A long day;
having been marched off to take my annual identify the spring flowers
test. Yet another fail. Ragwort, Deadly Nightshade and Poison Ivy can
be managed but alas the others always escape me. The lesson is that what people see may not be
what they think it is.
Much the
same might be said of the world’s money markets. With so many, if not all, of the worlds
largest currency blocks, all showing serious or even potentially catastrophic
signs of weakness they are all “sell” options.
The trouble
is that the currency units which remain strong enough to be a “buy” are nowhere
near enough to cope. Moreover, as small
elements it does not take much of a move to send them rocketing beyond any real
value. This is not investment as we know
it.
So how are
the existing major currencies being propped up?
This is hellishly complex in its operation and working but essentially
quite simple. The major blocks of
currency are being bought by the same people that sell them. In a roundabout way, that is.
It involves
all that “quantatitive easing”, that is creating money by imaginative use of
figures by central banks, the issue of stock in the form of borrowing by
governments, and the raiding of savings, public sector and other pensions funds
and the rest to provide the borrowing plus allowing the money men to do their
bit in pushing the dodgems about.
For
Keynesians, they are reminded that his major work is called “The General Theory
of Employment, Interest and Money”. It
may retain its validity if what is going on bears some relationship to reality.
But when a
lot of the “employment” is essentially in non or non-productive jobs that is
one problem. When the money is out of
control that is another. But the
linchpin is Interest and this is the compass by which a course is plotted.
If the
depredations to savings and other financial methods effectively destroy the
function of Interest and replace it by trying to play velocity games around the
financial gambling tables then the risks are very high.
All this might
work for a short time with a brutal application of discipline. But there are all the signs that it is not
working and not going to. The other
ancillary problem is who the governments have trusted to make the thing
work. In the USA
and the UK
If you
employ numbers of people who are basically crooks or incapable then lots of
money is going to disappear out of the system into the pockets of a few never
to be seen again. So all your policies
are never going to work.
As Grannie
used to say, you do not ask the chimney sweep to clean the windows and you do
not ask the window cleaner to hose down the chimney. The link below is a long read but not
difficult and is by someone who has been there as a police officer hunting
frauds only to have his foxes given protection.
If these
are the people who the governments entrust to be securing our futures then the
prediction is quite a simple one.
There isn’t
going to be a future worth living in.
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