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pandora's box

Simple Solution To The Banking Crisis

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Such mistrust between the banks – "we're lying, so they must be lying" – gums up the wheels of finance and starves even credit-worthy firms of the credit needed to invest and create jobs. The way to break this deadlock isn't to expand narrower measures of money via QE, but to end inter-bank torpor by forcing "full disclosure" of losses – as this column has argued for several years.

The numbers will be ghastly, of course, forcing the banking sector to restructure. Some big names will fail, their depositors absorbed by more solvent institutions. But, as history shows, this process can be managed and really is the only way that capitalism can work.

Liam Halligan

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Halligan serves an ace in his final paragraph:

Modern capitalism, at its core, relies on the public's trust of fiat money and the sanctity of contract. QE is seriously undermining both those cardinal concepts. We're not supposed to call QE "money printing" because money printing is the last refuge of declining economic empires and banana republics. It also amounts to state-sponsored theft. And against that, yes Professor Congdon, I declare an "implicit prejudice".

Game, set and match.

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Duh the solution is to declare a despot state for 48 hours without notice. Close all the ports arrest bankers put them against the wall and shoot them. Confiscate their estates. Then go back to business as usual.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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