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They're Stealing Our Savings


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George Osborne's move today is designed to allow the Bank of England to play a bigger part in generating growth, due to the government's self-enforced inability to borrow more to spend on infrastructure etc.

He is effectively allowing the bank to "look through" the inflation figures, as they go above 2%, and to take unorthodox measures like buying company debt (aka lending to companies) even if it boosts inflation. This "looking through" I interpret as similar to the way the door security guy at a posh night club "looks through" you as you attempt to persuade him your are on the guest list. In plain English it means "ignore".

If, say, the Bank were to tolerate 4% inflation for several years, while the policy of quantitative easing (QE) held interest on savings at below 2%, the impact on savings would be eventually the same as the impact of the Cypriot government's grab. The personal finance industry has not been slow to point out that the remit change will hammer savers.

http://www.bbc.co.uk/news/uk-21863295#TWEET675256

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If, say, the Bank were to tolerate 4% inflation for several years, while the policy of quantitative easing (QE) held interest on savings at below 2%, the impact on savings would be eventually the same as the impact of the Cypriot government's grab. The personal finance industry has not been slow to point out that the remit change will hammer savers.

Ah yes, but as it was explained to me, when i said something similar the other day "having you money eroded to inflation is just like not having money you never had anyway. Cyprus they are stealing the money you did have"

which i can under stand the logic, but as you'll agree is wrong, but this is the mind set of an educated sheeple.

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