Cameron, China, the dragon in the room …

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This article is a timely update to one I wrote about the dangers of China in February 2014 China the elephant in the room.

This Tory government has learned nothing from Thatcher’s disastrous reign of myopic, crass decision making¬†or that of New Labour’s 13 incompetent years at the helm. It cannot see beyond Cameraman’s departure two years hence (yes – two) and is making huge errors of mismanagement in three vital areas of Britain’s future.

These are: 1) future electricity generation; 2) food self sufficiency, and 3) basic manufacturing capability.

China's propery apocalypse
China’s looming property apocalypse.The empty flats that nobody can afford.

Embracing China’s mad, humourless, greedy, globalised capitalism is a huge mistake. China’s recent stock market corrections are but a hiccup compared to the real correction required to adjust for the debt mountain based on the empty cities all over China. These property investments are still recorded on the Chinese and the world’s banks as assets. They are anything but!

Ignore the bubble at your (yellow) peril ;-)
Ignore the bubble at your (yellow) peril ūüėČ

Ignoring China’s primitive and barbaric attitude to human rights is a crime and denies everything that Britishness should stand for!

Encouraging China to build our, sadly now necessary, nuclear power stations is beyond stupid! The decision is based on the same incompetent logic of New Labour’s disastrous PFI contracts to build new hospitals and schools etc. The decision is based on presentation rather than economic sense.

Why on earth do they keep on making the same mistake?

The answer is, that PFI does not affect current government debt figures, so Osborne looks good and sounds sensible. However, it pushes the real, and hugely inflated cost, way into the future. Today’s decision makers will have retired on their gold plated pensions and cannot be held to account. Those future PFI costs are far higher than they would be if we did the sensible thing and borrowed the cash now at all time low interest rates.

All the current agreement does is guarantee huge future returns for China but dooms our children’s children to higher than necessary energy costs.

Good for China’s long term economics, but so obviously bad for us.

Government should be borrowing cash now, while it is historically cheap to do so, but it will not because of party political ideology. Bonkers, criminally incompetent financial mismanagement unchallenged by Corbyn’s Labour party because they can’t think straight either.

Labour cannot be too critical here because of the Blair / Brown era of financial incompetence.

Meanwhile, Germany’s steel industry thrives because it is being supported by Merkel’s government, completely ignoring the EU’s rules on state subsidy by the way. We can’t do the same because our steel capability is owned by India plus we keep on following the damn silly EU rules that Germany, France and Italy just laugh at.

Cameraman & Osborne are blindly completing Thatcher’s disastrous short term view of manufacturing and finishing off the population of the north east for good.

Our steel industry is now dead after today’s announcement by Tata (You know, those Indian chappies who bought our steel industry some time back ;-( ).

Meanwhile, Germany is investing heavily in alternative technology to generate green electricity while our Tory twits are removing subsidies. Simply beyond stupid!

Germany took that enlightened, long term decision when Japan’s recent nuclear disaster gave us all a taste of what happens when things go wrong when power generation is too centralised! Remember Eric Schumacher’s 1973 book Small is Beautiful?. Germany’s politicians took note while ours went out to lunch.

Milk production is all but destroyed in Britain while food imports continue to rise to support a supermarket model which is failing. This reign of madness is seemingly unchallenged by Labour because of its own past incompetence.

Our membership of the EU is of course to blame too, effectively stopping Britain from taking a long term view of food production and manufacturing.

Long term thinking is completely missing from our governing and political classes.

China is only thinking long term! Germany is thinking long term too …

When will our politicians ever learn?

Acknowledgements:

B.Rich Hedgeye for the Chinese bubble cartoon

Marketwatch.com for the reality of the Chinese economic “miracle”. Please read the comments to this article, they are more realistic than those of the article’s author.

David Cameron ‘extremely angry’ over rail franchise errors

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May I present the latest example of the blitheringly obvious being missed by politicians and their slimy attempts to blame anyone but themselves! Oh, and by the way, this is going to cost the tax payer around £150m in compensation payments and a rerun of the bidding fiasco!

I’m so annoyed at myself – I am going to sack me – I really am!

First Group’s winning bid was based on revenues growing by 10% per annum for years to come! That was headline news some weeks ago.

To any first year student of politics, accounting or indeed anyone who lives, or has lived, in the real world this was obviously bollocks nonsense!

“Those responsible for the mistakes would be held to account, he promised.” Well Dave – off you go and take your two faced cronies like Osborne and Jeremy Hunt with you!!

UK growth, a dubious desire at best (in an over populated world) and one that will be elusive for the next few years anyway, is just a hope desired and ‘wished for devoutly’ by all political parties who, without it, are seen to be what they really are – clueless, impotent amateurs.

