The Bloody Economy

24 Nov

Hi Blogsters, I haven’t gotten around to posting for a while. Missed me?

Is it me, or has the world gone mad? Now I’m not an accountant or an economist but what I have managed to extrapolate from the latest crisis in the Republic of Ireland, is that it’s all just numbers, unimaginably large numbers. The size of the numbers is astronomical, quite literally. We are approaching the amount of zeros needed to describe the distance between planets or the speed of sound, if it carries on, the speed of light! And the crazy thing is that it is all a game. A game played out by our politicians which is supposed to infuse the economy with stability and induce a recovery. I guarantee that if you sit down and add up all the numbers, it will never balance. We will of course have been diverted away from this question by the time we get to that point.

The bit that I really do not understand is how it is going to work. We are apparently in this mess because the banks have too much ‘bad debt’ which is as a direct result of their irresponsible lending, predominantly to home owners. The prospect of the debtors not being able to meet those debts is what has caused the rest of the world’s banks to consider cutting off the flow of new lending. The austerity measures are supposed to be the solution.

This brings me to the next part of the puzzle. If the people who borrowed the money are at risk of defaulting, then how is high unemployment, frozen pay increases and a reduction in services and therefore, the people who dispense them, going to help to secure those bad debts. Surely, the people who owe the money are going to be less likely to be able to repay it, if their jobs are lost. This appears to be a self fore filling prophecy?

Stumped though I am, I can promise you one thing is certain; the bankers, politicians and their flunkies will come out of it all richer, with bigger houses and cars, smelling of roses, as they always do, oh, and I’m sure their pensions won’t have been affected……

Happy spending……

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One Response to “The Bloody Economy”

  1. Dave November 24, 2010 at 6:12 pm #

    You’re not the only one! It doesn’t make any sense to me either but I agree with you that it’s the government who’ll come out of it all on top, WANKERS!!!!!

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