June 10, 2013

Desperately seeking a worldwide vision

Posted in Banks · 84 comments ·
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The most striking aspect of racing through the English countryside from London to Bristol is not the green and pleasant land of William Blake’s poetry, but the abundance of Tescos. After every 20 or so minutes of countryside, a massive out-of-town giant Tesco store announces each major train station. William Blake evoked the green pastoral land of rural England as an idyll – a place where the English could build their new Jerusalem in stark contrast to what he described as the “dark satanic mills” of the industrial revolution that he felt were destroying the English character with excessive commercialism.

The “green and pleasant land” written in the early 19th century was the artist’s lament against the wholescale industrialisation of England. If it were penned now, it would be straight out of the contemporary canon of the anti-globalisation movement, and today’s global companies like Tesco would represent the dark satanic mills of yesteryear.

The England Blake wrote about was the world’s major superpower, involved in an epic battle with France. Like so many colossii, it was broadly unaware of its own destructiveness, preferring to invent a romantic narrative about its own benign influence while depicting its competitors as delinquent.

This myopia was particularly evident on the superpower’s own doorstep.

As we sped past places with names like Didcot Parkway, Chippenham, Malmesbury, Pewsey and Upavon on the way to Weston-super-Mare, I am reminded of the scene in Brian Friel’s Translations, when the British soldier in Donegal pronounces the names of his home villages to the local girl, who has never heard of anything so ridiculous-sounding in her life.

But this is what happens when an economic superpower emerges: it exports its values, culture and mannerisms, as well as its merchandise, and the weaker countries have to accept it. These days, the superpowers are not in the business of actually setting up shop in weaker countries via colonies – as used to be the case – but their interest nonetheless dominates global concerns.

Nowhere is this obsession with the large countries and an unquestioning approach to globalisation more evident than at the G8 summit, which will be hosted in Enniskillen in ten days’ time.

The major difference between this summit and others is the fact that the major powers are at loggerheads in a way that they have not been for years.

In Blake’s time, big countries went to war. These days, they deploy different tactics to gain advantage. One of the main instruments whereby the large countries try to steal a march on each other is through cheapening their exchange rates.

Next week’s summit will be more like a peace conference than an economic love-in. Since they last met, the main G8 players have declared a currency war on each other.

The opening salvoes were sounded by Japan in March, when it explicitly stated that it would allow the Yen to fall as far as it took in order spur Japanese exports.

The world’s economic concerns have shifted from the perennial crisis in Europe, which morphs and changes each month but doesn’t go away, to Japan. The twin dilemmas of a rapidly ageing population and very high levels of public debt afflict Japan.
It is also experiencing deflation, and prices have been falling for some time now. In order to coax people back into the shops, the Japanese are trying to manufacture inflation by printing money. In addition, because the population is falling, Japan needs both to stimulate local demand and grab a bit of its neighbours’ markets too.

So Japan is letting the currency fall. This fall in the Yen is having a large negative impact on China because China and Japan are major trading partners and, as the Yen falls, the comparative advantage of China in the Pacific Rim is eroded.

As the Yen falls against the dollar and the euro, similar strains are also emerging between the world’s major trading partners.
As if this wasn’t enough, there are persistent problems in America’s recovery. The American economy is not creating enough jobs. Last Friday’s data reveals that, last month, the US economy created 175,000 jobs, which is still a sluggish pace of job creation. There are still far too many Americans out of work.

The Federal Reserve has said that it will not stop injecting dollars into the US banking system until unemployment falls properly towards 5 per cent. But the problem is the Fed’s money is driving up asset prices too quickly and not driving unemployment down quickly enough – leaving the central bank in a bind.

The policy has become a self-fulfilling prophesy. Investors see only two outcomes: either the Fed is successful in delivering higher growth, which would validate the move upwards in asset prices, or the Fed fails to stimulate the economy and this forces it to provide greater liquidity support for asset markets.

All this means assets prices are likely to keep going up for some time. There have been periodic sell-offs, but the basic conundrum remains for America and the world.

