Whoaoaaaa.... absolutely right Sleepe....
Every bank CEO should be held accountable and charged with some sort of criminal neglect and fraud over the lending practices throughout the last decade.....
And now, on top of all their fees and charges to announce that they will probably raise interest rates themselves to cover their boodgie lending practices and criminal neglect is surely the greatest insult.
OK. I've got to go back a fair few years.... but this is what I got taught in Economics 101.....
The creation of wealth without the creation of any fundamental physical production is a root cause of inflation....
ie .... the printing of money..... the issuing of credit etc....
{Worth a read....}
http://www.futurecasts.com/Understandin ... ation.html
Quote:
Monetary inflation is actually a tax by which government - by expanding the money supply - transfers wealth from its people to itself. Indeed, inflation is perhaps the most destructive tax that can be imposed - but unfortunately it is the easiest one for a government to impose on its people. It also results in the transfer of enormous amounts of wealth from the hands of ordinary people to the hands of those speculators shrewd enough to take advantage of the price volatility inflation causes in the markets.
Quote:
"Monetary inflation" is simply the artificial expansion of the money supply, and is historically the primary engine of inflation. It pleasantly enables demand to increase before any increase is produced in supply.
We have fueled an economic boom based on the capacity to pay by credit.....
We have purchased real physical production with "virtual" money.....
If the banks or the system were to implode to the point that debt repayment was required to physically pay for the credit extended....
There wouldn't be enough "physical" money available within the system to actually meet the demand/requirements.....
We'd have to print money... and wheel it around in a wheelbarrow.....
History has seen this happen in individual countries, but we are now at a stage where the entire global banking system is bankrupt.
To cover their backsides the banks will make us pay with what real hard currency we've got.... and will suck harder than a vampire...
IMHO.... it is the banks themselves rather than just the government who have been responsible for the "monetary inflation" of the last decade.....
And I think it's coming home to roost.
Backyard Aquaponics
.... didn't take Turnbull long to clamber over the dead and dying bodies and out of the train wreck did it.....
