The question is, do they intend to honor the certificate? Pound notes used a long time ago to be a gold or silver certificate. That became too expensive, now all you are offered when you go to the bank, is another piece of coloured paper.

Adrian Peirson: “Ron Paul calling for the Fed to be abolished.”

The Federal Reserve was probably established in breach of the US constitution.

Since what is left of the UK constitution, shamefully subordinated as it is the the European Union, does not I think say anything about the Bank of England I guess the government can do pretty well what it chooses to do.

Good luck Sir, long may your fortuitous situation continue.

But one other thing you say is I think important, you are able to live off your modest income, if you are careful.

That, I think is an art a lot of people will need to learn. And why taxes, not least the council tax will become ever more despised.

Is this not fraud, and if it is, why is Fractional reserve banking not fraud too.

Maybe it isn’t fraud, maybe I should fire up my printer and start selling dozens, or hundreds of Gold certificates against this Gold ring I’m wearing.

Ron Paul calling for the Fed to be abolished.
http://www.rense.com/general83/paulab.htm

Why borrow off some dodgy high street bank when you can borrow off The Bank?* Vastly increasing the size of the SLS further delayed the necessary shakedown in interbank lending.

It’s a simple enough point few seem to be making.

* Why borrow at all? Especially if you’re adequately capitalised going forward (as, er, HBOS, BnB, Northern Rock, Lloyds TSV and RBS were reckoned to be…).

Can someone provide a bit of historical context or point me in the direction of some? Eg the size of interbank lending (as opposed to LIBOR rates which seem to be a pre-occupation of many) before CDOs and CDSs took off. The re-mortgage merry go round has come to a halt so the mortgage market is shrinking to pre-boom levels. Interbank lending was vitally important to the securitised mortgage industry, but was it as important to more normal banking operations?

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/insurance/3521412/Fears-mount-that-Government-will-default-on-bonds.html

The cost of insuring against the British Government defaulting on its gilts in the next five years surged to 100 basis points above libor at one stage yesterday, before closing at 88.2 basis points.

In comparison, insuring against leading banks failing to pay back their debt now stands at 58.8 basis points for BNP, 65.2 for Commerzbank and 68.6 for Credit Agricole. In the UK, Lloyds TSB is priced at 95 basis points and 99.2 for HSBC.

One of the things I tell them is that the present kind of capitalism is no longer capable of sustaining itself in any form whatsoever and governments are panic led into solutions which only defer even greater problems for future generations.

Is there any chance of money itself being redefined? Surely we can do better as a race than base our progress on a highly elaborate system of IOU’s. Admittedly a genuinely clean slate would diffuse and negate entrenched power as we know it, but the world is going to reach a point where that is the only viable alternative to complete anarchic madness!

This would be genuine progress as mankind does not need the IOU as the only driver behind the means of production.

1. The BoE is still quite small (double the size of Northern Rock, for example).

2. As you are no doubt tired of hearing, “inter-bank lending has dried up”. Banks don’t trust each other so they put their spare cash into the BoE. Other banks need to borrow, and the only bank who will lend to them is the BoE, as ‘lender of last resort’. So the BoE is now a glorified middleman between the other banks.

1. No one in authority knows what they are doing and are just panicking on a daily basis.

2. The authorities do have a plan to establish a new system of capitalism but are not prepared to say so because of the consequences to the majority.

The outcome in both cases seems to be economic impoverishment for the bulk of the population which will last for at least a generation.

As one commentator said today on Radio 4: “The government is now operating its own Ponzi scheme”.

It looks like it will be down to you JR to keep us informed on Treasury and BoE activity. I understand the government wants to keep this sort of data to itself – Banking Bill.

BTW. (For the nerds on this site)
In reply to one of your readers (private e-mail); but may be of interest to Redwoodians. If you want to see the contribution that wind is making to our electricity see following. Keep in mind that this is only the HV connected stuff that is metered by NG (1288MW). The other current 1900MW is embedded at distribution level voltages. There is about 16,000MW more currently under construction; been consented; in scoping / planning. Let’s hope for steady winds.

http://www.bmreports.com/bsp/bsp_home.htm

If you want the gas version http://www.nationalgrid.com/uk/Gas/Data/EFD/