The statements from global financial “leaders,” and echoed by mainstream press release mashup teams, were shocking: “There is already intense panic over the solvency of the European banking system.” Jeremy Warner of the Telegraph wrote:“It may seem incredible to most people that, more than four years after the banking crisis began, the banking system remains in need of huge amounts of public funding.”
The European Central Bank's European Systemic Risk Board, which was established in December to manage the level of panic in the system, started to seriously stir up trouble a few days ago in a press release issued after its third scheduled meeting, warning that “there is a rapidly increasing risk of a significant contagion threatening financial stability across the EU.”
Further quotations from various sources include:
We need more firepower to be a circuit breaker!
A new crisis is looming!
We are entering a dangerous stage!
We need a wider firewall!
This is total panic!
And what is the only solution that all these “economists,” “financiers,” “politicians,” and “journalists” who claim to know what's going on can come up with? The continued expansion of the money supply.
To make matters worse, they are not only proposing but demanding further quantitative easing. It is simply a lie for them to suggest that we are “entering” a dangerous phase. We have been in the critical phase of collapse for over 40 years.
UK Money Supply Expansion 1982-2011
As you can see from the graph above, the UK money supply expanded almost exponentially from the early 1980s until 2007. There are a few interesting things to note about this graph.
This clearly shows that UK economic “growth” is not what it should be. Since 1980, the UK economy has “grown” at about 2% per year, or around 60%. However, over the same period the money supply has increased by nearly 400%. So, in reality, the UK economy has completely collapsed over that period.
The peak and subsequent plateau in the expansion of the money supply coincided with the start of the Bank of England's quantitative easing policy. The bank's response to disclosure confirmed that the quantitative easing policy had completely failed. According to the bank:
QE shows up in M4 data as an increase in deposits: if M4 is rising, we can infer that QE is working.
Oh dear. So if QE has failed for the last 4 years, why is it the only solution the banks propose to solve their problems? It becomes hard to find an explanation for the current collapse of the financial system other than that it was deliberate. If so, everyone who works in the City of London should know they are being taken advantage of.
