Myopic Mervyn makes making money sound too easy

I'm quantitatively easing myself back into reality!

Sir Mervyn King sounded so very affable as he told the BBC how his money printing exercise was going to help the UK economy. But therein lies the trouble. He could make an alchemist sound like a real scientist. Make fake flowers look real. It's all fantasy stuff and not many in the British public have fallen for his guff. Those popping up on TV news channels from the banks are spinning their lines, but the Clapham omnibus is overloaded with people of contrary opinion.

This money is going into the banks so they can do whatever with it. Let's see if they know any better than they did last week. However, I like the comment from Kevin W on the BBC website (Kevin's got 160 positive votes so far!) -

I don't understand why we continue to feed money into a banking system which then uses the money to shore up its own bank balance, pay itself lavish bonuses & refuses to issue loans. 

Surely we should just give the money to taxpayers who would either use the windfall to purchase goods or repay debts, in turn the money would filter through to where it’s needed, businesses & HMRC.

He speaks for many it seems. Over 1,000 comments on the subject and all seem to be of a similar vein. The British people aren't buying this. As he says, Mervyn King and his cronies would be far better off giving the cash to the people. That would stimulate the economy far better than the schemes and plots hatched by the banks. And has King got a guarantee that none of this money will end up in bonuses for the likes of Bob Diamond at Barclays? We need to know in the best interests of transparency.

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Bank of England Chief Mervyn King Proposes Eliminating Fractional Reserve Banking

This is a very good posting on the Infowars.com site. Mervyn King says, “Eliminating fractional reserve banking explicitly recognises that the pretence that risk-free deposits can be supported by risky assets is alchemy. If there is a need for genuinely safe deposits the only way they can be provided, while ensuring costs and benefits are fully aligned, is to insist such deposits do not co-exist with risky assets.” Trouble is Ben Bernanke is on the side of the digital money printers.

David Cameron's government should revisit the 1844 Bank Charter Act, which stopped banks printing money as if it were confetti. The digital age demands that reckless banking, or casino banking as Vince Cable calls it, is stopped. The only people to gain are the bonus-grabbing bankers as the digitally created cash moves from one computer to another.

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