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


Progressive Economics

February 7, 2013

The economies of the West have all run into trouble due to the derivatives scam and resultant financial meltdown causing massive capital flows out of national economies. Tax avoidance and corporate logic has led to offshore tax havens becoming significant on the radar of the US and UK governments. Austerity has lain the problem upon the society rather than the entities that caused it, and has prevented growth being a solution to endlessly rising government deficits and ultimately inflation.

The UK and USA could learn a lot from a more progressive and successful Western economy – that of Norway. True, they have oil reserves, not as large as the USA reserves – but they charge a 50% corporation tax levy on oil drilling. And so they should. Oil companies invest in exploration and drilling, yes it is expensive. But once they tap into the Earth’s resources they are effectively using something that belongs to the people and the future.

Western Governments are stuck in a thread of believing that any tax rise is regressive when ultimately what they are achieving with short-termism is to evaporate wealth from their own coffers. The 1% benefit because they avoid tax and yet enjoy the benefits of health and protection (both police and armed forces), education and pensions provided by the Government.

New progressive thinking is required and Norway is a good place to examine for a balanced model.

Illogical conclusions

August 22, 2012

The use of austerity has worn thin at least for the probable longevity of George Osborne. In its current form at least. Infrastructure spending by this two faced Government amount to allowing private roads to be built which is certainly going to provide some relief to chronic unemployment and incrementally it may result in economic improvement. But it is not what they set out to do, which is to build a bigger economy. That, they surmised, would result if we do what we would want a government to do, to protect wealth – to sustain privilege.

Which seems based on the misapprehension that wealth itself is a thing. It is not, really. It is the flowing of money that is the thing. The flow of money between viable entities finding areas of demand and creating supplies to meet them. I am hungry. I go eat a sandwich. And Joe’s is just around the corner. These connected imperatives, these compelling reasons to do things. Art. Achievement. Enterprise. Hobby. Obsession. A society with flows inward to fewer central points creates poverty as well as pockets of wealth. Taking risk on credit creates debt with a chance of wealth. Governments tend to run in debt as a natural state, hoping to improve things sooner.

If the measuring stick of a society is the degree of economic growth it can achieve, it establishes an instant demand for more population to share the load. If we can find an honest way to limit the growth of humanity we can then modulate our economics to fit more comfortably than the monied classes feeling they need to accumulate so much more than anyone else before anyone else gets their filthy mits on it. It is not so much that economies are inflating by increasing the money supply and devalusing currency slowly – it is the only way to evaporate the effect of trillions of dollars locked into tax havens. Unproductive wealth is the economic glutony of the modern world. And it works like cortisol in the body, it adds sink holes to the economy – which means that there is less actual cash in the system.

This is an ever accelerating economic phenomena of allowing tax havens. To attract people with a lot of asset income to reside Governments are obliged to allow tax havens into the economic equation.

The net effect with devaluation is to make the funds that tend to be locked into tax havens more at a risk of devaluation if left in your currency. The problem is that the Governments are compelled to compete for such retinues as those of the religiously rich.

Job creation by government in times of economic emergency yes. This Government’s record at economic improvement? Negative, trending: negative.

Hell bound economy

August 7, 2012

Understanding the economic crisis is not that easy.  How can bankers pay themselves millions in bonuses.  How can we pay Mark Zukerberg 16 billion for his website creation, Facebook?  We did.  That is why he got double just a few weeks ago what is now worth 8 billion dollars – so where did all that cash go?  It went into his pocket.

It went to pay the people who’s stock went up, that is the beauty of a market – it revolves money around in transactions – it is the ammunition of the economy that is fired actively in an economy that functions.  When bits of it start to fall off, especially the productive bits that enable the lives of millions of workers up and down the country we have unemployment and pointlessness instead of enterprise and pupose.

Why involve the lumbering unresponsive state with responsibility if the private sector has so spectacularly failed with it, why does the state believe it can do better, you hear the beautiful quitters – the image queens who tread on the political nerve of being liked while talking the talk.

Now why is that such a bad thing?  One hears the question.

Why is it a good thing.  To be controlled by a peacock.  Would a stern eagle or a severe buzzard not product better results?

