The Collapse Of The Economic System Thanks To American Warmongering

After blogging yesterday on the Obama Administrations latest loonytoons plan to ‘kick-start’ the (US) economy, which you can bet our equally inept government will not be long in taking up, I though a mash up of snippets from financial papers and blogs might be a good way to kick off today, just to show you all again that despite the propaganda happy pills we are given every day, the global financial system is still FUBAR and our leaders (of any mainstream political party) do not have a clue what to do next.

This first story is something I have warned was imminent many times:

from Zero Hedge

The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

A little over a month ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative. This changed rather dramatically overnight when in a little noticed statement, Gazprom’s CFO Andrey Kruglov uttered the magic words (via Bloomberg):


In other words just as the US may or may not be preparing to export crude – a step which the clever boys and girls in Washington have nopt yet worked out would weaken the dollar’s reserve status as traditional US oil trading partners will need to find other import customers who pay in non-USD currencies – the world’s two other superpowers are preparing to respond. And once the bilateral trade in Rubles or Renminbi is established, the rest of the energy world will piggyback. [ Continue Reading ]

First Russia and China, then UAE, Egypt, and Turkey… and now it appears Germany is pulling the rug out from under US hegemony

First Russia and China, then UAE, Egypt, and Turkey… and now it appears Germany (following a phone call with Putin) is pulling the rug out from under US hegemony – just as Obama’s warmongery ramps up…


Which is odd because just yesterday, President Obama (who never lies) stated “The United States is and will remain the one indispensable nation in the world…” adding that “no other nation can do what we do.” Perhaps he is wrong? Oh, but it’s racist to suggest he might be wrong

Read more

Meanwhile Der Spiegel was reporting fears among the German business community:

Just a day after the US sanctions were announced, the German-Russian Foreign Trade Office in Moscow was besieged by phone calls from concerned German companies who do business with both the US and Russia. The German Chambers of Commerce and Industry estimate that up to a quarter of German companies that do business abroad could be affected. And the risks are significant, with large fines threatening those who violate the American sanctions, whether knowingly or not.

Stefan Fittkau, who heads the Moscow office of EagleBurgmann, the Bavaria-based industrial sealing specialists, says company sales have already plunged by 30 percent. “Orders have been cancelled or delayed — or we simply don’t receive them anymore,” he says. Novatek, Russia’s second largest natural gas company, for example, had hired EagleBurgmann to take care of seals at a vast liquefied natural gas facility on the Yamal Peninsula in Siberia. Now, though, doing business with Novatek is no longer allowed.

(extracted from Der Spiegel)]

As Boggart Blog has told you previously, the rush to suck up to Obama by imposing the sanctions the USA demanded on a nation that is a much bigger trade partner of the EU than the USA, is backfiring with European economies being hit far harder by the measures than the Russians.

Argentina And A Few More Countries Near Bankruptcy

So the QE led recovery is surging ahead all around the world? Well that’s the fairy tale being pumped out by mainstream media as the elite grow increasingly fearful people are catching on to just how totally screwed up we are thanks to the efforts of the Oligarchic Collectivism of the globalisers.

from Hang The Bankers
Latin America’s third-largest economy, Argentina, defaulted on scheduled payments on its government bonds at the end of July. Credit agency Moody’s reported Argentina’s one-year Sovereign EDF (Expected Default Frequency) to soared 48% in one week earning the country a Caa1 rating.
A Caa1 rating is well below the first level of bad rating Ba1, which already indicates a significant credit risk- Argentina Moody’s credit rating is Caa1; or Negative.

Here’s a few more negative ratings; Cyprus Caa3, and Greece Caa3. You would expect these countries to have these types of ratings as their economies have all but collapsed with banks defaulting as well as governments if were not for EU bailout packages and assistance from IMF/ECB and even the US Federal Reserve.

