Jun 20

Will it make it easier on you now
You got someone to blame
U2 One

It’s said by some that Socialists eventually run out of other people’s money. With neo Liberalism it’s might be people to blame – if that is possible.

Its central construct is that all taxes and debts are the responsibility of taxpayers. The problem with this construct is it requires low interest rates to support the resulting debt mountain caused by transferring assets/subsidies to and inflating assets of the wealthy and debt to the populace. It requires Govt to cut back everything else to take on more debt from companies.

Thus with no solution since taxing the wealthy and rentier incomes not wage earners would be as anathema as it would be good Capitalism we have to blame someone and subject them to below normal standards of humanity, as after all it is their fault. Hence the unemployed who receive £2.4 Bn in Job Seekers Allowance are targeted when RBS gets that every year just in direct subsidy. There is talk of the health service not treating people who [over] consume legal products like cigarettes and foods designed to make you over eat.

In Europe the Greeks are targeted because after being imposed an unworkable deal, as the sane members of the IMF accept and the insane Lagarde does not, their economy is tanking. Europe seems to want them on a drip feed so they can never grow. This will of course involve selling off their assets cheap to the Wealthy and turning public services into a stream of income for German pension funds. Now because their debt has been nationalised by ECB and EU Govts they are subject to the political whims of economic illiterates who get elected pimping people to blame! For all the talk of Game Theory by Greece the only people using Game Theory here are the neo Liberals.

After the Greeks it will be Italy and Spain. Maybe the worry is if Greece gets a sustainable path they will want one too not one that ultimately leads to subjugation. Equally it could be any perceived positive for Greece will lead to the election of Govt’s less committed to blaming their own people and delivering the anodyne world for the majority that Christine Lagarde, Bill Clinton, Barack Obama, Gordon Brown and Tony Blair see as so desirable. The end result will be poverty the norm but if you join voluntary work camps you’ll get a bowl of rice after all your poverty is your fault. Conservatives go along with this nonsense too I think partly because it is veiled in the language of The Market and involves hating on the poor but also because for all the bluster and fibs they love to run all powerful States too.

Of course as said the neo Liberal world will be all about equality and as long as you’re not poor or a woman you’ll be OK or enough of you to vote correctly any rates.

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May 09

Interesting how Germany deals with the Dutch given the shellacking the southern Europeans and Ireland got. Yes they’ve had cheap money and a housing bubble and now have debt!

The fact is, whatever Keynesian economists say, QE and or low interest rates = bubbles = zombie economies = gutless short term politicians who won’t take the hit. Continue reading »

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May 06

https://twitter.com/auaurelija/status/331140296614240257/photo/1

Above link, in case it breaks, shows participation in the US Labour market has fallen to 63% from 67% and unemployment has fallen. So essentially less people are trying to work for some reason.

This is interesting so fewer and fewer %tage Americans working but unemployment falling. Now one could say ageing populace but this is dramatic. Regardless the incomes of those in work also fall even against official inflation rates. Continue reading »

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Mar 12

Ed Conway@EdConwaySky Oh dear. BIG fall in manufacturing output in Jan: down by 1.5% month on month. Economists had expected 0%. IP down 1.2%. Nasty

Economists might be fooled but no one else is. When you favour the loss making financial industry over manufacturing what can you expect? When you favour asset prices and speculation over savers and investors what can you expect?

Of course the rich share of tax payments will rise and this will be used as proof of efficacy and more reasons to kick the poor into jobs that have not raised National Output. Indeed I would make the case to Osborne that as he claims to have raised employment but not output Public Sector Workers must be more productive. It’s as logical as giving money to the rich. In the US this spiral of stupidity has left 15% on food stamps and this is likely to grow with the rich likely to use it as a justification to a supine middle class that their taxes pay for others.

It’s just a death spiral or debt spiral where you weaken the real economy and then say the rest of the economy is dependent on the subsidised and criminal Financial Sector.

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Mar 10

You don’t have to be an economist, indeed it helps not to be, to know the prevailing world economics make no sense.

Debt is up. Stocks are up. House prices in Capitals up. Taxes Up. Energy prices up. Rents up. Real inflation up. Greenhouse gases up. Pollution up.

Incomes are down and falling rapidly against the true inflation.

These are all obvious conclusions of raising asset prices by QE and supplying cheap credit.

You don’t have to be a Marxist to know Capitalism cannot work like this.  Continue reading »

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Nov 10

Low interest rates a no brainer good for everyone. Why would anyone want a market rate of interest?

Here are the positive effects.

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Jul 14

The bullshit from the Milk Snatcher was that privatisation would free the entrepreneurial spirit. In addition the reserves of the mutuals were handed to people PFI like borrowing against their future creating more and more hand to mouth banks who borrowed from Peter to lend to Paul. Continue reading »

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May 26

Banks exist to allocate capital. They have an important role in the economy to allocate funds to projects that will make money and save poor entrepreneurs from themselves. Or at least they did.

Continue reading »

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May 22

Interest rates 0.5%, commodity prices rising, cash stockpiled by banks and corporates yet little lending or investment happening unless you count crazy casino banking as investment. Who in their right mind would suggest making money any cheaper and more QE – de facto a devaluation, reduction of saved wealth and a redistribution to Banks and Bankers?

The Head of the IMF. No really. Really that stupid.

Continue reading »

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May 15

It seems the big US banks cannot get enough of losing money. That the money is delivered fresh and new and at the expense of savers and taxpayers through low interest rates and QE is unremarked by the mainstream and hence one assumes corrupt press.  Continue reading »

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