EU proposes budget increase and Britain prepares for the worst

EU proposes budget increase and Britain prepares for the worst

The two announcements came out almost simultaneously. The European Union proposes a yearly budget increase of £9.5 billion Pound and the Bank of England has told Britain’s major banks they must raise £25 billion in new capital ‘to cover future losses and mis-selling costs’.

The writing is on the wall. Should the British economy go the same way as Cyprus’s economy, a similar solution would be applied in Britain taking a huge chunk of money out of savers’ deposits. This is not a drill for ‘if something happens…’ This is the real thing in a situation in which further budget cuts would dwarf budget cuts already implemented.

Should Britain be subjected to further credit rating downgrades, QE (Quantitative Easing) will no longer be available as a tool to prop up cash flow and the present devaluation trend affecting the British currency would accelerate.