Alongside them however is Egypt with Moody’s credit rating Caa1, Jamaica Caa3, Pakistan Caa1, Ukraine Caa3, Venezuala Caa1 and finally Belize Caa2 – any one of these countries could effectively go ‘bust’ at any moment, plunging the world into another crisisette. But should one of the bigger economies go ……

All of which goes to show what you read or hear in mainstream news is a joke:


Russia throws down the gauntlet: energy supply to Europe cut off; petrodollar abandoned as currency war escalates
There are some big moves taking place on the global stage that you need to know about, as this could all lead to World War III. Yesterday Russia cut off its natural gas supply to Europe, “plunging the continent into an energy crisis ‘within hours’ as a dispute with Ukraine escalated,” the Daily Mail reported. “This morning, gas companies in Ukraine said that Russia had completely cut off their supply. Six countries reported a complete shut-off of Russian gas shipped via Ukraine today, in a sharp escalation of …

Mass Immigration Means Failing Hospitals, Schools And Overcrowded Cities

Mass immigration into Britain could lead to failing hospitals, overcrowded classrooms, water shortages and the need for hundreds of new cities, a new report warns. Metaphors involving bolting horses and stable doors spring to mind.

This is of course exactly what Boggart Blog, UKIP bloggers and common sense merchants have been warning about for twenty years as the Labour Party and Liberal Democrats have been screaming that we must open the flood gates and let anyone in who wants to come here (including terrorists, seditionists, murderers, rapists, gangsters and arseholes fleeing justice in their own nations.)

The report, written by Robert Rowthorn, Emeritus Professor of Economics at the University of Cambridge for think-tank Civitas found that heavy immigration will have an overall negative impact in living standards as any economic benefits will be outweighed by extreme pressures on amenities (read the .pdf published by Civitas here).

Or if you are one of those precious lefties who will not take my word because I’m one of those nasty bigots who refuses to agree with you, read another report here. Needless to say The Guardian and The Independent will not be giving a lot of space to this story.

The report warns that particular strain will be placed on schools, housing and hospitals. It also forecasts that while overall Gross Domestic Product (GDP) could rise, the effects on GDP Per Capita would be minimal.

Now normally I don’t pay much attention to academics, particularly economists, but in this case what is being reported correlates with what businessmen and sensible politicians (not necessarily Conservative or UKIP, do the names Jack Straw and David Blunkett mean anything to you? (I’ve linked to Huff Post and the Daily Mirror, they don’t give the best coverage but even the most rabid lefties can’t say they are right wing extremist sources.)

Prof Rowthorn warned: “Unrestrained population growth would eventually have a negative impact on the standard of living through its environmental effects such as overcrowding, congestion and loss of amenity.

“Such losses would ultimately outweigh the small gain in average wages apparently resulting from mass immigration.”

Figures from the Office for National Statistics suggest that the UK population will grow by 20 million over the next 50 years, and 29 million over the next 75 – and that is from immigration alone.


How to stop Google tracking your every move
Do you ever get the feeling you are being watched or followed? OK, it could possibly be because you are paranoid but more likely you’ve noticed a few things that are just beyond creepy when you are using the web and particularly Google services. For example, has an advertisement for a product or service ever popped up on your screen just after you were talking to someone about it?

How Prostitutes And Drug Pushers Are Driving Economic Recovery

prostitutes boost gdp Entrepreneurs working to boost GDP (source)

Back in May Italy started a trend by announcing a plan to “boost” its GDP figures through the simple expedient of adding the estimated impact of cocaine and hookers.

(A note to the economically illiterate here, NB Ed Balls, Vince Cable, George Osborne and that bloke who looks like Scooter from the muppets – GDP is not a measure of how well an economy is doing but only of how much money is churning around in it. This is where post Keynesean economics fails, economists are so thick that can believe that by raising taxes to produce £300million revenue, importing a million immigrants and paying then £300 a wee in benefits actually grows the economy by £600million a week.)

Riding on the back of this pros, pimps and pushers economic gimmick to make the economy look better Britain, the – ahem – most successful economy in Europe at the moment – ahem – has decided to get in on the act. The Office for National Statistics will in future also include the “contribution” made by prostitutes, pimps and drug pushers to make its GDP look a little stronger. Really, I wasn’t aware prozzers and pushers had started registering with the Revenue and charging VAT. And as we are talking of Value Added Tax, in the case of commercial sex surely the value is added by the punter and not the vendor after all beauty is in the eye of the beholder.