All the while, the European economy is slowing down progressively, with all indicators in the past few months pointing downwards. This is forcing the ECB to keep supporting the bond markets of bankrupt states so as to stop the euro from breaking apart. This, too, is driving up asset prices without affecting the real economy, where unemployment keeps rising and rising.
The G8 next week in Enniskillen has got to try to come up with a global roadmap that reconciles all these contrary interests. How can it persuade Japan to reverse its new policy when that policy has just been unveiled? How can the global powers ensure that the Fed can abandon its policy of money-printing without bringing the entire house of cards down via a massive asset price crash? And how can there be real growth – the only sustainable answer to the global dilemmas – when the underlying major economies are mired in debt?

As these problems mount, there are very few dividends trickling down to the average guy on the street, who sees rich guys getting richer, buoyed up by their rising share portfolios. Meanwhile, the ordinary guy is entitled to ask what the back-slapping event is all about. He is entitled to say: “This means nothing to me, my family or my situation.”

This is when the same urge that pushed William Blake to seek a new Jerusalem for the English in 1804 becomes widespread in the modern age. Blake saw grubby mercantilism destroying the ordinary English worker in the “dark satanic mills” and offering nothing for the ordinary Englishman. He yearned for a better system, a better future. When the G8 bosses come out with platitudes in Enniskillen, aren’t others entitled to ask where exactly is the New Jerusalem. Where, exactly, is the vision?

I’m chairing a debate – ‘What is the point of the Leaving Cert’ – on Saturday, June 15 at the Dalkey Book Festival. Tickets available here.

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  1. It is easier to find The Ark of The Covenant in Ireland than what they should do .

  2. Dorothy Jones

    Great article. Wouldn’t darken the door of Tescoes knowing how they treat their suppliers.

    • 5Fingers

      Never mind about the slaves! Food quality is dodgy as well. Pretty packets full of nothing. Says it all really about globalization.

      • hibernian56

        When I think of Tesco’s I’m always reminded of my mother who after witnessing the Tesco store being built on the main street of TINY picturesque village Rush, Co Dublin at precisely the same time as the ESB inter-connector to Wales, that she was convinced it was actually an pneumatic money transfer tube for Tesco.

        Has anyone seen this Tesco? It succinctly defines the view of the civil service, why chase small business for rates when they can service a multi and reap the rewards in rates. Tesco et al have found a perfect ally in our councils.

        Tesco call Ireland “Treasure Island”.

        • 5Fingers

          I know it well. Hard to miss as well as their white monolith of a central warehouse north of Swords which looks more like a prison with all the high brightness lights around it. Blot on the landscape does not cover it.

      • All is fair in war and business.

  3. Puschkin the Black and White Cat

    NO Pasaran !!
    Barcelona 1937

  4. pauloriain

    The Bilderberg Group…. The G8…. what they will do is try and prop up the status quo, that’s really what quantitive easing is all about, when we need systemic change and why wouldn’t they. At the end of the day politics is largely funded by private donations from those who can afford to pay, the wealthier in our society. Most of those do not do it out of the goodness of their hearts.

    It looks increasingly like an asset price collapse, however the good news is, politics is the art of the possible and if a collapse happens, the status quo politicians will be cleared out in the ensuing electoral carnage and new politics will come to the fore or you can take the chance on some seriously radical groups and regimes emerging and if that is let out of the box, well it maybe hard to put it away.

    This is a debt meltdown. There are loads of people who are owed money, ( realise one group of which is everyone who has a private pension, but also state pensions as well), which was backed up by assets, which have now depreciated to the point that the money is lost, lost, lost. The people who have lost their money, actually their agents, have spent the last 5 years running around the place unable to accept the money is lost and won’t fess up to the people who’s money they have lost, so they have made everyone responsible for the losses.

    Simply, one side of the contract can’t afford to pay and so they won’t, and if they do the economy and future wealth generation and recovery is hampered. The other side to the contract is desperate to hold onto their wealth, which nominally exists on paper, but doesn’t exist in real terms. It’s time to call it as it is, it’s a zero sum game… either lose the wealth thru’ inflation or lose it thru’ debt right off, but either way the ratio of debt to income has to be brought back into line, it has to happen and it will happen one way or the other.

