Bank Of England Warns Of "Economic Collapse" If UK Keeps Borrowing Money

Authored by Mac Slavo via SHTFplan.com,

The Bank of England is putting the United Kingdom on alert.  Should the UK keep borrowing money, as Corbyn's Labor Party has advocated, there will be a “Venezuela-style” economic collapse that will devastate normal citizens.

A senior Bank official has warned that the UK’s economy would be unlikely to survive borrowing any more cash. Richard Sharp, a member of the Bank’s Financial Stability Committee, claimed an extra £1trillion had already been borrowed since the 2008 financial crisis, and any more could see the economy collapse in the same quick manner that Venezuela’s did.

richardsharp

Richard Sharp, Bank of England Financial Stability Committee

The Times reported on the stark warning mere days after Philip Hammond announced a £25 billion spending spree in the budget. It’s likely to dissuade the Chancellor from loosening the purse strings too far though, since the Bank rarely comments on government finances. It could also come as a wake-up call for Labour (a communist party), which is advocating borrowing an extra £250 billion.

In a speech at University College London,  Sharp warned that Jeremy Corbyn’s public spending policies would be foolish and dire for the economy. Like any rational person understands, communist policies only work for those elites in the government.  

“A highly indebted government has less capacity to react to crises: we cannot assume that further shocks do not materialize, and evidence demonstrates that fiscal space is a vital national resource to have available to counteract such a shock,” Sharp said.

 

“Reducing fiscal space, therefore, means financial stability is harder to achieve.”

Morgan Stanley, in its look-ahead to 2018, warned the UK’s “domestic political situation is at least as significant as Brexit” given the “perceived risks of an incoming Labour administration that could potentially embark on a radical change of policy direction”.

A collapsed UK economy would have worldwide ramifications. The real losers in this political game of spending more and tyrannical governments are the everyday men and women who live and work in the UK.

  Should the Labour party succeed in their borrowing of even more money, the standards of living for the average person would go through the floor – just like Venezuela.

Comments

BuddyEffed eforce Thu, 12/14/2017 - 16:09 Permalink

When transitioning from a surplus of natural resources to a scarcity of them, no matter who you are, this is to be expected :

"the standards of living for the average person would go through the floor – just like Venezuela."

The money doesn't have much to do with it.

North Sea production likely driver of causality.

In reply to by eforce

Offthebeach Five Star Thu, 12/14/2017 - 08:22 Permalink

That's just because the mass of unskilled, low IQ, no work ethic, Brit hating immigrants economic growth effect hasn't kicked in yet.  As soon as Brits make a full and sincere effort of welcoming,  watch out because you'll have a tiger by the tail.  Yep. For shure.  You bet.  Any day now.  Not actually today, litterally,  but soon.  Late next year.  Most likely.  OK then.  That's solved.  

In reply to by Five Star

halcyon shitshitshit Thu, 12/14/2017 - 07:15 Permalink

A sovereign with its own currency threatening with collapsee due to overspending?UK debt/GPD (yeah, bad measure) is c. 88%US is c. 106% and rising.Japan is 250% and (yet again) rising.So, UK has a long way to go still....This is all just daily politics, squeezing the budget, and blaming it on the BoE, when the politicians don't have the guts to face the wrath of the voters themselves.So, daily politics 101 - nothing new. A non-event. 

In reply to by shitshitshit

BritBob Thu, 12/14/2017 - 05:04 Permalink

Corbyn is a Marxist and will find it hard to drop left-wing causes.  Common sense goes out of the window.Alicia Castro former Argentinean Ambassador said of Corbyn: "In the end, he is one of 'ours'. Even today, when he comes to our embassy, he arrives with the same bicycle and the same enthusiasm. He is a friendly person with a sense humour, who knows how to listen." Alicia Castro, Argentinian ambassador quoted in Daily Telegraph 14 Sept 2015.. That mythical Malvinas stuff is wearing a bit thin on the imagination and some people are easily duped by propaganda and misinformation.Ever heard of a territory being stolen in the 19th Century? Neither have I... Falkland Islands – The Usurpation (1 pg): https://www.academia.edu/34838377/Falkland_Islands_The_Usurpation

shitshitshit BritBob Thu, 12/14/2017 - 05:09 Permalink

give it a rest britboobs, you're already annoying.Now that you're talking about it, I'll be sure to ask all my friends to vote for retrocession of malvinas to argentina. I also happen to have a lot of argentinian friends. They do excellent bbq, contrary to your english shitfood.One more reason to spare the world moar british invasion.

