Bank of China versus Bank of England
Posted by Ivo Cerckel on July 25th, 2009
Before the Bank of China can provide honest mortgages in the UK, the Bank of England should provide honest money
From The Times July 25, 2009
Bank of China starts to offer mortgages in the UK
Catherine Boyle http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6727253.ece
1 Comment
ya ji wrote:
one small step for BOC, one big step towards responsible spending of british
July 25, 2009 1:49 AM BST
Ivo asks:
Will the Bank of China also re-set the examples of only lending funds which have been deposited and of matching maturities?
Will it match 1-year loans to 1-year deposits, and so on?
Will it arrange its loans and investments to allow for the promises it has made to its depositors?
If so, then ya ji is correct.
The next step should then be taken by the Bank of England.
And this step,
which should in fact be taken by the Bank of England before the Bank of China takes the step of matching maturities,
is to make sterling redeemable into or to have sterling at least backed by real assets such as … gold.
Before the Bank of China can provide honest mortgages in the UK, the Bank of England should provide honest money.
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/
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