Friday, October 07, 2011

Who will lift us out of the economic morass in which we are sinking?


Back in 2009, His Grace wrote on New Labour's strategy of Quantitative Easing. He ended that article 'To be continued' because he knew that such a strategy had inevitable consequences, one of which was the certainty that pumping £200bn into the economy would cause inflation to rise. And so it has. And, according to Sir Mervyn King, it will reach five per cent by the end of the year, which represents someting of a failure on the part of his Monetary Policy Committee which has a statutory obligation to control the rate of inflation. But Sir Mervyn explains: "This is the most serious financial crisis we’ve seen, at least since the Thirties, if not ever”

Over at RightMinds, Ruth Sunderland points out that Quantitative Easing has not troubled the British public over-much, probably because it is so arcane: 'But it raises troubling questions. Is the risk of higher inflation a price worth paying? Is it fair that this price is being paid by pensioners, along with savers who are already being punished with negative real returns on their accounts, and families who have seen their incomes fall in real terms?'

Well, it’s not rocket science, is it? Even a philosopher-theologian (or some of them) can grasp the basics of economics. If you print billions of pounds and pump it into the economy, you will get inflation. Even if you call the process something impressive like ‘Quantitative Easing’, the effects will still be the same. And an increase to five per cent (a full three points above the MPC target) is alarming.

But this is not Zimbabwe. And neither is it approaching anything like the scenario that existed in the 1970s when UK inflation peaked at 26.6 per cent. There is consensus that we are in for a grim few years of low growth, salary stagnation and rising inflation. And so people will see their standard of living fall, and those who live off interest on savings - principally the elderly - will see inflation eat into their incomes.

Gordon Brown blamed the unforeseen, unprecedented global ‘credit crunch’ for our sorry plight. The one who boasted year after year about ‘prudence’ and having ‘abolished boom and bust’ lived in the world inhabited by Alice. For as chancellor, he spent above his means, taxed the most vulnerable, and gave away the nation’s gold reserves (the price has soared over the past decade, losing us some £26bn). As prime minister, he made the supply of money unlimited to pay for his imprudence and economic dysentery. And so the world ditched paper money for gold, because it is finite and precious: it cannot be created ex nihilo and quantitatively eased out.

In the wake of that crisis, now exacerbated by Eurogeddon, the Chancellor George Osborne is applying his second-class BA(Hons) in Modern History to 'the most serious financial crisis we've ever seen' to expand the asset purchase scheme under which the Bank of England buys government bonds from commercial banks. The Chancellor said further steps would be taken to boost growth in his autumn statement next month.

It is heartnening, is it not, that those who run the most powerful offices of state often have zero qualifications to equip them for the role. Perhaps, as in academia, it ought to be compulsory for those who run these departments to hold the degree of doctor of philosophy in a related discipline. At least then they would be expert in their respective fields. Not infallible, by any means: but certainly better equipped than a 2:1 in Modern History to see the country through the most serious financial crisis ever.

“It is required of stewards, that a man be found faithful” (1Cor4:2).

The one who is guardian of the nation’s wealth is entrusted with that which belongs to us all. And he is constrained by a centuries-old unwritten code of ethics in the administration and distribution thereof. He will be tempted to succumb to the bribes of man and the pressures of the world. But the moment he does so, the public lose confidence as he is seen to give in to corrupt, ignorant and short-range considerations of what may seem right, as against what we know to be unsound or sense not to be quite right.

It is not for the philosopher-theologian to tell the doctor-surgeon the details of his business. And yet even a philosopher-theologian knows when the right hand must be cut off. And the wise doctor-surgeon will always listen to the intuition of his patient.

Politicians do not always do what is right and necessary because they do not know what is right and necessary because they are not qualified to know. They are devoid of conscience, deficient in intellect and lacking knowledge. Their objective is power and exercise of power and the retention of power.

So, as the sun darkens and the moon does not give its light; as the stars fall from the sky and the heavenly bodies are shaken; we await the man of sufficient stature to hold the allegiance of all people; the one who will lift us out of the economic morass in which we are sinking. Send us such a man and, be he god or the devil, qualified or not, we will receive him.

74 Comments:

Blogger Terry H said...

Thankyou for this, your Grace.

Are you telling us that TB may indeed be the man mentioned in Revelation 13?

Crikey!

7 October 2011 at 09:14  
Blogger Arden Forester said...

All stewards should be just and honourable people. Our trouble lies in the fact that we are being duped. Although many now know that, there are still plenty who either do not or will not accept that money does not grow on trees.

Labourers are now no longer worthy of their hire. They just get tranches of computerised money so they can manipulate economies.

Ben Bernanke, Federal Reserve boss, knows not whether gold is money or an asset. Governments have devalued, revalued or under valued currencies. They've played around with them and they've squandered tax revenues.

We do indeed need someone to get us out of the mire. Without platitudes and pleasantries.

7 October 2011 at 10:25  
Blogger James Reade said...

Well, I'd hoped the number of clueless yet prominent right wingers wading into things they don't understand much about would be limited to John Redwood, but clearly not.

Alas, the economy, and the conduct of monetary policy, is not a simple thing that philosopher-theologians can hope to just wade into and understand - as you adequately show with your wading.

A bit like sitting in the stands at a football match listening to drunk football fans telling the manager how to do his job, all you lot attempt to tell Mervyn King how to do his job.

Yet, incredibly, you haven't even grasped who is in control of monetary policy! New Labour's policy of QE1?!?! A little lesson teaches that in 1997 the Bank of England was given operational independence, and on the first Thursday of each month a committee called the MPC pores over vast amounts of economic data and makes a policy decision based on the state of the economy, not the latest political whim.

