Smell the Coffee Scotland, Please!

News from ZeroHedge doesn't correlate to the 'green-shoots' vegetative economics commentariat.

Oh no:

Today PIMCO's Scott Mather told Dow Jones his expectation for a rating downgrade of the island nation: "It's just a question of when on the current trajectory, not if. Based on what we know today about the debt trajectory and about the inability to adjust that, I think it's greater than a 50% likelihood for sure. Call it more like 80%.

Who? PIMCO is an investment management fund and runs the world's biggest bond fund. Are we about to see the bond market explode? When the Bank of England and commercial banks stop actually buying government bonds using printed money what's going to happen to the price? Yes indeedy, everyone is going to want out.

What does it mean to Britain loses its AAA investment rating? Ah, it means foreign debt will become more expensive as the risk of Britain not paying back loans is seen as much higher. Mmm, and Gordon Brown says he has a plan to reduce government spending? How? Using dodgy accounting methods as I wrote about regarding the 'December 2009 Treasury UK Government Spending Outturn Reports'.

So, the UK is on the verge of a seismic shift in terms of its international image and we get so-called businessmen like like Scottish CBI honcho Iain McMillan demanding more government spending. Absolute madness and the media perpetuates it.

I mean even those late converts who are starting to understand what's really going on like Iain Macwhirter can't help himself:

there is no more pressing issue facing our legislators as the British economy hauls itself wheezing out of recession in 2010.

Recovery Iain? How is it possible? The banks can't be fixed with public money and credit is not coming back to business generally so the private sector will continue to plummet. When interest rates go up the economy is going to contract further whilst we also face a massive spike in inflation. So, Iain - apart from just jawing a mantra, just how do you think Britain is coming out of a recession? How Iain? How? How? Even when we understand why the problem happened we imagine a miracle is going to come along and fix it. It has to because the behaviour that got us here has worsened. Brown is trying to cure Tiger Woods by putting him in a brothel. You get it yet? The problem was debt and that has increased since the problem caused the bubble to burst. All they've done is try to reinflate it and that IS NOT GOING TO WORK!

One dispairs. It truly is Alice in Wonderland stuff. As underlined in The Tap in his entry:

The Infliction Of Unreality Is Taking Us To Breaking Point

What is going on? Normally the world has the occasional thing that goes wrong but most of the time people are able to grasp the reality of the situation they are in. But right now, starting right from the top in Britain in the Downing Street bunker, and extending outwards from there into the media and to other countries, there seems a disconnect between what is possible to be achieved and peoples' aspirations and beliefs.

And, not only is the UK going down the toilet in terms of standards of living but also is now considered 25th in the world, in terms of quality of life, behind such paradises as Lithuania.

When the bubble burst in 1998, the taxpayers bailed-out the banksters. Who's going to bail-out the taxpayers when the bubble bursts again? No-one! The bankster executives will have stuffed their Swiss bank accounts full to the brim and will be swanning around some exotic island while your grandchildren will be borne with a massive debt around their necks like an albatross and Brown will be in his sinility and pondering why no-one really understood how much of a historical figure he really was.

People, you simply have to switch on and ask your government for answers. A democracy is not about believing in whatever the government tells you. Mind you, the government goes to war when the people don't want it to so I suppose they'll do anything for the big money men and you'll just capitulate.

Do you want to live in an 'economy' where people think that stuffing their faces with big macs and watching Big Brother is good for them? Or do you want to live in a country where the happiness of citizens is more important than the self-interest of greedy swines? If the latter, then you better start smelling the coffee!