They say that attitude is everything. There are some pretty nasty attitudes going on in London at the behest of the Bank of England. An article this week in the London Telegraph quoted a senior Bank of England official who chastised savers and told them they should stop complaining about their poor returns and start spending to "help" the economy.
Charles Bean, the deputy governor, told savers to stop moaning and start spending. He said older households could afford to suffer because they had benefited from previous increases in property prices. He said: "They should 'not expect' to live off interest. He admitted that low returns were part of a the Bank of England's financial strategy.
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I ask you: a strategy for what? No doubt it is their strategy for continued redistribution of wealth. The arrogance of this bank official is clear evidence of why the average person is disgusted with big banks both here in the United States and abroad. Mr Bean went on to say: "Savers shouldn't necessarily expect to be able to live just off their income in times when interest rates are low. It may make sense for them to eat into their capital a bit." He went on to say: "very often older households have actually benefited from the fact that they've seen capital gains on their houses."
Doesn't it just disgust you? Bank officials like Mr. Bean, who are nothing more than government officials in disguise, view your savings, your property and your past capital gains, not as something you own. No, quite the contrary, They view your assets, in whatever form they take, as something that belongs to THEM.
They view the average person, the average saver, as nothing more than rats in a maze. They believe in their infinite wisdom that their policies are the be all and end all of economic growth. If that were the case, we should have perpetual economic growth and all Mr Bean and his cronies should have to do is pull their magic levers behind the curtain and all will be well.
But that's not happening. Not in the UK. Not in the US. Not anywhere. The Mr. Bean's and the Mr. Bernanke's of the world are getting frustrated that their magic financial potions and policies are not working. What they fail to realize is that in reality, all they really are, are the aging puppet masters of a dying, global, fiat currency system.
They can huff, and they can puff. They can punish savers and chastise them for not spending. In effect, blaming the victims of this global financial crime as if they, the savers, the consumers, were somehow the cause of this financial crisis. When in point of fact, the real cause of this crisis has been the policies of the Mr. Beans, the Mr. Bernankes and the Mr Greenspans of the world....along with the politicians who support them.
Te caustic tone of Mr Bean's comments are not unexpected. Let's face it.. he doesn't know what to do. In order for his debt-based fiat currency system to continue, people have to spend. People have to borrow. The debt must keep getting bigger. Otherwise the music stops, and the system resets.
As painful as it is for the average person, people are not borrowing and they are not spending. At an intuitive level, the average person, the world over is doing the right thing. Unfortunately the emotional and financial scars from this process will last a lifetime.
What we've been in, and what we're about to go through, is all about financial survival. At the end of this journey, no matter how it plays out, all roads will lead to gold.