But let's try and get past monumental error number 1 and continue.

If you print billions of pounds of money and pump it into the economy, you WILL get inflation? Will you? What if those billions just lie idle on bank balance sheets? If those billions aren't spent, you won't get inflation. What if those billions lead to an economic recovery which causes the pound to rebound hence leading inflation to fall? What if the billions lead the public (other than you extreme righties) to think that the Bank is doing its job properly such that they keep expecting the Bank to deliver 2% inflation, and build that into their wage settlements?

The link isn't quite as cast iron as you suggest - but as said, you're a philosopher-theologian who self-qualified yourself in pompous fashion to declare the entire field of economics to be full of idiots. Why should you listen to us?

Like John Redwood, you're trying to claim the current high inflation is due to QE1. Is it? Did you check the data and find that in 2008 the Bank was battling with high inflation, and that was why it kept interest rates so high so long when the economy was tanking? Didn't think so.

Simple economics (the stuff I hope you could do) tells you that if the pound depreciates, inflation will rise - we import a lot of goods, they become more expensive. The pound depreciated 25% against our major trading partners in 2008 (6 months before QE1 - as I've been trying to hammer home on John Redwood's blog). So again, the link between QE1 and current inflation isn't so obvious. When we then throw in the VAT rise, we can quite happily explain current high inflation without any recourse to QE1.

But what is most astonishing is this: You ask how are we to get out of this economic morass, yet you advocate the current tight fiscal policy stance, and you also want monetary policy tight also.

I can tell you from looking at the data that the last time the US tried that potent combination, we arrived at the Great Depression. It should be reasonably obvious why - you choke off demand doubly do. The supply side won't exactly jump for joy and provide us a recovery if no-one's going to buy anything.

As Christians, for sure we have eternity ahead of us, so I guess 5-10 years of economic malaise is nothing compared to that. Perhaps that is why you advocate this classical economist stance, waiting for the long run and the great correction?

7 October 2011 at 10:29  
Blogger Rebel Saint said...

I don't even possess a 2:1 in media studies yet I know that printing money is a downright idiotic idea.

I think the problem is almost the opposite of what you state. Some of the most idiotic ideas come from people who are the most "highly qualified". People who spend their time in academia, completely divorced from reality, seem to make the most ludicrous decisions. They like to convince us that macro economics is so very complex because otherwise how would they justify their over-inflated salaries (and matching egos). Educated fools are still fools.

7 October 2011 at 10:44  
Blogger English Pensioner said...

I understood that the Bank's remit was to keep inflation at a certain level, and that this remit has not been changed.
It seems that the Governor has unilaterally decided to change this and has abandoned the terms of reference given to the MPC in favour of ones of his own choosing.
Why hasn't anyone challenged this? Is it that everyone in power believes he is right?
I would have thought that a judicial review is called for!

7 October 2011 at 10:44  
Blogger Anabaptist said...

The Cameron-led government is continuing in the steps of various predecessors in perpetrating fraud on the Queen's subjects. Despite the Bank's operational independence, I haven't noticed Second-Class george complaining about the latest round of QE. I rather think the government supports the idea.

Governments have very few irreducible responsibilities (though you wouldn't think so, given the amount of stuff they have arrogated to themselves), and one funadmental responsibility of any government is to maintain the stability and integrity of the currency.

Otherwise we are cheated by spivs who shave gold from the edges of coins, or who counterfeit tenners. We have very stringent methods for ensuring that our money is not counterfeit.

But the state bank subverts that stringency by taking measures that will inevitably reduce the value of these carefully printed and minted notes and coins. As Cranny points out, QE is the short route to inflation. The economic value of any commodity is increased by scarcity and reduced by plenty -- whether it is tomatoes, houses or money.

The more there are of anything, the less each item is worth. Even Second-Class George should understand that.

There is no difference in principle between Brown's deficit spending and Osborne's QE. Each is responsible for steps that are known to devalue the currency.

They are all spivs.

P.S. Congratulations to Mr James Reade for having read a few pages of an A-level Economics text book. We are where we are today, Mr Reade, because of the Keynesian predations of economic experts.

7 October 2011 at 10:44  
Blogger whitespacebug said...

" it is heartnening, is it not, that those who run the most powerful offices of state often have zero qualifications to equip them for the role."

A recurrent theme in "Yes, Minister ". I recall Ian Lavender in one episode as a low-grade civil servant saying to Jim Hacker "I fear I will rise no higher..alas, I am an expert."

7 October 2011 at 10:46  
Blogger Caedmon's Cat said...

"Gordon Brown blamed the unforeseen, unprecedented global ‘credit crunch’ for our sorry plight."

I recall a letter printed in the Daily Telegraph a couple of years ago by a reader, who at that time took issue with Gordon Brown's assertion as stated above. The writer of the letter had been reading David Blunkett's memoirs, and in them had read that a couple or so years before the events of 2008, Brown warned a Labour Cabinet meeting about the credit crisis to come in 2008.

Was the crisis - and the resulting corrective fiscal policy - engineered? Hmmm...

7 October 2011 at 11:33  
Blogger Avi Barzel said...

Anabaptist,

Had to google your spiv, a word that didn't make its way to the Colonies. Has a nice sound to it and an uncertain etymological provenance: http://www.worldwidewords.org/qa/qa-spi3.htm.

I like it and I'll use it any time I get a chance. Check a Canadian dictionary in abot 100 years to see if I got anywhere. That is, if there is still a Canada, if there are still dictionaries....heck, if English is still around, with the way things are going.

