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 Higher wage jobs have disappeared and been replaced by lower wage jobs.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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