According to The Guardian “for the first time official statisticians are measuring the value to the UK economy of sex work and drug dealing – and they have discovered these unsavoury hidden-economy trades make roughly the same contribution as farming – and only slightly less than book and newspaper publishers added together.”

How big of a “contribution” does ONS expect the good, old fashoned “vice” make to that Holy Grail of irrelevant economic statistics, the GDP then? I wan’te Here are some quotes from ONS documents:

Illegal drugs and prostitution boosted the economy by £9.7bn – equal to 0.7% of gross domestic product – in 2009, according to the ONS’s first official estimate. A breakdown of the data shows sex work generated £5.3bn for the economy that year, with another £4.4bn lift from a combination of cannabis, heroin, powder cocaine, crack cocaine, ecstasy and amphetamines.

Did you spot the problem? Since one can’t report on a tax return that the source of income is have paid sex or selling illegal drugs, the ONS has to to estimate the economic contribution by these illegal professions. This is how it has gone about doing it:

According to the estimates there were 60,879 prostitutes in the UK in 2009, who had an average of 25 clients per week – each paying on average £67.16 per visit.

Really, £67.16? Do prostitutes use per second billing like phone companies?

So complex are the billing methods of those who trade illegally (whatever happened to the cavalier approach to accounting displayed in “The Ling Good Friday” expressed in the line “Give ’em a grand for the inconvenience.”) an excel spreadsheet model has now been created to calculate the hypothetical GDP boost to the nation is. Making things even more surreal, and confirming the GDP calculation is officially a statistical joke, here is how drugs are accounted for:

The statisticians reckon there were 2.2 million cannabis users in the UK in 2009, toking their way through weed worth more than £1.2bn. They calculate that half of that was home-grown – costing £154m in heat, light and “raw materials” to produce

The models will need updating constantly, sex and drugs being about the only truly free market activity, cost and prices vary constantly according to supply and demand. The ONS says:

“Our agents will work in the coming months to bring the data more up to date. The figures will then be included in the broad category of household spending on “miscellaneous goods and services” alongside life insurance, personal care products and post office charges.”

It is unclear if the ONS will pay for its agents to conduct due diligence in various brothels, or alternatively conduct “inhouse” sessions at the headquarters. What is clear is that quite soon the largest marginal provider of “growth” not just in Britain but all of Europe will be illegal activities:

Alan Clarke, a UK economist at Scotiabank, said that although the government would not feel the benefit of illegal work in terms of income tax take, there would be a spending boost. “A drug dealer or prostitute won’t necessarily pay tax on that £10bn, but the government will get tax receipts when they spend their income on a pimped up car or bling phone.”

Drugs and Prostitutes Are a Surprisingly Large Chunk of Italy’s Economy
High Class Prostitutes Are Used As Bribes In Business Deals

Inland Revenue a Dysfunctional department that ‘can’t be trusted’ with power to raid bank accounts

America’s Dumbest Move Yet: Hijacking A Foreign Bank

Economic Recovery or The Return Of Insanity?

Remember the insanity of Labour’s economic boom when Gordon Brown and Gauleiter Ed Bollocks masked from us the fact that we were already up to our necks in rising shit by forcing property prices up with easy credit, letting bankers trade toxic debt and telling us the economy was actually growing. And remember how some economic genius in the Treasury, backed by a fuckwit economic genius called Krugman who knows less about economics that a turd said the only way to reduce a crippling deficit is by offshoring all our manufacturing industry, inviting mass immigration to a land with no jobs to offer and borrowing shitloads of money that we could not repay (coz the economic genius who apparently won a Nobel prize for fuckwittery economics said if you let in a few million immigrations, and pay them benefits then they spend money in the UK economy and it creates growth).