7 October 2011 at 12:02  
Blogger bluedog said...

Your Grace, the latest tranche of QE is almost certainly an attempt to mitigate any contraction in the UK money supply caused by the Dexia bank failure in Belgium. Money Supply (measures stock of liquidity) and Velocity of Circulation (measures flow of liquidity) are two inter-related concepts watched by central bankers when they are doing their job. http://en.wikipedia.org/wiki/Velocity_of_circulation

This tranche of QE is therefore unlikely to add to inflation.

Your communicant suspects that the Governor of the BoE is extremely concerned by the possibilty that the Dexia failure will trigger a chain reaction of bank failures in the Eurozone. It will take about a fortnight to find out.

Cheers

7 October 2011 at 12:03  
Blogger Anabaptist said...

How heartening, Mr Avi Barzel, to think that we are still able to exercise a beneficial influence in the former colonies. It gives me a warm glow.

7 October 2011 at 12:05  
Blogger Avi Barzel said...

Glad to provide a warm glow, Anabaptist; the windmills beautifying your English landscape might be a bit strained this winter and any stray calorie will help. We'll be getting more of those too this year, don't you worry, with our Ontario Libs (and Samsung) winning a third term in a row. Argh.

7 October 2011 at 12:21  
Blogger Owl said...

Mr. Reade said "clueless yet prominent right wingers".

Well, at least we know which wing he is coming from.

Fiscal manipulation by governments IS engineering.

Mr. Reade also suggested that if the billions are not spent then there will be no devaluation/inflation.

Why pump the money into the economy if you are not going to use it.?

The Fabian governments of the last couple of decades (including this one) love pumping money into black holes. Well, I mean, of course, other peoples money.

Think of all the irrational green projects available to waste this money!

To let this money lie idle is impossible for Dave and Co.

I would suggest that the Austrian school might be a better option for the UK. You know, derail the gravy train causing flooding from the green/Fabian tears.

Mind you, this would place a strain on the employment market as most of these people have never worked a day in their lives up until now.

Thank you YG for some basic common sense (again).

7 October 2011 at 12:31  
Blogger Rebel Saint said...

What I don't understand is why this example of QE (on a much, much smaller scale) lands the particular economists in jail?

7 October 2011 at 12:32  
Blogger tory boys never grow up said...

Even if one accepts the monetarist economics of Cranmer's youth to which many Tories continue to demonstrate blind faith as is their wont - then as others have pointed out - you would need to look at the overall money supply figures (the statistics pages of the Bank of England website is a good enough place to start) and not just the impact of QE in isolation.

If anyone does bother to look the rate of growth of money supply has been slowing down sharply since the first bout of QE - so I'm afraid you need to look somewhere else other than Cranmer's extremely basic monetarist theories for your explanation of increases in inflation.

As for arguing that it was Gordon Brown that was responsible for QE and the increase in money supply, leaving aside that the Bank has formal independence in this area - I think Cranmer should note that economists (and certainly those educated above PhD level) were pretty universal that there needed to be a substantial relaxation in monetary policy following the dislocation of 2007-8. And to be honest the mind boggles what would have happened if there had not been such a relaxtion. The fact that Cranmer now argues against such a policy really just demonstrates how Tories of his ilk do not care about playing with the livelihoods of ordinary people - and also how they have failed to learn the lessons of the early 1980s when Thatcher/Howe tired a similar experiment with equally predictable results. Even Thatcher learned her lesson then, (although she never acknowledged that she had - apart from a quiet dropping of the monetarist dogma) - but clearly Cramner and otehr Thatcherites didn't as they continue to cling to their boyhood economics.

7 October 2011 at 13:13  
Blogger dmcl01 said...

This comment has been removed by the author.

7 October 2011 at 13:16  
Blogger dmcl01 said...

And to add insult to injury, Mr Browne announced exactly when and how much gold he was going to sell. So savy investors 'shorted' him

7 October 2011 at 13:17  
Blogger DanJ0 said...

I have to say I'm mostly with Mr Reade's explanation here. The inflation rate is mainly down to imports, including oil which also feeds through to transport costs of local product, at least as I understand it. Check out the M numbers on the BofE website. Also, QE is not the same as printing money to slosh around, or central bank financing of government borrowing out of thin air in a Zimbabwe fashion. All that said, I'm not saying that I agree with the QE here.

7 October 2011 at 13:26  
Blogger Elby the Beserk said...

Link http://archbishop-cranmer.blogspot.com/Read%20more:%20http://www.dailymail.co.uk/debate/article-2046088/Bank-England-QE2-Desperate-measure-desperate-times.html#ixzz1a4rOKev9 does not work...

7 October 2011 at 14:32  
Blogger Hereward said...

Good or bad, the effects of this round of QE will be drowned in the maelstrom.

Two to three weeks to meltdown?

http://www.youtube.com/watch?v=6UGDTtqklSo

7 October 2011 at 15:23  
Blogger Oswin said...

I well remember those dreadful days of mass inflation during the mid-to-late 70's; but at least we had the hope of improvement: the total realignment of economics, industry, unions etc.

What is there now? We appear to have nothing left, upon which we might build.

We all know the problems of attempting to second-guess the future; but this time around, I'm at a loss to attempt any qualitative speculation whatsoever; it's beyond me entirely.

I'm inclined to the belief that the potential for 'collapse' is greater than ever before; and I fervently hope that I am wrong.

