Wednesday, February 3, 2010

Dire economic situation 1


What am I seeing here you might ask, well what you are seeing is that the UK government gilt market is issuing rather a large amount of debt, this is represented by the blue lines. At the same time from March 2009 the BoE (Bank of England) started its quantitive easing program. That is in essence printing money out of thin air and using this to buy UK government gilts.

This is EXACTLY what Zimbabwe and the Weimar Republic did in the 1990s and 1920s respectively.

This can only lead to one thing:

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