Saturday, November 29, 2008

Damian Green A Danger To The System

Damien Green, Shadow Minister For Immigration, is an extremely dangerous politician. He has been implicated in several attempts to receive and disseminate leaked information, where the government has been caught lying to the people. This willingness to reveal the truth to the public, without any attempt to obtain financial advantage for oneself, is something that is clearly wrong, and not something that should be the concern of a modern politician, where getting your head into the trough is your overriding moral duty.

Green has stepped outside the career path which has been placed in front of him, where, if he kept his nose clean, and continued lying to the public as expected of him, he could call on a generous public sector pension for life, as well as being entitled to the trappings of the Shadow cabinet. The willingness he has demonstrated to put all this in jeopardy by poking his nose in, and trying to help the public to see when and how the government is lying, shows that here we have here a man of exceptionally poor moral judgement.

No wonder Gordon Brown is worried. As soon as a politician is not obviously doing all he can to fatten his bank account, you have to ask yourself what exactly do they think they are doing in politics in the first place. Anyone not driven by hunger for stashes of cash, by definition must be motivated by attachment to a cause or belief. These beliefs could drive such individuals to engage in criminal acts, to be blinded by the passion of their cause or even go so far as to engage in acts of terrorism. Indeed, telling the truth is the first sign that a politician needs to be monitored and investigated by the Counter Terrorism Unit.

And so, quite correctly, the Terror Police were sent to arrest Green.

If he isn't trousering tenners from lobby groups, or troughing on the contents of brown paper envelopes, what exactly is he up to, and what might he reveal next? He is clearly becoming a danger to everyone else who does abide by the rules, and fattens their wallets at every available opportunity. This is why he needed to be questioned seriously over nine hours, and swiftly and effectively shown that politicians and others with beliefs who want the truth to be told, are considered a danger to the wallet-fattening New Labour fraternity. Never mind the murder of hundreds in Indian hotels. The greatest threat to the system is Britain, is politicians or others who want to expose lies. Terrorism is defined accordingly.

If people were to actually find out how much money Brown really owes, for example, he and Britain are finished. Or if the true story about immigration spilled out, Brown's credibility would be gone.

Now come on Damien, which do you prefer? A few more nights being interrogated by the Terror Police, or some nice invitations to join some interesting 'friends of New Labour' for a day out?

Oh and please don't forget David Kelly, if you think we will stop at a little bit of Police harassment to get the silence that we require. Now come on, Damien old chap, Gordon doesn't really want to make life hard for you....

In case you imagined the intimidation being used to silence dissent is not serious, read THIS

Wednesday, November 26, 2008

BBC Lies To The Rafters As EU Drifts Into Oblivion

BBC World has to be congratulated. Their report on the assessment by the Czech Republic's Constitutional Court of the Lisbon Treaty's compliance with the Czech Constitution exceeded all the BBC's previous standards. The lies started at the beginning, kept going through the middle and continued right to the end. There was no flagging in the determination to distort truth, confuse the audience and provide inaccurate information.

Take the starting point of this, the briefest of pieces. The introduction boldly stated that the Czech Republic was the only country in Europe which has yet to ratify the Lisbon Treaty, other than Ireland which has rejected it. Maybe I should telephone the BBC immediately as they clearly don't know that Germany has yet to ratify the Treaty.

Then there was the opinion given that whatever happens, the outcome that the Czechs will ratify the Lisbon Treaty is 'inevitable'.

If that is the case why is there any point in reporting the story, you might ask? You get the feeling that if the Czechs were about to reject the Lisbon Treaty, the BBC would be the last people on earth willing to tell you. As for mentioning the fact that the Germans have not ratified, and are not looking likely to, the BBC would rather die than admit that.

The Germans are ploughing an increasingly independent furrow. They don't support NATO against Russia. They don't support joint action to boost the European economy, and let me say it again, as the BBC are congenitally unable to do so and are consistently lying to try to cover up this most embarrassing of facts for all Lisbon-philes, Germany still hasn't ratified the Lisbon Treaty.

If anything is looking inevitable, it is not the safe passage of the Lisbon Treaty into law, or even through Czech ratification, but the imminent break-up of the EU, and the Euro, where a large majority of Germans support the bringing back of the DMark.

Meanwhile we have to drink in toxic BBC lies and distortion, masquerading as responsible journalism and news reporting, while they hide the true position as best they can.

For example, read German Lisbon Ratification Also Uncertain from June 2008 - no change since.

And here is a more honest appraisal of the Czech ratification process from Euractiv - (as requested by an anonymous commenter) -

But even if the Czech Constitutional Court does declare the new treaty constitutional, parliamentary ratification is far from certain. While the lower chamber is expected to approve the text, the outcome in the Senate cannot be predicted due to a strong eurosceptic faction within the ruling ODS of Prime Minister Mirek Topolanek, which has a majority there.

Also, Eurosceptic Czech President Vaclav Klaus recently confirmed that he will not sign his country's Lisbon Treaty ratification unless Ireland ratifies it first (EurActiv 25/07/08).