7 October 2011 at 15:35  
Blogger E.xtra S.ensory Blofeld + Tiddles said...

Mr Reade

Ernst loves to hear from those economists who believe they know everything that has occurred and explain this that and the other (Do go and have a chat with Brillo, certain he will be impressed to hear your brilliant assessments), with terminology that makes the eyes glaze and the brow furrow yet are proved laughable by the fact they never saw it (2008)coming!

Whether they be keynesian or monetarist, classical or neo clasical, libertarian or neo libertarian or fresh water or saltwater economists, none of you blighters know what the hell you are doing, by and large or the means to solve it!

Seems like a good time for Ernst to recall the words of H. L. Mencken: “There is always an easy solution to every human problem — neat, plausible and wrong." as you have proved and further, in Labour party supporters case "When the water reaches the upper deck, follow the rats. "

To quote Paul Krugman , winner of the 2008 Nobel Memorial Prize in Economic Science.

"When it comes to the all-too-human problem of recessions and depressions, economists need to abandon the neat but wrong solution of assuming that everyone is rational and markets work perfectly. The vision that emerges as the profession rethinks its foundations may not be all that clear; it certainly won’t be neat; but we can hope that it will have the virtue of being at least partly right. "

Trust you are listening and doing as he says and educating those dear students within your care as a lecturer and not bombarding them with fabian philosophy, eh.

Ernst S Blofeld, my left wing softie.

ps

Why your statement is only valid if His Grace's is. What do any of us know about economics, infallibly? It's all about soldering on, in humilty and prayer!

pss

Owsin.

So in agreement with you in all you state. Ernst remembers those 70's only too vividly, old boy.

7 October 2011 at 15:44  
Blogger E.xtra S.ensory Blofeld + Tiddles said...

Oswin

"Owsin." Ooops!

Typo error, my boy, genuine apologies.
Ernst has only one good eye, the other has been bad from birth. Ernst now finds his good eye is going awol far too often now and getting worse by the day.

Forgive a sight deficient old fella his errors.

Old age, I'm afraid.

Ernsty.

7 October 2011 at 15:50  
Blogger E.xtra S.ensory Blofeld + Tiddles said...

Oswin

Have you heard the good news (pun intended)

The Magic of Reality has been released by Richard Dawkins..


The strapline goes;

"Give me the child,” the Jesuit maxim is supposed to have run, “and I will give you the man".

The Nazi's further tried it by taking over the curriculum education of Germany's youth and destroyed a generation.

It appears the worrying message for concerned christians must be Proverbs 22:6

6: Train up a child in the way he should go: and when he is old, he will not depart from it....But not if Richard Dawkins gets there first.

The blighter is more prolific than Jackie Collins and just as trashy but has the intellectual effect of giving Ernst the old 'Montezuma's revenge'.

At least communicants know what to put in DanJO and G Tingey's stocking this Christmas at their respective relative's homes..Christmas is barred at their own habitat's, Ernst could probably state categorically.

Brace yourselves everyone and grimly hang on, a storm may be brewing to hit the blog?

Ernsty

7 October 2011 at 16:22  
Blogger DanJ0 said...

Blofeld: "Christmas is barred at their own habitat's, Ernst could probably state categorically."

Not at my place, I love it. I even make a Christmas cake in the shape of Jesus in a manger, using dark brown icing for the figure to make it as realistic as possible. I start at the neck when we cut the first piece, obviously. Is that the sort of thing you're hoping to generate with that? I aim to please.

7 October 2011 at 16:51  
Blogger Office of Inspector General said...

Your Grace

It’s always preferable to read the opinions of a man who knows what he’s talking about. Failing that, the next best are the opinions of someone who thinks he knows what he’s talking about - James Reade - but in his case, too many ‘what ifs’ and question marks for him to be trusted.

We are not using the economic model the Inspector studied at college over 30 years ago. It’s all uncharted. Nobody knows if our present situation, massive public spending, inadequate industry, colossal waste, interference in our employment laws by a foreign power (the EU), greedy bankers, and much more, will lead to economic collapse.

What went wrong ? Free trade with Asia and the Far East destroyed manufacturing. You can’t compete on a level field with countries that only pay their workers just enough to eat. So let us do the formerly unthinkable - put up trade barriers, and make what we can in the UK. (We have to come out of the EU, that’s a given. Best do it now before the whole structure collapses and makes it worse here). Result - a renaissance for Industry !

We are a resourceful people, worthy of our Nordic race origins. We will survive, and the world will still look up to us. We may have to do without some of the luxuries, and basics like shoes and clothes will cost more, (trade barriers ALWAYS invite reciprocation), but the Inspector predicts this: It won’t be nearly as bad as what we are walking slowly through now…

7 October 2011 at 17:18  
Blogger Oswin said...

DanJo: a tad too far, what? A neat side-step and, a wee parting flounce, would suffice. No need to reach for the red button yet awhile; the subject in hand is sufficient enough 'shock and awe' for any of us to be going on with.

Let us hope, that regardless of our differing opinions, that we survive what might be coming. God bless us one and all.

7 October 2011 at 17:34  
Blogger len said...

As the World staggers and falters, crisis upon crisis , calamity upon calamity,the people look not to God for a solution but to man. Politicians and economists have no answers, they stumble in the dark like blind men. If we returned to God He would return to us!.

When Pilate offered the crowd the choice of either Jesus Christ or Barabbas(the rebel and murderer) the crowd chose Barabbas and History gave us many in the spirit of Barabbas who caused countless wars, deaths,and suffering.

