Category: There is no upturn

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The Black Heart Of Banking

Banks don’t actually need any capital base at all, they can make money up from the thin air at will (setting aside the dictates of the BIS which is biased on the side of the banks) and gift it or loan it at .01% interest to deserving business and so promote the creation of wealth. It’s the natural way of doing things. We’ve been bought up with a set of beliefs themselves entirely artificial and wholly against our interests so that an artificial economic elite may be created and sustained. This is what’s causing the the current poverty and this is what’s going to have to end. We are witnessing a global banking dynasty, its very existence unsuspected by the majority, in its death throes. I don’t know what the immediate future might hold but I’m sure of one thing; it ain’t gonna be pretty 🙁

BB

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The Tide’s Coming In…

If Greece fails, or Portugal fails, or Spain fails… when they fail, I should say rather, I can’t see it making any difference what stamp of parliament we have in this country. Politicians of all parties, perhaps in order to magnify their authority and diminish their shortcomings, seem determined to deny the reality of their (and our) existence. We’re like tiiny creatures, wholly engaged in futile squabbling, in a rockpool at the edge of the sea. Approaching and increasingly visible, the tide’s coming in. Lib-Lab, Lib-Con, whatever; these minor divisions will soon count for nothing.

BB

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Plan B From Outer Space

Look at this look; “The MPC needs to have a Plan B up its sleeve, just in case its expected strong recovery doesn’t materialise next year,” said Colin Ellis, economist at Daiwa Securities SMBC.” quoted in the FT today.

Hmmm. Perhaps an over-optimistic assessment of the situation. The MPC, in my view, haven’t shown any evidence of a plan A yet, let alone a plan B. The whole output of the QE exercise has vanished into the black holes the banks have where their reserves ought to be, as I suspect will any more monies they’re given. If we want to get money into the broad, real-life economy, we need a distribution network independent of the existing private banks. I’m still waiting for someone to tell me whether the CDFA banks are properly licensed, ie can operate fractional reserve banking, as if they can’t they’ll be worth FA in terms of CD.

Also, from the same source, “Mervyn King, the governor of the Bank, has said that he would like to see the money supply growing at a similar pace to the 6-9 per cent rate it was before the financial crisis”.

I bet he would – why doesn’t he just wish for world peace while he’s at it?
BB

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Ships in the night – recession ships lie idle

If  the recession’s over or anywhere near it, why are all these container ships lying idle, with more being built that will only lie idle too when they’re completed (if they ever actually are)? One can make allowances for prior overproduction, but not this much, not by any means. Read more at http://www.dailymail.co.uk/home/moslive/article-1212013/Revealed-The-ghost-fleet-recession.html

http://tinyurl.com/qnr3dr

Unusually this piece appears in the UK’s Daily Mail. I would assume it’s a shot across the bows of the Labour Party with the coming election in mind. We can probably expect more along these lines.

BB