Thursday 20 October 2016

BLOOD FROM STONE - BASE RATES

LETTER TO THE GUARDIAN - 20 OCT 2016.

William Hague and Theresa May lament the low interest rates paid by borrowers and demand that savers should get more unearned, risk free income. (Top Tories accused of foisting blame on Carney for the impact of austerity – Guardian 19Oct 16). Hague is now a City man, via Teneo, HSBC and others; as is May’s husband, Philip, at $1.4 trillion offshore, tax-free Capital Group

UK Households owe mortgages and overdrafts of £1.6 trillion (Aug 2016)

A 1% rise in Base Rate will gouge £16 billion a year, every year, from poor to rich, the majority from young to old, effort and risk free, creating misery, stress and homelessness – and all of it will flow through the banks and offshore funds, like a refreshing shower of gold. Is there no limit to the greed and irresponsibility of The City & Wall Street and their persistent, hired lobbyists? 


As BREXIT leads to ruin, UK Government relies on loan-sharking - Our last industry.


Unearned income led inflation is the most dangerous form of inflation. Higher interest rates impact on every stage of the business-cycle, raising prices at stage-1 that feeds into stage-2 that feeds into stage-3 etc. lifting prices on each of the average ten stages from primary industries (e.g. farming) to end consumers. This creates exponential growth in costs. Unearned, risk-free income also rewards indolence, where investors leave their decisions to the banks to feed them, like fat, lazy cuckoos in the nest. It also stuffs money into the mouths of the already rich - who horde it - who do not circulate it - which causes clogging of the nation's economic arteries. For a healthy economy - money must always circulate. 

In the UK, the handsome Canadian Mountie, Mark Carney, Governor of the Bank of England, has turned out to be one of the good guys - holding back the demands of the obscenely wealthy for more, and more, and more effort-free, risk-free, couch potato income - in tax-havens. Naturally, he is under intense attack from the indolent super-rich, as he defends the rights of the majority of people who work for a living. 


MARK CARNEY - MONEY-WARS


Noel Hodson - Director
Tax Reconciliations, Oxford UK,

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