Mervyn King - the chief wriggler at the Bank of England has been quick to feed the media his cover story - as BoE forecasts for growth are proved wrong once again - and the banking system in the eurozone teters on the brink of collapse.
Unwilling to comment on the bank's lamentable record of forecasting and his own failure to grasp the nettle and demand reform of the banking system - all he can do is wave a tissue feebly in the air and say in not so many words 'erm watch out guys, those banks over in europe might be a bit of a problem for us'
Well tell us something we don't know Merv!!
Tell us what will happen when people in europe see euros in Greece melt into near worthless drachmas? Already greek savers have withdrawn over a billion euros in cash from greek banks - taking them to the brink of collapse - that trend will surely soon become a full fledged rout as panicking savers rush to get their money.
What will people in Spain (where bond yields were at dangerous levels this morning) or Italy or Portugal or Ireland - do when they see that? Will some of them think.... better get my cash and convert it quick to dollars? I would in their shoes.
The eurozone banking system like all of those based on the fractional reserve system is insolvent by design - once a fraction start withdrawing their money it WILL COLLAPSE.
and then Merv and the usual suspects will tell us that it could never have been predicted - that its all a big susprise.
Well look here Mr King. A banking system that has free reign to create money as debt will always get to this point. A minority in credit and the majority hopelessly mired in unpayable debt.
collapse is inevitable and on the way.
Only monetary reformers and those un-blessed by a useless degree in neo-classical economics can see it coming.
But see it we can.
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