Money Week reports that the British Pound is headed for a fall, Max Keiser goes into greater detail on this. Given that treasury yields are at a 300 year high there will follow an inevitable decline and when that happens interest rates WILL GO UP.
Whilst mortgage rates are set by the government at 10% below the market rate (if I want to borrow for my business the rates on offer are between 10 and 12.5%).
Banks are just not lending as the Daily Mail reports:
The failure of high street banks to lend to consumers is highlighted by the fact that 82pc of net mortgage lending in the six months to the end of September was accounted for by one institution – the Nationwide.
The reason is that the UK is up to its eyeballs in debt over 700% of GDP taking government, banking and private debt altogether, only Ireland and Japan are more endebted.
The new Chief at the Bank of England has been appointed and he is a graduate of Goldman Sachs (as even reported by the BBC) this is the very Goldman Sachs who are operating the vulture funds over Greece and many other European nations. On the basis that the worse it is going to be the better we are told it is going to be then this new appointment is going to be awful. Expect a ramping up of 'quantative easing' otherwise known as money printing.
Money printing devalues your pensions, investments and savings whilst giving free money to banks to lend out or rather to fill black holes in their balance sheets with.
It is no surprise that the UK is now looking to Jersey amongst other places to squeeze every last penny it can, as we have previously reported, just two days ago in a sort of prophetic posting, all this will achieve is an end to the finance industry in Jersey.
So with the new Work and Housing (Jersey) Law due to come in Tom Gruchy interviews David Warr of the Chamber of Commerce
What is missed out is that there is a vast unproductive pool of labour which, instead of acting as a parasite on the backs of the hard working people of Jersey, could be used in productive employment instead, to fuel future economic growth: the whole Civil Service, Parish staff and Quango staff which employ 50% of 'workers' in Jersey, but not in a productive manner. This would have a double effect on productivity as it would reduce the administrative burden caused by the over-regulation from the private sector.
When the finance industry leaves (or gradually drifts off) to Singapore we will have no choice (finally) but to re-examine the profligate waste that is our government, with hyper-inflation leading to higher interest rates and a property crash just around the corner the future liabilities of the both state and public sector pensions will be reduced in real terms, (States pensions are no longer index-linked).
Jersey can of course get itself out of this, slash landing fees, remove GST, decimate government several times over... basically undo everything that has been done under Bailhache, Walker and Le Sueur and go back to being a duty free shopping destination. Which of your elected representatives are up to the challenge? I suspect that Senator Farnham may be on the same song sheet.
My prevailing memories of those times is that everyone was happier than they are now, what's your priority? A happy society or an enslaved society beholden to a small rich persons club?
I think that rather than have to make a decision the majority will simply continue with head in the sand, things can only get better mentality because the voters prefer the delusion to embracing the necessary changes whilst others will beat the 'tax the rich and spend more on bigger government' drum.
Being able to say I told you so, as I have for the past seven years, gets very boring, very quickly. There is a better way and there can be a happier society in Jersey.