That’s really the only two words I can use to sum up either the Tory or Labour party manifestos.
If you’d rather, ‘In Yer Dreams Mate’ might work as well.
Look at what being offered, count the cost, and note the current account deficit.
There’s no money.
Where will the ability to pay for these pledges come from?
The poor can’t pay, the rich won’t pay (their lobbyists will see to that) and the middle class are about broke.
That leaves another round of demonization followed by sweeping benefit cuts, or cuts to basic services. Either way, it’ll do nothing to halt the swiftly rising tide of need for things like food banks.
This is not my kind of society.
Both parties could pre-identify savings; it’s really not that hard. There is a huge one in Trident for starters. There are two more in a couple of aircraft carriers that this island state, with its four constituent nations, can’t even afford the aircraft for. Sell those ships and put the cash in the coffers, and yes, we’ll take a loss, but then we did vote in the idiots that ordered them in their imperial pretentiousness. However, that loss will be a one-time loss, not an ongoing drain and we as a nation won’t be paying to support America’s military industrial complex rather than our own.
I thought the Greens might offer England’s voters a credible alternative to the big two or UKIP, sadly, policy credibility is conclusively hidden somewhere in ‘Fantasy Land’ for them. What the Greens propose would be economic suicide. It is not that it can’t be done, it just shouldn't be done.
The issue is that England needs a credible alternative home for its popular vote, because right now it really does not have any viable home at all.
Imagine a Green party, or a new English party like the SNP that stood on a simple platform ‘We’re not going to change much, not right away anyway, but we will abolish the House of Lords’. Imagine them communicating that message.
The message would be enhanced by a guarantee of a real constitution, with a constitutional lock that’d guarantee a balanced budget within a decade. Throw in more constitutional locks such as the new upper chamber could only review laws or perhaps block anything the commons passed, however it’d have to be non-aligned and have equal numbers of members from each constituent nation.
Now get back to policies, just keep it simple, and explain that you really can’t give Jo and Josie public any more than what they've already got, because you’ll have to deal with the mess the other idiots left behind, and you’re certainly not going to promise something then renege when you open the treasury doors and find a note saying ‘good luck, enjoy, sorry there’s no money left!’
If you want those fuzzy green policies stuffed in there, clean up inner city air pollution, explain that it’d lower the burden on the NHS due to pollution related health issues, and then propose a phased in assessment based upon how much a vehicle pollutes. If you've got a heavily polluting vehicle you’ll pay yet another tax that’ll support green policies, and that money will go directly to local councils for that reason. Give it a ten year phase in, there’ll not be much objection, most of us will simply plump for low polluting transportation as time passes and escape the penalty.
That’s just one example to demonstrate that things really aren't that difficult to change, given time, the desire to make a positive contribution and the proper approach.
I expect I’d vote for a party proposing that sort of progressive change, especially if it also allowed me to replace my MP mid-term if they weren't serving their constituents, or promised that any MP guilty of violating the law of the land would be subject to triple the normal sentencing guidelines. They should, after all, be held to a higher standard.
It is possible to spend your way out of a recession, but you can’t do it by fulfilling election promises that will increase the current account deficit – it only works if you use the money to put folk to work, generate more taxes, get more competitive and protect the home market in some way. Do that and you can work to a balanced budget and greater wealth for us all. Maybe one day we’ll see a UK wide party and not just a national one propose something along those lines?
Perhaps, but then again there’s a reason this blog’s titled ‘Fantasy Land’.
In the United Kingdom, for as long as it exists, I’d expect it will always be ‘politics as usual’, because a balanced budget won’t make money for the bankers and financial gamblers who sit at the heart of the City of London, and therefore UK government.
Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts
Tuesday, 14 April 2015
Wednesday, 20 August 2014
Mr. C. Thanks For The Prompt Reply.
Honestly, I didn’t expect an answer My Questions quite so quickly, but then, the truth will out, because the truth does have a nasty habit of bobbing to the surface.
My-oh-my, it was a surprise though, to see it answered so honestly.
I asked David Cameron a question the other day; I’ve now had my reply, even if indirectly delivered through the UK media. At least in a "here’s your answer, now you go figure it all out you silly wee wummin" type of format, at any rate that’s how it was presented in the press today.
Actually, I'm not so crazy as to think it was just my reply and it was only a partial answer, but he might have just as well shouted it from the rooftops. It was the response to the NHS question and it states very, very clearly, we’re about to lose our own Scottish NHS.
