| aug 05 2008 | | Pound goes down. | Just announced that the British government is intending to bail-out the banks suffering from mortgage losses, similar to the direction the American administration is heading.
This central socialist planning will result in increased inflation for the population. A huge open ended commitment to protect the reckless lending by financial institutions.
When they leverage to lend and make huge profits these private institutions are the only beneficiaries. When they lend recklessly and face insolvency the public takes on the losses. The bankers walk away clean to continue their craft. No accountability.
The result will be more inflation as the government print money to buy these bad debts. The Pound will become devalued.
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