In a world that should soon and finally realise that page 1 of Keynsian economics does not cut it when so much greed funded debt has distorted market theories beyond any text book solution that Keynes himself had envisaged.

Even JM Keynes would not offer a Keynesian solution to the mess we are all in now. However this is missed by the aptly named ‘Balls’, the shadow chancellor.

Keynes however would sit back a bit and think of a new solution.

What might that be?

Well, since you ask …

1) Go back to the 1960’s world where Merchant banks went bust and high street banks could not go bust – i.e. remove the deregulation introduced by Thatcher and continued with under Bliar & Broon.

2) Charge tax on all money earned from within the UK at a flat rate of 30%. (What a revolutionary idea!)

3) Outlaw the criminal tax shelters that most British politicians are funded by and support.

4) Wait for 30 years while we slowly remove debt from personal, private, corporate and public sphere

Boring isn’t it?

Alternative solutions are ..?

Murdoch & Thatcher proved to be devious, lying stinkpots

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Margaret Thatcher had a secret meeting with Rupert Murdoch at Chequers weeks before his 1981 purchase of the Times newspapers, newly released files show.

Maggie courtesy of Gerald Scarfe - (I think he'd caught the essence - don't you?)
Thatcher finally caught

What a surprise ?!

I can’t believe it!

Murdoch actually denied the meeting, on several occasions,¬†I really can’t believe that such a decent businessman could have forgotten the meeting! He wasn’t old then was he?

  • Oh I think get it – he is a devious lying egocentric ba$tard – that must¬†be it.

The fact that the deal was never referred to the Monopolies Commission can’t have anything to do with Thatcher’s influence – could it, shurley not?

  • Oh I think get it – she¬†was a devious lying, egocentric, power mad¬†politician – that must¬†be it.

Reality bites – at last …triple AAA? (ask Mr Micawber, he knows)

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The¬†AAA rating, by Mr Micawber’s definition (and that of reality and your grandmother) is earned when¬†your income just exceeds your expenditure and that future prospects are stable. Neither of these simple criteria apply to any country in Europe, including Germany, and certainly not to the USA or to Great Britain. So why all the excitement when the USA which has not met these criteria for years (as indeed, we have not) loses the AAA rating?

Politicians have been lying their heads off for years, and money, an artificial contstruct at best, has been warped far away from its original purpose (a means of exchange) – that’s why. The incredible thing, to me at least, is that everyone (journalists, financial services and economists – but not the banks!)¬†has been believing them and the warped money definition –¬† but it seems that some have at last woken up to the fact that having politicians in charge is just like a company being run by the marketing department. Reality will bite – once the customer has bought the product and found it not to be as advertised.

It has been a long time coming but Mr Micawber’s lesson is slowly beginning to be understood by economists.

Of course it will be a few weeks more before politicians and banks can bring themselves to understand, but reality will bite, sooner or later. It really is so easy to understand.

The Thatcher era started off the real stupidity of modern ‘fast’ stock market madness and the Blair / Brown followed on like unthinking lap dogs. Cameron is still lapping at the bowl of Blair’s stupidity – he (Cameron) will probably be ¬†the last to get it.

But its all OK – really, if the banks are allowed to “take their haircut” – as they must in order to start correcting the massive overvaluation of the banks and the stock markets around the world.¬†

It will take just one brave politician somewhere to start the process Рsay with RBS, or Lloyds (banks that we the people now own). Return the banking model to that of the 1960s and a lot of very rich people will lose billions but reality will slowly return to the world.

Discuss …

 

Aha – someone agrees with me – but no celebration …

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Terry Smith, chief executive of Tullett Prebon, one of those “financial sector” companies that scare me to death, because I don’t really understand what they do, Terry Smith runs a blog too, and his latest posting is well worth a read so are his other musings; so good in fact that I have added his blog to my list of wisdom eschewing sources – see ‘Blogroll’ on the right hand column. That he mentions the Avengers is evidence enough that he must be a jolly good egg to boot.

Most of our ills, it seems to me, come from incompetent, hubristic mismanagement of our resources by our politicians and the simple greed of corporates; if that is now obvious to you, then hurrah!

How to replace / improve / punish our “managers” is up to¬†philosophers, journalists, comedians¬†but finally,¬†you and me.