I'm talking about the English backlash in all the papers today, the one where there is a demand that we get our spending cut to a UK average, or even less, if that’s what Westminster decides. They’re saying £1,400 a head. This equals around £7.2 billion – allow me to write that out in full; £7,200,000,000. That’s cuts like you've never seen before. Oh, they’ll be staged allowing time for progressive charging to creep in, health insurance to slowly become a requirement and acceptable. You know how Westminster works; the death of a thousand little cuts. Except this time there’ll be over 7 billion little cuts.
Now, let’s remember where broadcasting is reserved to, especially after seeing ‘Better Together’ ads on the BBC (as a child, I really did believe it was supposed to be neutral and impartial, a great institution. That’s just another of those young beliefs shattered I suppose, consigned to the same afterlife as the tooth fairy). Anyway, remembering that broadcasting is reserved, we know who they’re supporting, and it isn’t ordinary folks.
This ‘newly revealed’ backlash is not particularly new; in fact it’s actually been (sometimes not so) subtly covered for a number of years now. England has forever been awash with images of the drunken Scot, belligerently whingeing for a handout. Meanwhile, they studiously ignore the fact that we put in far more than they do, more than we ever see back, which absolutely can’t be said for England.
Accordingly, akin to the Indy Ref, when you give folks half-truths, half the information and facts such as ‘they get more than you, is that fair’, of course the answer’s ‘NO’. It’s the same logic they’re using to try to get a ‘NO’ vote in Scotland, and sadly, some of my fellow Scots, reliant on a diet of Westminster propaganda, will vote that way, simply because like the English population demanding our budget be cut, they simply don’t know any better. Wonderfully subtle state propaganda, isn’t it?
Now, had these same English residents been given the full facts instead of Westminster propaganda i.e., the Scots actually pay far more into the system - much more. In reality, 2010/2011 tax receipts were £10,700 per person for Scotland, as opposed to an average of £9000 per person for the rUK. Had these same residents been made aware that these excess taxes are possibly paying a percentage towards England’s PFI contracts on hospitals and schools; wouldn't they be more amenable to the idea that it is only fair the Scots receive slightly more back than residents in rUK? Would there still be this hue and cry in England?
I suspect that not. The vast majority of English are reasonable folks, they’d be reasonably happy with that arrangement, if not downright tickled pink.
Sadly though, supplying the information at this juncture won’t work, because south of the border Scotland has been demonised in both popular culture and the popular press for far too long. The BBC is largely responsible, and the BBC is a reserved arm of Westminster. I can say that, because it’s been done at all levels, from the portrayal of Scots in newsprint to even one of my favourite old Beeb comedy shows like Black Adder; cringe worthy depictions of red-headed, tartan-bobble-hatted, be-kilted savage Scot, my people. Perhaps that’s why many suffer a Scottish cringe?
Anyway, it’s largely irrelevant now. What is relevant though is that the poll on attitudes showed upwards of a three to one majority of ‘realigning’ spending, as in cutting our budget. In reality, people who have done their research know this poll is based on half truths, innuendoes and lies. However, just like the ‘NO Voter’ in the upcoming referendum, it is what they truly believe; because they base their opinion upon the information they've been spoon fed. That makes it very real.
Furthermore, this also makes it very real to the politicians in Westminster; real and actionable. They do, after all, look upon us as ‘one country’, not four countries voluntarily making up one state. So when three of four who voice an opinion tell them to act, and it’s an action they want to take anyway, they pretty much now have to be seen to be doing something. We can bet the English press will report one set of promises, their Scottish editions will report it another way.
That means if the hoodwink holds enough of our people until September 19th, then within a very short time we can expect to see an ‘adjustment in our allowance’ of some 7 billion quid. It’s not going to be an upwards adjustment either.
If the hoodwink holds, that seven billion, and by government figures would mean one of two things if applied to us; it’d mean shutting down every hospital in Scotland, with every GP Practice or making you pay for them by forcing you to buy private insurance. It means that, or finding the money some-place else.
The problem being, there isn’t any some-place else. Since any extra Holyrood extracts from us will be deducted from what Westminster gives them.
I have recently spoken with a nurse taking a position in England. I asked if her contract was with the NHS, a health board, or a private company. You’d think that’s an easy enough question. Not in England, not today. She’ll be in an NHS uniform though, for now.
So, Mr. Cameron thanks for my answer, although I know you didn’t just decide to give it to me directly. I know your methods, and how you use the media. First they ‘uncover a story’ and engender disbelief, that disbelief turns to outrage, and as with our poor, our disabled, our sick and our immigrants, outrage begets anger and demonisation, which in turn gives support for the actions you intended anyway. It’s a bit like Putin invading his neighbours.