Capitalism is not about theft.  It is about the flow of money towards enterprise and the growth of that which helps a large number of lives.  Enriching individuals as Facebook launch obviously has, is really not the intention of capitalism.

This modern drain on the finances have to go somewhere, and reflect the devaluation of the British economy that the Conservatives and Lib Dems have dictated without a public mandate.  And their enforced austerity is a given insofar as their idea of how to make things improve seems to be fixed, uncompromising even in the face of a triple dip recession.


See also: The Guardian

Banking Integrity

July 31, 2012

“RBS is said to have paid £25m to just one businessman who was mis-sold products intended to protect against interest rate rises.” – Guardian article


The Chief of RBS, one Stephen Hester was given the bank to run after nearly failing when the Brown Labour Government decided to intervene to protect the seventh largest bank in the world after it very nearly failed due to exposure to the derivatives market, the PPI debacle costs, and the mis-selling of derivatives resulting in costs such as the above case.

After the terrifyingly real fiasco of the failure of their computer systems that locked out some users for up to one month and many users for days in the National Westminster crisis, Hester cancelled his year’s bonuses after public amazement that such failures on top of massive losses should be rewarded with bonuses out of step with natural justice.  Good on him.

But is it is rather odd that a man sent in to fix things should leave so much unfixed?  Is the banking culture so infiltrated by greed that their personal enrichment is all that counts for them?  The public who trust banks to have fiscal integrity hope for a bank that can be honest with them, with themselves and that promote an extremely high level of integrity and transparency.

The talk of separation of the investment and savings arms of the bank has remained just talk for far too long.  Banking is an integral part of the financial system.  Time to get it right.

Why Austerity does not work

July 14, 2012

Over 300 flood defence schemes were subject to budget cuts and not proceded with, and hundreds of millions of pounds in insurance claims and the cost of the suffering and interruptions in people’s lives that could have been avoided by not abandoning the relatively trivial cost in net human experience quality of life vs how much exactly in tax savings?  What if it happens, again, next year?

Guardian article:

The role of Government is to apply wisdom to prevent disasters rather than throw the cards into the air hoping to catch a few as they tumble down.  The abandonment of not just progress, but the safety of residents – we tax payers invested in some planning for there to be 300 flood defence schemes, so lets go ahead and make the necessary investment.  It is hardly a luxury but the ruthless abandonment of Governmental responsibility for our investment in the work of civil servants which would have to be redone at another date if we are not to relocate families from 300 or more locations affected by the failure to actually employ valid work.  It is more than supplying a demand, it is an act of massive criminal cruelty to the lives of many, many people.

Austerity is a tightening of the belt of economic safety and keeping the lid on things that actually have an impact on the economy.  What the Osborne regime is doing however increasingly appears to be a failure in the strategic intelligence department.  The investment in flood barriers was not as great as the cost of the damage.  Far less than the bank bailouts.  Far less than Trident.  We waste 83 billion  on a system while isolating Iran for trying to emulate it.

A failure to apprehend that climate change meant strategy change is only now becoming relevant to Government now that 98% of the scientific community are indicating that the extreme weather we are having may well be a bit of a sign of things to come.   The others deny this and that is their right.  But Government should not be banking on the unconventional view here.  If we are going to build houses on flood prone ground, then we had better build protection.  As this had already been researched, and understood, abandoning necessary planning is worse than criminal negligence on a scale.  It is politically motivated cruelty.  Protecting the bankers while stomping on the need to look after each other.



The future of austerity

Economic Progress

July 2, 2012

The harder things are, the better few are found? “Look at how great Britain was after the war.” The 80s drive defined by greed resulted in inflated property prices funded by an unrestrained banking sector. The economy inflated, however due to the nature of compound interest the banker made disproportionately more than the average person.

Because the economy appeared to be “growing”, things were improving as people basically borrowed themselves into bankruptcy. The property bubble does not deflate quickly. It is a great unwinding that could spread over generations. As long as there is a pressure of demand over supply, prices will hold. But if housing falls behind the increases in population, and we achieve precisely what the Right objects to most. The modular commodification of our “experience”.

