Jun 28

No doubt if you looked at graphs real wages have flat lined for years and but but our houses are worth a shit load apparently. Well anecdotal will do today….

I was in London drinking in Hammersmith not a particularly posh borough in the past. Yet if I earned a 100 grand and had a wife and 2 kids could I even afford to live there? If I was on average household income of £38,547 could I?

I was put in mind of the 70s lifestyles of Lunchtime O’Booze journalists who crushed beers all afternoon every day. Could you on a hundred grand a year sit in a pub every afternoon and live in or around central London? Never mind a journalist’s salary?

The subsidy of housing is if not making us poorer in the way income is measured is certainly changing what we can and cannot afford. How close to London we can live and hence how far we commute.

As with Greece the unwinding of these artificial economic constructs will be harsh. The eventual great sell off of housing by income poor boomers will lead to a correction as the ‘wealth’ they have appropriated in pre existing bricks and mortar disappears. The problem is of course now they force up land prices and we are forced to the ‘burbs as London property becomes the money laundering tool of preference [HSBC excepted] and the UK Govt pours in subsidy to make the criminals and landlords richer.

Thus us the people better off? Unlikely.

Losing an hour a day to travel to work. Lost lifestyle choices no longer available. Quality of life lost. Unarguably.

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Nov 09

There is a moment in the excellent initial episodes of the early “The Thick Of It” when it was actually funny when Tucker tells the minister when his expert disagrees with policy to get a different expert. Expertise is well not a singular or even right.

Take Monetary Policy. There are the absurd who think all problems can be solved by Central Banks buying Govt debt and hence creating money. This may have some use at creating temporary liquidity but as the surge in Asset prices has shown it further dampens what those of us would call the real economy that creates real wealth. The absurdity of all the GDP stoking shown in static tax revenues and per Capita GDP. You tell the man on the street this policy and his reaction will actually be nearer reality than Nobel Economists. No accident the so called Nobel Prize in Economics was created by the Swedish Central Bank in the same way that Obama and Kissinger won the Peace Prize created by arms manufacturer Nobel. Sweden loves irony.

As an aside the funniest part of many Modern Monetary Theorists like say Paul Krugman or Kruggers for short is that until he was argued into a pathetic position he did not acknowledge any role for banks in the economy other than as some black box conveyance. Missing that money can be created by issuing banks and Central Banks. For instance HSBC decide to lend me 10 grand where does that money come from? Some one types +10000 into a computer and then I buy drugs and behead people or at least that’s how it worked in Mexico.

There is a lot of expertise in looking at numbers not in the economy. Sadly those with the easy solution of buying Bonds are just digging a deeper hole. Money and Wealth creation are 2 different things.

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Jul 04

Theresa May has banned the drug Khat one can only assume to boost the illegal narcotics trade and the terrorists who can profit from that. There’s no over riding medical need to do it. It becomes very useful no doubt to Somali Islamists if the supply is illegal as it forces up the price. If they have to take other drugs then so be it too. A whole new community could be recruited to criminality, well done Mrs May.

May’s reasoning is either stupid or the Banks and friends of the Tory Party like HSBC sense more money here. Is any who is sane and not corrupt arguing illegality means less money to terror groups? To criminals? Less drug taking? Less misery?

Of course not unless she is a moron.

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Dec 18

By excusing HSBC’s sterling work for drug cartels President O’ Line O’ Coke hypocrite Leader of the War on Drugs aided by deputy hypocrites PM Lino’Cam and his Chancellor the Cocaine Hoover George Osborne have clearly shown now: it’s not about drugs: it’s not about saving lives: It’s not about health: it’s not about quality of life. It’s all about posturing and rhetoric: About being seen to be tough on something under Federal not State jurisdiction.

HSBC money launderers who facilitated the drug lords, let’s not pretend it was just them or is just them,  will suffer no penalty. The banks shareholders will which of course is our pension funds currently being stolen from by QE and cheap money to make the rich richer and shrink our economies.

If you do not believe the current politics is a Kleptocracy or more prosaically a Banker Occupation explain this. 40 years of bullshit on the evils of Narcotics and it’s not even a crime if you’re Rich.

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