You want me to keep a system of healthcare, the future of which is to be modelled on the US, where a simple Caesarian Section can cost up to $25,000. You’re seriously asking me to vote for that?
Well, having had your response Mr. Cameron, I’ll give you mine. I’ll just say ‘No Thanks’ on the 18th, but I’ll say ‘YES’ to trusting my neighbours and country. You see, what you've threatened if we vote yes, while worrisome, isn’t really very scary. Not when it’s put beside what you're promising to do if I say ‘No Thanks’. The consequences of No means you’ll really have the power to make it happen, and me? Well, I’ll no longer have a finger to point, will I?
My-oh-my, it was a surprise though, to see it answered so honestly.
I asked David Cameron a question the other day; I’ve now had my reply, even if indirectly delivered through the UK media. At least in a "here’s your answer, now you go figure it all out you silly wee wummin" type of format, at any rate that’s how it was presented in the press today.
Actually, I'm not so crazy as to think it was just my reply and it was only a partial answer, but he might have just as well shouted it from the rooftops. It was the response to the NHS question and it states very, very clearly, we’re about to lose our own Scottish NHS.
I'm talking about the English backlash in all the papers today, the one where there is a demand that we get our spending cut to a UK average, or even less, if that’s what Westminster decides. They’re saying £1,400 a head. This equals around £7.2 billion – allow me to write that out in full; £7,200,000,000. That’s cuts like you've never seen before. Oh, they’ll be staged allowing time for progressive charging to creep in, health insurance to slowly become a requirement and acceptable. You know how Westminster works; the death of a thousand little cuts. Except this time there’ll be over 7 billion little cuts.
Now, let’s remember where broadcasting is reserved to, especially after seeing ‘Better Together’ ads on the BBC (as a child, I really did believe it was supposed to be neutral and impartial, a great institution. That’s just another of those young beliefs shattered I suppose, consigned to the same afterlife as the tooth fairy). Anyway, remembering that broadcasting is reserved, we know who they’re supporting, and it isn’t ordinary folks.
This ‘newly revealed’ backlash is not particularly new; in fact it’s actually been (sometimes not so) subtly covered for a number of years now. England has forever been awash with images of the drunken Scot, belligerently whingeing for a handout. Meanwhile, they studiously ignore the fact that we put in far more than they do, more than we ever see back, which absolutely can’t be said for England.
Accordingly, akin to the Indy Ref, when you give folks half-truths, half the information and facts such as ‘they get more than you, is that fair’, of course the answer’s ‘NO’. It’s the same logic they’re using to try to get a ‘NO’ vote in Scotland, and sadly, some of my fellow Scots, reliant on a diet of Westminster propaganda, will vote that way, simply because like the English population demanding our budget be cut, they simply don’t know any better. Wonderfully subtle state propaganda, isn’t it?
Now, had these same English residents been given the full facts instead of Westminster propaganda i.e., the Scots actually pay far more into the system - much more. In reality, 2010/2011 tax receipts were £10,700 per person for Scotland, as opposed to an average of £9000 per person for the rUK. Had these same residents been made aware that these excess taxes are possibly paying a percentage towards England’s PFI contracts on hospitals and schools; wouldn't they be more amenable to the idea that it is only fair the Scots receive slightly more back than residents in rUK? Would there still be this hue and cry in England?
I suspect that not. The vast majority of English are reasonable folks, they’d be reasonably happy with that arrangement, if not downright tickled pink.
Sadly though, supplying the information at this juncture won’t work, because south of the border Scotland has been demonised in both popular culture and the popular press for far too long. The BBC is largely responsible, and the BBC is a reserved arm of Westminster. I can say that, because it’s been done at all levels, from the portrayal of Scots in newsprint to even one of my favourite old Beeb comedy shows like Black Adder; cringe worthy depictions of red-headed, tartan-bobble-hatted, be-kilted savage Scot, my people. Perhaps that’s why many suffer a Scottish cringe?
Anyway, it’s largely irrelevant now. What is relevant though is that the poll on attitudes showed upwards of a three to one majority of ‘realigning’ spending, as in cutting our budget. In reality, people who have done their research know this poll is based on half truths, innuendoes and lies. However, just like the ‘NO Voter’ in the upcoming referendum, it is what they truly believe; because they base their opinion upon the information they've been spoon fed. That makes it very real.