Well the insanity is back. There are several reasons, first there is an election in the offing so the economy needs to be talked up. Second, the same fuckwith economists as advised Labour prior to 2010 are advising the coalition now and giving the same bad advice. Third, there is another economic crisis looming and the only way to delay it until the elite have got all their assets converted to gold or commodities is by inflating a new debt bubble. Inflation isn’t really down, unemployment isn’t really improving, and silly interest rates having failed to stimulate the economy are still crippling pensioners and savers.

Now only an economist or a Labour politician (they’re more elitist than the Tories you know) could be fuckwitted enough to think GDP is reliable measure of economic performance. It measures money churning in the economy, not money being made. For a picture of how insane the system is, read Creating Wealth in which I explain how the illusion of economic growth works. I tried to make it simple enough for even a Politician or University Lecturer in economic to understand.

but if that is too difficult, here’s a clip from the 1986 move Back To School in which Rodney Dangerfield pays a self made millionaire who goes back to school to complete his education. In this scene Dangerfield’s character finds himself having to explain the realities of life to a cupid stunt of an economic lecturer who has spent all his life studying the “theory” of business and never held down a real job in the real world. If you are a sane person, you’ll enjoy this but if you think what the country really needs is another dose of fuckwit economics then you should not even be in my site. GET OUT NOW!

The reason I am posting this dire warning is that at a property auction last week a large garage in Camberwell (London) – somewhere to put a car at night, that is, not a repair business or petrol station – was sold for £550,000, having been put on the market by Southwark council as a “development opportunity”. A man from property website Zoopla told the Financial Times that “the buyer could create a significant return despite paying what seems like an extortionate premium today”.

In other words, if you own a shed you are probably richer than you think, just watch globalised capital’s alchemy turn rotten wood into gold. but don’t wait to long before cashing in your chips.

Experience should tell us that even if George Osborne’s property bubble is lifting prices all over the UK as the Brown Bollocks boom did between 2002 and 2010, London has long since left everywhere else on the ground. Over the past year, property values in the capital have risen by 18% and the gap between prices there and the rest of the UK is the biggest since records began. The average monthly rent in London is now £1,125. A garage can sell for half a million in London, you can buy a two bedroomed terraced house in reasonable condition in a not too bad street in Blackburn or Burnley for £25,000 (you can actually buy a “development opportunity” for £2000.

The cost of a house in London and the south east is now beyond all but the wealthy. The cost of a house in most parts of the midlands and north is beyond couples on average income. So who benefits from a property led boom? The bankers, that’s who. The finance industry not only fixes economic policy in its own interests but also sucks up public investment. The dire political consequences of this are all around us, though a capital-focused media often fails to see them. But the truth is we are now in a worse state due to economic mismanagement than we were in 2010, 2008 and 2001, in the wake of the last three crashes.

And the conservative politicians tell us they are doing well, and the Labour politicians tell us they would do better by repeating all the mistakes they made during thirteen years of misrule between 1997 and 2010.

We’re fucked. Vote UKIP.

USA, Russia and Sanctions: The Real Situation

Yesterday someone commented on my post about the threat of the Ukraine dispute turning into economic warfare, that the USA would be immune to economic fallout from any trade war because the world trades in US dollars. Now knowing what I do about the dross printed and broadcast by US mainstream media, I could not criticise anybody for clinging to this piece of propaganda, but in reality the situation has been changing for some years.

So when you read reports that Russia is ready to hit back with counter sanctions against the EU and US should they try to use economic measures to force the Kremlin’s hand on the Ukraine issue, be afraid. Since the start of the Iraq war, the economic landscape has changed enormously. The USA is no nearly as dominant as it was, due to the actions of the last two US administrations Uncle Sam has little goodwill to trade with. China has already revealed plans to replace the US$ with a new reserve currency and similar plans have been discussed in G20 sessions because of fears about the systemic weakness of the US economy.

The President and Scooby Doo villain Secretary Of State Kerry are not in a strong enough position to indulge in sabre rattling.

