Apr 01

It’s now clear the dust settles that the Cyprus bailout plan may be the worst that could be negotiated. It is worse than the one that the Cypriot MPs voted down. A plan that now looks quite moderate with 6.75 % hair cuts for small savers and 10% for larger deposit holders. as said before this is substantially below what Uk savers have suffered surreptitiously from artificially low interest rates and devaluation. Stealing money off large savers has at a stroke bankrupted and emasculated many small and medium enterprise (known as SMEs). It has killed much of the capitalism. It will not even be voted on. It is a kick in the teeth for anyone who bought the lie that work hard for a happy retirement as life savings are cut at a stroke to a 100,000 Euros. Continue reading »

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Apr 01

I’ve recently come across Poe’s Law which apparently is about fundamentalism but actually covers our sporting cultures very well. It essentially says that people who are extreme are beyond parody. That their views so ridiculous a parody or one of their beliefs side by side would be both assumed parody or serious not either or.

In Westminster self parody merely reflects conceit not Poe’s Law. Had it happened today anyone sane would have assumed David Miliband resigning because Sunderland had appointed a fascist was laughable hypocrisy. However the conceit of our politicians is they are somehow moral. That a man who oversaw torture and rendition and got cosy with the Gaddafi regime judges the genuinely held views of a football manager. Morally Sunderland went up at worst it’s a zero sum game.

It’s not just Labour. Iain Duncan Smith is a man so greedy he paid his wife taxpayer money to answer the phone at home essentially. He says he could live off £53 a week. I spend that on groceries never mind what I spend on lunch. This man is a buffoon. I’d given him 2 days. We would save more money just from the tax and extra spending a real interest rate would cause. The poor are being hurt not for any benefit to society but like Cyprus to German public opinion.

The central conceit of Merkel, IDS and Miliband is that they are working for the good of everyone. Sadder still these nasty scum may not even see what they are in their lonely moments.

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Mar 28

I really can’t separate fact from fiction over Cyprus indeed most people seem to argue both ends against the middle. Like me many argued banks should go bust but now that seems unpalatable to people when they lose out. Instead of arguing Cyprus is better off without such banks before they lost any more money they hold pity parties for the victims of their preferred solution! The modern failure to crack eggs is the harbinger of terrible Govt – see 10% tax rate and covering up its repeal.

Cyprus without its main industry should maybe consider leaving the Euro. There are many advantages to an over valued currency but lower employment and growth are seeming by-products. Then again devaluation has just fed deflation in the UK but that is in the teeth of a Banker supporting monetary policy with the added twist of stupid Austerity.

Regardless. The message of Cyprus is never to put money in a bank. You are better off with it insured under your mattress. Scenarios where bank deposits become worthless may seem far fetched to anyone who cannot understand history. Yet what is the differences in holding currency at 0% or a 0.5% bank deposit in an institution which loses money hand over fist and engages in massive fraud?

Indeed without deposits banks will have to offer interest if the Govt would stop pumping them full of cash. Either way feeding the bottom feeders by putting money on deposit at 0.5% is hardly a thing to admit to.

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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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Mar 23

Some good news for Britons what happened in Cyprus and what was proposed cannot happen here. This is because it already has. Saveoursavers.com claim since 2009 the Banks have benefited/stolen/been handed £200 Bn by the suppression of interest rates. A big haircut.

We are still pouring in what conservatively £75 Bn a year plus QE into our banks -> in the form of loan guarantees, insuring their deposits for free, low rates to allow savers and borrowers to be ripped off, paltry fines for criminal behaviour, allowance of borrower rates loan sharks would be embarrassed by etc etc.

The £ itself has shrunk 15% and is set to fall further (were I over dramatic I’d say plunge) even as we run short of energy which is also rising in price. When fuel prices spike that is a further hair cut for people facing an effective inflation rate of more than CPI/RPI.

That we have not had a single crisis and the middle class still suffer money illusion from their house prices does not mean we’ve not had a more severe haircut than 10%. We’ve had 15% from the currency alone.

Indeed without the safety net of the Euro and an economy in thrall to Banking and House Prices as wealth creation stagnation maybe a dim hope for most Britons.

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