Jun 05

As Labour Party supporters gleefully cheer a double dip recession and Tories celebrate the pain to be inflicted on the public sector and poor by that and the spending cuts all I can ponder is the future.

Looking at the US printing more money than even Aldo Moro* would have deemed right and saying FU to debt now barely growing one wonders what all these Labour Party geniuses really believe. After all from the exultant leadership election cries of Ed Balls that we should spend spend spend and send the furriners home. Now Shadow Chancellor Balls professes the same cuts if not more so than the Govt .

* A former Carter envoy claims credit for effectively sanctioning his death funnily enough

The IMF despite no prospect of pay back continue to pump Govt money into black holes to pay back banks who promptly demand even more. The fight to replace DSK with the architect of the paying bankers for losing money policy Mr Gordon Brown is laughable except he, DSK and a so called economist Christine Lagarde all believe in the same thing. The saddest part being whilst the other want to be President of France again Brown wants the position seemingly for no reason other than his id. They say Sarah Palin was crazy apparently!

Greek President George Papandreou is another leftist who knows his onions on banker and self enrichment. George apparently sold 1 Bn of Euro debt swaps to friends which became 27 Bn when Greece threatened default. No wonder his approval rating is pushing 20%.

The point is that continuing spending on debts you cannot pay is not on. Iceland is arguably better placed than all these nations taking advice from so called Labour/Leftist party figures desperate to hand bankers more money. One certainly hopes the Irish, Greeks and Spaniards don’t grab for the DSK/Brown solutions and reject a strategy that will hand their country’s to bankers. Greece should threaten to switch to the Drachma which would drop 80% killing their debt!

The UK is a difficult position as a wave of defaults by the PIIGS countries will put more pressure on UK banks who were allowed to have low asset bases by Christine Legarde and  Mr Gordon Brown’s disastrous policies agreed at one of those Swiss summer camps where so called Progressive politicians go to get their orders. No wonder both think they would be ideal replacements for DSK at the IMF – countries can expect a right good screwing from behind.

Should Osborne try to reignite an economy which imports everything? That is surely just a way to more debt? More long term issues. All he can really do is talk up business confidence and strip away the rhetoric and that is all anyone can concretely say. The only sane things left for the UK Govt to do is to stop doing the banks bidding with half per cent interest rates for bankers only. To renegotiate PFI, at the point of a gun if needs be.

We already have inflation in place. Time to stop feeding the bankers Billions to make them personally Millions.

The British Decent To The Bottom 2000 Onwards

The sad truth is when the Mobile giants  paid £20 Bn for 3G licences the Govt debt was £300 Bn. For small and unsustainable improvements in the Health Service and Education the UK borrowed a 100 Bn a year for 10 years above its income. This counter Keynesian measure does not cover the full cost as the Govt outsourced the costs off the UK PLC balance sheets like Enron with the PFI initiative. Handing vast sums to bankers to stake in the games they lost in 2007.  That means to me that with PFI agreements lasting 30 years we are still forced to pay vast sums that should count as debt.

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