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Why is the Economy going to Double Dip |
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Written by Andrew
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Wednesday, 11 August 2010 20:14 |
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I predicted a 'double dip' in one of my first articles on this website before the general election. Its the one about Peter Mandelson.
From an Austrian School of Economics view point it is very easy to understand. Austrian Economists predicted every aspect of the financial crisis but got ignored or ridiculed by Corporatists (too big to fail companies in bed with the Government) and the compliant Media as they are the main group who stand to gain the most by control of any dissent from the artificial Keynesian system that is forced upon us by successive wasteful Governments interested in Warfare and Welfare. Prior to this wars were short affairs to keep the cost down as it was born by the King or rulers and with only Gold and Silver as tender and no printing presses and paper currency to hide inflation the bill could not handed over to taxpayers to fund.
Essentially, today, no real wealth is being created, the stimulus from Quantitive Easing and the secret payments made by Americas Central Bank, the Federal Reserve, to ours and other Central Banks, is keeping the system going for now but it is failing to work. Too much debt is the problem, injecting more cash into the system will only make it worse for longer like Japan has seen the last 20 years of zero.
When the Central Bank of England artificially keeps interest rates low it is trying to send the signal that there are lots of savings out there in bank accounts from people producing wealth, under consuming and living within their means. (In the free market, the more cash on account from savers the less interest the bank has to offer. Less savings means they will be willing to pay more). Now, today, banks are bust and living on the loans the taxpayers gave them. (just like you or I living on our credit cards). They are not lending but using the money to shore up their balance sheets. Our financial services based economy produces little new wealth from manufacturing but merely shuffles around wealth created by others. This was spent on hugely over valued houses because banks would lend you 5 or 6 times the price with nothing down as a deposit. As few first time buyers come into the market the whole system losses its pyramid marketing base and is waiting to topple. Printing money by the Bank of England and inflation may hold this off for a while but the pound will be worth nothing as the Government and BOE steal from the prudent responsible savers to pay for their mistakes. Inflation is a hidden tax and part of every Government's policy since the war despite protesting they are against inflation. (Ask them if they are happy to have Deflation to correct the Inflation and you will get even more resistance, yet Deflation is the cure to the theft of inflation.)
The Free Market would weed out this type of behaviour and our economy would flourish if Central Planning is made illegal and those responsible held to account and wrong doers jailed for considerable time. Bankers, Politicians, Judges, lawyers, civil servants and police all work for the system and those who run the system, the financial elite. To get them to convict their accomplices would be very difficult but social unrest and a dire economic outlook may be the spark that moves decent people to rise up and challenge those who live off our misery. We live in troubled times and our Victorian Financial and Political System is collapsing and exposed just like the Emperor and his clothes. Only liberty, responsibility and free markets can truly reverse this. If the Free Market eventually corrects all malinvestment and if we and future generations have to pay the bill anyway, wouldn't it make sense to save all the waste trying to plan the economy and just accept the reality of free market economics? There would be little for Governments and Politicians to meddle with and ruin. Prices would tend to fall and resources would go to those who make the best use of them and provide the best goods or services at the lowest prices. This is greener (if you follow that school) and benefits everyone and crucially it benefits low income groups most as their money goes further with increased buying power. Deflation is good not bad. It is a natural correction for the grossly overpriced goods and services we have in this country. Houses, food, energy etc. all cost way more than they would under the free market. The most efficient producers would prevail and those who have been able to manipulate markets and prices in the short term would go out of business. These people would then find other gainful enterprise where they are competitive and in turn displace those who are inefficient and so on. All benefit in the mid and long term and the best part is the state shrinks to the roles it can take on like protecting our borders against attack and illegal immigration, ensure we have a fair, affordable and efficient Legal System and to Police our streets. Private Enterprise, small and medium sized businesses would be taxed minimal amounts and freed up to innovate and manufacture the products, goods and services which these Isles are famous for inventing. Remember, Government trade protection only works in the short term. Preventing cheaper goods from entering the country means the economy as a whole is poorer by that exact amount having to pay higher prices with the poor being hardest hit. You can chose to buy a cheaper item or go for the more expensive option. Currently you can only chose the more expensive and these producers sweeten Government with backhanders to keep them at the top and competition out. his means they are highly inefficient and the population pick up the bill.
