Mar 24

With luck Cyprus will let its banks go to the wall and start again. Worst case would be to accept 30 years of stagnation as a German colony. There are of course 100s of shades between with 100s interpretations. In reality I prefer the former as it is what the Uk should do but has instead poured 100s of Bns into a banking sector to avoid collapse all to no avail. The banks in the Uk are still broke and a under capitalised and still intent on theft or mis-selling as it is euphemistically called. Stagnation is indefinite and decline inbuilt into the destructive cycle of devaluation.

Today I read about the scam whereby an aspiring politician’s wife Hilary Rodham-Clinton had a 1000 dollars turned into a 100,000 dollars with remarkable 1 in 31 trillion chance trading through a broker. The point being in 1978 someone found the time to rig a market for an aspiring politician’s wife probably one of hundreds on the way up – these people are bought and paid for before you’ve heard of them.

The Govt of the UK and President of the US is likely to only need 25% of people eligible to vote for them or their party. Thus to hold the debts of Banks against an entire populace whether it’s the hardest working people in Europe the Greeks or the Cypriots is asinine. It may make it easier to take as you ignore their plight and pretend they are to blame.  However given the media and power of large finance to blame people because a manipulated minority voted for a particular party is surely the product of irrationality? To blame them for the morals of a corrupt and corrupting banking sector that happens to be based in their country is beyond stupidity.

Do I feel that I and my fellow Britons are responsible for our banks and the poverty they have caused in the UK and world wide? No. Do I feel responsible because Brown, Balls, Osborne, Darling and the media are evil selfish corrupt cunts? No. As said yesterday those bastards have already skinned Uk worse than the Cypriots will be. Cyprus cannot devalue which causes a crisis but the cost in 10 years time will still be less than UK bank depositors have paid.

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Jan 15

The reason banks are making huge profits so quickly again is that interest rates are set low so they, thanks to the UK and US Govt, can screw savers, annuity buyers and make money as it’s almost impossible to lose money when it’s cheaper to buy than sell.

Obama’s response is planning a tax to return a speciously large looking but actually trivial $55Bn over 10 years. It’s really a reflection of his failure to secure reform in return for the bail outs last year – almost a petulant response to being out negotiated. It’s more ambitious than Darling’s bonus tax in the UK where despite owning several banks he failed to get an ounce of reform either.

Arguably the UK Govt might benefit from its shares but these are primarily in the retail sector – it’s why large parts of the UK  crash was not caused per se by the Sub-Prime issues but more by the business plans of our retail banks. Worldwide the biggest problems were in the investment bank sector and these are the people literally able to buy discounted money now and laugh at the idiots (the general public) who are handing them vast sums of money.

If the UK/US Govts do not reform here is a question I’d like answered can we really continue to run our economies leeching on transactions involving other countries’ money and how long can that continue?

It’s also built on the mistaken assumption that the City has shown a net profit in years. The cost of last year’s crash has not fallen on the banks but on the people. Any contribution they made since the start of the decade has been more than wiped out (BTW 2001 – decade still has a year to run).  The fact is that real wealth is not the size of GDP and domestic asset prices but the living standards of the vast majority of the people.

The banks are benefiting from the state setting interest rates below market rates. Money is in short supply and its price should rise not fall.

Does anyone genuinely believe in the market any more?

No, least of all those bankers who most proclaim it.

BTW Obviously it’s not on individuals but it’s easier to say Obama than the President’s Staff and Retinue or Darling rather than The British Treasury. The person with the most individual responsibility!

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