    Euro break up is probably inevitable. You could get whole scale debt write off or a necessary inflation across the eurozone of 5% for at least 5 years, but more like 10 is needed to alleviate the problem. However, even if one of the latter two were deployed and that would be a big if, the Euro project, as we now all understand was a flawed idea and will continue to be a flawed idea unless there is more political integration. That means a United States of Europe and that is very unlikely to happen now given how the EU & the ECB has acted during this financial meltdown. Ultimately Germany & to a lesser extent France & the Nordic countries called the shots and if we get further political integration that is exactly the template for the future. How do you marry the cultures of Europe into one political entity…. how?

    One of the main aims to the EU project dating back to its inception was the avoidance of war. While it is a stretch to think war would break out in Europe between nation states it is not a stretch to think that freedom fighting separatist movements could emerge if the elites continue along the current path. Ultimately it will come down to people feeling they have to defend themselves agains the elites and their destructive self interested policies. Of course they would be depicted as terrorists.

  5. molly

    Fake watches and now the fake Ireland pretending to be returned to recovery ,all one needs is paint and some fass interns and befor you know it the empty shop front becomes,a trick of the eye.
    Next we will have Garda dolls sitting in cardboard cars in high crime areas in the country.
    Sure why not put cardboard cops in the closed Garda stations around the country.

    • Very funny Molly. We are all talked out and need the humour.

      I am imagining cardboard cutout big bosomed blonde Garda Dolls at the entrances to ghost estates and hotbeds of crime

      Re the garda stations – you pay a grafiti artist to paint the windows to make it appear the lights are on and a Guard is on duty inside at the desk dealing with a ‘customer’. You would just a about get away with a two dimentional rendering to create enough reality to convince passers by however faking the Garda car is not so easy

      A hologram would do the biz but we are clean out of funds so what I suggest is hiring a 3-D artist. With 3-D art the car would look realistic when viewed from any angle.

      Now I defy anyone to claim that we have no imagination in Ireland when it comes to tackling yoot unemployment and supporting the arts. A Lot Done, A Lot More To Do!

      Keep smiling friend

      • molly

        Yes we need fun.
        I wonder when things will improve and light shines on the good guys.
        Up to now the bad guys have had it all there way and it’s about time the good guys start to plough through the bad guys and Cleen up there mess.

    • SMOKEY

      We have a carboard cut out Taoiseach already. And Im pretty sure that plank Pat Kenny is actually a piece of cardboard.

    • Dorothy Jones

      http://farm4.static.flickr.com/3123/2631272039_e3fb4a40c5.jpg

      Molly; cardboard cutout Garda? Already here apparently!

      • Exactly. Cardboard cutout Gay Byrnes on every street corner to remind us not to speed. Mechanically operated but possibly electrically illuminated like a plastic jesus. Oh shit. We can’t afford electricity can we

        How did he get the job anyway. What qualifications placed him first in the queue?

        Seriously. I know the Irish love him but he looks like a strange little garden gnome with stuck on nose. It’s impossible to take the man seriously

      • Picture yourself in a train in a station
        With plasticine porters with looking glass ties
        Suddenly someone is there at the turnstile
        The girl with kaleidoscope eyes

  6. cjmurray

    Re the vision thing….Humanity already has a vision, has had it for millennia. It has been partially and patchily implemented for centuries. It’s called democracy or equality or human rights, and it urgently needs to be widened and extended, in the so-called western democracies particularly, immediately and directly into the crucial economic arena.
    (the people) “will not tolerate the existing system by which wealth is acquired, shared and employed. . . . They will set their faces like flint against the money power, heir of all other powers and tyrannies overthrown, and its obvious injustices.” (Winston Churchill) Maximum income now!

    http://www.change.org/petitions/the-european-parliament-help-the-peoples-of-europe-to-introduce-a-maximum-income

    • bonbon

      William Churchill, the first to utter the phrase in all teacups now – the United States of Europe, the Banking Union.

      Sir Oswald Mosley, British fascist picked up this slogan, U.S.E., and presto no democracy. It is a labor camp. Look what it has done to Spain, Cyprus, and what it will do to Eire.

      Make no mistake Eire is dealing with the empire again.

    • such statutes never work
      Better to remove the cause of the income discrepancy.

      It is the central banking system with the inflation of the money supply. Remove the central banks, stabilize the money supply and so remove the inflation and even out the economic returns and results.