The Czech President's position is in effect the same as that of the German President. Maybe the BBC doesn't even know.

Monday, November 24, 2008

Take All My Money, Darling. It's Only Toilet Paper.

The article from MSN linked below is unable to take in how high British taxes are. It mentions the new higher rate for higher earners but gets the figure wrong. It's not 45% that will be introduced, as the effective rate is already over 50%. But Americans could not believe that to be true, I imagine so MSN adjusted the figure down a bit to a more believable figure.


When you add in the uncapped 12.8% Employer's National Insurance and now the 1.5% Employee's, the full amount levied on higher earners will be 59.3%. Putting that another way it will cost GBP 100,000 to put GBP 40,700 into the pocket of a company director or equivalent payroll employee.

From my viewpoint, it's a farce, and anyone would be mad to pay themselves in this way. A total tax rate on income over 40% should be avoided at all costs.

Pre-1997 I paid 40% on any bonuses I earned, so that it was worth paying myself some salary. Since Brown started to thrust his grubby socialist paw into my pocket as of 1997, raising the combined rates of Income Tax and Nat Insurance to over 50%, I haven't actually paid myself anything at all from my business. Why should I?

In fact I've left the UK and now don't pay UK tax, like millions of others of so-called high earners who've had enough and left. The trouble for governments is that so-called high earners are more likely to emigrate than average earners as entrepreneurial and other skills are easily transferable around the world. So let's give dear old Alistair a pat on the back.

'Help yourself, Darling.'

We've all left anyway.

It's a funny thing though. The socialists seem to get it that wealth has legs when it comes to foreigners entering Britain. They don't need to pay very much tax at all. It seems that the one thing you mustn't be is successful in your own country. In fact I think that that quote came from the bible, where the sentence 'No prophet is accepted in his own country' resonates in St Luke's Gospel Chapter 4, Verse 24. They might add to that that no profit is welcome either, at least it isn't in Britain. No wonder Brown's fiasco economy has nothing left to hold it up.

The GBP is on its way to dollar parity next year...not quite cheaper to use than the toilet paper it buys as in Zimbabwe, but heading that way. Brown and Mugabe have more in common than you think. In both cases, no one can be allowed to rise higher than they have themselves. That leaves little room for anyone to go up, so everyone heads down and out, while money shrinks to vanishing point. Zimbabwe was once one of the most prosperous countries in Africa, as was Britain in Europe not all that long ago. Sad really.

ACTUALLY - it's much worse than that as Boris Johnson explains in The Telegraph as follows -

We now know that to fund this fiscal stimulus, taxes are going up on incomes over £40,000; we know there are going to be huge increases in national insurance that will hit employees, employers and the self-employed. How on earth is that supposed to boost job creation?

Higher earners will soon be paying not 60-odd % but more like 70%. It's so quaint of Britons to keep electing Labour governments, and destroy their own economy, but never mind. As long as they're happy with worthless confetti lining their wallets, they can elect whomever they wish. For the 2 million Brits who left between 1997 and 2007, there is no need to hurry home just yet. Just watch out for the 4-5 million who will be joining you in the next ten.

Here's one more thinking about going. He's worth GBP 120 million.

Sunday, November 23, 2008

Detroit's Future Is Staring Them In The Face

The above title does not resonate with current news reports about the US auto industry where doom, gloom and destruction are all you see and hear. There is no demand for cars, they say. We need a multi-billion dollar bailout, they add. And there is no hope of any other method of survival. Really? I don't think so.

Let's get right down to basics.

Ask people what kind of automobiles they want to buy. Then go away and produce them.

And stop producing autos that they don't wish to buy.

I don't live in the USA, but I have read many reports going back years stating that Americans would love to buy a particular type of car, which is still not available. They are not available for any technological reason, or physical barriers. Americans are prevented from buying these cars merely by the restrictions placed upon them by government, and the lack of the risk-taking drive that is needed to bring them into being by the industry. See Governments Fear Green Energy.

I am referring of course to electric cars that with lithium batteries can take one or two people to work every day with a range of 40 miles from an overnight recharge, or with an eighty mile daily range if recharging is also made available at work. Some guys have built their own electric cars at home, like Richard, the Olympia, Washington Grandfather talking in the clip below, who is now recharging his home made Volts Wagon using solar power from the roof of his house. If one guy working at home can do the whole thing working by himself, it really cannot be that difficult.

But let's keep this very simple to begin with so that politicians can follow the logic.

The lithium is available if miners were given clear cut instructions to go and get it in big enough quantities. There are not many locations where lithium can easily be mined, but they exist and need to be developed now as a matter of urgency. There is no point in waiting around for new battery technology which will of course come in time. The market wants electric cars now, and Detroit needs a market.

If there were 100 million electric commuter cars made available in the USA - without them even needing to be hybrid, you could probably sell them in a year as prices would tumble with the volumes and they could be as cheap or expensive as you like. And the energy saving from electric motors driving America, as opposed to the inefficiencies of internal combustion would save another vast wedge of US dollars - not to mention solve a large chunk of the deficit on trade.