When we continue rejecting God, He will lift His hand of restraint,and release the' peoples choice',the rebel who opposed God from the beginning,the figurehead for all that oppose God,he who binds together everything and everyone who oppose God and he will be released upon Humanity without restraint.

7 October 2011 at 17:54  
Blogger DanJ0 said...

Oswin: "DanJo: a tad too far, what? A neat side-step and, a wee parting flounce, would suffice."

Not when it's on multiple threads.

7 October 2011 at 17:55  
Blogger DanJ0 said...

Oswin: "Let us hope, that regardless of our differing opinions, that we survive what might be coming. God bless us one and all."

Well, amen to that. Though I've been a Cassandra on this since Lehmans so I'm worn out by it and up for shrugging shoulders until it happens.

7 October 2011 at 17:58  
Blogger The Way of the Dodo said...

Len

Dooooom and gloooooom .......

Times are hard and people have brought in upon themselves.I agree. This has happened before in history; it will happen again.

We cannot know when the Final Judgement is due, although some pretend they do. God Has sent Judgement before when we depart from His ways. Who knows what lies ahead - we have to do our best.

"Don't panic! Don't panic!" It's not time to run for the hills yet.

7 October 2011 at 19:13  
Blogger The Way of the Dodo said...

This comment has been removed by the author.

7 October 2011 at 19:14  
Blogger The Way of the Dodo said...

Mr Cranmer said ...

"Perhaps ... it ought to be compulsory for those who run these departments to hold the degree of doctor of philosophy in a related discipline. At least then they would be expert in their respective fields."

Not a very democratic position to adopt or one supported by history. The wisdom and ability to discern between conflicting 'expert' advice is surely the most prized qualification a politician can have?

And your observation about politicians is a wild and simplistic generalisation, as well as undemocratic. It could be taken as support for the idea of establishing a dictatorship by technocrats.

"Politicians ... are devoid of conscience, deficient in intellect and lacking knowledge. Their objective is power and exercise of power and the retention of power."

And to think in 2008 you called the EU " ... a fascist, totalitarian, anti-democratic, obfuscationally bureacratic Tower of Babel..." and Tony Blair of wishing to become President of it in order to persue " ... the religio-political agenda of the Roman Catholic Church."

7 October 2011 at 20:22  
Blogger Paul Twigg said...

James Reade is a self styled leftie and yet even from his own side QE is to be criticised! Let us look at it from the age old agenda of the left wing equality issue :

1. QE does create inflation. The more funny money circulating into the economy means that the pound devalues. But, because the UK exports mostly capital and because the UK imports more than we export,'things' (e.g. petrol) become more expensive. Hence the inflationary impact of QE.

2. Even worse from a left perspective is the fact that the old lady is giving money, free money, to the people that the left hold responsible for this crisis and all its associated wrong- i.e. bankers and the finanical sector generally. So the 'greedy banker' is in a win-win situation.

3. How equal is it to give bankers £275,000 million pounds, given that it is those who are about to retire who suffer the effects of inflation the most; indeed it is also the working poor who are hammered the most, by this vast redistribution of wealth and inflation creation- the very peoples whom the left say they stand up for. Surely it would be more honurable to suggest that the billions- circa £4,500- get distributed amongst all of us equally. I would quite like my account to be credited with £4,500. That is fairer than giving it to the banks, who will get multi-million pound bonuses through this and the subsequent asset bubble that it will create.

Finally, the Bsnk's decision has more to do with propping up the UK banking sector, when the inevitable destruction of the Euro occurs. Even the FT is now openly suggesting the Euro should be broken up.

What should be done ? In the following order :

1. UK to abandon Europe to its fate. They couldn't care less about us, so fine.

2.Realise who are true friends are - seek proper trading agreements with the Commonwealth and the US.

3. If we are to create funny money put it where it will be of use- i.e Engineering, Physics, Chemistry, Mathematics and learning and eventually we might be able to build ships that can travel the solar system, take the mineral wealth of the asteriod belt (one asteriod has about $21 Trillion of metals) and then we will not need to print money or be slaves to the vile EU.

UK put to rights in 5 mins flat!

7 October 2011 at 20:27  
Blogger Atlas shrugged said...

I beg to differ somewhat.

Inflation is NOT the inevitable consequence of an increased money supply.

What scares the crap out of the system is deflation, which is why inflation is built into said system.

We have very many deflationary factors at play, therefore even though QE is intended to cause inflation it may not if the deflationary factors outweigh the inflationary ones. What it will do is radically reduce living standards, as well as permanently impoverish countless millions of western people, and result in the deaths of many more millions in the 3rd world.

It is interesting to note which prices seem to be rising the most, basic food prices in particular should not be rising at anywhere near the rate that they are.

It is easy to understand why investment havens such as Gold are at an all but all time high, but why is food also rising so much.

Is the population out of control? NO.

Have our bread and milk producers gone on strike? NO

Has the Sun stopped shining, or the water stopped flowing? NO.

Is there not enough land on this planet on which to grow several times the amount of food the worlds population needs?NO, indeed the vast majority of this planet is all but uninhabited.

Are our ruling elites, central banksters, corporate food producers and supermarkets owners very greedy EVIL bastards indeed? undoubtedly Yes,

The point is that when too little money is chasing too many goods, prices should be falling not increasing.

Inflation is caused by too much money chasing too few goods. Which may very well happen in the not too distant future, but it is not really happening as yet. Indeed in spite of many billions being injected into the banking system at rock bottom interest rates inflation is still reasonably low.

When inflation takes off however this spare cash should be creamed off again, using taxation and interest rates to preserve the value of savings.