  7. 5Fingers

    Empowerment seems to be the word we need to focus on. The lack of personal empowerment seems very poor and is diminishing by the day. Blake always had this issue with the church and how the devil seemed to have swapped the signs of heaven and hell as people accepted their fallen state as normal. Today we see health and safety, war on terrorism and regulations of all forms down to taking our personal freedoms away as indicated by our savings in many cases to be the new “good”. Sign Swapping to dis-empower yet again. (I’ll be voting to retain the senate by the way – in spite of all its warts.)

    At least in Blake’s time there was an escape route. The world was still big and escape to new opportunities was possible for many. That’s not to say it was easy. Interestingly around this time, Ireland’s fate was set to turn very sour indeed. One of the fitter/healthier and more educated classes of common man in Europe was about to get wiped out. Suffice it to say, it was not just the blight that caused the famine, but a whole series of prior events that led to that catastrophic collapse.

    This de-risking (reducing interest rates) ad infinitum to the natural feeding frenzy of speculation on assets is setting the conditions for a lot of bother. So an asset crash is inevitable with a super concentration of ownership to a very few who will seek to extract rent at the expense of personal productivity. That happened in the early 19th Century in Ireland. We see it happening with NAMA and it will happen everywhere else. Echos of Famine ring disturbingly at a global level but the difference is your ability to be empowered will be further eroded by PRISM and similar.

    We are blundering into a prison of our own making. A prison of peer pressured crony ass licking bullying. The new saints will be the ones who show not fear to stand out. I am not one of them….yet.

  8. cjmurray

    And for those celebrity millionaire Capitalist journalists struggling mightily to sort out the latest Capitalist mess, wondering what to do, calling for creativity and innovation and new thinking and visions (while stirring civil wars among ordinary people), calling for everything except the blindingly obvious – major democratic redistributions of wealth and power – here’s another quote, this time from a rich Russian landlord, Leo Tolstoy, who at least could see clearly:

    “I sit on a man’s back, choking him and making him carry me, and yet assure myself and others that I am very sorry for him and wish to ease his lot by all possible means – except by getting off his back.”

    • noady

      That’s a cracker of a quote – easily attributable to an endless number of Irish also…suds, bruton , burke, ahern, fitzgerald, fingleton,…..etc

  9. SLICKMICK

    America’s private sector creates 2 million net private sector jobs per annum. Tht’s the same as what europe has created over the past 30 years ! Half of the under thirties who work in Ireland are part-timers, their is little data available regarding starter salaries , same as social welfare rates I believe. Overall Prices @ an all time high, salaries for some @ below subsistence level, things will get worse thanks to our continual vast over supply of overqualified people .

  10. Original-Ed

    “America’s private sector creates 2 million net private sector jobs per annum. Tht’s the same as what europe has created over the past 30 years !”

    Don’t know where you’ve been hiding, but since Angela Merkel came to power in 2005 german unemployment has fallen from 5 million to below 3 million – 3 from 5 is still equal to 2 unless your an Irish politician.

    She’s now Queen of Germany and is almost certain of another term.

    • SLICKMICK

      France and Italy have fewer private sector workers than 30 years ago. Many of the new jobs in the German private sector are financed entirely by government subsidy and are derided as micro/pocket money positions. The european economy has lurched from one crisis to another post 1980. Spain, Portugal and Greece are beyond salvation. The latter has 1 in 10 of the total population out of work !

  11. A fine piece of writing but you might as well be desperately seeking susan. World visions are for communists, bilderbergers, dreamers and bigots Davido. ‘World Vision’ is a contradiction in terms and any one who uses such a phrase is either a tyrant, a bullshitter or a romantic dreamer like Jock Stein

    When you get past 40 you realise life is a lost cause unless it is ‘consumed’ more philosophically. Within reason of course otherwise complacency sets in and you risk sounding as steetwise as a cardinal

    That is why people like Cardinal Brady develop incomprehesible brassneck – they become so philosophical they need belting with a wet towel to snap them to their senses and knock the wax loose in their ears. Doosh!!!

    Waken up you stupid selfish fuck!
    Where is Dave Allen?