The demand pattern for electricity would change and put new pressures on power generation, but as there would so much less gasoline required, that would not present a problem. And if more people take the final step and generate their own electricity from solar or hydrogen, the power companies would find themselves not required anyway.

And that of course is what is frightening big government and big business - allowing consumers the freedom from energy slavery that they crave. But given the financial situation, there is really no option.

It must be the better plan to give Detroit a future than to bankrupt the Federal Government bailing out an industry that refuses to or is prevented from selling what its customers want.

As I said, ask consumers what they want to buy, first. Then go away and get it for them. It's business ABC for beginners.

PICTURE - The Chevrolet Volt is already in place as a concept car - but as this MSNBC web article says, under current plans, it is not going to be produced for 'years'. That's all they have to do now. Shorten years into months and way to go. The problem is that for Detroit to claim its future it has to let go of the past.

They might as well start now and declare to the world..'Gasoline Is Dead. Long Live Detroit.'

EU Competition Commissioner Nellie Kroes gets wind up about subsidising car industries HERE. I suppose Europeans might like an electric car economy too.

Obama Awaits 'Events'. So Do We All.

The news that Obama is about to appoint Hillary Clinton as Secretary of State is not being received well amongst his aides. They see the Clintons as most unlikely to act as team-players but to try to keep attempting to slide up the greasy pole. See Obama's Aides Believe He Is making A Mistake In Hiring Hillary.

Is Obama merely following one of the theoretical rules of politics - the one about keeping your enemies closer than your friends?

Or is he being mindful of LBJ's phrase when LBJ said it would be better to have Edgar J Hoover inside the tent pissing out, than outside the tent pissing in - which in this case couldn't have been more true, given that Hoover was probably implicated in the assassination of the previous President, John F. Kennedy.

Whichever thought is deciding Obama's actions, he can always fire Clinton as Secretary of State if he has to, while as a Senator she could orchestrate substantial opposition. Equally Obama is aware of the power of the media to influence the success of his Presidency, and a tip of his hat to the Bildeburg Group won't do any harm at this early stage, as he assembles his team.

The look on Obama's face as he faces the reality of power though is not good. He has a face like thunder in the released publicity shots showing the stress weighing down on his shoulders. It's as if he finally realises how hemmed in he is on all sides by powerful vested interests and potential enemies. He might even think back to a quote from Winston Churchill who was quizzed by a novice MP who was in the Chamber of the House Of Commons for the first time.

The story goes -

A newly elected young Tory MP, eagerly taking up a place on the benches and pointing to the benches opposite, said to Churchill, “So that’s the enemy”.
Churchill supposedly replied, “No son, that’s the opposition”,
and then pointed to the benches behind and said, “That is the enemy”.

As for the origins of the phrase 'keeping your friends close but your enemies closer' I searched its origins and found this -

This quote appeared in the Godfather films, and was spoken by Al Pacino's character, which I believe was Michael Corleone. However, that's not where it originated. Many sources attribute the quote to Sun Tzu in The Art of War, but others dispute that. Some say it was taken from an interpretation of Macchiavelli's The Prince, but I could not find anyone who cited a page number or chapter in that book.. So there is yet another well known phrase without a convincing original source, and maybe not a politically minded dictum at all.

Obama will need to be mindful of such things and many other things as the world heads into the greatest economic crisis it has faced for more than two generations. He will find however that friends and enemies make little difference in the long run. Another British Prime Minister, Harold MacMillan, when asked what was the greatest challenge a political leader faces, replied telling it exactly like it is, by saying - 'events, my dear boy, events."

Hillary isn't going to provide any substantial threat to Obama. In fact she might prove more than useful to him in a nasty crisis. Churchill particularly allowed some very strong characters to oversee large parts of his coalition government during WW2, and won out in the end of the day as a result of being able to tolerate big egos working alongside him. While Hitler OTOH, preferred to appoint more malleable weaker characters who would bow to his own wishes, often removing those who were capable of telling him the truth from office.

The Presidential personality test is over. The challenge of the world in severe economic crisis is not. Emperors need good and strong generals if they are to win their battles. Welcome! Hillary Clinton and all the best to you. Opinion polls can now go to hell. The crucible of real events will provide the true test of your mettle soon enough, just as they will do for the President. Billions of people around the world need you both to succeed in your mission, as we, in countries other than the USA, too await 'events' with some trepidation.

Saturday, November 22, 2008

Eurozone Faces Euro-Freeze

Last night I sat next to a number of French Embassy staff at a dinner in a lovely Philippine private house with musicians and singing of Spanish and Mexican songs. Without mentioning their exact Embassy roles, one was particularly senior and had security staff accompanying her. She was a charming lady and she had a pleasant aura around her.

As I am a French-speaker (there are not many in the Philippines) I was able to act as interpreter between the family members of the security team who did not speak English and everyone else there.

