JUST SO WERE ALL SPEAKING FROM THE SAME PAGE... - The Bank of England digitally creates £375 billion out of thin air... - It gives this £375 billion to large banks across four years so as to encourage lending... - None of them lend... - So the Government underwrites a brand new financial product: the 95% mortgage (if you think you recognise this product from before the financial crisis you must be mistaken. The Treasury would never be so stupid as to risk exactly the same mistakes as the last decade. Besides, the global financial crisis was caused by the UK government paying too much to nurses, teachers and the disabled)... - So the Government both prints money out of thin air, and then takes on the risks of lending that money... - Suddenly all the banks can afford to lend again... - So people are borrowing money that doesnt exist to buy houses they cant afford... - House sales rise in London and the South-east (no one really cares what they are doing in the rest of the country)... - The Government taxes people spending the money that doesnt exist on houses that they cant afford... - Treasury stamp duty receipts increase by 46% for October 2013... - All these new tax receipts (from the spending of money that doesnt exist) now means that Government borrowing is going down (doesnt it?)... - House prices rise in London and the South-east (no one really cares what they are doing in the rest of the country)... - The entirely independent Office for National Statistics looks at the figures and announces that the whole country must now be in sustainable economic recovery... - The UK responds by voting in another Tory government and votes to leave the EU for good measure (because stupid Europeans dont know how to manage their economy properly)... None of this is actually true. If it was, the BBC would have said so.
Posted on: Thu, 21 Nov 2013 11:16:22 +0000