    The current Agenda is Seanad reform and Abortion. Totally irrelevant topics that are smokescreens via which a not too intelligent political class can subvert and subdue an even less intelligent and lazier servant class. It’s been the same throughout history and there is no point in taking part in a game that is rigged. That is the first lesson I ever learned in life but I knew that all the games are rigged. All of them

    At this time of year there is no better feeling than racing through the leafy lanes of Sligo with the love of your life. The Hawthorn is blinding white and meadows are bursting with yellow, blue and violets as warm summer breezes that take your breath away. This is the Ireland I love and it is fleeting. In July summer is over. Gone in the breeze. This IS the life and it’s better viewed wide awake so that next year our senses are sharper when witnessing the changing of the seasons

    But city boys don’t do seasons. Poor things. Too busy to notice the difference between early summer and mid summer.

    England is beautiful too but there is one huge difference – England is nasty

    So you were racing through England’s green and pleasant. You sound thrilled and quite taken by Old Blighty but she is not what she used to be you know. No. She looks and sounds like a nasty old alcoholic who has lost her lustre and the present incumbents are becoming extremely vile and unpalatable indeed. Who would want to live in a crap hole where there are neanderthals on the loose calling Nelson Mandela a ‘terrorist’. Can’t we put them down or something?

    Maybe call in ‘the lads’?

    Extinguish them. Make them bereft of life or something?
    It amazes me how narsty England really is. It has always fascinated me how an entire popilation can be perceived the world over to be a narsty bunch of bawbags. It is a very unique achievement for such a small nation but today we have another small nation who make the English look like arse banditing choir boys.

    Get a grip folks and shake off any fleeting sentiments you have about Berlighty. She is an old cant and always bloody az been. In Ireland we don’t have to suffer public outburst of psychosis but I am sure many of you will agree we do in fact have many psychopaths in positions of power and influence

    London to Bristol is cross country and seems like a pointless trip either way whereas the road trip from the south coast to Glasgow and vice versa is exciting because it is takes you to extremes

    It’s 415 miles exactly and would take Casey Jones 7 hours without a second to spare but it will take me 8 as I like to stop and smell Engerlands green and pleasant after I have devoured my over priced MacDonalds and stand there conterplating as I pick the knitted chicked from my teef

    I traveled all over England and found it fascinating but the long trips between north and south were the best because they had more sense of purpose.

    They began in 1970 with a trip to Southend and I remember Southend Pier. It was a mile long. In 1975 when my eldest sister married a man from Poole and my parents and I went down on the train. We changed at Crewe and caught the Penzance train. In those days the railways were a train spotters dream and the the trains were clanky and noisy … like proper trains in other words

    But it was always great to get back home

    http://www.youtube.com/watch?v=Ww4v2cP-MDo

  12. One of the main instruments whereby the large countries try to steal a march on each other is through cheapening their exchange rates.

    When I emigrated to Canada in ’67 the exchange rate was $3 to a pound. it is now about $1.55 to a pound or half of what the original exchange rate was.

    Is this the US strong dollar policy? now worth double in buying power. No it is not. inflation has eaten all the gains and then some. I used to be the rich relative but not any longer. UK prices have gone up twice as fast as the Canadian leaving me saying how expensive it is in Britain.

    Now however we are in a race to the bottom. competitive devaluations as each country strives for advantage.

    Japan is not “allowing ” its currency to fall. It is driving it down with deliberate policy of doubling and tripling the money supply. QE to infinity.

    All countries are on the same path with the same policies. Currencies will be devalued to nothing. All solid assets will skyrocket in price and the only money left standing will be gold and silver.

    In the meantime bankers will steal all assets in their reach as in Cyprus. Nothing is safe.

    Get all assets out of the banking system. That is savings, pensions, stocks, bonds and anything in a security box.

    invest in hard assets and gold and silver (not paper promise) farmland, antiques, art, etc.

    Read http://www.jsmineset.com
    Read Ranting Andy Hoffman at Miles Franklin.(google)

    There is little time to protect yourself.

    • bonbon

      You know they will take metal too. So break them!

      • FD Roosevelt took the gold or tried to.. No one else

        http://en.wikipedia.org/wiki/Executive_Order_6102

        All gold cases were decided in favor of the “New Deal” policies but one Supreme Court Justice dissented.
        Justice McReynolds: “Government should not have the right to annihilate its own obligations (denying gold payments stipulated in contract and on bonds) and there is “no permission for such actions.”