Liken it to the taught crisp sail in the wind and you see the objective of economics. To harness a drag that equates to a sense of process – the hooking up of economic life-rafts to “individuals” instead of to a society – individuals empowered outside the grip of traditions. This is the new Right.

It is trivial when compared to the inherent massive inflation of the modern curse, rampant securitisation. How will a graduate saddled with near permanent debt pay a mortgage and have children? What has created that level of social indebtedness? Is it as deliberate as the libor scam?

Linear thinking about economics pervade. If it is not black, it must be white! If you said Communism was a failure, then what shall we call Capitalism? Well, both are roaring successes for the very richest and instead of serving the population, is is they, whom Governments compete with each other over.

This economy does not deliver to increasingly large swathes of smart people, unless they take risks. When the risk is abject failure the youthful drive will compete with those struggling to stay in the work force. Those who become a slave of the state are a cost to the state. Now we can add those who become victims of the margin spreading as the middle class is consumed by a creeping puddle of poverty. If you suck too much toward the centre, the edges fray but society is no two dimensional circle or even a three dimensional sphere. It is a multifaceted multidimensional and fluid organism with a huge skin and tiny skeleton that adjusts its balance according to a rule book we used to have. Our economic existence had meaning in terms of some correlation between what we did, and what we have.

Then suddenly, we were set on an economic course that allowed disproportionate capital growth. It was as though someone turned up gravity – the banks added the potential for endless fuel and this has caused a collapse of energy into the centre. As the banks made debt almost obligatory and definitely a trap for continuous pouring of human effort into a hole, as they caused a massive inflation in the value of property by lending capital back, setting us up for endless payment, Governments have gotten in on the act, and started to charge our children for their education. What is next, buying a licence to have grandchildren?

Why Austerity is Failing our children

June 28, 2012

A generation or two of high unemployment and low wages is considered a price worth paying to bring down the deficit. This makes little sense economically (no jobs means less tax revenue, hence Osborne’s frantic borrowing)

Guardian article

If the Government believes that it is good to take from the majority because they a) either live in low circumstances and thus electorates that will never vote Tory anyway, or, b) they are young and are not enfranchised into the democratic system as they have no independence of mind or body. The “Baby Boomer” generation is defined by indulgence and when this is given to children in the fashion of top education good nutrition and a sense of moral value well and good, but a vast number of children these days get past the age of 25 due to zero economic options.

It is a cynical and unlawful party that recommends scrap heaping a section of its population that may never be able to vote against them. A bullying tactic or just a natural consequence of being a Tory toff who had his bread buttered for him from the start and now can not conceptualise that the economy is like a living animal, when you run it too hungry it gets tired quickly. The methods of the “financial stimulus” that the Brown government did was to buy into RBOS and NatWest – now the most badly managed banks because they outsourced too much responsibility to one failed cog that cost them a week of downtime and millions of customer headaches. And now Barclays has been fleecing interest. After the PPI scandal you would think that the banks would be a little more careful when it came to customer base fairness. A run on a bank is always down to perception. Dishonest bankers must be rooted out and sacked or confidence in the financial system suffers manifold.

This lenience on the wealthy and brutal treatment of the vulnerable while pricing education so that students are forever in debt is a master stroke of enslavement and duress upon an undeserving generation.

The Lib Dem balls up on Proportional Representation was a tragic day for those young disenfranchised voters. All voices should be heard equally or your democracy is unavailable.

Austerity is failing our children as it makes it impossible for them to assert their independence, so they do not define themselves in terms of their roots being well placed. They start life late, feckless and unremarkable. Our instincts shelter our young so they can lord it over their own isolated game console addiction the default pacifier of the teenager. Better than having them run wild in the streets.

Today’s government is a little like a medical team locking themselves in the cafeteria in case they catch something. The evolution of progress is forming an ugly mess of a future. That is what is wrong with this austerity. It is the isolation of social spending as a target for funding wealthy arrogance.

Lift them up for godsakes.

The Natwest nightmare

June 26, 2012

So, the government bails out a bank that sailed too close to the wind with their wild investment arms flailing about enthusiastically until it all went wrong. And Stephen Hester goes in to save the day and even though the bank continues to make losses there is “progress”. Huge bonuses attract much media attention.

