Wednesday, 8 October 2008
So why wont it work?
Well i will tell you,
having watched hour after hour on the news and on doomberg eh sorry bloomberg, and having witnessed countless people from all sides of the argument from idiots like will hutton to more sensible people like Vince cable and ken Clarke. (sensible to be take with a pinch of salt). not a single one ever seems to mention that the problem is too much debt.
This entire crisis is because the banks have lent money to people who can not pay it back; or will ever be able to pay it back, being mortgages on over priced properties.
Therefore if you are a bank and lent money and it is not coming back you are bust. This is not rocket science.
I am getting increasingly frustrated that no one ever seems to get that this is the problem.
Mr Brown only this morning said that this rescue package would get to the heart of the problem. how can it.
I suggest you Start doing your own research and you will soon start to find out why none of them want to address the real issue which is to much debt/printing money out of thin air etc.
Zeitgeist addendum part 2 is a good place to start.
Also money masters on Google video or money as debt. You can also Google who owns the federal reserve which is actually a private bank owned by private individuals. Do your research and come to your own conclusions why the Gentlemen we call politicians don't want to talk about the real problem.
It seems a bit of a no no to point out that the problem is too much debt - personal debt, government debt, bank debt. All the analysis I've seen seems to think as soon as the banks start lending again then bingo, problem solved.
Nobody seems to have understood yet that the debt is the problem, creating more of it is not the answer. It's as if they can't imagine a world where people and businesses can operate at all without getting into loads of debt. I wonder why that is?
The govt cannot highlight the debt problem because they are in so much debt and Ponzi Brown might have a bit of trouble giving any sort of convincing answer about the debt without spouting his usual drivel about unrivalled growth, strong fundamentals and his latest "do what ever it takes" etc....You will notice that no where in any of the banking bailouts has anyone sort to shore up banking balance sheets by getting people to pay back the money borrowed.
Considering the problem is debt this is very strange.This is why the bailouts will fail. More debt will not solve the problem and the markets know this.
Simply put, the solution to this problem will hurt.Years of repayment means years of pain, and we don't like pain. Meanwhile, there's a minuscule, unrealistic chance that if we put it off for 5 years, something will come along to solve the whole mess.There's an elephant in the room, and nobody wants to talk about it.
Both In the US and now here, the focus is totally on getting the lending going again- note that this is always phrased as getting credit flowing again- it would be just as accurate to say it's about getting debt flowing again- but this lacks a certain positive gloss and would perhaps lead to a train of thought that nobody wants to get on board of.
So what we have is a triple whammy - 1- The government is borrowing half a trillion pounds on your behalf at interest, to give to banks so they can lend it out back to you, at interest.
2- Banks are now charging you to put money in their bank (IRs lower than inflation) even though they're thieves who keep losing peoples money.
3- All this extra money is causing inflation, which is stealing your wealth from you.
Basically we're all been robbed blind. No doubt I've missed some other thieving aspect of this too. So what can we do? Call the police? Cry?
Today the Tax Payer offered the banks the chance to put all their outgoings into one manageable monthly payment. That's funny because i don't remember being part of that discussion as to if I agreed, oh that's right, I'm a peasant i do what I'm told and pay my tax like a good little slave,
sorry forgot sir getting above my station there sir, shall i bend over again sir ?