There was a golden moment when the French diplomatiste trotted out the line to me, as she has no doubt been trained to do, that the British are lacking in community spirit by not joining the Euro. How could she have known that she was speaking to the strongest opponent of the EU that lives within the whole of Asia? I only let two expletives go which was quite restrained. The look of shock on her face at meeting such a strong reply from someone she assumed to be 'un gentilhomme' brought smiles around the table.

As I explained, hell will freeze over before the Brits permit the Euro into Britain.

And so too it seems will the Eurozone economy.

If anyone in the eurozone was irritated by the high levels of inflation the new 'currency' brought in its wake, never once reported or officially admitted to over many years, they can now turn their minds instead to the next evil the Euro is bringing. The BBC website article linked below tells the story simply enough. Business activity and demand across the eurozone are crashing. Because euro interest rates are being held up so high by the ECB, and the currency isn't falling, businesses are finding it hard to compete.

The resulting fallaway in economic activity in November is devastating.


Business activity in the 15 countries sharing the euro has fallen in November to a ten-year low, the purchasing managers' index (PMI) has shown.
The index, compiled by research group Markit, dropped to 39.7, from 43.6 in October.
The figure was worse than analysts' forecasts, which put the level for November above the 42 mark.

(Read the full article HERE)

According to Markit, manufacturing and services in the eurozone have contracted for six months in a row.
Markit said the deterioration in economic climate was felt by all sectors, with output, new orders, outstanding business and purchasing activity all falling to record lows.
The companies surveyed by Markit blamed the downturn on falling demand.
They also mentioned unfavourable exchange rates as a factor which was affecting exports to non-eurozone trading partners.

I wonder how many people living inside the eurozone are wishing that they weren't. Recently it was found that 70% of German women wanted the return of the Deutschmark, and this was before the financial crisis hit. Soon it will no doubt be 90%. As for the French, maybe they're used to being the losers, and just want to ensure no one else can succeed, and throttling everyone inside the Eurozone is the best way to achieve that. Lovely people mind and a great place to visit. It's only the politics we don't want, if that's alright with you, Madame.

Friday, November 21, 2008

EU Changes Tack On Gold

Until a few months ago, the price of gold was held down by government selling as soon as any rally got going. The IMF or various European countries were usually the ones to come in and stop gold's rise. $1000 gold told people that faith in currencies and governments was over and it made it look bad for the EU and the US that people preferred to hold gold rather than their currencies. It made it look as if inflation was unstoppable. All rallies were quickly defeated.

And confidence in the gold price was quietly shattered in the process.

But now governments have a different outlook. They are no longer worried about collapsing currencies and surging inflation with the commodities boom well over. Indeed it is the price of oil now which is in collapse as economic activity tumbles across the globe.

The thing that governments now need above all else is cash, as their tax revenues tumble and the cash requirements to bail out insolvent states skyrockets. And the only thing they have left to sell is gold.

Instead of European governments being the primary reason gold is being stopped from rising, the same institutions are now the keenest advocates for it to rise. Quite simply, they have only so many bars to sell and they want to extract the highest possible price they can from the market. So this week they have been working hard to engineer a rally. (see previous post)

On the face of it they have succeeded, with gold scraping home at just over $800 close in New York last night. In the current volatile and panicky state of world markets they may well get a price scramble going again, for a while. But when it is realised why the price is moving up, that is, so that western governments can liquidate their gold stocks at higher rates, it is hardly going to be a long term basis for the metal to keep climbing.

In the midst of the severest deflation experienced for generations, with currencies (especially the dollar) buying more and more of nearly every commodity and asset, it will be an extraordinary achievement to persuade the investing world that as far as gold is concerned inflation is still the number one problem. It's like climate change converts claiming that the cold and early winters around the world in recent years are caused by global warming.

The gold bulls will cooperate for now. But they will be sold down to the floor before long. This will only be a brief summer for the yellow metal I'm afraid. The politicians are not really its friend. They are here for the same reason as they are everywhere else, to collect.

IMF About To Smash The Gold Price

Pick up your Times today. Click on Bloomberg, or browse your Reuters. In fact look anywhere you like in yesterday and today's media worldwide, and what do you find? Articles all making the case for gold to rise to new highs. And yet gold after tumbling from $1030 in February has been range-bound languishing near $740 for a month unable to punch its way back up. There are of course many reputable financial commentators backing gold and many private individuals piling into gold as a 'safe haven'. But is it?

There are not many organisations in the world with enough clout to flood the media with a story backing a single commodity's price rise all on one day. There must be someone powerful behind this. And I don't mean the World Gold Council, a mining lobby group for the metal, who are always keen to explain why the price is too low!

No, this kind of media requires big backing, big political influence.

In this case the IMF is suspect number one - the International Monetary Fund.

Their job is to bail out insolvent countries like Iceland, Hungary and so on. It is unkindly rumoured that Korea too should be on that list, Ireland, Greece and maybe even Gordon Brown's Subprime Britain. The IMF is looking at needing a mountain of cash to carry out its function, and Gordon Brown, its new and media-shining emissary has been going round with the begging bowl hoping that the Arabs might like to blow some of their hard-earned oil money on helping corrupt obscure bankrupt little places, out of some feeling of fellow sympathy.

