December 7, 2007 (LPAC)—Clear evidence of an open state of panic in British banking circles is obvious after the Bank of England's cutting of interest rates. Headlines in the London Telegraph said, "Market fears that Bank has 'lost control'," "The rate cut ... that failed to dispel fear," "A money market that is beyond control," "One rate cut is not enough...." after the stock market did not react with euphoria after the news.

Meanwhile, financial commentator Anatole Kaletsky argued in yesterday's Times of London that the British must follow the example of the Fed and further cut interest rates, or else. Kalestsky warned that "the British banking system is on the verge of collapse, with total catastrophe only avoided by the biggest financial support operation ever offered to any private company by any government anywhere in the world."

A commentary in today's Daily Telegraph points out that the markets didn't respond to yesterday's interest rate cut as they are supposed to. Money market rates went up, and the stock market went down. The BoE's Monetary Policy Committee is learning fast, that all it can do, is to throw the textbooks out the window," writes Edmund Conway, who declares that the central banks have – at least for the moment – "lost control over monetary policy." The money markets are acting of their own accord, not following the MPC's directions, and "credit markets are consumed with fear." The banks won't lend to each other because they are paranoid about the state of each other's balance sheets.

It must be asked, "Are the Fabian circles in England crashing their own markets, to sink the U.S. dollar and induce war with Iran?"