Of banksters and short and curlies

Out of their own mouths, the ignorant, arrogant sods:

EU Council Prez: Populists Carry a ‘Virus’ That Threatens Europe

Don’t tell me how to do my job: Bank of England boss issues extraordinary warning to Theresa May after she said his policies had damaged the interests of savers, pensioners and the young

This one’s best viewed at the original article but here’s some of it:

Question 3– If adding money to the financial system boosts asset prices, and adding money to the economy boosts growth, then why did the Fed add $3 trillion to the financial system expecting the economy to grow?

Is the Fed confused about how the economy works? Is the Fed confused about how the financial system works?

Probably not. There’s probably some other explanation altogether, after all, why would someone put gas in their radiator when the gas-tank is empty. That’s not going to provide fuel for the engine, is it? The same rule applies to stimulus. The only way stimulus can work is if its put where it’s needed. And we can now say with 100 percent certainty, that the Fed’s stimulus wasn’t put where it was needed which is why it hasn’t worked.

How do we know that?

Just take a look at GDP. Second Quarter GDP came in at a dismal 1.2 percent even though interest rates are still locked at near-zero and the Fed is still recycling the cash from maturing bonds into more government debt.

Do you know what 1.2 percent GDP means?

I was asked by someone who thought I knew a thing or two – when the crash was coming – and he was not being ironic/mocking. I said I didn’t have a clue, on two grounds. 1. I’m no economist nor financial area person and 2. the crash comes when they determine it will, up top.

It does not depend on any sort of financial rules of thumb, of boom and bust, on economists’ predictions and all their charts – it depends entirely on when the big players decide it’s expedient to crash the economy, just as Carney and the BofE are doing at this moment.

Anyone with the slightest economic knowledge says to look back further at Carney’s moves leading up to Brexit – look at the interest rates.

This man had kept his eye on things and now went into fiat money, bailouts, the way they create money out of nothing with a ledger entry, the way they decide when they need a bailout, when it will crash.

I pointed to events in history, back to 1857, when it was entirely at the banksters’ whim or rather agenda when the boom would come and when the bust. I asked him to take a guess who was behind that 1857 crash in America, which crashed the grain market? He did not even need to know history. Name a current player.

GS? JPM? Actually, it was Peabody, forerunner of JPM. Yep, even back then. The fight to the death between Jackson and the bankster Biddle could have been today.

The entire debt economy, based on credit and interest, goes way back before even Rothschild. The whole basis of the financial system is that we bunnies pay precise amounts of interest and when we default, there are foreclosures, calling in etc. … when there was absolutely no need for it to have been this way in the first place. We were born into this scam and grew up with it.

When I grew up, it was still not seen as good to be on credit – my father strongly advised against having any sort of card and in those days, they spoke of it as ‘not giving it to the Jews’. They lock us into a rollercoaster ride based on our own greed [euphemised as aspirations], our failure to delay gratification and the feeling we need something when we don’t – not immediately anyway.

My parents spoke of ‘living within your means’. The banksters, media and advertisers told us differently, with images on TV of all the wonderful things we could have.

Living within one’s means – that is the key but when the whole society is geared to obscene prices, e.g. for property in Britain, out of all proportion to income, then something is deeply wrong.

When my father built our house, it cost roughly five times the annual gross he was earning. Now work it out. I now live on zero credit and have no intention applying for any but it ain’t easy. And it has no way of coping with prices of things so far into the stratosphere that I’d be regarded as being in penury by our standards.

Yet I eat well and nutritiously and am building a boat. So not exactly destitute yet. If every single person decided only to have that which his debit card covered, imagine how that would transform the economy.

[H/T Chuckles]

5 comments for “Of banksters and short and curlies

  1. Errol
    October 15, 2016 at 8:29 am

    Economic peaks and troughs are testable features. We should have had a trough when Labour ruined the economy in 2008, specifically during the banking crisis. That would have revealed all the bonds as junk and allowed the overstretched banks to fail and the bigger ones to recover. Business would have understood it and we’d all have carried on from a massive bust, with worthless assets created, as always, by Labour.

    However, instead of letting markets work, Labour forbade it to keep their failure going. We didn’t get a rebalancing, we didn’t get resolution. Labour poured – and borrowed – trillions to prop up the economy, saddling workers with the sort of punitive debt that would see us into penury. They took out everyone’s overdraft, maxed out thirty credit cards each and stopped paying the mortgage – then did a runner.

    The problem left for any other government is that those bills still need paying, and the creditors want the cash (and canno exist without it so knife edge hanging overleveraged are they) – they are then fed (because the debt cannot be ignored as it would cause a complete bust, with the entire economy stuffed, mass unemployment, junk assets – £6m home reduced to pennies type bust) so the continuing governments keep using tweaks just to keep the wolf at the door and not killing the herd. They make minor changes and feed ever more cash into the fire just to keep the embers ticking over but it’s a holding action at best: more goes out (unemployment) and there’s even less elasticity (ease of job movement, skilled jobs) as there’s no investment incoming and a massive population lacking in skills or tools.

    Then some idiot decides to try to make a name for himself by pulling a political stunt that didn’t go how he thought it would – after all, dave had tried scaring us all in the election, so it would obviously work again…. ad it backfired. Without a plan, he scarpered as well.

    TL:DR – never mistake incompetence for strategy. They didn’t plan this, it is a series of incompetent, arrogant, fundamentally egotistically *stupid* men desperate for aggrandisement and popularity, a few cheap headlines that have brought us to chaos.

    What’s needed is radical: mass reductions in state jobs. Significant cuts to salary, pensions and taxes: the obvious being to scrap corporation tax and capital gains and let people work, keep what they earn and create jobs the only way jobs; not debt are created. No government is going to permit that. What role is there for meddling idiots getting headlines?

    Lady Thatcher was hated because she did what was necessary, not what was popular. Our lot of wasters do what is popular and make *us* pay their price.

  2. Lord T
    October 15, 2016 at 7:50 pm

    We have had peak and troughs throughout the years but the one thing that sticks in my mind is Gordo raiding the pensions and I was paying in for nearly two years just to get my fund up to what it was before he helped himself never mind any interest that I lost on that.

    • October 16, 2016 at 7:58 am

      He won’t be the last politician to do this, I suspect…

  3. Voice of Reason
    October 16, 2016 at 4:45 am

    What appears to be lost is that money is purely imaginary, yet most of us spend our lives hunting for it.

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