Dec 06

Britain boasts it is the fastest growing economy in the developed world. Put aside sneering at what GDP is and means and ask why? It is because we are running massive fiscal deficits? Austerity has been for the poor and even that has proved self defeating as the housing bubble takes more benefit and the NHS has to cope with the increasingly poverty and population. A growing population that is causing a low wage explosion in low wage job numbers – even that is questionable as of course manipulation of Govt numbers is the new little Black dress covering just enough.

People say wages are not rising but the reason is not just lack of bargaining power. It is that wage comparisons do not compare oranges with oranges. Jobs also change. Wages are not rising because of underemployment. There are thousands more people working for the same per capita GDP as 6 years ago. Higher wage jobs have disappeared and been replaced by lower wage jobs. Vast numbers of self employed who knows what they earn or cost the state.

However all this floats: on a massive fiscal stimulous the biggest in the Western World: A massive Balance of Payments deficit: Large and rising public debt with static private debt: ZIRP: and a £375 Bn tranche of unwound QE. The economy is less balanced than ever. Quite how the UK goes forward when the financial capital collapses again, as it inevitably will, is interesting to consider. Can we afford to bail out the banks? If we let them bust what does that mean a quick contraction? Sadly my worry the time is passed for a controlled contraction of the financial parasite. In a country which even state media cares what UKIP’s leader thinks of ostentatious breastfeeding the comedown could be frightening.

The UK will hardly be getting much sympathy with its vile tabloids, warmongering, torture, rendition, arm sales, prodigious whining, polluting and hypercritical sanctimony if the shit hits the fan.

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Jan 04

Reading lots of what some would call wonkish stuff. Most intriguing thing is that realistically QE has little no effect and interest rates far from determining much follow growth. The latter point being that pushing them up to be seen to do something or because of zombie businesses and lack of income for savers or having the over stretched need to be made to suffer for accepting Govt advice and easy credit (excuse depending on whether you’re a Conservative or Liberal supporting the same policy). Unlike in say 2009 when Brown/Darling/Balls were sorting out their mates if interest rates floated or if it was even possible for them to float in a market anymore they would be near zero anyway now is my belief.

I don’t see that pushing rates up works now as if you do it you may precipitate a collapse. As obtuse as I am I cannot say I would bring down the house of cards so dramatically especially when it may fall by itself under the sheer weight of debt and falling incomes. However whilst economists and their GDP measure look fine the economy is clearly not working or intended to work for the vast majority.

The issue with economists who shout down the raise interest rate brigade is they are de facto supporting the status quo. Really if it is to be seen as other than an esoteric tool of the Kleptocratic class I think economists need to make more noise. Otherwise the profession is merely the loud whores of the City and Wall Street – whatever classically liberal social views they claim to hold with their Nobel Prizes – plenty of God bothering Kleptocrats ignore the line about Camels and Eye of the Needle too.

Anyway best fit to current situation Plutocracy or Kleptocracy?

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Sep 29

Apparently the recession is over. The world is full of flowers and the the taxi drivers will be saying “Gawd Bless You Mr Osborne”. Keynes was a fool they were all fools all you had to do was print loads of free money and give it to rich people. It’s obviously complete toilet. Indeed all rising GDP presages is speculative bubbles on stocks, food and oil.

The real economy where people work and earn money, an increasingly odd concept to the scum at the top, is not improving. Wages are dropping, incomes are dropping, poverty is increasing and businesses folding.

GDP is as meaningless as RPI. As manipulated as all Govt figures if it has any meaning whatsoever.

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