Oh, and by the way,¬†I do realise that nobody is reading this but it does reduce¬†my blood pressure …

Anyhow, onwards and upwards,¬†a summary of¬†Terry’s current musings mixed with a few of mine follow:-

Nothing “real” has been done for Greece despite the latest “bailout being hailed as a success’;- her debt level appears to have gone from 140% to 130% of GDP – wow… Quite how this happens when Britain and the Euro-zone has increased Greece’s debt by offering loans of a further ¬£21bn. Beats me – ah well…

The ‘global’ credit Credit crisis occurred 3 years ago – however British public & private debt has still not been dealt with by our disfunctional politicians – we are talking about inactivity since 2008; they have had 3 years and yet nothing of any significance has been done. Interest rates at 0.5% are simply postponing the day of reckoning for those British private individuals who over-borrowed ¬£1.3 trillion quid and still and rising. An indication that nothing has been learned is the simple fact that 300,000 people have obtained interest free mortgages in the last 2 years – incredible; this means that when interest rates go up again … <left intentionally blank> …

The real culprits – i.e. borrowers; individuals, private companies and the government (Ed: but isn’t that everybody..?; Yes, that’s correct!; Ed: Oh, er, oh dear me …), have NOT paid the price yet. Interest rates are at historic lows yet no real understanding of past stupidity has been realised.

The biggest issue for our government is public sector pensions which are simply untenable; yet this has, at best, been dodged and kicked into the long grass that has not yet even grown. The grass will be have to be mown by our children’s children so it seems.

If I hear another politician say that we doom mongers are ‘talking down’ the economy – I say poppycock!¬† The economy is going down the toilet all on its own and the government is not helping one bit; It is going to happen anyway.

Norway is a shining example of how we should have been governed since the 1970s (“managed” is perhaps better) because it treated its oil revenues as a welcome one-off surprise and banked most of the dosh for the future benefit of the Norwegian people, whereas we, Thatcher that is, ¬†just frittered it all away whilst at the same time selling our water supply and electricity grid to the highest bidder – criminal behaviour, unbelievable! Norway is perhaps the strongest, most stable, most morally mature country in the world despite being overwhelmingly secular <just had to get that one in … hehe>. It’s far from perfect perfect but we have many things to learn from Scandinavia.

Lovely dry and sunny weather isn’t it? Yes, but …

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Sub-title: Sell your Chinese “Emerging Market”stocks soon – you heard it here first. ūüėĮ

It hasn’t rained much this year, in fact it is looking like being one of the dryest years ever and the trend is probably going to continue.

So, I ask, where is the joined up thinking, the planning and investment designed to improve matters now before we find out out that it is too late? Answer is there none. That’s because the problem is not really an issue¬†for the owners of our water supply – they will just put the price up to maintain profits – easy; in any case they don’t live here so “not a problem” then…

If you want to see who owns our water supply¬† you can check at the Office of Fair Trading website¬†for an answer, but to summarise – Northern Ireland actually owns its water; Spain owns Scottish water supply;¬† but¬†(from here on in the news gets progressively worse); Australia, Singapore, Malaysia and South Korea own England’s water and Canada owns Wales’ water. Hedge funds (of course) are somewhere in there but it is very difficult to find out the detail.

If you, like me, think this is just too daft to be true then … WAKE UP!

When that short sighted, criminally stupid woman (Margaret Thatcher, if you were wondering), sold off our water supply to foreign investors in¬†1989 she forgot (because she probably didn’t care enough to think) to put terms into the deal that would protect the British public from profiteering bastards (I use the term loosely, because what else can you call men who care only for the creation of immorally created piles of dosh for themselves?).

Perhaps Mrs T can see now clearly that water is becoming a bit of a problem for those in low rainfall areas. Nothing however like the problem that those¬† criminals in China (the Chinese government if you were wondering…) who are in the early stages of overseeing China’s economic doom for the simple lack of a clean water supply and who have embraced the West’s philosophy of believing that money actually exists.

Britain’s water supply should belong to the population of that country; anyone who says different is¬†deluded.

Britain’s electricity energy grid belongs to the British people not, as it currently seems to be, Germany, Spain, South Korea and Canada. There are many more examples of this past and continuing lunacy in meBook.

Obvious is it not?¬†Apparently not, to successive British governments formed by that strange class of people we refer to as “party politicians”.

This “privatisation”¬†has become¬†a disaster waiting too happen, not just for us, but for the USA, China and many other countries.

The basic problem is that we are close to, if not actually at or past, the point where the world’s population is¬†balanced by natural resources. Governments dare not tackle population control (no votes in that!) and can’t act on resources because¬†they sold them! Those, and many other,¬†natural resources are no longer owned by the people to whom they should belong.

The reason that Thatcher’s potty government made Privatisation seem like a good thing was simply that, even then, Britain had run out of money (Ed: not since before the 1st world war have we actually been in the black) so in order to make herself look good she misused North Sea Oil revenues, sold off Council (sorry “Social”¬† (yuk)) Housing so she could reduce taxes and¬†fight a New Colonial war with Argentina.

Hose pipe ban? What hose pipe ban …?

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