Sunday, May 10, 2009
Read this.
Cynicus Economicus: Lies, lies, lies.
It is at this point that we need to pause, take a long breath, and actually consider what it is that the banking system is for. In the many bailouts and rescues, we simply hear that the financial system must be saved, but do not hear what it is supposed to actually do. The standard line being trotted out is that the banks must be saved to get credit moving again. The question here is why it is that the limited numbers of banks that have received most of the various support measures are so important, and that is the question of what financial services are actually there for.
It is when we ask this simple question, this blindingly obvious question, that we can see the level of the fraud that is being done to the taxpayers and the damage to the wider economy.
7 Comments
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1. alan said...
"Under such circumstances, it looks very much like Brown and Darling are willing to risk severe damage to the UK economy in order to prop up their electoral chances".
Ask yourself "does this sound accurate"? As you consider, bear in mind all the self interest and 2nd homes the MP's are claiming for.
"unemployment, insolvency and hardship for many" and, of course, inflation ahead. But not many journalists prepared to warn against this.
I wonder how NuLab will fare in the local elections?
2. paul said...
Something CE doesn't point out (and in my comment there I didn't mention) is the point you made alan.
We've always wondered why the government has been so keen to keep house prices high, and always suspected an element of personal gain but until now, have not been able to pinpoint it.
Now we know that MPs playing the property market at taxpayers' expense is rife, I sincerely hope the media will point out how complicit and corrupt our government has been in the property credit boom.
Can I quote Hamlet now? Thanks.
The point!--envenom'd too!
Then, venom, to thy work.
(Stabs KING CLAUDIUS)
3. happy mondays said...
@ Alan
Nope, BNP here we come! Unfortunatly people will demand change sooner or later, as the downward spiral persist.. Who out there is good to lead ? certainly not labour, Tories ? no different, lib dems? no chance, green party? people still not ready or evolved enough, We will possibly have a nation of naff-ed offed, out of work, broke, in debt people. Which will turn to someone or party offering something new ( in there eyes) which will bring on the blame game and isolate pockets of our society for being " different"
4. drewster said...
"Under such circumstances, it looks very much like Brown and Darling are willing to risk severe damage to the UK economy in order to prop up their electoral chances".
Alan,
Brown and Darling have two choices: they can admit defeat and start the long, arduous effort of rebuilding the economy now; or they can dig a deeper hole than ever and pretend to the electorate that everything is fine. The former option guarantees defeat at the next election; whereas the latter option means they might just be able to keep the economy going long enough to win an election. It's a political gamble and we're all paying the price.
MoneyWeek explained it better than I can:
MoneyWeek: Brown's big punt on Britain
"Gordon Brown has to be seen to act. If pumping the economy full of counterfeit cash can create the illusion of health before the election (and make no mistake, an illusion is all it will be), he can worry about clearing up the mess afterwards – if he wins. And if it doesn't work at all, or leads to rampant inflation, well, that's just more scorched earth for the opposition to contend with when they get into power. Mr Brown has nothing to lose. Shame the rest of us can't say the same."
5. braindeed said...
Drewster's quote from EC @ 4
"Gordon Brown has to be seen to act. If pumping the economy full of counterfeit cash can create the illusion of health before the election (and make no mistake, an illusion is all it will be)
And was not the inflated bubble of house price rises an illusion?
GB might be a clown, idiot etc - but the people voted his party in......and the Tories never attacked while the bubble was inflating.
DC and his fag have offered no solution of the boom and bust HP cycles - they daren't (prisoner to the sheeples 'aspirations', as was Blair)
I think would probably be better to f*c* things up even more - this feels a bit like the phoney war in ‘39.......then we can have a proper sort out, and put the Reagan/Thatcher ( with a little help from Clinton) bol*c*ks, in the bin of history.
6. general congreve said...
Braindeed @5 - "this feels a bit like the phoney war in '39".
Great analogy - I agree completely. The real sh1t storm will be with us within a year.
7. Crashwatcher said...
drewster @4 you only described the choice of 2 options. What is the other choice?