In the banks’ interest

Just in case there is anybody left who does not understand the brass neck of the banks, I had an average of about €1,800 in my little savings account for 2012.

I have just received a statement awarding me 14 cents in interest, less 4 cents tax. Using fractional reserve banking, which they all do, my average amount can be lent out as €18,000 at about 8% = €1,440. That means that, using my money, the Bank of Ireland makes approximately 10,000 times as much interest as they give me. And our government just grins and opens our wallets.

Richard D Barton