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Rotting from the inside out

Does anybody remember that economic genius; Gordon Brown, the unelected Prime Minister? The man that “saved the world” with his wisdom. Perhaps we should have a look at the results of his actions now, some ten years later.

Brown tackled the financial crisis with several hundred billion pounds of Quantitative Easing (money printing). We were assured that this money would be kept on bank balance sheets and wouldn’t result in massive inflation, as was seen in Weimar Germany. The British currency is nearly always compared to the US dollar, Euro or Yen, all economies that have since engaged in massive Quantitative Easing, looked at like this things don’t seem too bad.

It is usually considered that gold is the best store of wealth in inflationary times, but according to some sources, the price of this too is manipulated. A truer picture emerges when we compare our currency to that of a country that hasn’t pursued Quantitative Easing, a country like New Zealand.

For decades, three NZ dollars to the UK pound, give or take a cent or two, was considered normal. Today there are less than two NZ dollars to the pound. Sometimes New Zealand attracts foreign money looking for a safe haven, causing fluctuations in its value, but overall the strength of its currency has been trending upwards for years, now at times up at around forty to forty five percent on its normal trend against the UK pound.

It’s not as if New Zealand has become an economic superpower, far from it. It is the 53rd largest economy in the world measured by gross domestic product and 68th largest in the world measured by purchasing power parity. A country of four and a half million people, a largely agricultural, tourist driven economy with a GDP of one hundred and thirty five billion, compared to the United Kingdom it is a Shire inhabited by Hobbits (no offence NZ).

The United Kingdom has an official population of sixty five million people, is the world’s fifth largest economy measured by gross domestic product and ninth largest measured by purchasing power parity. The UK has a gross domestic product of in excess of two thousand six hundred billion, compared to NZ’s hundred and thirty five billion and yet the Pound is diving against the NZ dollar.

It isn’t that the NZ dollar is getting stronger, it’s that the UK pound is getting rapidly weaker. We’re starting to see the results of a succession of economic geniuses like Gordon Brown. Sometimes, through the lies, spin, rhetoric, platitudes, false smiles and promises, the truth will emerge. Our currency is being tuned into confetti, it becomes ever more apparent that our political leaders are willing to throw us to the wolves to protect their banking and corporate buddies: ‘they’re too big to fail.’

According to an article in the Financial Times, after ten years of Quantitative Easing and other financial stimulus, Western economies are still sluggish, still showing little sign of life. The bond market is under extreme stress and interest rates will continue to rise, this at a time of record debt. Trillions in various currencies have been printed, stoking massive asset bubbles, creating debts upon which interest must be paid.

That our economy is rotting from the inside out, I have no doubt, and that we’re heading into disaster, I have no doubt, I’ve just given up trying to predict exactly how it will manifest itself. Jobs are still scarce, those that remain increasingly involve zero hours contracts, people are in record amounts of debt with the income multiples being required to buy a home at obscene levels, no way will real incomes in any way keep up with the inflation pent up in the system. Underneath the lies and subterfuge of our politicians there are just too many numbers that don’t make sense: there will be no happy outcome to this, there really will be blood on the streets. All this at a time when our population is rising exponentially.

In recent times, our political classes from whichever party have moved towards a left, liberal consensus, they all espouse socialistic ideas. A quote often attributed to Margaret Thatcher goes:

“The problem with socialism is that eventually you run out of other people’s money.”

When this current era of socialist induced financial illusion and deceit ends, this quote could be very profound indeed.

UKIP has a leadership election soon. I’m not resident in the UK and hence not a UKIP member, I really feel that I shouldn’t write articles supporting any particular contender. I will say this though; since Nigel Farage stood down as UKIP leader, his immediate successors tried to join the mainstream political consensus and it has been a failure.

Mainstream, Liberal, Left politics is getting to be a very crowded place, it must be a very lucrative place to be. These politicians though have utterly failed the British people. The time for consensus politics is coming to an end, I think it’ll only be months now before their lies are exposed, although they’ll claim they didn’t see it coming.

As disillusioned as I have become with UKIP in recent months, I still think that it is the only political party likely to give any real representation to the British people: I hope you choose your new leader wisely.

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About flyer (34 Articles)
I'm not living in the UK at the moment, and I'm an ex university lecturer in IT and MBA. I don't belong to any political party but if I was in the UK I'd be with UKIP.

