When I was six or seven years old, I first heard the bible story of Joseph and the seven fat and seven lean years. It made perfect sense except for one unanswered question which nagged in my mind – what would have occurred had the seven lean years arrived first?
By the time I reached eleven years old and began my secondary education I was finally taught the almost magical simplicity of minus numbers, thus my problem of the seven lean years arriving first, was solved at a stroke! Minus numbers, however, can only achieve their aim, if they are remembered and recalled in our sums, when the fat years finally arrive. In the West, over recent decades we have forgotten that basic imperative.
The Tea Party in the Unites States is trying to remind America of this simple basic fact, the defeat of the House Bill by the Senate at the start of this weekend bodes ill for any early solution.
At least in the USA, a few brave politicians are finally beginning to point out these most basic of fundamental mathematical facts. Even Keynes could not defy gravity. Across the EU we have no such sane voices among those within the parties in power, nor among those faceless individuals who control them.
We must pay off the negatives which we have already consumed. Even in supposed ‘austerity Britain’ we are still consuming as though the fat years never ended and there cannot be worse to come. Yesterday’s poor growth figures from the USA, surely, must finally prove such is not the case! In the Euro Group of EU countries fantasy remains the order of the day! But we are not within the Euro and it is not our concern, our trade will continue as well with francs, DM or even a soft and strong euro, it matters not which! It is the chaos of the collapse, just as it will be if America defaults, that will bring the UK added misery.
Britain CANNOT run down its debt, support its own people and rescue the already dead euro at one and the same time!