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Despite these realities, profligate "Keynesian" solutions are peddled by economically illiterate politicians and University courtiers. The big man would wince is it here to attend her name put in such dangerous policies and irresponsible.

If we deduct the wisdom of written remarkable Keynes, we should at least be honest.A more truthful made Keynes, in my opinion, was that "words should sometimes be a little wild - because they represent the onslaught of thoughts on the unthinking" comments .c ' is a feeling that seems to the Governor of the Bank of England usually mild-maniérée took to heart writing his last speech.

When speaking in New York on Monday, King tough target aging-out investment banks accusing them of "financial alchemy."Dependence on previous and ongoing good number of these institutions on debt in the short term, he dismissed as "extraordinary - indeed, absurd"."

By relying on a bank levy flange - in the financial services industry and to ward off future disasters - the cornerstone of efforts to reform and United States United Kingdom - rest "stupid", King stimulé.En in addition, the new agreement Basel III - requiring banks to finally hold more capital against potential losses - "does prevent another crisis.

Description of the King of the banking system but all packaged the greatest hit fist. "Of all the ways to organize banking services," he noted, "the worst is that we have today."

Despite the relative lack of attention so far this speech, it is a statement which will be finally reverberate throughout the world.

In ordinary times, the reform of the Bank is abscons.Mais not now.Fallout from the sub-prime was initially limited to city, Wall Street and financial centres, then morphed into a financial crisis for threatening sovereign debt ratings throughout the Western world. Of many "advanced nations", including the United Kingdom are to tax forgotten due to the huge bank bail.

Thus, in the middle of this presentation to reduce benefits and unfinished carrier, the real budget dilemma is banking reform. The soaked debt balances the United Kingdom top 10 banks have increased for decades to national income, 459pc compared to 97pc .the United States ' West cannot afford another bailout banks too big-of-failure - and this is particularly true of the United Kingdom.

Yet, few things have changed since high-risk loans."Moral hazard" that caused banks to behave recklessly, safe in the knowledge that they would be rescued by common Succi is more important that jamais.Une another assault on public finance is in sight, unless our banking sector undergoes structural reform.

King knows only too well .c ' is why it wants a return to the "glass-Steagall" distributed among commercial banks (which take deposits) and banks investment (taking big risks).The firewall is abducted United States, in 1999, after a long campaign by Wall Street and city following similar reforms.

Once this gap has disappeared, investment banks could use to taxpayers deposits of ultra-risky bets, knowing that they could be saved if their inverse effects betting. No single deed no longer has to destabilize our financial system and turn too "sub-prime" of a banking crisis in a crisis financière.Le bailout happened precisely because ordinary deposits of businesses and households were at stake when investment banks crashed.No wonder the United States and UK, the spiritual "universal bank" houses, huge budget deficits.

If once more, we separate commercial banks guaranteed by the Government of lightly regulated investment banks, the latter may then stand or fall on their own merits, their failure no threat of core banking and public finance.The banking system would be more secure and resolved question too failed.

Obviously, these notions are anathema to the big Wall Street names and the city - who rely on the safeguarding of the State for their heads-I-win-details-the-rulings-loses snowshoeing and which politicians, in turn, receive hefty campaign donations and lucrative jobs once their political careers have expired.

What I am describing, is not a theory, but the main cause of the crisis, we have lived since mid-2007.In the 65 years glass-Steagall was in place, the world has avoided a crisis Bank systémique.En a decade of its repeal, chaos ensues.

This time last year, the banking reform debate would mean roi.Les United States introduces the "rule of Volker" to abolish Investment Bank "prop offices" and new Conservative Government of United Kingdom spoke hard on the fractionation of the banks.

Today, however, "Dodd-Frank" draft reform America, despite having signed into law, is being evisceration by drafting rules précise.Un weakened President is, after all, now ready for money from Wall Street.Les conservative banking lobby too, seem to have changed their melody in power, worse at ease on taking over the city by imposing Bank root and branch reform.

That is why, in my view, King now employs an explicit language, in an attempt to attract the attention of the public and to force the banking reform towards the top of the political agenda, where it belongs. ""We will admit that is a continuation of the system in which the Bank of commerce executives and take risks for their own account and yet those who finance are protected against loss by the implicit guarantees of taxpayer," he said last week.

"This crisis has already left a legacy of debt to the next generation," King stimulated. "We will leave them the legacy system banking fragile trop.La only question is if we think our way thanks to a better result before the next generation is damaged by a crisis of the future and larger.?

The Government has appointed an independent panel of the "great and good" to investigate réforme.King banking options is now gone as far as it will be able to call on the Commission to recommend a split of the radical of the Bank, without their make ordering publicly.

"At the end of clarity on the regulatory perimeter is desirable and inevitable, said the Governor of the Bank."Radical solutions offer hope to avoid apparently inevitable drift to become increasingly complex and costly regulation.?

According to King, big City-wigs are now "claims dubious resist reforms that may limit the public subsidies which they enjoyed in the past.

The Governor is taken on one of the most powerful lobbies in the planète.Parmi those at the top table, it is virtually the only .c ' is why the rest of us need more squarely behind him.

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