Furthermore, this also makes it very real to the politicians in Westminster; real and actionable. They do, after all, look upon us as ‘one country’, not four countries voluntarily making up one state. So when three of four who voice an opinion tell them to act, and it’s an action they want to take anyway, they pretty much now have to be seen to be doing something. We can bet the English press will report one set of promises, their Scottish editions will report it another way.
That means if the hoodwink holds enough of our people until September 19th, then within a very short time we can expect to see an ‘adjustment in our allowance’ of some 7 billion quid. It’s not going to be an upwards adjustment either.
If the hoodwink holds, that seven billion, and by government figures would mean one of two things if applied to us; it’d mean shutting down every hospital in Scotland, with every GP Practice or making you pay for them by forcing you to buy private insurance. It means that, or finding the money some-place else.
The problem being, there isn’t any some-place else. Since any extra Holyrood extracts from us will be deducted from what Westminster gives them.
I have recently spoken with a nurse taking a position in England. I asked if her contract was with the NHS, a health board, or a private company. You’d think that’s an easy enough question. Not in England, not today. She’ll be in an NHS uniform though, for now.
So, Mr. Cameron thanks for my answer, although I know you didn’t just decide to give it to me directly. I know your methods, and how you use the media. First they ‘uncover a story’ and engender disbelief, that disbelief turns to outrage, and as with our poor, our disabled, our sick and our immigrants, outrage begets anger and demonisation, which in turn gives support for the actions you intended anyway. It’s a bit like Putin invading his neighbours.
You want me to keep a system of healthcare, the future of which is to be modelled on the US, where a simple Caesarian Section can cost up to $25,000. You’re seriously asking me to vote for that?
Well, having had your response Mr. Cameron, I’ll give you mine. I’ll just say ‘No Thanks’ on the 18th, but I’ll say ‘YES’ to trusting my neighbours and country. You see, what you've threatened if we vote yes, while worrisome, isn’t really very scary. Not when it’s put beside what you're promising to do if I say ‘No Thanks’. The consequences of No means you’ll really have the power to make it happen, and me? Well, I’ll no longer have a finger to point, will I?
Tuesday, 18 February 2014
The Big Currency Bash.
Well, it's been hot news since Gideon laid his cards flatly and squarely on the table. The Scots and their Nation are second-class citizens of Planet Earth when it comes to currency sharing. And while I don't normally re-blog items, I saw this post pertaining to the stramash on "who can do what with a pound" while on Facebook today, and thought it was worth the reposting.
United Kingdom,
British Antarctic Territory,
Falkland Islands (alongside Falkland Islands pound),
Gibraltar (alongside Gibraltar pound),
Saint Helena, Ascension and Tristan da Cunha (Tristan da Cunha; alongside Saint Helena pound in Saint Helena and Ascension),
South Georgia and the South Sandwich Islands (alongside Falkland Islands pound),
British Indian Ocean Territory (de jure, US Dollar used de facto),
Guernsey (local issue: Guernsey pound),
Isle of Man (local issue: Manx pound),
Jersey (local issue: Jersey pound).
Apart from these OFFICIAL users of the pound sterling, there are the following places using sterling unofficially:
Thanks to Mairie NicIllemhoire and Ken Potter for all the information:
"I'm not in favour of the Euro as our currency post-indy, but nonetheless, I found it very interesting to discover that there are several non-EU members who use the Euro as their currency, namely: Andorra, Kosovo, Monaco, Montenegro, San Marino, and Vatican City.
With regards to sterling, the current list of official users (plus secondary currencies, in brackets) are:
"I'm not in favour of the Euro as our currency post-indy, but nonetheless, I found it very interesting to discover that there are several non-EU members who use the Euro as their currency, namely: Andorra, Kosovo, Monaco, Montenegro, San Marino, and Vatican City.
With regards to sterling, the current list of official users (plus secondary currencies, in brackets) are:
United Kingdom,
British Antarctic Territory,
Falkland Islands (alongside Falkland Islands pound),
Gibraltar (alongside Gibraltar pound),
Saint Helena, Ascension and Tristan da Cunha (Tristan da Cunha; alongside Saint Helena pound in Saint Helena and Ascension),
South Georgia and the South Sandwich Islands (alongside Falkland Islands pound),
British Indian Ocean Territory (de jure, US Dollar used de facto),
Guernsey (local issue: Guernsey pound),
Isle of Man (local issue: Manx pound),
Jersey (local issue: Jersey pound).