It is my best guess that this will not happen this time, and therefore private savings, and pensions will be effectively wiped-out in only a matter of a few years, leaving many at the mercy of the state.

The truth is that we are being robbed blind by the owners of our biggest corporations, as usual.

Big Business can exploit its Monopoly status to carry on increasing its prices, when wage, and other costs are either stable or in some cases actually falling.

It is good to remember that you might personally be in competition with others, but Big Business only ever appears to be.

Cartels rule OK. This whether it is a banking, arms, or soft drinks manufacturing cartel. After all you didn't really think Coke-Cola, and Pepsi are actually owned by different interests, now did you?

Oh, you did, well I hope don't now.

Yes, you guessed correctly, it is yet another CONSPIRACY, brought to you by your exclusively corporatist OWNERS.

7 October 2011 at 20:32  
Blogger The Way of the Dodo said...

The real truth is no one knows the solution to our unique, late capitalist monetary crisis (no, I'm not a 'leftie').

Let's have a bit of hope and talking ourselves into a state of depression.

7 October 2011 at 20:43  
Blogger The Way of the Dodo said...

i.e STOP talking ourselves ...

7 October 2011 at 20:44  
Blogger Paul Twigg said...

Just thought of our friend the Dodo, when I saw his comments, LOL:

http://www.youtube.com/watch?v=qQIOHJxqAUc

7 October 2011 at 21:18  
Blogger whitespacebug said...

Christ, but you lot are boring :-)

7 October 2011 at 21:31  
Blogger Paul Twigg said...

And what prey tell, would Whitespacebug find more interesting?!

7 October 2011 at 21:36  
Blogger The Way of the Dodo said...

Good evening Mr Twigg. Thought you'd abandoned this blog.

Wishful thinking .... just joking.

7 October 2011 at 21:58  
Blogger E.xtra S.ensory Blofeld + Tiddles said...

DanJo the libertarian rejoiced gladly 7 October 2011 16:51

"Not at my place, I love it. I even make a Christmas cake in the shape of Jesus in a manger, using dark brown icing for the figure to make it as realistic as possible. I start at the neck when we cut the first piece, obviously. Is that the sort of thing you're hoping to generate with that? I aim to please."

You merely say and do what you are, unfailingly!

"Not when it's on multiple threads."

Quarrelling behaviour or debating on a blog with others is beyond all words most horrible, is it not.

Ernst is horrified, shocked, alarmed, even mortified at his behaviour towards one of this blogs bullies... Oh, you poor sensitive soul! My apologies.
Please don't report Ernst to the Deputy Head..Here's a twix and some gobstoppers, as a recompense and a nice likkle hankie, to dry your sodden little eyes.

A repentant Ernst...How could he, to little DanJo of all people. What a cad I am.

7 October 2011 at 22:51  
Blogger Paul Twigg said...

Dodo,

Thank you for your kind note, I trust that you found my link regarding a dodo and 'five alive' ad to be funny/amusing?

I have not abandoned this august blog, but I have been struggling with various personal matters & deaths in the family, in the 'real world' which have made me see this world in a different way to before.

Although this has meant I have been unable to give much time to blogging on this or my own blog.
To suffice to say that life is far too short for some of the pathetic arguments that come about on this blog and indeed for the stupid, silly arguments you and I have had[And for that I am sorry]; I shall simply be nothing more that a big quip from now on,going on 30 something, for the year(s) ? I have left to live.

7 October 2011 at 23:24  
Blogger The Way of the Dodo said...

Paul

My remark was meant affectionately. Sorry to hear about your personal trials and losses. Grief does change one's perspective and outlook.

Some of the arguments on here are silly and somewhat stupid. Some are serious. At times we descend to abuse - that's blogging.

There's absolutely no need to apologise to me at all as nothing you've said, that I can recall, has ever been personally offensive. My approach is abrasive and pointed at times - that's just the way of the Dodo.

God Bless you.

8 October 2011 at 00:15  
Blogger Office of Inspector General said...

Ernst

Not good news you know, being reported to the deputy head. He was dean of discipline and was armed with a strap. Leave Tiddles behind, lest he gets into a frenzy and straps the cat too.

8 October 2011 at 00:48  
Blogger Harry-ca-Nab said...

This guy speaks for ordinary Americans but he happens to speak for us too.

http://www.youtube.com/watch?v=r3ptmm8lAMM&list=PL939BCF2ED87E9BE6&index=104

Our country has been run by incompetents. Funny, but they have made sure that their finances are OK - just stuffed the rest of us.

Brown should be out up against a wall and shot.

8 October 2011 at 05:01  
Blogger len said...

The complacency of some in these last days never ceases to astound me!.
Jesus spoke far ahead of his time relating to us what life would be like just prior to his coming. He says in Matt. 24:37-38: “But as the days of Noah were, so also will the coming of the Son of Man be. “For as in the days before the flood, they were eating and drinking, marrying and giving in marriage, until the day that Noah entered the ark,” (Gen.6-7).

Genesis. 6:11-12 “The earth also was corrupt before God, and the earth was filled with violence. So God looked upon the earth, and indeed it was corrupt; for all flesh had corrupted their way on the earth.” Today we live in a world constantly threatened by terrorism, in our cities we have hate crimes, drive by shootings, mothers killing their own infant children,, children killing parents, inhuman behavior is becoming the norm, we have run amuck having no restraints. Why? Because there is no law, no real accountability, it’s lawlessness.
Light is called darkness and darkness is light. In Satanism up is down, and down is up.
Lk. 17:28 He writes that it in “Likewise as it was also in the days of Lot: They ate, they drank, they bought, they sold, they planted, they built; v.29 “but on the day that Lot went out of Sodom it rained fire and brimstone from heaven and What were the days of Lot like that needed this kind of judgment?