“We hope that there will only be targeted political sanctions, and not a broad package affecting economic trade, “Our sanctions will be, of course, similar, ” Deputy Economic Development Minister Aleksey Likhachev the Russian Economic Ministry has said .

One way Russia will use to protects its economy from sanctions is by shifting settlements of bilateral trades to other currencies. China and Iran have already taken the lead in this, following a move by the late Saddam Hussein which I blogged on some years ago (How Saddam May Yet Win The War ) The old tyrant was merely giving the finger to bill Clinton’s White House but he established a precedent that others noted.

America’s vulnerability to attacks on the dollar is summed up in this comment made by Aleksey Ulyukaev, the Minister of Economic Development said in an interview with the Vesti 24 TV channel.

“We need to increase trade volume conducted in national currencies. Why, in relation to China, India, Turkey and other countries, should we be negotiating in dollars? Why should we do that? We should sign deals in national currencies- this applies to energy, oil, gas, and everything else,”

The Duma, Russia’s parliament, is drafting legislation to allow Moscow to freeze assets of Western companies and individuals in the event sanctions are imposed following the Crimea referendum vote on March 16.

#Such a law would give The Kremlin “opportunities to defend our sovereignty from threats,” according to its author, Andrey Klishas, as quoted by RIA Novosti on March 5.

With Russia and China already dumping dollar reserves and US Treasury bonds this could easily spell trouble if Obama and Kerry are not careful. The US Congress has already denounced Russia’s actions in Ukraine. Last Tuesday, congress approved a resolution that urges The White House to “to work with our European allies and other countries to impose visa, financial, trade and other sanctions on senior Russian Federation officials, majority state-owned banks and commercial organizations, and other state agencies, as appropriate.”

Earlier this week the European Union threatened to impose further sanctions on Russia starting on March 17, after the referendum in Crimea takes place on Sunday. Speaking to the German parliament, Chancellor Angela Merkel hinted sanctions would be needed if Russia “continues its efforts to annex Crimea or bring down the EU supported rebel government of Ukraine. Merkel warned that if Russia does not back down the result would be to change the European Union’s relationship with its neighbour. She is right of course, Germany depends on Russian gas, if Putin turns off the tap it would quickly cripple the German economy.

The real clincher in determining how the Ukraine confrontation will play out is China. Seemingly far removed from this dispute, China would appear to have little to gain from involving itself in a dispute between the western powers and Russia. China’s ambassador to Germany Shi Mingde, has warned however of the global economic affect sanctions against Russia could hold. Mingde said the geo-political tiff between Russia and the West could “spiral” into chaos (by whih he probably means a shooting war or an economic crisis to make 2008 look like a short term cashflow problem).
President Putin and the Russian foreign ministry have both said sanctions against Russia could backfire, and spill over into the global economy and Moscow’s Foreign Minister Sergey Lavrov denounced any “hasty and ill-considered” sanctions as being likely to cause “mutual damage”.

Iran-style sanctions on Russian trade appear impossible because the EU would be much more exposed than the US and as Putin has warned, the American economy would be massively exposed should Russia decide to dump the dollar reserves it has built during years of exporting gas and oil.
The European Union nations import around a third of their gas and many other natural resources from Russia, and several nations are completely dependent on Russian gas. The US and Russia trade very little so it is difficult to see what harmful effect US sanctions could have (but since when did Barack Hussein Obama, the ego on legs, think through such foreign policy subtleties), but Russia is Europe’s biggest customer, and the $13 trillion EU economy would be devastated if trade with Russia was halted overnight.

So to summarise, collapse of the dollar, crippling of the EU economy and global financial chaos and the presentation to China of an enormous opportunity; does anyone still think the US has no need to fear the consequences of economic conflict with Russia? On the other hand, Russia is not truly a democracy, The Kremlin will simply tell citizens any hardships they face are due to the evil western nations and anyone who questions that had best get their affairs in order. Simples.

