James Conway’s Italian suggestion [Italian gold may be just the job to save the day, last Friday] is too complicated. Italy won’t sell its gold. But Italy’s gold reserves are worth €103bn. Bond issues with 25 per cent to 50 per cent gold collateral would be a confidence booster. The Eurozone holds gold worth €453bn. A portion could be collateral for European Financial Stability Facility bonds.
The Occupation of the Stock Exchange are ordinary people agitated and troubled by the cares of the day who respect Andrew Haldane, executive director of the Bank of England for financial stability, for recently pointing out the perverse incentives caused by limited liability (of finance houses), excessive gearing (borrowing), tax relief for debt (borrowing), and government insurance. Effectively, the socialisation to the taxpayer of losses based on excessive and arbitrary borrowing now means the retreat of the state in areas of welfare, education, sporting and social amenities, and healthcare. In my opinion, the announced cuts in public finances by the coalition will cause carnage to the state provision of education, social and health care leading to a threat to social harmony.
Liam T Kirk,
floating press officer, OLSX