I realise there will be very few with the insight to understand what I am saying and will continue on regardless but I have fulfilled my function in relaying the facts of the situation, if you cannot or will not see the direction you are heading through stubbornness then that is entirely your responsibility.

8 October 2011 at 07:29  
Blogger len said...

The Day of the Lord(" 2 Peter 3 1 -10)

' Dear friends, this is now my second letter to you. I have written both of them as reminders to stimulate you to wholesome thinking. I want you to recall the words spoken in the past by the holy prophets and the command given by our Lord and Savior through your apostles.
Above all, you must understand that in the last days scoffers will come, scoffing and following their own evil desires. They will say, “Where is this ‘coming’ he promised? Ever since our ancestors died, everything goes on as it has since the beginning of creation.” But they deliberately forget that long ago by God’s word the heavens came into being and the earth was formed out of water and by water. By these waters also the world of that time was deluged and destroyed. By the same word the present heavens and earth are reserved for fire, being kept for the day of judgment and destruction of the ungodly.

But do not forget this one thing, dear friends: With the Lord a day is like a thousand years, and a thousand years are like a day. The Lord is not slow in keeping his promise, as some understand slowness. Instead he is patient with you, not wanting anyone to perish, but everyone to come to repentance.

But the day of the Lord will come like a thief. The heavens will disappear with a roar; the elements will be destroyed by fire, and the earth and everything done in it will be laid bare'.

8 October 2011 at 07:39  
Blogger whitespacebug said...

Sunday is tomorrow, Len. Zzzz

8 October 2011 at 07:43  
Blogger E.xtra S.ensory Blofeld + Tiddles said...

Office of Inspector General informed Ernst of the despicable two faced-ness of DanJo the grassy boy 8 October 2011 00:48

"Ernst

Not good news you know, being reported to the deputy head.(Has he, why the litttle snide and grass, Ernst wants his twix and gobstoppers back..he can keep the hankie..ugghh, soaked in snot and all that, no ta))

He was dean of discipline and was armed with a strap (or a long straight cane as Ernst knows as he was nearly a permanent fixture in DH office, or so the DH kept complaining). Leave Tiddles behind, lest he gets into a frenzy and straps the cat too.

Wise words..Tiddles is not allowed on campus anyway..By the way, Tiddles is a she, old chap!

Ernst

8 October 2011 at 10:21  
Blogger Office of Inspector General said...

Len

Come out from under the table and stop snivelling and shaking. Get a hold of yourself man and stand to attention. Liberal use of the death penalty and flogging is the answer, now go and fetch the Inspector his rope...

8 October 2011 at 13:08  
Blogger E.xtra S.ensory Blofeld + Tiddles said...

Ps

Ernst has been commented by Sarkozhy and other froggies.

France 19-12 England

"Lord Nelson, Lord Beaverbrook, Sir Winston Churchill, Sir Anthony Eden, Clement Attlee, Margaret Thatcher, Wayne Rooney, Jenson Button, Prince William, Cranmer , Blofeld.

David Cameron, can you hear me? David Cameron your boys took a hell of a beating! Your boys took a hell of a beating!

Damned shameful when we invented the sport.
Ernst can understand the former colonies slapping us as happens in cricket but La France?
The news really gets worse by the day.

Despondent Ernst.

8 October 2011 at 13:58  
Blogger The Way of the Dodo said...

len

Have you been given the date and location?

Want to book my holidays soon and it would be handy to know if I need to avoid any regions or seasons.

Seriously, snap out of it man! Sin and ungodliness has plaqued mankind since Eden. Just compare today with life in Victorian times.

It is you who is mocking God by constantly droning that the 'end is nigh'.

8 October 2011 at 14:18  
Blogger Office of Inspector General said...

Dodo

Do believe you meant to say ‘plagued’ old chap. It’s tooth problems that have plaqued mankind since time immemorial, as the Inspector knows only too well....

WV = acker (Is he still with us ?)

8 October 2011 at 14:47  
Blogger The Way of the Dodo said...

Inspector

Thank you for correcting my spelling error.

"WV = Acker"?
Is this a Masonic message?

8 October 2011 at 15:17  
Blogger whitespacebug said...

I wish I had enough leisure time that I could spend some twittering away pointlessly on here but..oh wait

8 October 2011 at 15:24  
Blogger Office of Inspector General said...

whitespacebug

We all make sacrifices to enable us to put the world to rights on this site. In the Inspectors case, it’s his now inadequate personal hygiene...

Dodo

Cryptic clues as to what the Inspector is on about - WV “Word Verification” Acker - “Acker Bilk”

8 October 2011 at 15:44  
Blogger The Way of the Dodo said...

Inspector

And I thought you'd gone all Masonic on me.

Acker Bilk is most certainly still with us.

8 October 2011 at 16:19  
Blogger len said...

Dodo, no wonder the Dodo`s are no more, have you been stuffed.recently?

8 October 2011 at 17:34  
Blogger len said...

OOIG,
quite the sadist aren`t you?.

Bet you enjoyed bullying the lower ranks in your chosen profession....what?.

8 October 2011 at 17:38  
Blogger The Way of the Dodo said...

Inspector

Mr Prophet of Dooooom appears to be answering back! About time he came out from hiding and showed his true self.

8 October 2011 at 18:14  
Blogger Office of Inspector General said...

Len (8 October 2011 17:38) quite the sadist aren`t you?.