‘We Got Duped’: Ukraine Billionaire Slams EU Free Trade ‘Fraud’
E Bomb? Putin Has Obama Over A Fracking Barrel Again On Economic Sanctions
Former US Presidential nomination runner Dennis Kucinich says US instigated Ukraine Crisis

World On The Brink – USA And Russia Square Up In Ukraine

There Is A Global Conspiracy Says World Bank Insider

Ode To Politicians

Deliberately Wrecking Our Planet

The Beautiful Scam Behind the Stock Market Chaos

Picture Source:

The Dow Has Already Fallen More Than 1000 Points From The Peak Of The Market
The Financial Markets are a beautiful scam. Take a look at what has happened in the past few days in the context of market activity over the past year and then I’ll tell you how the scam works.

“On Monday of this week the Dow Jones Industrial Index was down 326 points. This followed sharp falls towards the end of last week. Overall, the Dow dropped more than 1000 points from the peak of the market (16,588.25) back in late December.”

The Economic Collapse blog said this:

“This is the first time that we have seen the Dow drop below its 200-day moving average in more than a year, and there are many that believe that this is just the beginning of a major stock market decline. Meanwhile, things are even worse in other parts of the world. For example, the Nikkei is now down about 1700 points from its 2013 high. This is causing havoc all over Asia, and the sharp movement that we have been seeing in the USD/JPY is creating a tremendous amount of anxiety among Forex traders. For those that are not interested in the technical details, what all of this means is that global financial markets are starting to become extremely unstable.

Unfortunately, there does not appear to be much hope on the horizon for investors. In fact, troubling news just continues to pour in from all over the planet. Just consider the following…

Read all …

Now unfortunately to some people the word market has become a sacred cow in the way that words like gay, lesbian, black, equality and disadvantaged have to others. The fact is financial markets have little to do with free markets. The financial markets are and always have been the most tightly controlled and heavily manipulated area of international commerce.

Since the 2008 crash the global economy has stagnated, even China’s economic miracle is stalling. As John Steinbeck told us, “The monster has to grow or it will die, and if the monster is to grow it must be fed.” The question is how do we feed a growing monster when the food supply is static. And the answer unfortunately is that the monster must be allowed to steal our share of the food supply.

After recovering gradually from the 2008 crash, stocks finally returned to pre crash levels sometime last year (or maybe late in 2012, I don’t keep statistics. At that point the monster was close to starvation. And so the store of food in the larder had to be made to look greater than it was.

How is that done? Traders working for the big banks start to force up prices by holding stocks and only releasing a trickle to be traded. The media play their part by hyping positive economic news and creating the impression that economies are growing strongly. Prices start to go up and everybody wants a piece of the action. Fund managers pile in although they understand how the game is played, so your savings and pension funds are invested and eventually individual small investors are sucked up in the tsunami of false confidence.

Then comes the point where the big investors have taken as much as they want out of savings and pensions. Sell, sell, sell, the cry runs round the market and the pre planned panic takes hold. Fund managers are first to offload stocks and get into cash or bonds, small investors cannot react as quickly and are hit hardest. The market goes through what is euphemistically known as a ‘correction’ and when it bottoms out the big investors quietly start to buy up stocks again, ready for the next bubble.

If you are not one of the people being hit there is a certain poetic beauty to it really.


Debt threat to civilisation
Death by debt
Creating Wealth
Naked Finance – streaking in the markets

Our New Unhappy Lords
Debt Crisis

Bollocks Is As Bollocks Does

Anyone hear the Labour Shadow chancellor Mr. Bollocks talking bollocks on the Andrew Marr show this morning? Apparently Mr. Bollocks thinks the way to solve our problems is to raise taxes for “the rich”, erase the deficit by printing shitloads more money.

“Ed Balls has rejected claims that Labour’s pledge to bring back the 50p top rate of income tax is part of an “anti-business agenda” in the party.

The shadow chancellor said it was a “fair” measure to be used while Labour reduced the “huge” deficit it would inherit if it won the 2015 election.”

Would that be almost exactly the same huge deficit as the coalition inherited from Labour when they took power in 2010?

