(by Naked Emperor | TruthTalk.UK) – Today, the IMF lowered the UK’s growth forecast for 2023 by more than any other G7 nation. Many MSM headlines claim the UK will suffer more than sanctions-hit Russia. Shock!
Why is this? Lockdowns, loans and policies are important factors, but so is the UK’s over-reliance on the financial sector.
Most people shy away from the big city of London and the amount of wealth it brings to the country, but the reality is very different.
Learning about how banks work and where money comes from was an eye opener for me. I delved properly into the mechanics of it all during the Great Financial Crash in 2007/2008. I wondered why I had never been taught these things in school or college. Even worse, why did 99% of City Council workers not understand the system they were participating in!?
In the video interview below, Professor Richard Werner does a great job of explaining what’s going on in the banking system, why it’s destructive, and what needs to change. Topics covered include:
What exactly are deposits; What are loans really; How money is created out of thin air; How this creates asset bubbles and inflation; and What regulations are required to stop it.
I’ve summarized his main points below and the video is at the bottom of the page.
Private debt in the UK (as a percentage of GDP) never exceeded 50% and remained relatively flat until Thatcher came to power in 1979. It then rose to almost 200% before the Great Financial Crisis of 2008
GDP is calculated by adding value-added activities. This is the problem in the financial sector: what is the added value? It is so difficult to calculate the added value of the financial sector that a fictitious value is created and added to GDP. The difficulty in calculating the figure is because there is essentially no value added, only value extracted, and therefore should actually be deducted from GDP.
Textbooks show banks as financial intermediaries, but the problem is that we pay a high price for these services. Also, people working in the banking industry earn very high salaries for something that should be just a brokerage service. Read the full article >