The Financial Policy Committee (“FPC”) of the Bank of England has “judged that the overall capitalisation of the banking system was unlikely to be sufficient for stability to be assured” according to minutes released of last month’s meeting. In other words, last month, the Bank of England said that “uh, we’re broke, and see that shit? It’s about to hit the fan”. Of course, this assessment was conditional – if “severe but plausible” development in the eurozone continue, then there’s reason for worry. Oops, then Libor came along, and now it’s over 9000 times worse.

Despite not having the Liebor “scandal” before them, the FPC said that lending was sufficiently weak enough for the UK to consider suspending rules about how much cash a bank can hold so credit can get flowing. In other words, a bank doesn’t need to be a bank anymore because everyone’s broke, so let’s stimulate confidence and the economy by making banks shovel out all of their real assets while they’re losing tons of money in the name of increasing the credit card limit.

Nonetheless, the FPC at that time concluded that capital rules loosening would be too great a risk to the economy and financial stability, and the Bank of England itself has a new ‘“funding for lending”’ scheme to boost the supply of credit to businesses and families and lower borrowing costs, as well as an emergency liquidity facility to underpin confidence in the banks.”

Moreover, the British central bank printed another 50 billion pounds to help stimulate the economy recently, but concerns about the costs of borrowing by paying it with more borrowing are increasing.

Story is HERE.

See the video I posted as my thoughts on the Bank of England and all its policies.

Maybe if the banks are broke they can get a payday loan at ridiculous interest rates.

One of the biggest weapons in this war is money. They’re running out of it.