UK, EU and U.S. Siphon Off Billions of Householders’ Savings
The Mckinsey chart above clearly shows that QE has been kind to governments and since the financial crisis began in 2007, those UK households that have increased their levels of savings have been severely penalised to the tune of £110 billion. This £110 billion is in effect removed from the UK high street and further deprives the UK economy of much needed consumer spending. At the same time the UK government has saved itself £120 billion of net interest payments.
The chart also shows the Eurozone and the U.S. are engaging in similar debt transfers from households to government. Those citizens that were prudent and wise are being unjustly penalised for their ability and desire to save.
The UK Prime Minister, David Cameron, has every reason to be worried as Paul Sykes has indicated that he will fund Nigel Farage’s UKIP to the tune of millions to do “whatever it takes” to help UKIP top the EU polls in May 2014.
Sykes, one of Britain’s wealthiest businessmen, was a keen supporter of the Tories under Margaret Thatcher but is determined to pull the UK out of the EU. Sykes and the UKIP party could not have asked for a powerful or more potent argument than the silent transfer of wealth from hard pressed UK households to their government.
As it stands the UKIP party currently has 13 seats in the European Parliament and estimates vary but it is believed that the UKIP would need to secure about 27 per cent in the elections in May to overtake the Tories as the largest UK party in the European Parliament.