Circle of money

Story link: Circle of money

This is the circle that some to refer to as unfair, or infact in most cases life. The badboys win, the good boys loose! Unforntunatley the people who loose in the long run are us, the taxpayers.

Circle of money

The banks are “persuaded” to borrow money from the government at 12% per annum through Preference shares.
The banks are then advised to lend it back to the governemnt, by buying gilts, yielding around 4%. The regulator sets capital ratios that “encourage” the banks to own more gilts.