Free markets are a 'perfect system' and served the world for 6000 years until central banks and central planners invented paper 'fiat' money in place of gold and silver. The wealthiest do not necessarily prevail but the most efficient do. This is fair to all.
For further reading visit the link to the Austrian School von Mises website in the links section. Watch the refreshing Ron Paul and Peter Schiff clips on Youtube as they give a moment by moment assessment of the current crisis and solutions as a way out of it.
Once you understand free markets you will see the damage that planned economics do in creating wars and welfare and you will become profoundly aware of why the world is in the mess it is. Mostly down to the actions of our Government, America's and Israel's and Central Banks and Central Planners.
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Last Updated on Saturday, 14 August 2010 11:40 |
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The next big bubble to burst will be 'inefficiency' |
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Written by Andrew
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Sunday, 11 July 2010 21:44 |
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The next big bubble to burst will be 'inefficiency'. It may sound a little odd to even think of inefficiency being a bubble but it surely is and it transcends all other bubbles. As State Capitalism (Crony corporatism) takes hold as the key economic strategy favoured by the Wealthy Elite to protect themselves from ruin at the hands of the free market and forcing regular taxpayers to bail them out, we see that this is by far the least efficient and cost effective way of running any business or country for that matter.
Certainly, if a company has a wealthy backer then everything can look rosy for a number of years like Blair's Economic Miracle financed by phony bank credit. But eventually the bills become due and the UK's Quantitive Easing and pure Federal Reserve's Counterfeiting. Another unfortunate side to State Capitalism's inefficiency is that other countries around the world who are not participating in this scam are getting a healthy headstart over countries like the USA, UK and EU states. Once those jobs and industries go overseas it will be almost impossible to get them back under State Capitalism. Governments interfere more to save us from the problems they created and our freedoms and liberties vanish. The Free Market hasn't failed - it cant - thats like saying mother Nature has failed. She cannot fail. One loss is another's gain. It's all in balance as we hear so often on nature programs. The Central Economic Planners blame 'Capitalism' for our woes. Unfortunately we have not had true Capitalism for 115 years in this country. With Central banks and Politicians setting low interest rates and falsely sending out signals of wealth and savings, half of every transaction in not only managed, it's a lie. Only a return to zero Government interference in the markets will allow entrepreneurial skills to flourish and rebuild our nation. The alternative is the USSR Mk 2. The Soviets went bankrupt in Afghanistan and by printing money and debasing their currency the rouble. We are doing the same. Your barometer is the price of gold.
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Last Updated on Monday, 12 July 2010 11:07 |
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Written by Andrew
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Wednesday, 30 June 2010 20:12 |
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I have said before that Gordon Brown and David Cameron - New Labour and the Conservatives - are a continuation of each other. It is clear that little will change over the next four years and this of course will be blamed on the LibDems tempering influence. 25% percent cuts in Government spending may sound harsh but that is over four years - so 6.5% per annum is the true figure so you can see they are really afraid people will realise they are not cutting Govt spending enough. To get out of this mess it would need to be cut by nearly 50% in ONE YEAR with halving of all taxes across all income groups. Get it over and done with quick and we can recover quicker with all the bad debt and malinvestment purged. Woodrow Wilson did exactly that in the Forgotten Recession of 1920-21, (look it up on Google), when a recession started, the economy dropped by 16 percent with 20% unemployment. No banks or Corporations were bailed out and the economy recovered in a year and gave rise to the Roaring Twenties. Of course Banks and Corporations didn't like going bust and losing their trousers. They wanted a 'lender of last resort' the tax payer via the Federal Reserve Central bank. They became Cartelised and scheming to protect profits and markets and ensured that if there was another recession Banks and the Big Boys would always get bailed out by the Tax payer. Socialism for the Rich and Capitalism for the poor. So back to Brown and Cameron who seem so different. They are. But