Bollocks also said the coalition had failed to get to grips with the deficit and Labour would take a different approach to reducing the budget. Was he talking bollocks again? Well the only thing we have seen from Labour that even faintly resembles a policy for dealing with inflation are the hints that pensions and savings of ordinary people might be raided to fund “action on climate change to save the planet.” (see Little Nicky Machiavelli today for more on the climate scam)

The Death By Debt Of Western Civilization

debt burden
Picture: The Debt Burden. Source:

For every £1 which the Labour government added to the British economy between 2001 and 2009, they added £5.40 in debt (source below). That statistic puts into perspective the news that unemployment is down, inflation is on target and growth is up. This does not really mean the economy is staging a Lazarus style comeback. It is bad news really because the wrong message will be inferred, as Cameron’s showboating in Parliament and Gideon’ Osborne’s jumping on the conference table in Davos and yelling, “We’re the Bits, we’re well hard and we’ll take you all on,” have demonstrated.

Among the youngish men who have never had a proper job in the real world but think a PhD in Philosophy, Politics and Economics and a few years experience as a political researcher makes them an expert in everything Nick Clegg is furthest off the mark in thinking that the signs point to closer links with Europe and eventual entry into the Single Currency system. He wants more public spending and will we all stop accusing pervy Lib Dem politicians with perviness please. Boris Johnson has argued in the past that we should “dump the rhetoric of austerity today,” while rousing choruses of “Happy Days Are Here Again” have been heard around Conservative headquarters. At a time when the economic situation demands a serious attempt is made to explain why austerity is necessary and a more vigorous implementation is vital, the Prime Minister and Chancellor want us to buy bigger houses, the Deputy Prime Minister wants to spend more and the Mayor of London wants us to close our eyes and ears and pretend we’re in a safe place.

If the latest statistics tell us anything at all, it is that despite that the official huffing and puffing about recovery, Britain’s economy has run aground on the shoals of stagnation (don’t we British love a nautical metaphor). There many be more jobs, but we must remember that many of them are part-jobs, only offering twenty or thirty hours work per week. This is evidenced by the lower productivity and no real growth in the economy.

Let’s be honest for a while, pumping the equivalent of five per cent of GDP into the economy by printing money (aka Quantitative Easing) while only managing to show two per cent growth is a recipe for financial catastrophe. And with official inflation still running ahead of GDP growth (and real inflation even higher) in real terms the economy is still shrinking. If people earn roughly the same as they did seven years ago, before the credit crunch, and the real cost of living has risen in the region of four to five per cent each year, the difference in lifestyle will be enormous.

While interest base rates (the rate government lends to banks) remain near zero while the banks charge much higher interest rates for lending the money straight back to government at over three per cent (yes, that’s how Quantitative Easing works when governments have a structural deficit), costs will continue to rise and wages will not . Currencies will continue to go down like the proverbial Lead Zeppelin against commodities and energy costs will go on rising. We truly do live in Interesting Times, and they will not be ending soon.

The question of when Britain will return to real growth as opposed to growth through manipulated statistics (there’s an election just over a year away remember) is difficult, but from every side of the argument there is one common but completely wrong headed assumption, that if we follow the right policies now then we will be back up and running at 3pc annual growth in three or four years.

The fault lies with neither Labour, Conservative nor even Coalition government. The rot set in decades ago, when Margaret Thatcher’s government (and Ronald Reagan’s administration in the USA) started to base their economic policies on the Kumbayaism of academics rather than the sound advice of people who ran businesses. Back then the panacea that did not work was controlling the money supply. Yes, it would be lovely if we had free trade and everybody could sell their goods on equal terms in a free market, without let or hinderance. Such utopianism is fine on paper, where the economics of academia start and end. but exporting jobs to India and China in the sure and certain knowledge of those nations buying services from our countries that they could provide more cheaply and just as efficiently “in house” and buying into our values and tradition of fair play was just delusional.

