Defaulting banks - where will it stop?

[Jan Klimkowski]

Leaked comments from the Governor of the Bank of England reveal that the permanent ruling elite are indeed planning for brutal economic Shock Therapy and will sacrifice whichever bunch of puppet politicians get elected:

Mervyn King warned that election victor will be out of power for a generation, claims economist

Bank of England governor Mervyn King reportedly said austerity cuts will be so severe that general election winner will make itself unelectable

Mervyn King is warning that the victor in next week's election will be forced into austerity measures that will keep the party out of power for a generation, according to the US economist David Hale.

Dragging the Bank of England governor unwittingly into Britain's political battle, David Hale said he had been told by King at a private lunch about the likely fiscal pain ahead.

Asked about the possible contagion from Greece's sovereign debt crisis, Hale cited the high debt levels of the major developed economies, including Britain, and then went on to comment on the British election campaign.

"I saw the governor of the Bank of England [Mervyn King] last week when I was in London and he told me whoever wins this election will be out of power for a whole generation because of how tough the fiscal austerity will have to be," Hale said in an interview on Australian TV reported by Reuters.

The Bank confirmed that the governor had had a private lunch with Hale, but said it had been two months ago. It declined to comment on what had been said.

King, as is customary during an election campaign, has made no public statements or speeches in order to show his political impartiality.

Earlier this year, however, he made it clear that he saw tough decisions ahead for ministers as they attempted to reduce the budget deficit amassed during Britain's deepest and longest recession since the second world war.

The governor, speaking at the press conference to launch the last quarterly Inflation Report in February, said: "The need for a credible plan to ensure a substantial reduction in the fiscal deficit is now clear to everyone." King added the deficit would not be tackled without "significant fiscal consolidation".

http://www.guardian.co.uk/business/2010/...ion-victor