just like the different sides of the same coin they are ultimately joined in the common purpose of spinning and flipping. It's heads they win and tails you lose. Brown, who really works for the banking Cartels, ensured we are all stuffed full of debt, handed out at low interest rates. Recessions alway start by cheap credit going to those who cant repay, so Brown and everyone else are well aware of what caused it. Remember that the Banks didn't force Brown to hand over £1.3 trillion pounds in Bail outs and Guarantees, he handed it over with hardly a cross word when he should have been instruction the Courts, the FSA and the Bank of England to seek out and prosecute those who were responsibly for the banking Meltdown gambling with high street bank savers deposits. But they were too busy ensuring the fraud was carried out to be bothered with that and then again Brown was the one who was persuaded by the Banking Cartels to relax the legislation that separated High Street and 'Gambling' Investment Banks for 70 years. So he would be actually prosecuting himself. Iceland is hunting down its Banksters and we should be doing the same. There are about 5000 of them who should be stripped of all personal wealth and assets going back fifteen years regardless of whether its offshore, in trusts or their wives names. Now Brown has gone, a new saviour has arrived and he is called Cameron the Collector. He is going to make sure that tax payers fund the bail out, the repayments that the Banks should be repaying and the Bank Levy which has to come from Bank customers. You can now realise that Mass Immigration into this country was done to distract the population from the massive fraud of the bail out. We were looking in the wrong direction. Immigrants have been used as cover in this despicable fraudulent wealth transfer that enriched the Financial Elite at the Expense of the less well off.
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Tim Geithner visits George Osborne at No. 11 |
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Written by Andrew
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Wednesday, 26 May 2010 21:22 |
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Tim Geithner is the US Treasury Secretary, Ex Chairman of the New York Federal Reserve. He is over here pushing for banking reform. That's like Ronnie Biggs standing outside the bank he just robbed and saying it needs better security next time! Federal Reserve Bank poses as a nationalised US Government Agency when in fact it is a cartel of 7 offshore banks that has never been audited, operates in secret and does not answer to anyone including the President of the US. That makes Ben Bernanke, the Chairman of the Federal Reserve, the most powerful man in the US. He can and has been printing trillions of dollars over several years out of thin air to fund most of the debt the world is in. The Federal Reserve loans out fake dollars and you have to pay back in real money - 'Passing the Buck'. This would normally cause monetary inflation but the US Dollar is in the unique position of being the World Reserve Currency, basically, the one that all nations trust above any other currency and oil is traded in dollars too. Monetary Inflation is therefore exported to the countries that accept the dollar. They dont realise it but the dollar is actually worth very little and as long as no one starts rejecting the dollar and using another currency such as the Euro then the illusion is complete, the Emperors Clothes stay visible. If China, who holds most of Americas debt started to sell dollars it would collapse the currency and the dollar would be gone. China cant offload its dollars because it needs to loan them back to America so America can buy Chinese goods. That's the same as me giving you £50 and then asking you to spend it in my shop. The economics of the madhouse. America is broke, it has been for years. It can only print dollars to pay its bills and monetise the debt as Government Bonds etc. If Gold and Silver were legal tender then those who print dollars would have serious competition which would stop the government backed counterfeiting operation. Saddam Hussein sold 3.5 billion barrels of oil in Euros instead of dollars and Bush Senior attacked him at the first excuse, which was really a set up over Kuwait's borders. So Tim Geithner is over here telling us to reform our banking system eh? It's the Federal Reserve that needs reforming, auditing and abolishing along with all Central Banks and Central Planners. If they couldn't make a go of it in the wealthiest period in history then they have to face the truth that Central Planning doesn't work. You cannot predict the irrational buying decisions of people - you just have to let it be and we will all prosper and be in control of our lives with real aspiration and opportunities for everyone equally, not just the financial elite.
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Last Updated on Thursday, 27 May 2010 15:32 |
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