The effect of Gordonomics.

Having given us a vast national debt, utterly ruined our manufacturing base and left this land with a bloated public sector that provides less value for money than it ever did, debt soaring at over £6000 pounds a second and us the last G20 economy in recession; we now see people are scared to put cash in the banks.

The Mail reports that people are keeping their cash where they can get a hold of it.

An increasing number of savers are hoarding cash at home because they have lost confidence in the banking system, it emerged yesterday.
The Bank of England said the total value of its notes in circulation has soared while their use in transactions is falling.
There are 40million more £50 notes alone in circulation than two years ago.
Bosses say this is evidence of a loss of faith in financial institutions and the greater 'comfort' many Britons feel from possessing their money in physical form.
With the majority of savings accounts offering interest rates as low as 0.05 per cent, the public also lose almost nothing by stuffing their nest egg under the mattress.
Andrew Bailey, executive director of banking and chief cashier at the Bank, last night said the trend was 'striking'.
'Demand for banknotes has risen during this recession, and particularly for high denomination notes, reflecting loss of confidence in banks, and very low interest rates,' he told the Banknote Conference in Washington. 'The total value of Bank of England banknotes in circulation continues to rise, but their use in transactions is falling gradually.
'This strikes me as pretty good prima facie evidence that there has been an increase in demand for banknotes as a store of value.'
The demand for notes, particularly high denominations such as £50, has been replicated across Europe, he added.
In the summer of 2007 – just before the run on Northern Rock – there was around £7billion worth of £50 notes in circulation.
But there are now £9billion worth of £50 notes at large. Further evidence of hoarding is that banknotes in circulation this year make up 3.2 per cent of the economic output of the UK compared with 2.4 per cent in the mid-1990s.
However, cash transactions have fallen rapidly and make up only 4 per cent of retail purchases.
Mr Bailey said that he believes people 'feel a degree of comfort' from cash 'even if it is as a back-up'.

Stick your cash into gold folks, hell even the currency in Zimbabwe is looking good compared to the pound these days ;-)

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