Are cost cutting and mismanagement behind their IT systems failure? It is easy to blame it on cheaper outsourced employees.

It is a illustrative example of how wrong footed and illogical austerity is as a solution to the economic problems caused by the banks deregulated enthusiasm for gambling assets. Deconstruct society by making education out of reach and watch the corrosion at the margins eat away at your assumed wealth.

Is this not theft?

June 24, 2012

Top Tory donor George Robinson was a director of Rushmore, a (failed) tax avoidance scheme that Jimmy Carr was also a listed “Director” of – alongside 500 other disappointed capitalists.

Does this mean that the Tory Party is partly funded by income made via tax avoidance. Does this not mean that the Tory party is funded by people willing to steal from the people? Our Government is dishonest if they do not immediately act to close tax sheltering by the very very rich and if they are to remain honourable they should investigate their donors and if they are making donations of tax avoided monies, then the Conservative party effectively owes tax – and must immediately pay the correct amount of it to HMRC.

Additionally, the Government cost reduction strategy has reduced the HMRC staffing levels to the point where billions of pounds in tax avoidance are unable to be investigated.

Guardian article on Tory donor tax avoidance.

The Role of Government

May 27, 2012

As Syria continues to slide into chaos with the slaughter of 90 people by Government forces that are as such, denied. Of course they are. The Government’s attempt to blame the rebels is expected but is it logical? The repression that results in a massive popular rebellion is in itself an unacceptable form of Government because it is never in the interest of the people. To live in fear is the crime committed by unreasonable Government. If the useless build up of nuclear arsenal The Cold War begat had been invested in the quality of human life then the byproduct could have been bettered education and progress for all of humanity, accumulating wealth in an environment that invested wisely in free energy for all and good clean public transport. But no, investing in defeating the political arrogance of each side required the creation of such threat to stop supposed military desires each side suspected of the other.

Clearly, the Western incursions into hotbeds of Al Qaeda have been horribly costly to the world’s balance sheet as its largest economy borrows trillions of dollars to finance it. And we get a recession as a result of ridiculous laws that fail to protect the taxpayer from massively magnified risk due to market manipulations that make financial giants accumulate risk positions that can go sour and then continue to worsen creating exponential losses – ones that could result in a simple bankruptcy and protect the tax payer. If a trader were to lose their ticket over untenable positions (where losses can not be covered) – effectively mini bankruptcies, the damage would be localised. Government would fulfil its role of sustaining by directing the flow of benefit back to the people that elected them.

Economics is a kind of war. It enslaves countries by locking them into debts that they could not sustain. But like any game, it is one where national advantage means disadvantage to others. International competition comes into it as populations are migrant.

The role of government is to create conditions where economic growth does occur and the tax take increases as the skill level of the population increases.

Instead Governments become score keepers rather than talented actors that provide a level playing field where fairness between people is rewarded and criminality reduces.

We will never get there by arguing. That is what politicians seem to do. It is a lack of creative dynamism that characterises period of recession.

The problem is that the government has allowed a blur to exist between public capital and private risk. Although the bankers committed this error, it is the role of Government to prevent them.

Developments – Russian vote sought as British Foreign Secretary goes to Moscow. Will he have any effect telling the Russians to support a UN embargo on weapons supply (the Russians are the supplier and support the Assad regime) and sanctions?

NY Times – U.N. Security Council Issues Condemnation of Syria Attack

Obama to Europe: Grow

May 18, 2012

Obama is talking up the European economy saying that growth is required to conquer recession rather than austerity. And David Cameron comes out in favour of this – growth is needed in Europe and yet his policies of austerity in the UK contradict this support and makes one wonder if his office have a rating system and agreeing with Obama trumps most other issues, including the main economic plank of his frat pal chancellor.

Guardian article

What is growth? It is an improvement in terms of real wages vs inflation which in the UK has been on the decline for rather a while. Austerity in the face of recession is a knives edge course of shaving bits of the economy off until its a lean machine like some kind of down sized corporation. But the lives abandoned by the governmental machine are humans not dollars. They do in fact matter. Bleeding your population to support the mistakes of the banking industry and their magic numbers is simply belief in a myth. Mathematics be damned!