Apart from these OFFICIAL users of the pound sterling, there are the following places using sterling unofficially:
Uganda,
Zimbabwe,
Zambia,
Sierra Leone,
Tanzania,
Rwanda,
Malawi,
Botswana,
plus the Pakistani city of Mirpur in Kashmir.
Historically.
After becoming independent, Ireland continued to use the Saorstát pound (Irish Punt), which remained pegged with sterling until she joined the European Monetary System in 1978, whilst the UK remained out. Other areas of the, now defunct, Empire have also used sterling in the past - the gold sovereign was legal tender in Canada despite the use of the Canadian dollar.
Several colonies and dominions adopted the pound as their own currency. These included Australia, Barbados, British West Africa, Cyprus, Fiji, the Irish Free State, Jamaica, New Zealand, South Africa and Southern Rhodesia. Some of these retained parity with sterling throughout their existence (e.g. the South African pound), whilst others deviated from parity after the end of the gold standard (e.g. the Australian pound).
At this point, I'm thinking that someone needs to put this to Better Together, and ask 2 salient questions:
1) Just exactly WHAT makes Scotland different from any and all of these other places?
2) Name one place that has ever been refused the use of sterling. Just one!"
Zimbabwe,
Zambia,
Sierra Leone,
Tanzania,
Rwanda,
Malawi,
Botswana,
plus the Pakistani city of Mirpur in Kashmir.
Historically.
After becoming independent, Ireland continued to use the Saorstát pound (Irish Punt), which remained pegged with sterling until she joined the European Monetary System in 1978, whilst the UK remained out. Other areas of the, now defunct, Empire have also used sterling in the past - the gold sovereign was legal tender in Canada despite the use of the Canadian dollar.
Several colonies and dominions adopted the pound as their own currency. These included Australia, Barbados, British West Africa, Cyprus, Fiji, the Irish Free State, Jamaica, New Zealand, South Africa and Southern Rhodesia. Some of these retained parity with sterling throughout their existence (e.g. the South African pound), whilst others deviated from parity after the end of the gold standard (e.g. the Australian pound).
At this point, I'm thinking that someone needs to put this to Better Together, and ask 2 salient questions:
1) Just exactly WHAT makes Scotland different from any and all of these other places?
2) Name one place that has ever been refused the use of sterling. Just one!"
It will be interesting to hear if they've got an answer to either of those questions.
As we approach the referendum, the output of scaremongering dross from the Unionist side is building to a torrent . But just how much more will the people in Scotland take and how much of it is now being seen for what it truly is - utter nonsense?
I get the feeling that Westminster forgets even the humble Scot has access to the internet where any amount of information is available and these pronouncements can be checked and double-checked and seen for the misinformation they are.
I get the feeling that Westminster forgets even the humble Scot has access to the internet where any amount of information is available and these pronouncements can be checked and double-checked and seen for the misinformation they are.
Meanwhile, on the rest of the planet, the thought of an independent Scotland with a Scottish Pound appears to be perfectly acceptable. For instance, this little article - Hong Kong Markets favour a Scottish Pound - published last year on April 28th shows the money markets of the East giving a more favourable rate to the Scottish Pound than Sterling. It looks as if foreign markets think a Scottish Pound would be a safer bet than rUK Pound.
I shall await the next development, scare story, bullsh*t with baited breath. I'm sure, just like buses, several will turn up at the same time.
I shall await the next development, scare story, bullsh*t with baited breath. I'm sure, just like buses, several will turn up at the same time.
Monday, 25 February 2013
The Wrong Message
Creation of a sterling-zone as trumpeted by the SNP is decidedly the wrong message.
Scotland needs to dump the pound faster than a drowning diver needs to dump his weight belt.
The recent downgrading to Sterling brings only one question, posed by the French almost a year ago, and that is, why has it not happened long, long before now?
In the last week I saw the value of my income plummet. For argument’s sake let’s say I get £725 a month. That’s what it was last month anyway, or last time I drew it out. Today they handed me £688. This was, they said, due to the fact the £ plummeted against the $ after the downgrade.
My account said £725 had been deposited, the bank gave me £688, there’s a problem when my bills are £700. The ends no longer meet in the middle. I’m now worse than broke.
Anyone not relying on foreign exchange rates may see it as a minor thing, but with pretty much everything made overseas these days it simply means, in Scotland, when the current supplies on the shelves run out, the new ones are going to cost more. We are all two months away from losing that real money.