I say what’s this ? Len putting down his ‘The End of the World is Nigh’ sandwich board and showing a bit of life. That’s the spirit, bet it feels good too, man ! Most excellent news...

Now don’t let it drop. The Inspector wants you to take a series of deep breaths morning noon and night - chest out, shoulders back. He also wants you to sleep with the window open. And to take occasional walks without a coat on. We’ll soon get the blood running in your defeatist whining carcass....

9 October 2011 at 01:17  
Blogger len said...

Dodo and OoIG,
Quite a pair aren`t you?.

The 'armchair general' and the stuffed bird?.

You stand in the path of the Gospel and are beneath contempt.I will waste no more time on either of you.

10 October 2011 at 07:49  
Blogger Hugh said...

I think that this one is way above the Chancellor's pay grade, and can only be dealt with by the First Lord of the Treasury himself.
I believe that he at least got a first in a related discipline.

http://en.wikipedia.org/wiki/David_Cameron

10 October 2011 at 13:14  
Blogger E.xtra S.ensory Blofeld + Tiddles said...

len said 10 October 2011 07:49

Fear not, be of good cheer: Onward, lad.

Lad, do not give up the good fight as they hope you will, no doubt! Words MUST be spoken for all to here who will hear. The words that come out when you invite someone to the body of believers and why?

John 16

32 Behold, the hour cometh, yea, is now come, that ye shall be scattered, every man to his own, and shall leave me alone: and yet I am not alone, because the Father is with me.
33 These things I have spoken unto you, that in me ye might have peace. In the world ye shall have tribulation: but be of good cheer; I have overcome the world.

Be of good cheer! In every circumstance this is Jesus' answer. You must be doing something right else why their despisal of you.

Ernst is here and always at the ready to give a good account, they merely do what Rome requests, which is to frustrate and hinder others who are not so persuaded by Rome, my old boy.
Forgive their blindnes and 'hard of hearing condition'. Truth, they will sift you like wheat but be of good cheer.

It's a Roman Catholic Catechism thing!

Ernst 'always your friend and ally in Christ Jesus' Blofeld

10 October 2011 at 20:49  
Blogger E.xtra S.ensory Blofeld + Tiddles said...

Len
ps

Nehemiah 8:10
10 For the joy of the LORD is your strength.


He gives you a joy which is unspeakable, a joy that overflows, a joy which keeps you going on in defiance of hardship and enduring the trials of life.
His joy is a joy which the world can neither understand, nor can it take away from the saints of God, for you have something in which to be joyful, and that is the fact that in Him you have a new life.

Then think upon this wonderful verse of Scripture from Isaiah 61:3

3 To appoint unto them that mourn in Zion, to give unto them beauty for ashes, the oil of joy for mourning, the garment of praise for the spirit of heaviness; that they might be called trees of righteousness, the planting of the LORD, that he might be glorified.

Nehemiah 8:10
"For the joy of the LORD is your strength".

Ernst

10 October 2011 at 20:59  
Blogger The Way of the Dodo said...

Ernsty and len

Deary me! Poor souls being teased by the terrible, nasty duo. How terrible it must be for you.

Good job neither one of you has to face real persecution for the faith.

11 October 2011 at 02:02  
Blogger E.xtra S.ensory Blofeld + Tiddles said...

Dodo

"Good job neither one of you has to face real persecution for the faith." will not give Rome the chance for Ernst to find out what persecution feels like, lad

Why Ernst would rather remain under caring Anglican jurisdiction rather than Rome's, my fowl.

Get's kinda hot and crispy for christians when it's in charge, does it not? Ernst would not want to find himself cooking as a shish (lamb ?) kebab.
Terrible indeed, as Ernst has read from history!

Thanks for giving Ernst the wink though.

Ernst 'the reluctant' Blofeld

11 October 2011 at 03:02  
Blogger The Way of the Dodo said...

Ernsty

The absolute worse Rome would do to you today is to you with holy water if you got too close.

Don't worry about the Catholic Church and try to join the 21st Century and leave your prejudices where they belong - in the past!

Going on holiday this year? Tehran perhaps? The people there might benefit from hearing from you.

11 October 2011 at 22:01  
Blogger The Way of the Dodo said...

that's sprinkle you with holy water in case you worry they might drown you.

11 October 2011 at 22:03  
Blogger Office of Inspector General said...

Blofeld old chap.

Return to mother church. If Henry VIII can do it on his deathbed, you’ll have no problem. Len, you can just sod off...

11 October 2011 at 22:11  
Blogger itm said...

Thanks for the post,good information

12 October 2011 at 11:45  
Blogger E.xtra S.ensory Blofeld + Tiddles said...

OoIG trying to counter reform Old Ernsty

"Blofeld old chap.

Return to mother church. If Henry VIII can do it on his deathbed, you’ll have no problem. Len, you can just sod off..."

History and his words state that he never left, merely claimed the divine right of kings, 'Constantine like'.

Ernst 'the recalcitrant unless from God Himself' Blofeld

12 October 2011 at 13:08  
Blogger len said...

Ernst,

Dodo and the 'General'strutting around in their Catholic 'bully boy' boots are at best a distraction(which I am sure is their intent).
To me this pair are invaluable they(wittingly or not) expose all the pitfalls of following a false religion.
Do not frighten them away at all costs!.
They really are a pair of 'lightweights' and I have had to deal with a lot tougher customers(not quite so sinister though.)
The more they are exposed to the truth the nastier they will get,bring it on (as they say.)

13 October 2011 at 20:51  

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