So we are stuck, economies go west as jobs disappear over the eastern horizon while national, business and personal wealth disappears down the drain. One of the big problems those visionary economists were too myopic to see even though it was staring them in the face is that if you create a huge pool of Labor by exporting jobs, it places an enormous financial burden on the state as welfare and social security bills rocket. This forces up taxes and eventually, as higher taxes cause more unemployment it leads to more borrowing in the bond markets to fund the deficit. Every bond sold increases the amount of interest the government must pay which again forces up taxes. It is a series of concentric vicious circles.

And example of the sheer idiocy of academic economists like Paul Krugman (Krugmanomics) is their belief that increasing benefits (funding the extra spending through borrowing of course) contributes to GDP growth. They are too naive, too ignorant of real life, to understand that GDP is only a measure of churn in the economy. An increase in GDP does not indicate greater productivity.

Until low income earners have the tax burden lifted, which would mean getting the deficit (NOT the National Debt, that’s a different problem) to near zero, consumption spending will be low and living standards will decline. The Conservatives seem to understand this but do not have a clue how to achieve it, while Labour are still advocating their own version of Krugmanomics, created by finance spokesman Ed Balls, which future historians may come to call Bollocksonomics. Bollocksonomics involves expanding the public sector vastly by creating non – jobs in town halls and government departments. A non – job is a position which caries a salary without any job description, functions or tasks having been defined. For examples non – jobs follow this link.

Such drastic deficit reduction also cannot happen without people accepting that others can afford to give them less through the state. That won’t happen at all, one only need witness the wailing and gnashing of teeth from the hand wringers and bleeding hearts of the Labour voting, middle class left at any mention of benefit cuts to understand why.

The political will, and more importantly the reforming zeal needed to take on the smug, affluent wailers just isn’t there. Another fly in the ointment is the grip on the public sector of the Unite Union, an anti British organisation that will do absolutely anything to prevent necessary reforms to the financially crippling benefit system.

Soon none of this will matter. The compound effect of the rapidly increasing debt burden we are under will be such that the deficit will need to rise again to sustain it. Add to that the financial disaster that will ensue should Labour return to power in 2015 as well they might, and open up the borders to uncontrolled immigration (as they certainly will) while giving those unskilled immigrants generous benefits and free health care, and the debt burden will reduce us to a Greek style basket case economy by the end of their first term.

Further Reading: Perfect Storm by Dr. Tim Morgan, Tullett Prebon


Are We Heading For A Financial Crash? Chief Reptillian Soros Is Betting On It
Feeding the monster
Boom and Bust – the debt economy
The Debt Threat to civilisation
The Jobless Economy
Debt Crisis
The Jobs Crisis
Work and Play

‘Ang On A Minute, I’ve Got A Plan!

The Sun reports today that Zimbabwe is broke. After paying civil servants’ wages last week there was said to be only the equivalent of £138 left in the treasury coffers. Still given that most people survive on less than a £1 a day, and 50% of the population is unemployed, things might not be as bleak as one imagines.

However, in its usual altruistic way Boggartblog is pleased to be able to propose a rescue plan.

Boggartblog suggests that the Zimbabwe government send e-mails to the entire population of Earth, stating Zimbabwe is due to inherit a small fortune from its late uncle, but unfortunately needs to raise some funds to be able to access this inheritance. It promises to share the inheritance with the e-mail recipient as long as the recipient provides their bank account details and access codes.


Don’t mention it, Zimbabwe, all part of the service.

When Did You Stop Having Sex With Knuckle Draggers

“Are you guys getting obsessed with sex in your old age?” You might well ask. A lot of our recent posts have dealt with sex related stories, it’s true but there seems to be little in the news at the moment other than politics, the economy, war and sex. What do we fun loving Boggarts write about? It’s a no brainer.

Today’s story concerns some scientific research (science does do useful things sometimes) that reached the conclusion out ancient European ancestors stopped having sex with knuckle dragging football supporters neanderthals around 25,000 years ago, soon after they came into contact with the people of the Indian sub continent.


Left: Neanderthal beauty, Right: Indian beauty

Look at the pictures above and see if you can guess why we abandoned our knuckle dragging lovers. Should be another no brainer really.

Original story