Monday, 26 September 2011

Fantasy economics only works in a fantasy world, it don't work in reality

Jeff Randall, Daily Telegraph:
"The bail-out of Greece began with a 100-billion-euro package. Very soon a second deal of the same order was required. Now we learn that the 440-billion-euro European Financial Stability Facility may need to be five times bigger to beat back the Debt Beast, which, having gobbled up Greece, is turning its attention to Italy, where Silvio Berlusconi is in a 1.9-trillion-euro hole."
If the Eurozone doesn't have sufficient money then the IMF will have to provide the shortfall and it is correct, I believe, that the UK is responsible for 4.5% of IMF funding. That the UK's share would be one hell of a lot of 'dosh', which we dont appear to have, cannot be in question and can only be provided by either further austerity measures or increased taxation.

Two aspects of this 'euro debacle' should provide some entertainment:
  • Cameron. Clegg and MiliE maintaining the line that eurozone bail-outs do not involve the UK: and;
  • The behaviour of Conservative 'Europlastic' MPs when passing through the voting lobby at the end of a motion, one which will surely be tabled, criticising any payment to the IMF.
Just saying.................................


Anonymous said...

But sadly our Parliamentary misrepresentatives, the Fauxservative, the Limp dims and the rest will all vote for more of this crap!! They dont work for us. Whoever their boss really is, it certainly isn't the electorate!!

TomTom said...

The issue is BANKS not Greece. They simply went mad pushing money down the throats of EuroZone governments acting as if the ECB was guaranteeing everything. They were right - it has.

This is simply The Sorcerer's Apprentice - you are finding out that the Banks have simply no idea of how big the funeral pyre of Savings and Jobs will be as their gambling debts come due.

It is time the public rose and started demanding Bankers be executed and Politicians. The alternative is the destruction of all financial assets. It is the Armageddon Machine and they will take everyone and everythinh down with them to preserve their bonuses.

It is like a marriage with an alcoholic gambler - one more bet, if only he can pawn the wedding ring, and it will be fine....this is a very docile public watching some very serious Alcoholic Gamblers at work !

PeterCharles said...

I think you have misread what is being proposed, which is leveraging by a factor of five. In government economic-speak this means that if necessary they will blow the whole €440 billion that has been earmarked on Greece et al while 'guaranteeing' the other 1.5 trillion will be available via the ECB - through the simple expedient of 'printing' it if necessary, 'tis only a key-press or two after all. Thus the markets will know that they are completely serious in their determination to come to grips with the problem and that will take away any pressure on Spain, Italy and, without mentioning the name, France. Why it will probably even turn the Greek problem around.

Now, any one with a brain realises that this is complete pie in the sky but THEY know different. You see WE think money is real, but THEY know it isn't, it only exists in a metaphorical sense and as long as ordinary people think it is real everything works out because since it doesn't really exist they can never run out of it, there will always be as much as they need.

TomTom said...

Trader Interview

Anonymous said...

Interesting post by Guido Fawkes about Matt Hancock,Osborne's little MP bag carrier-to quote Guido- who has attacked Ed Balls on Twitter for leading the attack on the Coalition plan last year to massively up Britain's contribution to the IMF.

Apparently |Hancock thinks that this a really clever move -to identify Balls as the man standing up for British taxpayers.

WitteringsfromWitney said...

Anon: And if you read later posts (the Constitution series) you will see that change is being suggested.

TT: Agreed and yes have seen the Trader Interview!

PC: Dont think so, but we shall see. The markets have I believe eventually seen through this scam (witness the Trader interview to which TT links. Whether you are right or I am right, both will eventually see more bail-outs unless this is stopped in its tracks.

Anon: What Guido thinks is neither here nor there - the system has to change and change pdq - and I'm with TT, there are some who do need 'terminating'....