News commentary and predictions of political trends and what the future holds

Archive for October, 2011


October 28, 2011

The capitalism protest in London situated itself outside a cathedral, not just any cathedral but the most famous one that attracts thousands of tourists every day. Many of them pay St Pauls money which was reported as being twenty thousand pounds per day.

Why do they penalise the Church? Because it exemplifies the role of the Church as sanctuary from the law. The police tactics have backfired on the church. That is the political wedge driven by this protest. It goes beyond merely the bankers, it is their sense of faith in mathematical odds that require a powerful sense of belief, sometimes so powerful it becomes right. Sometimes however collective faith, the kind where everyone gets lucky in a market at the same time is revealed to be merely that, and a collapse follows. This recession is due to that sort of event to the power of each level of securitised assets that went horribly wrong amplifying the collapse from impossible risk sub prime mortgages. It was always going to happen.

The police tactics have drawn the response of political strategy.

Union of Europe

October 26, 2011

The forbidden measure that the European Union can take to immediately solve its problems are to unite as the Union of Europe.

By simply combining into one huge fiscal mass of commonly budgeted economies it can trump the “we will help, but we are not involved” UK Government. The Tory Revolt against the EU and a recent Guardian survey that reveals a demand by the UK electorate (or at least a large majority of those surveyed) a perception that separation from the EU is wanted. Is it the best things for the EU? Having another large economy on board to still the boat is the best thing for a united Europe but the perception seems to be that it would not be a good move in the current disunited state of Europe.

If Europe were to federalise with the UK a part of it, it could solve its debt emergencies. Why not have equalised pension opportunities across the continent? Why not follow the very successful model of unity that are enclosed Empires like China and the USA? It would seem the natural order of making it right for a larger population.

What is the population of Europe? 731 million? What if all of them worked together toward a common goal of the betterment of all Europe? Would this not have positive benefits for every economy if everyone was considered equal?

Equal? People in each country are not equal to each other. There are winners and losers. There are a percentage of winners and many who have less financial ability than the average level.

An obvious argument of the Right is to flatten taxes so that every pound is taxed equally rather the weight of taxes increasing as need subsides. If this were applied in a rigorous manner so that every person actually paid 30% of their income to the common revenue would the tax take be greater than it would be if millionaires avoid paying taxes?

The phrase “we are all in this together” is quite meaningless. If it were real, then solutions to Europe’s problems would be more obvious.

Economics and Politics

October 11, 2011

So many convoluted answers and the likelihood is that those we elect into power will have none of it.

The real answer is simple enough. The tax payer bailed out the banks, and now there is not enough cash in the system to stimulate demand. When we have demand we buy the stuff that is offered, investments that do not benefit the client as much as the provider because those providers are endlessly trying to dig themselves out of the hole they dug with securitisation assets that require an economy 100 times larger to support. It is not demand that is lacking, it is the ability to demand.

Cameron can achieve his blundering objective, make credit card interest illegal or fix it at 3%. Make all private mortgages fixed at 2% and regulate the hell out of bank ponzi schemes. Get back to a fair economic playground where the citizen is more important than the corporation and the dollar. Get back to a political environment where politicians serve the electorate, not the ruling elites. And do not bail out failing gambling banks. Put the bailout cash in the hands of the citizens to buy what they need and restart the engines. Make business that produce exports our priority. Reduce our reliance on gambling to get by.

We get two things remarkably wrong, both are our own purely human inventions: politics and economics. We just need to wake up one fine day and realise that all our assumptions about both are out of date and work out a way to do things that will work. We have the computers and can do the modelling. We need a financial revolution and to realise that capitalism and socialism, neither one, will solve it.

A comment added to this article:

Pension funds lose value

October 8, 2011

The value of pension funds is bleeding away in the UK and across America protesters decry Wall Street’s corrupt practices and greed. We were told (by politicians, most likely) that freedom in the markets would free things up and maybe it did. What we were not told and did not realise until it was far too late, is that continued freedom for the market to create new instruments that multiply values without any effect on the other side of the ledger, well that is not the creation of growth. It is mediation by greed. It is irresponsible government and it is pointless.

The world system is a board where each member represents badly controlled feudal entities, each of which is an experiment. Some return value funds can be directed there, others do not get a look in. For years the bleeding empires and the super consumer states appeared to be the best bets, followed by those who had a point to prove or to recover from. We have a system of systems, each of which potentially returns differential values to investors.

It works when the members have control of their entities – for stability and continuity it is reasonable that more strict regulations should apply to state controlled enterprise. When you put the power generation into the hands of a private monopoly there is nothing to stop societal extortion. By inventing methods to fit more water into the same pool, the investment banking sector has very slowly and carefully increased the money supply. The effect is to create mathematical fountains which they in turn invested in new pools, ad infinitum. It is great to create these self perpetuating multipliers of wealth but there comes a point, if the water evaporates before it hits the ground that the whole system becomes a liability, deflated by the absence of pressure and unable to restart the infernal machine as it requires more dynamics exist to feed into its frenzy.

So the pool masters, realising the one way nature of this effect dipped their cup into and extracted what they needed as they then fell from the self induced elevation of their wealth and into, hopefully, obscurity in a country mansion.

And the executive board that runs the world hope for excessive rain to refill those myriad of pools. At first they pump all the water from the foundation pools into the top pools hoping to restart the fountains. Out come more cups draining the network before any can trickle down. And the new pools are starting to rust.

It is inevitable as Governments wind down their public sector and invest heavily in rescuing “capital” from itself, that pensions are going to universally drop. The solution is to demolish the structures that feed on tax payers to rescue pensions. The other solution is to nationalise core banks and protect national sovereignty.

The theory is that the Bilderberg Group of the hyper wealthy that seem to sit above democracy want to eradicate governments at a national level, and replace it with their own, the guiding hand of the benevolent dictatorship, the grandest lords of them all. The ones that own everything.

In 2001, Denis Healey, a Bilderberg group founder and, for 30 years, a steering committee member, said: “To say we were striving for a one-world government is exaggerated, but not wholly unfair. Those of us in Bilderberg felt we couldn’t go on forever fighting one another for nothing and killing people and rendering millions homeless. So we felt that a single community throughout the world would be a good thing.”


See also Telegraph article on decline of pension funds.

The Costs of the Banking Bailout

October 4, 2011

Senator Bernie Sanders blog reveals that secret loans to financial instituions by the US government amount to 16 trillion dollars? Is this real?