Tag Archives: Economics

Democracy……

12 Jun

‘Demos – The People: Kratia – Power, Rule (Greek).  The power of the people, or maybe not……’

Following the latest debacle of an election, you can give it whatever label you choose, but ‘democracy’ is most certainly is not.  The Conservative Party received less than 50% of the votes cast. So, if more than half of the population wanted the country to be administered by someone other than the Conservatives, how can this be in any way democratic?  Yes, they have formed a minority Government but due to our lack of proportional representation and The Parliament Act, they will still be able to put in place whatever policies they deem fit whether more than half the populous agree……

Regardless of the self serving flaws in our ‘democratic’ system whoever is in control they are under no obligation to deliver their manifesto promises. This is clearly demonstrated by the previous two administrations (although this stands ad infinitum); in both of the last two elections the key promises of economic stability, economic growth, a better standard of living, improvements in public services, control over immigration and the reduction/elimination of public debt failed in all cases……

In reality the gap between rich and poor has never been wider since WWII. The economically disadvantaged have little, if any, chance of improving their situation. Our public health services have never been in such disarray, police numbers are down on previous years and education has become yet another victim of private sector interests. Despite the promises of the past 7 weeks, nothing will change…..

Good news, however, if you happen to be a multinational company. Workers’ rights continue to be eroded by zero hours contracts, tax avoidance is just as easy as ever and worth every donation to political parties who are making no attempt whatsoever to end it……

The real result of the general election is the certainty that the rich will get richer whilst everyone else either stagnates or moves further down the economic ladder. The Military Industrial Complex will continue to grow and who knows where ‘Brexit’ will leave us but it won’t be better off……

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What has the Big Bang got to do with Economics……?

4 Apr

‘At first glance nothing but read on and all will become clear……’

 

In the early 20th century Edwin Hubble, the Cosmologist after whom the Hubble Telescope is named, made one of the most important discoveries in science when he plotted the rate of the recessional velocity of galaxies, demonstrating that the universe was, and still is, expanding.

 

It is from Hubble’s observation that the idea of a Big Bang was born. Put simply, if the universe is expanding today, if one winds back the clock, at some point in the past the universe must, logically, have been smaller; taken to its conclusion, at some point in the past the universe had a beginning. This is now an empirical, undisputed fact in Cosmology and Physics (Monotheistic religions may disagree but that is a whole new ball game), I diversify.

 

An awful lot has happened in the 14 billion years since the Big Bang to leave us with the universe we can see today but what has this got to do with economics……?

 

First of all let’s set out some facts about banks which may not be apparent given that they have names like ‘The Bank of England’, ‘The Federal Reserve’, ‘The World Bank’, ‘The International Monetary Fund’ and ‘The Central European Bank’.

 

All of the above give the impression that they are owned and run for the benefit of the people by their respective governments. They are not. They are all privately owned institutions, given permission by governments to literally print money. They are more like a cartel than a service allowing for the convenient exchange of goods and services without carrying bags of gold or diamonds, and, most importantly, when they ‘create’ money it is a debt with interest payable upon it……

 

Back to the Big Bang……

 

Let us now imagine the application of Hubble’s Law to global economics. The 14 billion years of the expansion of the universe is akin to the interest that is created along with every unit of currency created by a bank as it expands. If we wind back the economic clock to the point at which the very first bank note was issued, that solitary note was issued with interest. Ergo, to settle the debt owed on the first ever bank note printed required the creation of more. This is why the big economic superpowers have national debts which add up to hundreds of trillions of Dollars/Pounds/Euros.

 

Wind the clock forwards and we reach the current state of global economics where more and more money has been required to settle the ever expanding debt. The practical upshot of this model is a debt that increases exponentially at an ever increasing rate; just as the universe is expanding at an increasing rate. This debt can only go in one direction and I’m sure you have all worked out which direction it is going.

 

One could consider the simplicity of the early universe as the solitary note. All of the birth and deaths of stars that created the elements we see in today’s universe is the equivalent of the increasingly complicated business deals that mask the inflationary model. The bonding of atomic nuclei inside stars and transmutation of elements in supernovae could be seen as the borrowing, lending and taxing that make economics seem as complicated as the universe……

It is a model that can never be satified. It can only expand and to keep the expansion in check, money is conveyed from the poor to the rich……

And that is what the Big Bang has to do with the Global Economy……

 

It could not be explained with any more simplicity……

 

‘With special thanks go to Sonia Greaves, the Emeritus Professor of the Inspirational Ideas, without whom the seed of this idea would not have been planted……’

How long Before they Raid your Piggy Bank……

29 Mar

‘You may think on this island that you are immune from the economic problems facing Europe and the rest of the World……’Pound Sign

Despite the impression that our ‘trustworthy’ politicians give that the UK economy is safe from the world markets which appear to balanced on a knife edge, you’re not……

Economic catastrophes spread like wild fire, from the distant and apparently unrelated problems we’ve just seen in Cyprus to the collapse of global mega-institutions like Lehman Brothers, Britain is not immune.  Imagine going to your local bank only to find it’s closed, its cash dispensers are empty, online transactions have been suspended and the local businesses will only accept cash……

Could this really happen?  Well, the government have put in place a depositor guarantee but, like any other policy it is subject to change.  It is not a legal guarantee because the government make the law and they can change it.  The fractional reserve banking system means that the world has created 90% of all ‘money’ as ‘promise to pay notes’ (IOUs) and not lent ‘real’ money.  All it takes is a few large investors to call in those loans and there is not enough capital to cover it…….

Worst case scenario, our credit rating is downgraded and international lenders won’t invest in UK Plc.  Our government has over £1.5 trillion in debt, the interest on which cost the country £18 million per hour.  It is a house of cards and the Government cannot bail out banks with money it simply doesn’t have…….

2 + 2 = £1.5 trillion

2 + 2 = £1.5 trillion

Personally I would say, if you have a small amount of savings and they are earning a pitiful amount in interest.  They would be safer under your mattress than in our casino banks.  Should the shit hit the fan, which it may, I’d rather know where my money was and have access to it…….

Governments lie.  They change policy at the flip of a coin and are not in a position to guarantee the money you place in our banks.  You only have to look at the Chancellors predicted growth over the next few years to realise it is a myth seeing as growth has been stagnant for several years, how is it suddenly about to increase exponentially?…….

YOU HAVE BEEN WARNED…….

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