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By Pete Moore On June 13th, 2011 at 5:21 pm

This is astonishing.

Via economicpolicyjournal, a series of clips revealing Ron Paul’s deep understanding of monetary policy, business cycles and the their creation and consequences. That alone is no surprise to those aware of his many years of study and scholarship, but within them we see just how far back he predicted exactly the economic state into which the United States has fallen and exactly the reason why it would happen. Ron Paul saw years ahead what some still cannot see. I recommend you watch it all, and not just for the jousting with and skewering of Alan Greenspan.


There is only one credible choice in 2012. Probably Republicans will, as usual, look the other way. While all that matters is the economy, elections now are puerile beauty contests for the feeble minded.

Conclusion: it is clear that in the coming election, when set against his opponents of any party, Ron Paul is an economic and monetary giant in the company of pygmies.


By Pete Moore On June 7th, 2011 at 7:27 pm

Is it time for Geithner to consolidate the federal debt into one, easy monthly payment? I ask because when the shield of lies and deceptions is swept aside and real accounting standards are brought to bear, we see that the federal government debt is $62trillion.

This is $534,000 per household.

So, should Timothy pick up the phone to Ocean Finance? Of course not. There is no way that the debt will be paid, there is not the slightest chance of avoiding default.The government will either pay cents in the dollar or inflate endlessly and destroy the wealth of the people.

Either outcome is inevitable, but the debt will never be honoured. Of course, the people themselves ought to default absolutely. Those waiting to collect on the debt have no moral claim on the wealth of the people, the people do not have the slightest obligation to be tax slaves for the rest of their lives to pay the debt.

The sooner they default the better.


By Pete Moore On June 7th, 2011 at 1:23 pm

Via Tim Worstall:

Having been chosen by Gordon Brown, David Blanchflower served on the Bank of England’s Monetary Policy Committee from 2006 to 2009.


By Pete Moore On June 1st, 2011 at 7:45 pm

You know the score: “No Tory Cuts, defend jobs and services or people will die!”

Putting aside that state spending is rising and jobs cuts sadly not in sight, we learn that banks have now stepped in where the Bank of England’s printing has left off:

Britain’s banks have emerged as by far the largest buyers of Government debt in the last six months, as demand from other UK investors and foreign buyers fell away […]

Simon Ward, chief economist at Henderson Global Investors, said the actions of the banks was in affect delivering a second round of quantitative easing for the economy.

“The government has been able to continue to fund the large budget deficit at low interest rates in recent months because banks and building societies have stepped up gilt purchases. For the moment, bank are effectively delivering the QE2 stimulus sought by MPC [Monetary Policy Committee] arch-dove Adam Posen,” said Mr Ward.

So there we are, continued catastrophic levels of state spending are dependent on banks loaning the money today. That’s instant and gratifying consumption today, paid for by the sweat of future generations who must under-consume, with guaranteed profits to the banks. So keep up your jibber-jabber you Leftists, you socialists, you trade unionists, you BBC drones and other assorted morons and riff-raff; the banks are relying on you to keep them in £mega-billion profits.


By Pete Moore On June 1st, 2011 at 6:20 pm

Via zerohedge:

From a note just released by Sanford C. Bernstein & Co. Brad Hintz:

“Goldman Sachs wont face criminal precaution related to sales of mortgage linked securities because such a move could threaten the US financial system.”

Really, that’s all you need to know.

Why, it would be as if there’s a conspiracy! Some would say that the “US financial system” is doomed anyway, at least as far as the state/banking nexus of control goes, and that the sooner it crashes down the better for everyone. But I’m sure those people are misuided, oh yes. The system must be preserved, and if that meant the taking of trillions  from Americans to give to the Wall St oligarchs then so be it. The alternative would have been dreadful, no doubt, but “the system” is saved and economic growth is just around the- oh

“We’re on the verge of a great, great depression. The [Federal Reserve] knows it.”

I’m sure some will come out of it very well. For a clue, it begins with “G” and ends with “oldman Sachs and JP Morgan”. The rest of us will just have to find a place to weather the storm. Greece, maybe. A little old island in the Aegean would be perfect, though it looks like the landlord will be a Mr G Sachs or a Mr JP Morgan, strange to say. Don’t some people just come smelling of roses time after time? It’s almost as if there’s a conspiracy.


By Pete Moore On May 6th, 2011 at 5:23 pm

“Stability” is what the Euro was all about. The Euro would bring “stability”, as if economies, productivity and growth ever need it. Twelve years after the introduction of the Euro and one year after the IMF went into Greece, SPIEGEL ONLINE tells us –

The debt crisis in Greece has taken on a dramatic new twist. Sources with information about the government’s actions have informed SPIEGEL ONLINE that Athens is considering withdrawing from the euro zone. The common currency area’s finance ministers and representatives of the European Commission are holding a secret crisis meeting in Luxembourg on Friday night.

