Tuesday, 8 May 2012

Financial Sado Masochism

We are now told "Austerity" is dead.

But it was never really alive in the first place, The Euro for one is looking more and more like some sort of perverted sex game as the days move on.

What is really going on in Europe is debt bondage, the pleasure for the banks is a fix of financial survival, were the analogy breaks down is no pleasure or indeed recovery is gained by the bound and punished.

Here in the UK we do have some sort of Austerity, the taps are slowly being turned off but the bath is still filling up, but that's combined with a external devaluation. I am not sure you can  call an overall increase in Government spending "cuts"

The keynesians tell us with the use of the magic multiplier they can create new money and  I am sure they can on a balance sheet, but they cant create new wealth. What they are asking is for everyone to forget that we are in the shit, pretend everything is OK and confidence returns. This in the age of the internet where news and truth is hard for the statists to control or spin. People can small the shit no amount of dope will change that.

Then we have the borrowers again mainly on the left, but not exclusively so, low interest rates should be used to borrow and spend. Well QE is just a paper chase and a interest rate swap at heart, low interest rates now for higher interest rates in the future. Another immoral dangerous road. Lets steal from the future as if they have not enough to pay for while they are wiping our arses.

How about bankrupting our banks, writing off unsustainable debt, starting again. The way Capitalism is supposed to work, let nature takes its course. Too dangerous we are told, chaos will ensue, maybe so but the more we we load the dynamite into the trucks the bigger the bang is going to be anyway, and the more you have loaded the more likely a accident is going to happen. In the 30s the problem was the Gold standard, today the problem is the "Bond Standard"

I was brought up in a Traditional Labour supporting household, one where you was expected to get your hands dirty and look after your own and your near neighbours. My Gran is now in her nineties and makes Dave look and sound like Micheal Foot. If I ring her up in the afternoon the first question she will ask is "why are you not at work?", "do the right thing" is what she says if I ask her for advice, which means "do the moral thing" and all will follow.