The credit bubble only seems to blow larger and larger, says HARVEY JONES


The sentence by the Bank of England and other central bankers to slash interest sorts to near zero after the financial crisis may have averted fiscal meltdown, but only by triggering another debt binge.

British household liable recently soared to a record high of more than £1.5trillion, after flourish at the fastest pace since before the credit crunch, according to The Filthy lucre Charity.

The Bank of England is now forcing banks to strengthen their economic position by another £11.4billion in the face of rapid growth in bum on credit cards, car finance and personal loans, up another 10 per cent beyond the last year.

Record low mortgage rates be enduring also driven house prices to dizzying highs.

The average UK paraphernalia now costs 7.6 times earnings, more than double the assume 20 years ago, squeezing the next generation off the property ladder.

People looking at house pricesGETTY

British household in arrears recently soared to a record high of more than £1.5trillion

The problem is getting more acute as rising inflation is pushing the Bank at all times closer to hiking base rates for the first time in a decade.

It necessities to do something to deter yet more borrowing, and to offer some hope for hard-pressed savers. Its stalemate is that higher borrowing costs could finally prick the consumer responsibility bubble it has helped to create.

The Bank is trapped between rock-bottom rebukes and a hard place. So are the rest of us.

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