No one reported how much was raised with Brown using the begging bowl but my guess would be not very much. So the IMF's next port of call is, it appears going to be Mr Goldbull.

Maybe good old Mr GB can be persuaded by a few well-chosen words placed in newspapers of past authority such as The Times to ignore the massive deflationary forces which have been unleashed, and start buying an overpriced metal - at a time when high quality shares can be picked up for a fraction of their true worth.

The story is though even stronger than that. All these articles tell you quite clearly that the IMF is about to begin a massive gold dump to raise the cash they need, which is not surprising as gold is all they have to sell. That's why there is this coordinated news story being released right now.

The dump will drive the price of gold down from $750 to maybe $400 in a few months time. As safe havens go, it's not such a good one after all, it appears.

The falling GBP might help sterling gold buyers if the GBP hits parity with the US$ within a year from now. But even they would in all probability lose 10% or 20%.

Here is the totally unconvincing Reuters report trying to boost the gold price. HERE. It's almost a plea to buy what they know will soon be a financial basketcase..the last hope of the banks and governments to raise large funds to solve their crisis, GOLD. Don't be fooled.

The Ongoing Role Of Politicians In The Meltdown

In the UK the media narrative is so dumb as usual. The sub-prime crisis and the financial crisis were caused in and by the USA, goes the tale. Don't believe a word of it. Did any world leaders offer one word of complaint when the Basel 2 banking rules were concocted by supranational committee? Banks were as good as told to lend to people who would be unlikely to pay their debts, and the extra risk was to be swept away by repackaging and selling on the debts to others.

Take the commodity price boom which pushed poor people from hunger to starvation when rice was pushed beyond their means, and fuel for cooking. The fact is that there was no shortage in the spot market at any time. Rice was on the shelves all across the world right through the crisis and so too was gas (petrol) pouring out of fuel pipes just like normal all over the world. The whole thing was caused by a sickening game of chicken being played out between huge and secretive financial organisations in the futures markets. The losers like Lehman Bros are already history while the winners like Goldman Sachs are stronger than ever. It is only natural for financial behemoths to go head to head, to try to kill each other off, and seize all the territory, and the fact that they were allowed to do so is why billions or poor people had to go hungry...and for no other reason.

But why did no one in any government ever say STOP - ENOUGH IS ENOUGH. The futures traders were buying and selling forward contracts by depositing a mere 1.5% of the value of their 'bets'. The same money spent in the spot market buying rice could buy nearly seventy times as much going forwards, and so inevitably the bidding up game started, and the player who could pick the moment to cut and run leaving his opponents holding all the bad cards would pockets billions and billions of dollars.

It was quite clearly an unnecessary, immoral and disastrous event, and yet as usually happens in all previous commodity price run-ups governments should have intervened and insisted that forward contracts have a 10% deposit levied, or 20% or 30% until the game of chicken is brought to an end. But they did nothing. With all the tens of thousands of bureaucrats in Brussels claiming endless wisdom over all subjects known to man, why did not a single one of them not say one word while the poor and the hungry were being burned?

Not only did governments not stop the fleecing of billions of poor people by a tiny number of big swinging dicks parading their egos around in the futures markets. The EU seemed to be trying to get a ride on the game for itself. They had picked this exact moment to insist that accounting rules be changed so that the previous system of valuing a company through the historic cost of its assets be replaced with 'mark to market'.

No doubt the EU expected this would force companies to declare far higher profits. As so often markets will show a nice high price as long as no one is selling, and the futures game to begin with made everyone frightened to sell in case they missed out on the joys of the boom.

To my mind 'mark to market' was quite disgusting attempt by the EU and others to turn screwing the poor into a fast fund-raiser. Anyhow it didn't work.

Once sellers are forced out of their bunkers, prices start to drop. Instead of boosting tax revenues by forcing companies to value their assets at the inflated values (apparently approved of by the EU), 'mark to market' had the opposite effect, forcing companies to realise the prices they were declaring to start paying taxes on their otherwise merely paper positions.

Once the selling started it never stopped, and all markets were sent crashing, forcing lower and lower valuations.

Anyone who wants to blame Americans or traders for the financial crisis, or the ever-hated term 'speculators', should bear in mind that it was not traders who engineered the circumstances of this catastrophe. Traders will do whatever governments permit them to do or order them to do, and it is governments who are clearly primarily at fault here. They failed to intervene and stop the bubble from growing, and then once it had grown, they were the ones who burst it by trying to suck all the juice out of it.

The world's governments could have and should have done something to bring all these money games to an end. But they did all the time they saw the long 16 year boom adding to their power over ordinary people who thought that easy times would go on forever, and they kept voting for more of the same.

And so what do the politicians whose folly caused the boom and bust now propose? Would you believe, they are demanding that they be permitted to nationalise all the banks, and extend their powers yet further.