In about ninety days, and much less for many items, that £725 a month in every pocket will soon become £688. It will still say £725 on the statement, so we’ll fool ourselves. But at the end of the day if it doesn’t buy anyone what £725 did a month ago, how can you argue it’s still £725?
Let’s invent a little scenario. You’re selling your car, you want £5,000, but you drove it this morning and had a wee fender-bender and slightly bent the chassis – but it still looks not too bad. Hey, it’s still your £5,000 car. It has a couple of dents here and there that weren’t there yesterday, but you've still got the same sticker on the window, £5,000 it proudly declares. Think you’ll ever get that now?
That dented car of yours is Sterling. These are just the first view visible dents. The difference is it has been ready for the knackers yard for years, the rot was just hidden under the shiny exterior, but any decent mechanic would walk away from it asking if you’re insane. MOT; No chance mate, but there’s a bloke in the next village who, for fifty quid like….
We’re now at the point where even the bloke in the next village won’t touch it.
For the UK and Sterling, it means this time it won’t recover.
Expect the pound to continue to devalue. After all, it has for over eighty years. The ability to devalue the pound and thereby steal our savings is the primary reason that Westminster didn't join the Euro.
We've all heard and seen the unrest in Greece; in many instances the United Kingdom’s press have given the Greek people short shrift in terms of sympathy. The Irish have been the media’s financial whipping boy. The Spanish, Portuguese and Italians have all been slated and derided by the papers. Whereas, for most of the UK’s self vaunted media, the Italian’s have always been good for a joke; the Spanish and Portuguese seem to me largely ignored.
It may take once-mighty Britannia a decade more to be in such a condition that Greece looks like a safe haven. It may only take a few months. The United Kingdom’s per capita and national debt burden is fast outstripping that of Greece. Don’t doubt it, Greece’s debt load stands at less than 70% of the United Kingdom as a percentage of GDP.
What about Italy, Spain and Portugal? They are likewise positioned with debt about 75% of the UK’s. Only Ireland, another favourite punching bag of the UK media, is actually worse. However, we’re entering the home stretch and the nag in green white and gold isn’t the favourite in this race anymore. With the finishing posts ahead, the cuddy in red white and blue is set to come thundering down the home stretch. That poor old Irish nag seems like it hasn't got a hope of staying in front.
Except this is a race to poverty, to national penury and isn’t a race anyone really wants to win, is it?
The reality of the situation is that no matter who is elected to Westminster, the average individual is going to get screwed.
Westminster can barely service its debts right now. If interest rates climbed just a little, say to the historical norms of five percent, then Germany’s old Weimar Republic where wheelbarrows were needed to carry the cash to buy a loaf of bread might look like a wonderful place to have lived. Our debt burden is already worse than that of the Weimar Republic.
So, why has the crash not already happened?
It has begun, but most people want to play the ostrich. Maybe if we stick our heads in the sand long enough, we might fool the lion and he won’t actually bite us on the behind. Sadly, the lion has the luxury to decide when the ideal time will be to bite us. The only thing we know is that his jaws will snap shut someday soon, and when it does out collective behookie is going to hurt like hell.
Social upheaval, no jobs, riots, deprivation and hunger are possibly the nicer parts of what lies ahead, if we don’t get our act together. Mr. Osborne’s current attitude of “it’ll be alright” and Westminster’s continual “Nothing to see here folks, move along” are even bigger lies than Chamberlain’s “Peace in our time” declaration in 1938. Six years of “peace” broke out the following year in September. Chamberlain’s piece of paper had as much true worth as that printed by the Bank of England today.
Consider at the time of the collapse of the Weimar Republic, still in living memory for some, that one pound of sterling bought one pound of silver. At the time of writing the value of silver is £300 per pound. Where did the other £299 go?
It was neatly pochled by Westminster, through that cunning mechanism “inflation”.
Surely, we may think, the value of silver has just risen incredibly? No, it hasn't At that time five hundred pounds, sterling or silver, bought a modestly sized family home. Five hundred pounds of silver today will still buy that £150,000 home. And what about the £1 note from 1932? Well there is not a coin small enough in the treasury’s inventory that I could now trade it for. It is worth a fraction more than one old ha’penny. They have legally devalued that £1 to nothing viable in today’s currency; only in Westminster.
Remember, in the five centuries prior to World War One, inflation was by all comparisons, nonexistent.
The only way the United Kingdom is surviving today is by borrowing. Where do the banks get the money they lend to the government? Essentially, it’s invested savings. You put your extra cash (if you are one of the lucky folks to have any) in the bank to save. The bank loans it to the government at less than 2%, sometimes less than 1%. Inflation has swung from over 5% to less than 3% in the last seventeen months. That means your bank is loaning to your government at a guaranteed loss.
