Jump to content
House Price Crash Forum
Sign in to follow this  
Roman Abramovitch

How To Create A Banking Crisis By John Redwood

Recommended Posts

This just about sums up the present fiasco!

How to create banking problems

Published by John Redwood under Blog

Step One: Before an election, government changes inflation targets - as a result interest rates are kept too low

Step Two: Government and monetary authorities watch as private sector borrows large sums of money at very attractive rates, to lend on and to create new funds. Monetary authorities allow plenty of cash to be available in the markets to allow this to happen, and fail to issue clear warnings.

Step Three After an election authorities realise inflation is going up too quickly, so they drive up interest rates to rein in credit.

Step Four: Chancellor gives interview accusing the banks of lending to people without checking if they could repay, and calls for a return to “good old fashioned banking” implying there is something wrong with modern banking.

Step Five Someone decides to publish the fact that a particular institution may need the lender of last resort facility at the Bank of England.

Step Six: Authorities watch TV to see queues forming as depositors ask for their money back.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 356 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?

      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.