The longterm objective of the EU is to bring private enterprise under the yolk. But before they finally are able to do that, first they have worked hard to bring it to a point of self destruction, so they can insist, as they are finally placing the straitjacket around it pinioning its arms to its chest, that they are coming to its rescue.

Brown is the front man for the campaign to bring all the west's banks into political control where they can be instructed to support dead ducks like the drachma (sorry Greek Euro) or the state of Hungary. The money wasted will burn two generations to come.

It can only be hoped that the financial crimes of Gordon Brown and his fellow communistic fellow-travellers will one day be properly understood, as they twist and turn trying to impale the world's financial system and bring it to its knees. They yearn for the day that they can get the power they crave and destroy once and for all the success of the capitalist system, and push America down from its position of world economic domination. Or is anyone seriously suggesting that such deliberate havoc can be created by accident?

To hear views expressed openly and directly that the EU and others are deliberately trying to bring the free market system to its knees, see THIS.

Tuesday, November 11, 2008

EU Wants UK and US Economies Smashed

The biggest sore point in relations between Britain and the EU is undoubtedly the fact that Britain remains outside the Euro. And the reason that Britain has been unable to be rammed inside the zone by Blair despite his desire to do so over ten years is also without any doubt. It is the British housing market.

A quick look across the Irish Sea demonstrates what would happen in Britain if interest rates were not able to be set to tame the housing beast. Asset price inflation in Ireland which had a similar boom-prone housing market, with high levels of owner occupation, personal debt and banks willing to lend based on interest rate tracker mortgages saw an uncontrollable decade-long boom converting ordinary folk into millionaires. And naturally enough the boom has turned to bust sending the Irish economy reeling. That would have been the effect of the Euro on Britain too had Blair been so foolish.

The bust in Britain is bad enough, but if interest rates had been kept down at Euro level since 1999 the boom and bust would have been far bigger.

The housing markets in Britain and Ireland, however, couldn't be what they are without the banks all competing to lend, and it seems that there is now a long term EU programme to dismantle readily available bank lending to individuals on easy terms. It is interesting to note that the curious attempt to nationalise as many of Britain's banks as possible by Gordon Brown, (courtesy of EU Regulation), ensures that fewer and fewer banks and Building Societies will be able to seek new mortgage business once they are under government ownership. In Ireland tracker mortgages are also being removed.

You could not imagine measures more clearly designed to destroy a market, and to send confidence crashing than to withdraw the funding that the market depends on, and yet that is exactly what Gordon Brown and his EU colleagues are doing, in the process smashing British consumer confidence and sending jobs reeling. That of course is the intention. If the EU can smash the willingness of Britons to keep borrowing and buying houses, and force them to into a mortgage-less submissive straitjacket, they will finally be able to argue that Britons no longer need an independent financial existence, and they can be subsumed into the eurozone as a depressed economic zone in need of assistance.

It was of course the EU that ensured that banks got into the mess in the first place by backing the Basel 2 banking regulatory environment, where banks were encouraged to lend to less creditworthy customers and remove the risk of doing so by repackaging the debt and selling it on - creating the sub-prime crisis in America, and the banking crisis in Britain. This ensured a decade long boom to bed in the Euro, and now the inevitable crash is being used as the excuse to press on further with EU political objectives. Of which number one is to smash Britain's economy into a state where it can be more easily devoured. Never doubt the pleasure that Britain's two year long slump will be giving to Brussels as they try to reduce Britain to a size that they can cope with.

Will Brits learn the lesson as the Lisbon-rejecting Irish are doing? Will they finally see the light? The EU cares nothing for their survival - in fact rather the opposite. By enforcing a no new lending policy in Britain's newly and unnecessarily nationalised mortgage market, the EU is condemning the country to an unnecessarily severe downturn which will massacre jobs and businesses. It could however achieve Brussels' longer term objective of destroying Britain's housing market, so we can be squeezed kicking and screaming into the eurozone.

THOUGHT - How come Britain's golden economy of 1997 can be destroyed so conclusively as it has been in the last eleven years predominantly by the actions of Chancellor Gordon Brown, and yet the worldwide spin merchants are managing to present him now as not only the saviour of Britain's economy but also of the world's?

The answer is that this role of world saviour has been planned a long time by the EU and the IMF. Brown is acting as instructed and speaking as instructed by his controllers. The plan is to con the Americans by using a Brit into allowing a new world order to exert control over their economy. Brown couldn't even tie his economic shoe laces and is entirely compliant with the desires of those who control his potential future career development. The strangest thing is that the Americans so far seem to be falling for the ruse.

One can only hope that Obama is equal to the task of dismantling the EU-chicanery which is projecting Brown as the saviour of the world while the USA is conned into yielding power to hidden bureaucracy planning to control the world. Who cares about the Moslem threat? The real threat to the freedom of the West is far more sinister and hidden, and it already controls its media. Brown is the puppet of the movement to control the world, and he has achieved his first mission - to destroy Britain's economy. Next up his controllers want him to take control of and to destroy the American economy.

Come on America. You're not as dumb as the Brits and willing to throw away your liberty and economic independence, are you?


