Monday, November 23, 2009

Babel and The Brownster

Interesting headline in Today's TimesOnline

IMF warns second bailout would 'threaten democracy'

It already is threatening democracy. This is partly what they were talking about at the G20. The bail-out theology is championed by the Brownster. It seems France and Germany are getting out of recession and want to pump the brakes on money printing.

The Brownster exported manufacturing jobs by letting the financial sector go exponential. By encouraging house prices speculation taxation moved away from property and onto labour and business. The result is that Britain's manufacturing jobs went abroad. He got us up to our ears in credit card debt - worse than all the EU combined and the national debt under the Brownster has rocketed.

Without manufacturing jobs Britain can't make money. You have to buy stuff from abroad and so the deficit grows. As Brown prints more money so the pound loses value and things from abroad become more expensive. So, unless Brits start making things, they ain't going to have things. Capital formation is about using less than you produce. Debt is not wealth, savings are wealth. You can borrow money based on savings and build factories for example. The problem is that the Brownster has Britain in the pawn shop. The Germans manufacture and a lot of them rent. They learned from their Weimar experience.

Ok, so let's start manufacturing then. Eh, we can't. Why? To encourage saving you have to put up interest rates. If they went up to 10% all that debt will strangle the taxpayers/home-owners. Even worse though is that the government would then have to pay a lot of interest on the money it borrowed and those interest payments alone could well consume half of the normal public spending budget by around 2014.

Brown thinks he simply has to get all the banking fraud going again and things will 'recover'. Let me tell people this: The isn't a snowballs chance in hell of Britain ever again being what it was a couple of years ago. When Brown dropped the regulation on banking an epidemic fraud, corruption and greed ensued. Now it is crumbling - there isn't going to be a 'recovery'.


The financial sector is dead. That is putting a massive hole in the public finances. Britain can expect more unemployment, a lot more, huge budget cuts everywhere and a massive hike in taxes. And all he had to do was let the banks die. The debts would be wiped clean and investors would have picked up the pieces and started new banks.

Britain can't borrow more money and the taxpayers are maxed. All the Brownster can do is print and print and print...

Get him out or there'll be real problems for your liberties!

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