There have even been instances of late when some governments have been able to borrow money at negative interest rates. Although, not Westminster, they’re not “safe enough”. Effectively, the investment firms supplying that money have been willing to guarantee their investors i.e. you, an instant loss for the so-called safe keeping of your money. In other words, well managed economies are actually being paid to borrow your money.
The United Kingdom passed the point of no return about five years ago and has been hovering around there, barely surviving, making payments, but not cancelling debt.
The problem is those interest payments, those billions upon billions paid every year are our new hospitals, schools and our infrastructure. Our future.
Westminster is bankrupt, arguably it’s fiscally, morally, and intellectually bankrupt. Like the destitute old lord in the crumbling manor, it is time to sell the family silverware. Except, we are the only silverware Westminster has. Our savings, our pensions, our health service, our children’s education. Like any government in history, Westminster has only one option; its people and their pockets.
This fiscal tsunami will be released in the not too distant future.
Hopefully it won’t be released until after the 2014 referendum. If Scots vote YES, which appears to be the intelligent course of action, it could well be released with early. After all, the release of this tidal wave will only require a very modest 1.5% change in the interest rates, and we've all seen that happen on countless occasions in our adult lifetimes.
Any way you look at it, promoting a “Sterling Zone” is insanity incarnate.
The Scots Pound is already in circulation. We need to resurrect it as a world currency once more. As many economists have pointed out, it wouldn't be difficult. Let our money float, or tie it with other currencies, any currency - except Sterling.
Our choice is simple, since no nation in history has ever recovered from the UK’s debt load; we have to vote Yes to survive or we vote No for long term debt, poverty and bankruptcy.
Scotland needs to dump the pound faster than a drowning diver needs to dump his weight belt.
The recent downgrading to Sterling brings only one question, posed by the French almost a year ago, and that is, why has it not happened long, long before now?
In the last week I saw the value of my income plummet. For argument’s sake let’s say I get £725 a month. That’s what it was last month anyway, or last time I drew it out. Today they handed me £688. This was, they said, due to the fact the £ plummeted against the $ after the downgrade.
My account said £725 had been deposited, the bank gave me £688, there’s a problem when my bills are £700. The ends no longer meet in the middle. I’m now worse than broke.
Anyone not relying on foreign exchange rates may see it as a minor thing, but with pretty much everything made overseas these days it simply means, in Scotland, when the current supplies on the shelves run out, the new ones are going to cost more. We are all two months away from losing that real money.
In about ninety days, and much less for many items, that £725 a month in every pocket will soon become £688. It will still say £725 on the statement, so we’ll fool ourselves. But at the end of the day if it doesn’t buy anyone what £725 did a month ago, how can you argue it’s still £725?
Let’s invent a little scenario. You’re selling your car, you want £5,000, but you drove it this morning and had a wee fender-bender and slightly bent the chassis – but it still looks not too bad. Hey, it’s still your £5,000 car. It has a couple of dents here and there that weren’t there yesterday, but you've still got the same sticker on the window, £5,000 it proudly declares. Think you’ll ever get that now?
That dented car of yours is Sterling. These are just the first view visible dents. The difference is it has been ready for the knackers yard for years, the rot was just hidden under the shiny exterior, but any decent mechanic would walk away from it asking if you’re insane. MOT; No chance mate, but there’s a bloke in the next village who, for fifty quid like….
We’re now at the point where even the bloke in the next village won’t touch it.
For the UK and Sterling, it means this time it won’t recover.
Expect the pound to continue to devalue. After all, it has for over eighty years. The ability to devalue the pound and thereby steal our savings is the primary reason that Westminster didn't join the Euro.
We've all heard and seen the unrest in Greece; in many instances the United Kingdom’s press have given the Greek people short shrift in terms of sympathy. The Irish have been the media’s financial whipping boy. The Spanish, Portuguese and Italians have all been slated and derided by the papers. Whereas, for most of the UK’s self vaunted media, the Italian’s have always been good for a joke; the Spanish and Portuguese seem to me largely ignored.
It may take once-mighty Britannia a decade more to be in such a condition that Greece looks like a safe haven. It may only take a few months. The United Kingdom’s per capita and national debt burden is fast outstripping that of Greece. Don’t doubt it, Greece’s debt load stands at less than 70% of the United Kingdom as a percentage of GDP.