Followed by some statist/banker blather.

Come on Stavros, you know you wanna do it. Look up to Iceland. The banksters told them their country would be ruined, they told the banksters to get stuffed. Now the great Icelandic people are on the road to recovery. Repatriate your gold, default on the debt (you must anyway), replace the Euro with the Drachma or something else and keep it sound. Most of all do it very, very soon; Rhodes is a jewel of the Aegean and I quite fancy a return trip so do your best to make it cheap.


By David Vance On April 19th, 2011 at 8:54 am

David Cameron has has indicated he may block Gordon Brown from becoming head of the International Monetary Fund.

The prime minister said someone who “didn’t know we had a debt problem in the UK” might not be the “best person” to run the global finance watchdog. Mr Brown has been linked with the IMF job in press reports, but Mr Cameron told the BBC the IMF required someone “extraordinarily competent”.

That rules out Brown.


By Pete Moore On March 31st, 2011 at 9:00 pm

Patrick Honohan, governor of Ireland’s central bank, on Thursday unveiled the results of “stress tests” on the banks, a condition of the country’s international bail-out last November […]

Under the stressed scenario, which requires the banks to remain above a minimum core Tier 1 capital ratio of 6pc, Allied Irish Banks needs an additional €13.3bn, Bank of Ireland needs €5.2bn, EBS building society needs €1.5bn and Irish Life & Permanent needs €4bn. The new figure will take the final bill for bailing out Ireland’s banks to €70bn.

In other words, it’s gone from “grim” to “so-grim-it’s-comical”. Where there was once an economy with banks, there are now banks with no economy, and the banks are gone. If the central bankster needs a side-line to help meet the bills, stand-up beckons:

Central Bank chief Patrick Honohan today revealed another €24bn is needed to keep lenders afloat and avoid a catastrophic crash of the entire system.

“Catastrophic” meaning “the unavoidable and necessary remedy” of course. Having tipped a load of capital resources into a property bubble, we’re supposed to believe that tipping another load of capital resources into the black holes which are the banks and their lenders would be to avoid catastrophe. In the meantime, the property bubble is on course to remain popped and a Western world in depression remains desperate for capital investment to fuel production in productive enterprises, a process that would happen if only markets would be allowed to bury the dead. Standby then for the drones to prattle on about how yet more mega-bazillion bailouts are needed.


By Pete Moore On March 24th, 2011 at 7:53 pm

So the Portuguese state is about topple into bankruptcy …

Portuguese Prime Minister Jose Socrates has resigned after parliament rejected an austerity budget.

The defeat is likely to trigger a bailout similar to the rescue packages Greece and the Republic of Ireland had to accept last year.

All five opposition parties voted against the austerity measures, which included spending cuts and tax rises.

…  whereupon the Tribunes of the People fail to agree spending cuts or any way back from the brink.

The likely “solution” is to loot foreign taxpayers to “bail out” the bankrupt Portuguese state so it can “redistribute” even more to the Portuguese people, whose Tribunes failed to agree spending cuts or any way back from the brink, not to mention the lenders who loaned money at risk to the Portuguese state.

Can we stop electing idiots now please?


By Pete Moore On March 22nd, 2011 at 7:43 pm

What a shocker the Bank of England’s mass counterfeiting of the currency causes price inflation. Then again, no it’s not. Can we shut down the central bank and lock’em away now, please?

British inflation jumped to a shock 28-month high of 4.4pc and public borrowing recorded its worst February since records began last month, official data showed on Tuesday. February’s surprise rise will worry the Bank of England which has been battling to bring inflation back to its 2pc target.

Who are they trying to kid? This is a surprise only to those who haven’t looked at a price tag recently. Ten per cent is closer to the mark and it’s only just beginning, such was the scale of money-printing by the Bank to keep the government in (our) business. As usual with these announcements, we have the propaganda. Yeah, we’re supposed to believe this nonsense:

The Office for National Statistics said the worse than expected rise in consumer price inflation was driven by higher housing costs, domestic heating bills and clothing prices … Mervyn King, the Governor of the Bank of England, has said that the January VAT rise and other inflationary pressures meant that prices would likely outstrip pay again this year, leaving real wages no higher than they were six years ago.

The “inflationary pressures” is the inflation. If we are spending more on petrol, housing costs, energy and clothes we have less money to spend on everything else unless the money supply has been expanded. This would mean deflationary pressures for guns, butter, flowers, cars and everything else. The only way that prices can rise in all categories and for all assets is by money printing on a grand scale, which is what we have had and why prices are now rocketing.