The derivatives market strikes again!

May 14, 2012

How the head of JP Morgan got bit by the derivatives market and what this says about financial regulation when it comes to taking risks with our pension funds.

Krugman – NY Times

The meaning of authority

May 13, 2012

Authority dictates that which we socially agree must be accepted as a condition of freedom. We elect those who make the laws that authority is dictated to, if we elect a government that changes those laws then a different set of people may be marginalised. The current financial crisis is an inexcusable threat to progress and it is entirely due to a systemic corruption of the mechanisms of the system itself.

The indecisive democracy practised in Europe makes change occur in a different way than it does in the more rapidly decisive preference voting systems that expand the power to “vote against” a candidate by those who are not completely sure but certain they did not want one of the leading candidates. I can not advocate FPP however, but that is also produces a decisive result swiftly, it is a method of voting that is then able to change government and importantly give Government a continuity and direction. I say importantly – meaning that the lack of an ability to run things without new rules being made – is an important distinction between Government having authority and the state having authority. The rules are only being made by a Government when one is rightfully recognised as representing the will of the people. And look at their choices. People want a government that is not tied to the whim of the fanciful investor. They want a stable entity that will look after their pensions and provide purpose and ability to the young people who may otherwise be overlooked in a market driven economy if forced by it into menial tasks.

The British Conservative Liberal coalition attacked education and health as their way to save the UK from financial collapse and another financial institute is reduced by 13 billion dollars overnight due to action on the derivatives market (2 billion in actual loses) followed by share market reaction (far more lost in capital value, but that’s life).

Meantime Greece is having to democratically consider if being a slave economy in the Euro is preferable to breaking away from it and becoming measured purely on its own merits (maybe that would be a tougher but a more rewarding environment) as Governments in Europe continue to bail out banks that have run foul of the improbable mathematics of the derivatives market.

It allows speculative destruction of common wealth. The hoarding of it by individuals and hedge funds which strip the banks bare at any available opportunity. Why are we democratically deciding to fund these vipers?

Economic Recovery

April 16, 2012

A consumer driven economy is a tougher proposition for risk but efforts of the Government is driven by the needs of the consumer in an attempt to build confidence for risk takers they are stripping bits of skin from the hide of nearly everyone by a) providing a corporate tax rate that is perceived as “being cut” therefore attracting capital investment, although so far results are questionable at best, and b) not adjusting the 40% rate of income tax so the pool of those affected in a 5% inflation rate economy, broadly increasing the tax take of the many for the benefit of a very few who could otherwise contribute to the society enjoyed by the people they employ.

Working conditions are host to much time over maybe 30 years or so of our lives. Working in inhumane sweat factories or unhealthy conditions is a tax on the flesh of those bringing up the children whose random distribution of intellect and opportunity may or may not intersect. It is the meeting of the intelligent children with increased opportunity that can provide the competence for a better tomorrow. Short changing education by effectively placing an advertising business between quality vs quantity equations – decisions that affect our trend in nature.

The problem with non-interventionist governments is that they tend to be the more interventionist in consequence due to the austerity they believe will balance the books in our favour sucking the confidence producing pheromones that do excite demand. You are not driving a vacuum cleaner more efficiently by putting more fluff on the ground so you feel it is cleaning more effectively.

More succinctly, the increase of demand without the balance of utility, is the enslavement of everyone. We have left and right wings for good reasons, society is more complex than an equation or a formula. The National Health is important as a sign of the very human value – diversity. We are the one species that is aware of the value of it. It is democratic to value each human being equally, but to reward them in a consequential way, and what eats at the heart of consumer confidence is hearing how bankers must be rewarded with amounts and tax avoidance by companies taking advantage of our labour is a sign that we as consumers are simply consuming the wrong things.

Why deal with an organisation that reduces our national savings? Our pride as a country is a pride in qualitative values, British Made used to be a mark that inspired confidence. We achieve this via actions not dangling carrots in front of the already greedy entitled few. That they control the public levers of wealth to their private benefit in a disproportionate way should provide them with an opportunity to aid the treasury knowing it was at least providing for the health of all with equanimity.