Because they believe that the world must be controlled by a select elite few who have the vision of how to save mankind, while they line their own pockets of course. If all money is controlled by the state, then all individual freedom to make choices can be hemmed in and blocked. It is the exact opposite of the philosophy that drives America - that all individuals have a right to the pursuit of happiness, and so on. It is a creed predicated on the evil and stupidity of mankind, who has to be tightly controlled and barred from making free choices. You can see this philosophy hard at work in all the actions of the EU, and now in the attempts to bring America's economy to heel, by the international bureaucratic elite. If America still believes in the pursuit of happiness, then it had better start fighting now. Obama should state his position on the basics of the American philosophy of life. Does he agree with the Founding Fathers? Or is he too sold out to international bureaucratic elitism? Time will tell....or Irwin Stelzer.

And if you think such ideas are mere fantasy, Read On

Thursday, November 06, 2008

Irish TDs (MPs) Claim Messianic Status

Irish MPs or TDs as they are known are so far up their own arses about their precious Lisbon Treaty that they believe themselves entitled to criticise the Catholic Church for not supporting the EU like craven serfs on this incredibly tedious matter. It's really laughable to hear the pompous eejits trying to stifle comments freely expressed by Cardinal Brady, for example, as if they are now God's representatives on this earth - the story told as follows from Open Europe -

Fianna Fáil and Fine Gael TDs have criticised Catholic Primate Cardinal Seán Brady for not publicly supporting the Lisbon Treaty. Fianna Fáil TD Beverley Flynn said, "I think there was an obligation on the church to make a strong statement on Lisbon." Cardinal Brady said, "A 100 per cent resounding call for a Yes vote, I think, would have got people's backs up," adding that people had begun to see the EU in terms of bureaucracy, legislation and economics, rather than in terms of social and human values. "I wonder are we ready for the big step where it's one, large union now . . . We're not one people in Europe yet, far from it," he said. Some of the TDs also urge the cardinal to "take action" against an unofficial catholic paper that had been critical of the Lisbon Treaty.

What action might that be I wonder? Burn the authors at the stake. Have them slung into The Liffey in the middle of winter. Surely if God's representatives on earth don't think the Lisbon Treaty is right for God's flock, they had better say so and carry on saying so. Indeed it is the Fianna Fail TDs who need a good ducking, and bringing down to earth as it were. They clearly see themselves as the new Messiahs.

Chorus - Fianna Fail Has Risen Today - Hahahahahalleeluujah etc etc

PICTURED - the angelic (and allegedly totally corrupt) TD Beverly Flynn with acolyte praying hard alongside.

A Word Of Advice To You, President Obama

On the list of Obama's challenges come 'The Europeans'.

From Stratfor -

The Europeans are in no position to give the things that Obama will need from them — namely, troops, a revived NATO to confront the Russians and a global financial system that doesn’t subordinate American financial authority to an international bureaucracy.

Maybe they should have added to the list of Obama's European troubles the coming crash of the Euro - the currency that wanted to be the Deutschmark but grew up to be the Drachma.

European disunity and the hopelessness of its political and financial structures are going to place a massive strain on the 44th President of the USA. He would do well to wipe the slate clean in Europe, enable the EU to finish and start not only America but Europe too, all over again.

As the Irish would say, for the direction you need to go in, Mr President I wouldn't be starting from here!

Wednesday, November 05, 2008

FT Smells The Euro-Coffee

Of all the MSM's primary brands, there is one that can always be relied on to avoid telling it like it is when it comes to matters concerning the EU. That is the otherwise well-respected and admired Financial Times. The Wall Street Journal has been writing much about the declining credit-ratings of individual European countries, and the stresses and strains that this is building up for European monetary union. But the FT has so far avoided straying very far onto this highly sensitive topic.

With all other financial media realising that the coming collapse of the Euro is the big story, the FT has inevitably at last started to allow snippets of information to appear within its Euroloyal covers...this for example, as relayed by Open Europe -

FT Deutschland focuses on comments made by Almunia that the Commission is concerned about the rise in bond yield spreads on government debts. Almunia said that problems for EMU will grow unless the problem is brought under control. In recent weeks, the government debt of Greece, Portugal, Italy and Spain has been down-graded by the markets, making the financing of debt more expensive for these governments.

A FAZ (Frankfurt Algemeine Zeitung) leader accuses the Commissioner of transgressing his responsibilities by encouraging Berlin to raise budget deficits. It warns that other countries may imitate the decision and that Germany would end up as the paymaster general for the entire EU.

It doesn't sound like a picture of tranquil stability, does it. But what is the full story?

When will the FT in particular say it like it really is, and give the full story of the indebtedness of EU governments and non-viability of their economies inside the eurozone? Little snippets about this are not really sufficient for a journal that considers itself a world financial heavyweight. This is the biggest financial story of the decade, making the subprime crisis into child's play. A few hesitant little snippets of information are hardly adding to the FT's longterm brand credibility.

