May 07

Was chatting with someone the other day and they gave praise to Bill Clinton or Clair as we call him for copying Tony Blair. OK OK Blinton was Blair and the tedious what actually came first Clinton or Blair ruins a bad pun. In fact as it’s worked out so badly let’s call “The 3rd Way” [T3W] Clintonomics and blame the US as usual.

Nonetheless as I grappled for France’s choices with Hollande ruling out anything sane I came up with the need for a 3rd way. He has chosen between 2 ways.

  1. Way 1 the Fiscal Compact is a good way to make France a colony of Germany in my lifetime. More Vichy than Vichy this sell out because there were no tanks on the lawn.
  2. Way 2 too much Keynesianism as the master’s words are distorted by clowns, like Ed ‘Bully’ Balls, would make France a poor colony of Germany sooner. A Pyrrhic fuck you followed by a pitiful surrender in a maze of debt in 10 years time.

Thus Sarko was poverty slowly and Hollande appears to be poverty quicker – France may already be bankrupt if honesty pervaded public life in any way shape or form. Of course neither has the option Merkel, Obama and Cameron’s administrations have of printing their own money – make no mistake the ECB (not the cricket board) acts like Mervyn King to Germany not the rest of Europe it’s enslaving in its austerity and debt death march.

On 2nd thoughts the England and Wales Cricket Board known as ECB gives good parallel. The Wales is subjugated by acronym. With the European Central Bank the opposite occurs where the title pretends to be something other than the reality of the German Central Bank. Either way the real power is easy to discern.

Back to The 3rd Way. It was started by Clinton and is now the only way to most world leaders. Whether you are George Osborne coldly sipping Madeira wondering what pain you can inflict on the poor as you give Tarquin another line of Quantitative Easing to snort.  Or the Obama Administration coldly pumping money to banks so they can stock pile it at The Fed and take a cut to enrich themselves – call it GDP growth and Ed Balls is fooled into talking of the US economic miracle.

Clintononics is this: Expand Credit: Expand Money Supply: Lower Interest Rates: Keep doing all 3 by any means necessary ad infinitum. The problem is long before infinity this devaluing of currency either leads to inflation or China buying everything or speculative bubbles of nothing that burst. You can’t keep fooling the poor with cheap money as you make the rich wealthier forever, there are finite resources to assign.

Clintonites, Obamamites, Brownian and Labour obsessives say this can continue still without Auntie Austerity. This ignores the current liquidity glut of increasingly valueless paper money and yet little investment. Savers are robbed not to pay borrowers but to refill banks whose leaders just trouser it. One wonders if these so called progressives really mean what they say to the poor as their policies seem only ways to give a cut of the state to others [the rich] and leave the resultant debt with the taxpayer. It’s as callous as the Tories but couched in the language of the benevolent.

The West has ended up like those 50 stone kids who can’t leave their bedroom. How long before the rest of the world remembering how we’ve looted them and controlled them leaves us stuck in our rooms with no means to support ourselves?

Austerity offers what? Some liken it to household economics but it’s more like losing weight some will be successful but most countries will lose out as you reduce input output also reduces. It becomes more and more difficult to do anything as further cuts in input strangle output. It weakens immune systems and worsens health so that any further shock could kill. What works best is a Gastric bypass which also reduces appetite – I’ll cover what the economic equivalent of that is at a later date but it’s drastic action now leads to a longer and happier life.

My advice to Hollande admit defeat and leave the Euro. Any expansion of spending or  state investment is likely in the modern era to merely lead to graft and the rich getting richer. Whether Hollande breaks the Fiscal Compact or not he is unlikely to break this death spiral of stupidity gripping the Western world.

Hollande may be an honest man but he needs a 3rd way just not The 3rd Way.

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