In reply to by BritBob

gespiri Thu, 12/14/2017 - 05:18 Permalink

"Well, no shit! What do we have here.....a fuckin' comedian, Private Joker.  I admire your honesty.  Hell, I like you.  You can come over to my house and fuck my sister" - Gunnery Sgt. Hartman (Full Metal Jacket)

EddieLomax Thu, 12/14/2017 - 05:20 Permalink

Their warning might hold more weight if they hadn't jumped the shark predicting dire consequences for brexit.I do believe here they are right, borrowing more just makes us poorer, yet just like the US establishment is currently throwing its last vestiges of credibility in their tantrum over Trump's election our establishment blew their credibility over brexit.  I fear we will have to learn the hard way what happens when we let our debt levels go up far beyond Greeces and at a higher pace.

Debugas Thu, 12/14/2017 - 05:24 Permalink

our leaders still have no vision of what is happening :(under current monetary system without constant influx of money people will become jobless and homelesson the other hand the influx of money through first consumer debt then government debt is limited by interest payments eating up whatever income is still available ( unless you keep interest rates at zero for eternity )keeping interest rates at zero to prolong the debt accumulation will lead to producers at some point refusing to accept the fiatTHERE IS NO WAY OUT WITHOUT REFORMING MONETARY SYSTEM which has to comply with two principles:1) money should circulate in closed circle as opposed to current system accumulating all the money in the stock market where companies try to reduce their risks by sharing them with each other ( buying each others stocks )2) in the long run no entity in the economy should be able to keep accumulating more and more money without spending it ( penalties for over accumulation should be applied such as negative deposit rates )

JohnGaltUk Debugas Thu, 12/14/2017 - 07:02 Permalink

Suppressing interest rates are causing Pension Funds to go under, here in the UK pension funds are estimated to be under water by about 600 to 800 billion already and if the stock markets crashes we are really off to the races.Pension Funds used a mathmatical model and had used a histroical figure of 6 to 8%, they have not been able to get that for over a decade now and they are going broke. Remember that advert on TV, "I'm In", well if you are contributing into one, they will simply steal it from you like they did in Hungary.Historically the Government will always turn on its own citizens like what happened when Rome collapsed.

In reply to by Debugas

zippy_uk Thu, 12/14/2017 - 05:29 Permalink

According to Corbin, we need to borrow more money for a new 'industrial strategy' - the last one involved British Leyland and resulted in the production of the 'Austin Allegro'. Enough said.When Maggie finaly flogged off the remained of BL, they couldn't believe their luck that someone would actually want to buy it - they were convinced they would have to pay someone to take it off the government books. Since government got out of the way, the UK manufactures more cars than ever and not only that, makes a profit on every one.The only industrial strategy you will ever need is work out which bits of the economy don't work, identify the 'government' bit of that and get rid of it. PROBLEM SOLVED. Its the ONLY industrial strategy you will ever need.

Flankspeed60 zippy_uk Thu, 12/14/2017 - 05:59 Permalink

You have my vote, with a caveat. These companies invariably manage to keep feeding tubes in place to insure their continued sustenance. They return the favors by 'feeding' the campaign coffers of their political sponsors. That's the way it works in our government cesspool in the US. Case in point - I personally pay more in taxes every year than General Electric, and I suspect you do too.

In reply to by zippy_uk

JohnGaltUk zippy_uk Thu, 12/14/2017 - 07:06 Permalink

If Corbyn had a new "industrial strategy" wouldnt he being doing it for himself. What he means is nationalising industry like Chavez and we know how that worked out.When you see a socialist, take a real good look what they look like because that person is really really dumb. If you have seen Corbyn you will know exactly what I mean with his Leinn cap on.

In reply to by zippy_uk

Blue Steel 309 Thu, 12/14/2017 - 05:36 Permalink

I can only speculate that the kikes say shit like this to reinforce the narrative that there is some kind of justice in their fiat scheme.

There is not. It exists to ensure they eventually own EVRYTHING. They have no souls, but that dousn't keep them from wanting to own yours.

any_mouse Thu, 12/14/2017 - 06:04 Permalink

I like how they make it the fault of the UK. Nothing to do with the BOE and the owners of Central Banks.

Who set the rates to ZIRP and NIRP?

charlewar Thu, 12/14/2017 - 07:03 Permalink

at least we in USA don't worry as our Federal Preserve Bunk will create enough new money to pay all our old debts. What could possibly go wrong?

indygo55 Thu, 12/14/2017 - 07:03 Permalink

They've been robbing the public for decades, generations, and so they blame something else for the results. Borrowing, like it isn't them doing it to begin with. But who will pay it all back? The public of course and they will do so willingly because they are too stupid to understand it.