        In regard to bonds which the government had promised to pay in gold Justice McReynolds explained in his dissent,
        “For the government to say that we have violated our own contract but have escaped consequence through our own statute, would be Monstrous. In matters of contractual obligation the government cannot legislate to excuse itself. Under the challenged statutes, it is said the United States have realized profits amounting to $2,800,000,000. But this assumes that gain may be generated by legislative fiat. To such counterfeit profits there would be no limit; with each new debasement of the dollar they would expand. Two billions might be ballooned indefinitely to twenty, thirty, or what you will.
        “Loss of reputation for honorable dealing will bring us unending humiliation; the impending legal and moral chaos is appalling.”[17]

        Seems he was quite correct looking at the current moral and financial morass

        • bonbon

          Gold was taken out of circulation, to prevent Wall Street, which already had a credit-crunch causing the Great Depression, getting any ideas of a Specie Resumption again (which caused the Long Depression).

          This will happen again and you know it.

          So it is time to look up Alexander Hamilton, because that is the only way forward. A mega New Deal. Gold cannot get in the way of this. And the New Deal worked, not the monetarist calculations.

          • This will happen again and you know it.

            there you go putting words into my mouth again bon bon.

            The monetarists get in the way and manipulate gold to give it a false value. A set rate. Total stupidity.

            Equally stupid it to pretend as you do that it does not exist or suggest that it causes things it does not.

            It is the control of money by the banks/government that create the ebbs and flows of boom and bust. you have never addressed the problem og expansion of the money supply that causes the booms. As the money is loaned into existence it creates unpayable debt, or debt that is impossible to pay without a credit crunch.

            It is the absence of gold money that allows the creation of a debt based boom. This boom is not caused by gold and neither is the subsequent bust.

            Removing the control of money from the banks and government would allow people to make their own choices as to what they wish as money.

            Through the ages mankind has picked gold and silver.

            Why are you afraid of the free choices of the people bon bon? Is it because you prefer the statist control of enterprises and your proposals verge on a form of fascism. A merging of big business with big government is your ticket.

            Gold as money is not the problem but the salvation of the economy. The Russians, Chinese and emerging BRICS know this even if you do not.

          • bonbon

            Gold cannot function in a modern agro-industrial economy as it may have in legends of yore.

            We have advanced way beyond that level. Banksters abusing this is a serious problem easily dealt with by splitting their access to collateral.

            A modern economy with rates of development necessary and undreamt of before, is simply beyond the comprehension of “tradition”. Hayek harked to n ancient “tradition” that ceased to mean anything in 1783. Various demagogues have tried to roll time back before 1783, as Hitler clearly tried to do and said so.

            Economics and culture have turned, and the reactionary lurch to the golden past is what is causing all the trouble. We live in interesting times.

          • You have not a shred of evidence that what you say about gold is true.
            I suppose the fact that there is such a display of manipulation by western bankers means it is irrelevant.
            I suppose the acquisition of vast amounts of gold by 3/4 of the world inhabitants is irrelevant.
            I suppose the fact that Germany wants to repatriate 2000 tonnes of gold is irrelevant .
            I suppose that the US will not release it back to Germany is irrelevant.
            I suppose that your statement may be irrelevant too.

          • michaelcoughlan

            Hi bonbon,

            “Gold cannot function in a modern agro-industrial economy as it may have in legends of yore”

            Really bonbon? I told you before you should ask the two billion Chinese and Indians do they subscribe to your dogma?
            It would be some sport to to see all two billion people laughing their holes off at you and your buddies.

  13. Your high school debate is irrelevant avid.
    Debate the major issues causing the collapse you have outlined and the solution for the people.

    There is no solution David as you point out. we have arrived at debt suffocation. All QEn is adding more debt. More interest.

    The financial system will collapse.
    So then knowing that David, what do you as the economist of the people advise them to do, to protect themselves.

    That is the debate we need. The truth is that unless you can show otherwise , I do not believe you have a clue what to do anymore than the other 99%.

  14. “Where, exactly, is the vision?” Yes David , where is your vision?

  15. Deco

    There is a joke that England is going to be renamed as “TESCO-land”.

    Presumably, Ireland will be renamed a my Lidl Island……

    http://www.independent.ie/business/personal-finance/latest-news/grocery-prices-soar-at-10-times-inflation-rate-29332229.html

    Something absurd going on.

