Bank of England Governor: ‘World facing worst financial crisis ever’

October 10, 2011 by · Leave a Comment
Filed under: Global News 

Governor King is comparing our current financial situation to the 1930’s great depression or worst.  I think he is right and this is going to be much worst than the 1930’s because the size of numbers we are talking about and the 24/7 cycle we are on so that financial pain can be transmitted in nano-seconds.

The major problem that we keep coming up against that many smart people don’t get this that the only road to a real recovery that is sustainable has to involve default of debt.  You can not use debt to handle a debt problem.  Why does the Bank of England think that purchasing Gilts and giving them cash is going to get lending started?  It isn’t and most likely, this is not the real reason for this move.  I think this is just cover for giving their banks cash so they have more reserves and a more robust “firewall” for the crisis.   People just don’t want more debt with their current levels and banks know it is likely going to be worst before we see sunshine.


The Telegraph (James Kirkup) –  Sir Mervyn King was speaking after the decision by the Bank’s Monetary Policy Committee to put £75billion of newly created money into the economy in a desperate effort to stave off a new credit crisis and a UK recession.  Economists said the Bank’s decision to resume its quantitative easing [QE], or asset purchase programme, showed it was increasingly fearful for the economy, and predicted more such moves ahead.

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