Saturday, 22 October 2011

Weapons grade pillockery

Drop your trousers people and bend over as it seems the politicians are coming back for more:

Five days to save the economy

I'm sure the boy is not alone in what is clearly a massed display of weapons grade pillockery by a group of people who on past evidence couldn't run a bath.

As I read through the article, the first "You what?" point came with this quote from the Mail article.

Mr Cameron is set to agree to new rules affecting the banking sector at this weekend's summit, which will require those exposed to the debts of stricken states such as Greece to hold more cash to shield themselves against potential defaults.
Banks are expected to be given a deadline by which they must amass at least £70billion - though some put the figure as high as £110billion - from the markets.

Now to me, finance is complicated, but even I have picked up from bloggers such as The Slog, Golem and Zerohedge, that the real problem with our banks is based on liquidity problems, a virtual cessation in interbank lending and the folly of painting debts as assets.

In other words - they've got no money.  
The money has gone.  Much of what was there was only pretend money; notional numbers on computer screens brought about by rules that allowed banks to trumpet debt owed to them as assets regardless of the likelihood of getting it back.  The banks haven't got the money, that's the problem.  Only a modern politician can think that solving this is as easy as saying you've got to get some more money.  I think the banks already know that.  
But if this is crisis of liquidity, the banks don't have the money as they're all in the mire and trying to solve their own problem.  Non existent growth from the private sector cannot provide the money
So the question comes back to where is the money likely to come from?  Ah here it is.

If they fail to meet the deadline, public sector bailouts will be ordered

That's right folks, the weapons grade pillocks have the answer.  You and I must stump up for it again.  Well in truth it won't be you and I.  The politicos have already hocked all current living generations up to the eyeballs when they ran this approach before and both they and the bankers have already p*ssed that money up against a wall.  They're now being free and easy with whatever money might be squeezed out of generations yet to walk the planet (assuming those parents to be can still afford to have those children).

The mind boggles. It really does.  If the Monty Python team had written sketches on finance and economics it wouldn't be half as surreal as this.  This isn't any form of threat to the banks to get their house in order.

Of course I've referred to this as stupidity and it is but in many ways they know what they're doing.  We're dealing with chancers who have all the depth of a car park puddle.  The only thing that matters to them is their political survival and so what they are obsessing over is not how to solve the crisis but how to maintain the illusion that they can solve this.  That's what this next step is about - how they can kick the can a little further down the road.  The structure is riddled with rust and in their heart of hearts they know it, but they either don't know how to solve it or are not willing to.  
So they will do what modern politicians do.  They attend swanky summits in nice venues, fine wines, rich food and hopefully a photo call, before returning home to dip their hands in the pockets of the people.

Unfortunately they have become so detached from their people that they have failed to notice that people are getting really angry at this and are unlikely to stand by passively for much longer making this a very dangerous game.

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