Simple maths will tell you that getting 5% on a saving account at your bank for 5 years is a better deal than getting a £1,650 worth of lottery tickets in disgraced UK banks RBS and Lloyds.
Savers and pensioners in Britain have been subjected to what in economics is called ‘financial repression’ by forcing interest rates below inflation using Quantitative Easing (a bond manipulation scheme) to bail out these corrupt banks to begin with (after they got caught cooking their books and misselling securities). According to the Bank of England, citizens in the UK have been tricked out of £140 bn. in interest income to save crooked 'banksters'. The amount saved by mortgage holders - benefiting from lower rates - is estimated to be about £70 bn. So Britons have been robbed of £70 bn. even taking the savings on mortgage interest payments.
If you subtract the value of the proposed bribe by Osborne to the public (in the form of a bank shares giveaway) of £34 from the £70 bn. Osborne stole (and the Bank of England: these two work together - they are NOT independent) via QE you come up with a net amount of £36 bn. stolen by the government from Brits. This works out to £3,888 for each family in the UK. In other words, the government has been stealing £3,888 every year from every family in the UK to make 'banksters' rich and in return they are offering families a chance at £1,650 in bank shares that may or may not be worth anything.
This new bank shares gift boondoggle ranks with the ‘Help to Buy’ and ‘workers share plan’ as one of the most hair-brained schemes to come out of No. 11 in decades.
What is it? The ‘workers share plan’ is another dodgy, non-economic, blatantly opportunistic scam that allows workers to swap their rights for shares. This would remove one of the last remaining checks and balances separating Britain’s criminal, larcenistic - terrorism financing banks (see HSBC) - from any oversight or accountability at all.
When did all this financial criminality by the UK government start?
Going back a few years, we reported that the ‘top up fee’ program applied to education would result in a huge student loan bubble. It has. Both in the UK and the US. This isn't the absolute start of 'rule by 'banksters' and 'kleptocrats' but it marked a high water mark in the post war era of crony capitalism in Britain.
Why does Osborne persist?
The upside for PRISM loving tyrants like Osborne is that less people in the UK can afford education so there are less people can do the simple maths that prove his ‘bank shares to the public’ scheme is yet one more bait and switch crap shoot that absolves 'banksters' from additional scrutiny.
To restore credibility in the banking sector and the British
economy as a whole, interest rates must be allowed to rise to a
market-driven point of equilibrium - approximately 5%. Workers
need to be rewarded for their work by being able to invest
savings in savings banks that pay a rate of interest that equals
at least the rate of inflation (if not more). This is what a free
market economy would suggest, but Osborne is not a free
marketeer; he’s a crony capitalist bent on spinning one crooked
scheme after another until he destroys the UK economy so badly
they’ll be going cap-in-hand to the IMF again as they did in the
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.