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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Feb 13

UK, USA and Japan have had years of QE and it has not achieved investment or inflation or trickle down.

Thus you may ask with this actual evidence and the Euro tanking anyway why the ECB would do QE? It apparently wants inflation which it will not get. Never ending QE?

Given it is either ineffective or unnecessary for the usual goals it can therefore only be to transfer wealth to the rich? The ECB can hardly claim they do not know what it does now after the examples given.

Anyone who doubts this is not a kleptocratic or plutocratic system probably believes in the tooth fairy.

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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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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


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 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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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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Mar 07

Vince Cable called for an end to Austerity.

Sadly he did not call for an end to QE and artificial interest rates as the gutless clown Osborne prepares to hand over the economy to the QE junkie Carney. Osborne is showing even greater cowardice than Brown who one could argue had good reason to hand over monetary policy in 1997 even if that abdication of responsibility looks like criminal incompetence 15 years later.

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Sep 22

Darling said they did not get rid of Head Banker Mervyn King because there was no one else. This is of course pure Labour rhetoric, cowardice and their defining quality can kicking.  Continue reading »

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