Banking Panic - The Plan (10)

Banking Panic - The Plan (Prelude)
Banking Panic - The Plan (1)
Banking Panic - The Plan (2)
Banking Panic - The Plan (3)
Banking Panic - The Plan (4)
Banking Panic - The Plan (5)
Banking Panic - The Plan (6)
Banking Panic - The Plan (7)
Banking Panic - The Plan (8)
Banking Panic - The Plan (9)
Banking Panic - The Plan (Nearly There)
Banking Panic - The Plan (Arrival)
Banking Panic - The Plan (The Next Phase)
Banking Panic - The Plan (11)
Banking Panic - The Plan (12)
Banking Panic - The Plan (13)
Banking Panic - The Plan (Exit)
Banking Panic - The Plan (1st Encore)
Banking Panic - The Plan (2nd Encore)
Banking Panic - The Plan (3rd Encore)
Banking Panic - The Circus

Raising the Bar

The privately owned Bank of England is looking ahead to more profitable days with a surge in the inflation rate. Cynically, such a bank generously lowers the base rate by 0.25% as though this is a helping factor. Lowering interest rates like this promotes borrowing as it becomes (ever so slightly) cheaper. The personal debt increases as it becomes more affordable, but when the rate then goes up again as it always does, the increased debt generates much greater returns in the new higher payable interest. The bank has to balance the maximum return for what is considered an affordable debt. A consumer price index (CPI) is an index number measuring the average price of consumer goods and services purchased by households and the percent change in the CPI is a measure of inflation. The CPI can be used to index (i.e., adjust for the effects of inflation) wages, salaries, pensions, or regulated or contracted prices. Initially, the target was based on the RPIX, which is the RPI calculated excluding mortgage interest payments. If interest rates are used to curb inflation, then including mortgage payments in the inflation measure would be misleading. Until 1997, interest rates were set by the Treasury. Any average will reflect the included criterea only, so the average can be lowered by removing high values: As an example (all values as %ages):

• 0.55 + 0.60 + 0.50 + 0.45 = 2.1/4 = four items

0.525%

• 0.55 + 0.60 + 0.50 + 0.45 + 2.625 [0.525 x 5] = 4.725/5 = five items

0.945%

• 0.55 + 0.60 + 0.50 + 0.45 + 2.625 [5x]+ 5.252[10x] = 9.977/6 = six items

1.663%

The second example has an fifth entry restored that is 5x the 'official' inflation rate, excluded from the original example. The last example includes a sixth item that has been restored (10x). This rapidly increases to a disproportionately greater figure than the lowest (four item) figure. Clearly, the more items that are excluded, the distortion of the situation increases as movement is further away from the 'true' figure.

When figures are removed,
the illusion suggests inflation is low

Mortgage payments are not included. Cynical and dishonest, but, of course: legal. The property markets cite the 'official' inflation rate that does not include the cost of mortgage payments: buying a property generally involves a mortgage.

Selectively removing the distortion
to obtain a 'true' figure

It's hardly surprising that severe difficulties are being experienced by a growing number of people. A prudent attitude makes little difference. The main thrust is still the redistribution of wealth. The global super rich want more. And the privately owned banking system wants more. It will never be enough. Greed is an illusion for control.

How does a handful of people dominate the world?

Through it's money supply

Look to the United States of America. It is there that money and power are so clearly seen to go hand-in glove, unless you're blind. The entire concept was man made and though the mechanics may have become a whole lot more sophisticated, it is still a very simple idea: you are worth what you own. In terms of money. Idiotically simple and so incredibly shallow. Human worth does not enter into the thinking. A child is likely to consider the box that contains an item that is perceived by an adult as having value of having an immeasurably greater value. The intrinsic value may be nothing, but the psychological value is absolutely unquantifiable.
On 'winning' power in May 1997, the New Labour government in the UK handed control over interest rates to the Bank of England. This is like handing control of the prisons over to the inmates without telling anyone.

Banking Panic - The Plan (Prelude)
Banking Panic - The Plan (1)
Banking Panic - The Plan (2)
Banking Panic - The Plan (3)
Banking Panic - The Plan (4)
Banking Panic - The Plan (5)
Banking Panic - The Plan (6)
Banking Panic - The Plan (7)
Banking Panic - The Plan (8)
Banking Panic - The Plan (9)
Banking Panic - The Plan (Nearly There)
Banking Panic - The Plan (Arrival)
Banking Panic - The Plan (The Next Phase)
Banking Panic - The Plan (11)
Banking Panic - The Plan (12)
Banking Panic - The Plan (13)
Banking Panic - The Plan (Exit)
Banking Panic - The Plan (1st Encore)
Banking Panic - The Plan (2nd Encore)
Banking Panic - The Plan (3rd Encore)
Banking Panic - The Circus