In a typical long winded report, with no real substance the Bank of England have finally admitted that British people will probably need to accept a decrease in living standards if a recovery is going to take place. Not that it hasn’t already happened of course.

As reported in the Telegraph:
The Bank report said that one risk was that employees would be “unwilling to accept a further squeeze in real wage growth”, adding: “That could lead them to push for higher pay settlements this year. But if companies cannot afford the increase, then they may shed labour in order to contain labour costs.”

It said: “There remains a risk of further falls in employment if, for example, the recovery in demand proves more sluggish than businesses have expected. Businesses may respond to any future squeeze in profits by shedding staff.”

The basic theme is that citizens who do have jobs need to accept low wages in order for productivity to go up and drag us back out of the “credit crunch” or more aptly THE GREAT DEPRESSION. If they demand higher wages and there fails to be a proportionate increase in demand there will be a “double-dip” or more aptly a continuation of THE GREAT DEPRESSION.

What we’re seeing here is a common theme from the mainstream media and official institutions like the Bank of England. Everybody knows we’re in a bad state, independent experts for-warned us of the crash and continue to warn us of the reality, but it takes the media and Bank itself months to admit what we’re being told by these other sources.

It’s fairly simple, the central banks (Federal Reserve, Bank of England) get to set interest rates and print money out of thin air without anything of intrinsic value (like Gold) to back it up. They’re given the freedom to lend out (through credit/loans etc) about 10 times of what they actually have in the vaults through the fractional reserve banking scam and then demand extra in return through fraudulent interest. We get a little boom, but people become indebted to the banks. When they default on repayments, the banks get their real tangible assets like a house and recoup their money. As we fall in to recession, to aid liquidity in the economy the Government asks for a loan from the central banks, who will then print more money out of thin air (a bailout) and now the national debt increases and public services suffer. Taxation and cuts is simply the Government taking your money so they can recoup what they just got loaned by the central bank. There is quite literally no way out. There will always be recessions because money is printed out of debt and the national debt will always increase because a bailout is really a bail-in.

Think of it like a race where the economy is just beating the debt, but every so often debt catches up. The economy will never be able to pull away from the debt and truly win, because it is tied by an elastic band.

For a full in-depth explanation about how this scam works read our How The Corrupt Private Banking System Rules The World Today article from the Must-Reads section.