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USA Edition | Today Is Thursday, September 9, 2010 |
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| Browsing Tony Koorlander Materials | 17 Items Found | ||
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Who Runs Britain Today?
Current bank accounts (not designed for savers) return an equivalent 1% on invested funds. This essentially means, that with a 5% inflation, your money is losing 4% per annum of its value in a current bank account. In the National Savings account it would be at least matching inflation and yielding 1% better than that.
Tony Koorlander
The City Of London
Distrust, Disgust, Disintermediation
Ordinary citizens were shocked to learn that the UK Government took an unusual step in closing the National Savings index linked investment certificates due to ‘over subscription’. Excuse me, but do you share my sense that along comes something good for John England and pssssssh it’s gone in an instant?
Misbehaving Banks
No wonder so many of us distrust with the way that the banks have behaved in the last decade – more so in the last two years.
Now come news bulletins reporting record numbers of complaints regarding so called ‘penalty’ payments for exceeding overdrafts that equate to over 300% short term interest in some cases … the banks are justifiably NOT the preferred depository for John England today.
The Government has had to call a halt to this part of the National Savings scheme temporarily due to the ‘unfair’ advantage it supposedly has over the High Street Banks. With interest paid being at 1% over the official inflation rate ( currently running near to 5% ) this has potential yields of 6% TAX FREE on investment per annum. High Street investment locations are at best 2.75% … less than half the return. It is thus no wonder that the facility is over subscribed. The result was disintermediation of depository funds from the big banks to the benefit of the ordinary man in the streets.
Government consider this a threat to the asset recovery and ongoing stability of the banks. One questions this in the light of repeated huge profits and massive bonus payouts. The present Pied Piper is the banking industry, and not our own Government. Worse yet, they appear to John England to have been paid their dues and are still able to march away with our valued assets.
Current bank accounts ( not designed for savers ) return an equivalent 1% on invested funds. This essentially means, that with a 5% inflation, your money is losing 4% per annum of its value in a current bank account. Perhaps we should ask ourselves how much the banks will benefit from this disappearing commitment?
In the National Savings scheme it would be at least matching inflation and yielding 1% better than that.
Distrust For Banks And Bankers
So it’s really not entirely public opinion, rather commonsense attitude to investments – or is it? There seems to be a general feeling of resistance to depositing any funds with non-Government controlled facilities, such as banks and pension schemes.
At this present time, there is no safe, inflation proof investment — apart from the National Savings scheme – which is now on hold as it has been deemed ‘too expensive’. Bailing out HBOS wasn’t too expensive — nor RBS, not even Barclays — so what made the National Savings scheme too expensive?
Strange times indeed, when todays Government decides that the present policy regarding saving – which is supposed to be encouraging private asset rebuilding ( and actually WAS ) is too costly due to the policies of previous Government and disreputable ( with hindsight ) International financiers.
John England’s sane decision to save, has the rug pulled from underneath by the very perpetrators of his recent losses by asset theft. Our politicians have not got enough confidence in the value of our own currency and their control policies upon inflation in the economy.
What does that say to the World Money Markets?
The answer to this question matters to us all.