Sunday, 17 March 2013

UK: No country is too big to fail

UK: No country is too big to fail

The myth that a country is too big to fail is just a myth as Mervyn King has proven when once again he is in favour of more QE (quantitative easing) = Printing Money to try and re-start the economy by further devaluation of the national currency. This comes at a time when Cyprus is facing bankruptcy and the European Parliament rejected the re-negotiated European Budget because underneath the veneer of pseudo prosperity is the reality that national government are running out of money and running out of options to keep their economies running.

Yesterday, the news that Britons have on yearly average reduced their spending by more than 3,000 Pound came as no surprise but it is undoubtedly a sign that the British economy is contracting and families have reached the limit after being castigated with taxation, budget cuts and price increases. The news that in such financial climate some utility companies, transport companies and banks are making big gains shows the irrationality of an economy that is being polarized by unrestricted business practices that makes you ask who is really running the country. Paradoxically, the very same companies are laying-off staff and making the global situation even worse that it would be if proper pricing policies were adopted. Television screens are filled up with Wonga-style crooked company adverts and the number of people asking for help after falling into the hands of the Wonga loan-sharks rose by 4,000% in recent weeks.   

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