    In a world where we are forced to pay a tax to a state propaganda organ to not tell us what is going on (remember they way they kept showing Fair City when the IMF deal was announced), the quality of information is being continually degraded.

    Because empires go to war with their own subjects with disinformation.

    And the greatest disinformation machinism in economics is an ECB interest rate that perpetually feeds Ponzi Scheme economics. And that is the point of the ECB. Ponzi scheme economics.

    • Deco

      So the cost of living is rocketting…but the official inflation rate does not reflect this.

      Can we sack the morons who miscalculate the inflation rate ?

      • Jimmy Gavin

        I think it could be called “A La Carte” economics Deco, with the idea being that you choose the figures or metrics that best supports your rhetoric or spin. The government has an entire department for this work , its called the “Department of Finance”…..

        It will be interesting to hear what they have to say later in the year when the banks arrive back at their door with their caps in their hands…

        While the ratings agencies expect the banks to require further re-capitalisation later in the year , our spin doctors think that this is relevant….”PAC chief, his wife and the €22,000 trip funded by taxpayer”(read below)

        http://www.independent.ie/irish-news/pac-chief-his-wife-and-the-22000-trip-funded-by-taxpayer-29334508.html

      • They are not morons and do not miscalculate. The deception is deliberate and the standards of reporting are deliberately changed to give a false reality.

        See
        http://www.shadowstats.com

        • bonbon

          Reality cannot be false, only perceptions of it. Sure the numbers are fiddled, but the reality of the economic collapse cannot be papered over. That is the lesson of the Triple Curve.

          The only morons then are those that refuse to use that powerful metaphor, placed into their hands.

          • The reality is being papered over so the cracks are not evident.
            You confuse the issue with your asinine insistence of the mention of the triple curve in a situation where it is totally unwarranted.
            You continually try to score points over others comments which becomes very tiresome and totally counter productive.

          • bonbon

            It is moronic to refuse the power of metaphor. The triple curve puts this firmly on the table. It is asinine to think a metal can deal with this.

            The economic collapse is evident to all affected, not banksters YET.

            So dump the moronic belief in the magic of metal.

          • We will soon see who the moron is.
            The evidence will show very shortly.

          • michaelcoughlan

            Reality is different things to different people. If your a hedge fund manager making a fortune from short selling worthless government debt you are in clover. If you are the minister for finance in the same government you are in boiling hot water up to your goolies. Their is NO universal truth or universal reality.

        • bonbon

          Just because moronic stubbornness rules, we now throw truth and reality out the door? That’s a bit daft – we invented science, poetry, culture, in spite of rampant moronic stubbornness. Hedgies “reality” is the looming Glass-Steagall they know is on the way, gigantic shadows of futurity as Percy Shelley put it. Not very pleasant for them.

      • michaelcoughlan

        Hi deco,

        The people who produce the figures don’t miscalculate the figures the twist them to suit their political puppeteers.

    • Hi Deco, there is a significant factor of agricultural yield involved in food prices. This winter was long and hard all over the northern hemisphere. Dunno about Ireland but we’ve had spring here evolve in a period of one month instead of three, so expect more of the same.

  16. crazy cat

    Corporate Carve-Up, Monbiot’s view of the G8 meeting

    http://www.monbiot.com/2013/06/10/corporate-carve-up/

  17. crazy cat

    Oh yeah,and every day I’m Capulling!

    http://www.youtube.com/watch?v=WuTtxJWUWqM

    • bonbon

      Erdogan has called the demonstrators {çapulcu}, which means marauders or bums. Now, the demonstrators have adopted this as their name, and in Gezi Park, they have erected a Capul tree and built a “Capulistan camp,” and created an English verb, “capuling” (pronounced chapuling). Now protesters have popped up sporting white T-shirts with the slogan: “Every Day I’m Capuling.”

  18. The phrase ‘Desperately Seeking’ in the title is an emotional pushbutton probably created by a sub editor presumably?

    It’s not bad but it’s not in Mencken or Chandler territory either. Lazy Days of Summer :-) are making our boys take their eye off the ball and it shows. Do all Irish intellectuals stop working from the first Bluebell until the October Heather?