11 Comments on Rotting from the inside out

  1. Oddsbods, we all thought UKIP would make a difference.
    Flyer, Yes the currency has been devalued, exactly as you say.
    Richard, Yep.
    Alan, Too late, best no-one votes and we just wait for someone new to appear. Or another movement.(not party)
    Panmelia, I watched Brown going round the world egging on other socialist governments to do what he was doing: Borrowing. I’ve no idea why.
    Flyer, Borrow to buy gold sovs. I’m sorted for the Hebrides. Or Guadalcanal.
    C.J., Ditto.
    Flyer probably.
    Dee, possibly.

  2. Flyer, your articles are always interesting and often worrying in equal measure. Economics is not my area, but I do recall hearing an interview from Canada some while ago, where the interviewee was saying that Carney created the same problems in Canada, especially regarding artificially inflating their housing market, as he has done here.
    I have also heard it said that the debt, being unsustainable in the US as well, the plan is for the crash to come during Trump’s term in office – so, this side of the pond, blame Brexit, across the water, blame Trump. I think Carney was put here, and has decided to stay, in order to do a thorough job for his Globalist Banker chums – or am I wrong?

    • I suspect you’re not too far from the truth Dee. What has been done to us in the west is actually an attack upon us with the collusion of our politicians that don’t represent us and are unfit for office.

      Don’t for get Janet Yellen’s time at the Federal Reserve is up next year, if she hasn’t brought the US and thus world economy down on Trumps head by then, she’ll at least have sown the seeds.

  3. Agree with you completely. The question is How do we protect our families from the impending crash?
    House prices collapse, debts are called in, leading to a major recession. This would affect all major economies due to interconnectivity and because they have all been using QE. Therefore the reduction in the strength of the pound may not be too bad. But what happens to inflation and how do we make sure assets are protected, store bullion?

    • Ceri – good question, I wish I had all the answers, I don’t know how this will manifest itself. The Great Depression started off as a deflationary crash and then became inflationary, who knows how this will turn out other than it’ll be really bad news and I think a lot worse than the 1930s.

      Imagine an overpopulated little island like the UK, no work, no savings, dependent on imported food and rapidly rising racial tension, a frightening scenario.

      If you can get out of debt, pay off your mortgage, have some tangible assets and obtain some practical skills to make a living, it’s about as much as you can do.

      Me, I’m planning to move off grid somewhere quiet, there will be no Internet, I’ll have to generate my own electricity and generally be quite self sufficient. I can do this stuff so it’s OK, the wife’s not so keen, she’s worried about where she’ll get a descent manicure, I’m working on her though. I like my space.

  4. Blair was always bigging Brown up as the greatest Chancellor in history, and this myth was generally believed at the time.
    Blair loaded Gormless Gordon with praise because he wanted to deflect him from pestering for his turn as PM.
    What a pair: the damage these freaks managed to do to our country over the course of 13 horrendous years is incalculable, not just economically, but socially, culturally, politically, morally, globally. Not to be forgotten or forgiven.

  5. I hope we are allowed to choose our new leader wisely.

    And a question. At what point does misguided doctrinaire political motivation become treachery? I know it is a strong word, even extreme, but we are so indoctrinated by euphemisms, too many people don’t recognise the behaviour for what is it. Deliberate.

  6. Richard Leppington // August 9, 2017 at 9:48 am // Reply

    What a brilliant analysis. You are saying pretty much what Peter Hitchins has been writing in the Mail on Sundays. There is a huge crash heading our way which the political classes will try to blame on Brexit but has been brought about by themselves and their incompetence and deceit. UKIP have to somehow stay on the pitch for when this crash comes. We will be the only salvation for our indigenous people then

    • Richard – Thanks for the post. Yes, blame Brexit is exactly what they’ll try and do. Ridiculous considering this all happened while we were part of the EU, which itself has far worse economic problems, bought about imbalances caused by the ridiculous Euro. I meant to mention this in the article but ran out of space.

      Another point I wanted to make, is that we’ve had 40% probably soon 50% of our wealth stolen to end up in the pockets of bankers and stockmarket speculators etc. This is the greatest criminal criminal heist in history.

      One thing you have to ask yourself about the property market: is property rocketing in value or is it just our currency devaluing, hidden for now inflation. The truth may well be extremely painful for millions of people.

      Our mainstream politicians aren’t just dishonest, lying and deceitful: they’re outright criminal fraudsters.

  7. “I’m not resident in the UK and hence not a UKIP member,”
    Being one does not rule the other out, I have been living abroad for many years and I am not allowed to vote in Britain although I have only British nationality. Supporting the UKIP is one way to make a difference, and living abroad I can see how other people think about the EU too. Their opinions are often not those of the mainstream media.

  8. I still recall Brown at his Mansion House speech in 2008(?) praising the bankers for their creative methods and egging them on to more of the same. Strangely the official transcript does not include the words I heard!

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