I want to see the FT run a proper headline which actually informs and makes the situation abundantly clear - such as ' The EURO's In Trouble'. Only then the pink rag will be allowed pride of place once more, of a morning inside my downstairs lavatory. At least though and at last, the FT is beginning to smell the coffee. But is it equal to the task of dealing journalistically with the real stink?

Sunday, November 02, 2008

The Euro Is Disintegrating

Talk on the street points out that events are fast moving against the Euro as it approaches inevitable disintegration. Not only excitable bloggers are saying it now but also mainstream financial media, such as the Wall Street Journal, the Telegraph and The Economist.

See these extracts -

The front page of the WSJ notes that "Investors are upping their bets that as the $12.2 trillion euro-zone economy heads into recession, costly bank-bailout plans could drive some European governments to default on their debt." It notes that the cost of insuring the government debt of Italy and Greece has doubled in the past month. For Ireland, the cost of insuring against debt default has risen eightfold since the start of the year. The article notes that another indicator of rising investor concern is the gap between the yields on the bonds issued by Germany and countries with lower credit ratings, such as Italy and Greece. Those have widened to levels not seen in about a decade, before the launch of the euro.

Ambrose Evans-Pritchard notes in the Telegraph that "The interest spread between Italian 10-year bonds and German Bunds has reached 108 basis points, the highest since the launch of the euro. Traders say it is nearing levels that risk setting off an unstable chain reaction."

There is nothing to add - only that Europe's EU fantasy is about to be blown to pieces. After 50 years of trying to force the independent countries of Europe, through a process of deception into a single political entity, the impossibility of the whole enterprise is about to become blindingly apparent.

Tin hats on. The Euros finished. The EU is finished. Europe is about to be free again of the last vestiges of the totalitarianism that has throttled it to near economic extinction. Roll on the blast. It is inevitable. It's here. The effects will be painful for all, but once it's all over, like a patient being sick, Europe can then start itself on the road to recovery. But first the crash of the Euro will set the political action into play.

The Financial Times doesn't agree of course - see HERE. What the FT fails to mention is that it is insolvent countries like Italy and Greece that are dragging the Euro to destruction. The Euro cannot protect them forever from their financial non-viability. Inside the Euro, Icelandic interest rates might be nominally 3.75% instead of 18%, but how many takers would there be for longterm Icelandic debt? Iceland and Hungary inside the Euro would merely accelerate the moment of its collapse. Denmark with a higher exchange rate would see only lower growth. Of course the FT is a Brussels rag these days and cannot see any future that is not euro. There will be one, and soon.

Have a think about the latest Euro-moves to seize control of the banks across the continent at vast cost to taxpayers. See Redwood HERE.

EXTRACT - The Regulator demanded more capital at a time when it was difficult to raise it quickly. Someone leaked the talks to the media, driving the share prices of the affected banks down, making it even more difficult to raise the money from the market. Then the banks were presented with a take or take it offer which three accepted. The government meanwhile was busy nationalising the assets of Bradford and Bingley, but never told the media directly that that meant taxpayers borrowing £18 billion to send to Santander to take on the deposits.

Taxpayers will rue the days that the government was so liberal with their money in the banking sector. All these banks had a future without state equity, if the Bank of England did its job as lender of last resort, and if the Regulator worked quietly behind the scenes on a timetable for strengthening their capital.

Bank nationalisation is presented as a spontaneous move to save the financial system. It is nothing of the kind. It's a long-planned attempt to take over all banks to block the disintegration of the Euro, and enforce a straitjacket over lending and investing which is not euro-favourable. How else can bankers be persuaded to back the unbackable, to support the insupportable and fund the bankrupt countries of the eurozone? The nationalisation of the banks will cost European taxpayers a fortune and is the last desperate attempt of the EU to save itself from destruction.

As King Canute discovered, the power of the waves and forces of nature cannot be stopped by token gestures. The Euro is bust because its countries are bust, and forcing banks into vast losses to support the collapsing edifice will only delay and increase the scale of the ultimate catastrophe.

Picture from, a German website which has contemplated the collapse of the Euro for a while. See HERE

AND DON"T MISS this untold story from inside Germany about how Germans want German Euros and not Italian ones etc. In truth the Euro is not a single currency anyway but a badge overlaid on still existing national currencies.

The Germans are the most fiscally responsible nation in Europe, so who are the basket cases?

This extract from Stratfor gives the story clearly enough -

European governments consume the highest percentage of their countries’ resources in the world, greatly reducing their ability to surge government spending.

Not surprisingly, the most seriously threatened European states are France, Italy, Greece and Hungary, each of which is running a serious budget deficit while also being burdened by high government debt. Three of these four (France, Italy and Greece) also have very active banks in emerging markets of the Balkans and Central Europe, home to the European states that are likely to suffer the most from the credit crisis. These four countries are closely followed by Romania, Poland, Slovakia, Bosnia, the Netherlands, Portugal and Lithuania.

So will it be that another one of these rotten eggs cracks and the IMF is unable to bail them all out, sending them crashing out of the Euro? Or will Germany tire of holding up the whole house of cards? When it goes, it will go fast.