7 Jan 2012

The cost of Non Euro-zone debt

Yesterday, my blog showed that, with the current rates on interest charged on long-term loans in the Eurozone, and the scale of government debt, an incredible 4.25% of total GDP is being siphoned out of the system by the banking system.

To be fair, I thought I would do the same thing for the  10 non eurozone countries in the EU. Here are the results.

You can see that the non-euro zone countries are getting off relatively lightly. Only 1.87% of their global GDP gets gobbled up by the banks. But that's still 57.8 billion euros.  Some countries even manage to  pay less 1% of their GDP in debt costs - Sweden, Denmark, and Bulgaria.

But, even with Cameron/Osbornes wonderful program of massive cuts, the UK is still spending 1.82% of GDP on paying interest to the banks - a number that appears to be lower than the official value for 2010 (2.9%). But it's still way above what the UK tax payer would be paying if the debt was transfered to the Bank of England who should charge the government the same rate of interest they charge banks- namely 0.5%.

No. The Cameron/Osbone scheme is just a way of getting the tax payer to pay way above the market rates for their debt. And the only possible reason for this is that the entire financial system has been constructed to allow the banks to extract as much money out of the system as they possibly can.

Seen from this persective, everything seems to make sense. Destablizing the Eurozone to increase the interest rates they can charge governments is perfectly logical from the point of view of a banking system driven by pure greed. The banks never stop telling us that the entire financial system is about to collapse, and getting 489 million of cheap money to keep them happy. Mario Draghi, ex-European Director of Goldman Sachs - the bank that many have called a "blood sucking vampire squid" is just doing what he has been instructed to do by his friends in the banking industry.

It seems totally incredible that the blood sucking vampire squid has managed to get its operators in as the unelected leaders of Italy, Greece and the ECB. We have to get their tentacles out of the economy. The stake through the heart will be when the public calls for governments to shift all the debt from the banks to central banks.

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