    Writing headlines is an art and headlines have to suck. They have to suck viewers in. If you are altruistic you give them the juicy stuff first and if you are selling something you give them the juicy stuff last after they are pre-sold with your sales pitch

    I could not sell to save myself but I do know when I am being sold the real deal. I don’t see anything wrong with someone placing a link at the bottom of their articles to make a sale. I admire it actually

    That is why everyone in this information age has to learn how to create web pages that suck. It’s a way out and David is demonstrating how it is done. You could all do it

    If you give people what they need you will suck them in for sure if you have a vision and can demonstrate your passion

    I have a tale for you. I wanted to capture this past week for posterity. I took photos and walked and wrote some words. They are a record that my name is Paul Divers and that I once existed.

    Rambling West
    The Big Blue Tractor
    http://theramblingwest.blogspot.ie/2013/06/the-big-blue-tractor.html

  19. bonbon

    I hope DMcW has not lost his marbles entirely. From a review of Younghusband: The Last Great Imperial Adventurer :

    When World War I broke out, Younghusband rallied to the cause of a “Holy War.” This led to him founding a group called “Fight for Right,” to rally the population to the cause. One result of the Fight, was the composition of the hymn of British Israel-the belief, grounded in British Protestantism, that Britain and Britons were the new chosen land and people. The words were from William Blake’s poem Milton:

    Jerusalem the Golden

    Bring me my bow of burning gold:
    Bring me my arrows of desire:
    Bring me my spear: 0 clouds unfold!
    Bring me my Chariot of fire!

    I will not cease from Mental Fight
    Nor shall my Sword sleep in my hand:
    Till we have built Jerusalem
    In England’s green and pleasant land.

    While the Fight for Right may have faded from history, Jerusalem has not. The “vision” that Britain and Briton’s are the new chosen people is desperately silly.

    And Younghusband founded the earth-mother Gaia 60 years before James Lovelock. Are we next to be subjected to Gaia?

  20. Mr Happy Dole Dude

    Interesting an opinion writer asking the readers for an opinion…

    Everyone thinks of changing the world, but no one thinks of changing himself. Leo Tolstoy (Three Methods Of Reform, 1900) was Tolstoy thinking of Obama ‘yes I can torture and murder at will’?

    Yeha! I saved aprox $10,000 since 2008 the debt per person in Ireland is now at $39,150 according to the world bank the debt was at 49,000 in 2008.

  21. Mr Happy Dole Dude

    http://www.youtube.com/watch?v=7YvAYIJSSZY

    A song from 1984! yes 1984 the new anthem for the USA

    Obama is Watching YOU

  22. bonbon

    Here is the vision of the financial empire, that the G8 will not mention.

    The Economist and the Wall Street Journal Both Propose Wars on China — Cyber and Military

    June 11, 2013 (LPAC) — A Wall Street Journal editorial today on the recent Obama/Xi summit concludes: “The U.S. needs better cyber defenses, private and public, but it also needs a better offense. This may mean sanctions against Chinese firms and individuals that benefit from cyber theft, as well as against military officials who practice it. But even those steps probably won’t matter unless the Chinese begin to see that their own military and business assets are vulnerable to cyber attack. Arms control won’t stop China’s cyber theft. The fear of counter cyber warfare might.” Of course, US cyberwar is not just a threat but a reality — just one of the now-public crimes of the Obama Administration.

    Meanwhile, The Economist of London is not so timid as to only call for cyberwar. In a cover story in the June 8-14 issue on the Summit in California, the lead article makes reference to the Thucydides trap (which Gen. Dempsey has warned against) — “that it was Sparta’s fear of the growing power of Athens that made the [Peloponnesian] war inevitable.”

    Beijing, writes The Economist, insists that China wants a “peaceful rise” in order to “calm such worries in America. The ploy is not working.”

    China’s “ploy,” these fanatics argue, must be met by a military build up, which they describe as “responsible,” but such a build-up on both sides “could spiral into conflict.”

    This is precisely how the British drove Germany and the Soviet Union into a bloody, mutually destructive war in the 1940s, which eventually engulfed the world in hell. Now it will be thermonuclear.

  23. bonbon

    Daniel Ellsberg, the former Defense Department military analyst who released the Pentagon Papers in 1971, wrote a column in Monday’s Guardian, entitled ”Edward Snowden: Saving Us from the United Stasi of America”.

  24. [...] Desperately looking the worldwide prophesy | David McWilliams [...]

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