It is that covenant of looking after one another that is evaporating as consumers are being bled dry on both fronts – as inflation is descending (artificially raised anyway by an increase in VAT, so you have to examine the trend)

Disabled People

January 21, 2012

Disabled people should not be discriminated against. However, behind increasing numbers of disabled, is the rise in false claims: you can have rigorous detection or universality depending on your politics.

Both are expensive and do not target funds to the disabled, because if you assume the year on year growth is down to false claims then penalising the disabled is not the solution.

Education does provide a return on investment so it is worth doing, always. State-run family planning however seems to have a terribly high cost. I am all for reducing the world population but there is no reason to dictate to evolution.

Securitisation – do we understand?

December 11, 2011

When taxpayers paid hundreds of billions to bail out banks, we were never told in reality what we were investing in. The scale of the problem created by securitisation could mean problems for decades if we do not revise basic principals of what is economically efficient and what is fantasy.

Would it be correct to say that the 1% have the world’s capital reserves locked up in tax shelters? How long before former world powers wake up to this? And what will the consequences be?

UK to join Euro?

November 20, 2011

Michael Heseltine thinks the UK will have to join the Euro. He says that if the Euro was to fail – or more specifically if too many European banks fail, the UK stands to face collapse of many banks in the UK.

The Euro crisis

November 12, 2011

There are many ways to “solve” the crisis.

You do not win a game of chess by barking at the pieces on the board, but sacrifice can have huge dividends. Part of the crisis is one of leadership.

Our leaders keep talking but not facing the fact that the economic system is riddled with corrupt practices, magical mathematical models that distort value and they appear to be relying on these mechanisms “to induce real growth” while starving the participants in favour of those for whom tax avoidance is a religion and make fortunes by gambling on leveraged valuations for things that do not exist.

Posted as a comment in The Guardian, article.

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?

The Capital Crisis

September 24, 2011

While the G20 worship the generation of false wealth we are forced to accept Governments that defer the costs of progress in favour of far more false wealth as a solution. The holy grail of a system that has cheated itself to the Nth degree is becoming a groaning machine capable of blowing gargantuan bubbles to solve the crises of accumulating need of the many to sponsor the largess of the very few.

These huge mountains of debt – what did they buy exactly? Where are the assets? Consumption is not an asset but it is seen as the path to salvation. Growth is not growth when it is only capital expansion in the face of long term poverty. It is the system itself that is out of control, the way in which the steam valves we call markets are manipulated and political decisions that flow from the rationale of a committee of naked emperors.

Producing exponential movements in capital exchange is seen as a solution. UBS recently learned the hard way the equation that for every winner there is going to be many losers can be reversed. What sucked Lehman dry was bad mathematics and a total disregard for consequences, an aggressive form of global gambling is simply not going to solve the actual dilemma the markets face. What we are measuring is not real economic growth, it is a deferment of responsibility.

As the markets fall capital moves away from reality and into assets that are deemed safe. The market mechanism is a great tool that has been badly abused by greed to the power of political expedience.

American Default?

July 27, 2011

Legislation of a debt ceiling does not absolve the US from its obligations.

UPDATE: The 14th Amendment of the Constitution clearly states that Congress must not default on its obligations.

While the USA frantically tried to save the world with a nuclear arsenal they could never use and military overspending on wars that did no good, we see the East’s rise to financial domination by engaging huge numbers of lowly paid workers to export in a way that nobody was able to compete with. If you want something manufactured, get it done in China has been the wisdom of the past 60 years. Market forces!

The agenda of the lever pullers seems to be to froce the USA to default and evade repayment. By making it effectively illegal for the USA to meet its obligations, the USA will have to default. The net effect of the USA not borrowing any more is being described in philosophic terms – what would the result be?

I think the answer to that not yet knowable. But certainly creditor nations will invest elsewhere and perhaps it will be the final straw that breaks US economic hegemony. Time for a new deal?

If Obama was to be effective, he needed the Democratic support in his first two years. Sad that they fiddled while the midterm elections were lost. Back to American isolations, anyone?

Guardian article