What about Italy, Spain and Portugal? They are likewise positioned with debt about 75% of the UK’s. Only Ireland, another favourite punching bag of the UK media, is actually worse. However, we’re entering the home stretch and the nag in green white and gold isn’t the favourite in this race anymore. With the finishing posts ahead, the cuddy in red white and blue is set to come thundering down the home stretch. That poor old Irish nag seems like it hasn't got a hope of staying in front.
Except this is a race to poverty, to national penury and isn’t a race anyone really wants to win, is it?
The reality of the situation is that no matter who is elected to Westminster, the average individual is going to get screwed.
Westminster can barely service its debts right now. If interest rates climbed just a little, say to the historical norms of five percent, then Germany’s old Weimar Republic where wheelbarrows were needed to carry the cash to buy a loaf of bread might look like a wonderful place to have lived. Our debt burden is already worse than that of the Weimar Republic.
So, why has the crash not already happened?
It has begun, but most people want to play the ostrich. Maybe if we stick our heads in the sand long enough, we might fool the lion and he won’t actually bite us on the behind. Sadly, the lion has the luxury to decide when the ideal time will be to bite us. The only thing we know is that his jaws will snap shut someday soon, and when it does out collective behookie is going to hurt like hell.
Social upheaval, no jobs, riots, deprivation and hunger are possibly the nicer parts of what lies ahead, if we don’t get our act together. Mr. Osborne’s current attitude of “it’ll be alright” and Westminster’s continual “Nothing to see here folks, move along” are even bigger lies than Chamberlain’s “Peace in our time” declaration in 1938. Six years of “peace” broke out the following year in September. Chamberlain’s piece of paper had as much true worth as that printed by the Bank of England today.
Consider at the time of the collapse of the Weimar Republic, still in living memory for some, that one pound of sterling bought one pound of silver. At the time of writing the value of silver is £300 per pound. Where did the other £299 go?
It was neatly pochled by Westminster, through that cunning mechanism “inflation”.
Surely, we may think, the value of silver has just risen incredibly? No, it hasn't At that time five hundred pounds, sterling or silver, bought a modestly sized family home. Five hundred pounds of silver today will still buy that £150,000 home. And what about the £1 note from 1932? Well there is not a coin small enough in the treasury’s inventory that I could now trade it for. It is worth a fraction more than one old ha’penny. They have legally devalued that £1 to nothing viable in today’s currency; only in Westminster.
Remember, in the five centuries prior to World War One, inflation was by all comparisons, nonexistent.
The only way the United Kingdom is surviving today is by borrowing. Where do the banks get the money they lend to the government? Essentially, it’s invested savings. You put your extra cash (if you are one of the lucky folks to have any) in the bank to save. The bank loans it to the government at less than 2%, sometimes less than 1%. Inflation has swung from over 5% to less than 3% in the last seventeen months. That means your bank is loaning to your government at a guaranteed loss.
There have even been instances of late when some governments have been able to borrow money at negative interest rates. Although, not Westminster, they’re not “safe enough”. Effectively, the investment firms supplying that money have been willing to guarantee their investors i.e. you, an instant loss for the so-called safe keeping of your money. In other words, well managed economies are actually being paid to borrow your money.
The United Kingdom passed the point of no return about five years ago and has been hovering around there, barely surviving, making payments, but not cancelling debt.
The problem is those interest payments, those billions upon billions paid every year are our new hospitals, schools and our infrastructure. Our future.
Westminster is bankrupt, arguably it’s fiscally, morally, and intellectually bankrupt. Like the destitute old lord in the crumbling manor, it is time to sell the family silverware. Except, we are the only silverware Westminster has. Our savings, our pensions, our health service, our children’s education. Like any government in history, Westminster has only one option; its people and their pockets.
This fiscal tsunami will be released in the not too distant future.
Hopefully it won’t be released until after the 2014 referendum. If Scots vote YES, which appears to be the intelligent course of action, it could well be released with early. After all, the release of this tidal wave will only require a very modest 1.5% change in the interest rates, and we've all seen that happen on countless occasions in our adult lifetimes.
Any way you look at it, promoting a “Sterling Zone” is insanity incarnate.
The Scots Pound is already in circulation. We need to resurrect it as a world currency once more. As many economists have pointed out, it wouldn't be difficult. Let our money float, or tie it with other currencies, any currency - except Sterling.
Our choice is simple, since no nation in history has ever recovered from the UK’s debt load; we have to vote Yes to survive or we vote No for long term debt, poverty and bankruptcy.
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