. The government pays interest on this huge debt pile mostly to Saudi Arabia and China, so it makes sense to keep the rate it pays as low as possible and let inflation do its thing.

There has been a massive and unprecedented build up of global debt since the supposed end of the financial crisis, with central banks around the world printing the equivalent of $14Trillian. Yet despite their best efforts, that has not (yet) triggered any discernible rise in inflation. This is a huge problem for governments as without inflation the huge national debt they have all built up will end up killing them, so governments around the world have embarked on a race to the bottom to devalue their currencies in an attempt to gain a competitive trade advantage.