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Bank of England is alarmed about the increase of personal debt

mark carney personal household debt

The Bank of England has been warned of complacency over the big rise in personal debt. In its toughest warning yet about the possibility of a rerun of the financial crisis that devastated the economy 10 years ago, the Bank of England admitted it was alarmed about the increase in the amount of money being borrowed on easy terms over the past year, reported the Guardian, 24th July 2017.

medialAxisAs you say, it doesn't tell us who is holding all this 'cash' (by which I mean deposits, not actual cash). But I heard on Radio 4 this morning that Warren Buffet now (8th Aug 2918) holds loads of 'cash' ($s of course), which is interesting given stock markets of late have been hitting all time highs...

2 weeks ago

Edward SmytheThose are very good points. The truth, as you say, is that banks only have to pay negligible interest to re-attract (as deposits) the money they've created (rather than stuffing cash under the mattress). And this is because, people understand their money in the bank is fully liquid (i.e. CB guarante...

3 weeks ago

medialAxisThanks for post that, you've done a good job. I find it difficult finding my way around the BoE's site, TBH."...those in the second paragraph are paying interest to those in the first paragraph..."Not sure that's the best way to view it given what we've learned about how the system works. Also, inte...

3 weeks ago
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PJMThanks, Ed. IMHO your analysis is spot on!IMHO, switching to a Sovereign Money banking and monetary system is a no-brainer. However, the money powers of the City will fight tooth and nail and use every dirty trick -- even those not yet in "the book" -- to prevent that from happening.Only people-powe...

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Which MPs understand the magic money tree?

magic money tree parliament

For years we’ve been saying it’s crucial our politicians understand where money comes from -  that banks create almost all money in our economy, resulting in an oversized financial sector and property bubbles. Now we have a chance to see how effective the Positive Money campaign’s been by finding out what MPs know today.

medialAxisIsn't one simple way for the govt to borrow money is for it to borrow from savers. After all, private debt is circa £1.5 trillion so there exists £1.5 trillion of savings earning next to nothing. Perhaps if this argument was put to MPs it might give them some insight in to how cockeyed the system ...

5 weeks ago
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RahmanCutting the size of gov results in more unemployment less tax take and greater debt due to less consumer spending...

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robinbaldockcomparing corbyn's labour to venezuelan socialism is just lazy.Corbyn's praise for Chavez's revolution was years ago, at the cusp of its successes, (there were cracks were showing but also the US backed attempted coup was high in peoples minds when assessing the situation), and reflected the advance...

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Elizabeth PearceSocialism (which is what Corbyn wants and he has praised Socialism in Venezuela). If you look at Venezuela the internal fight back has began which includes a helicopter being stolen and used to shoot at Government Parliament building and people are out on the streets protesting because they are st...

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