Cutting outlooks, wealth, services, electricity supplies, and hair. But not banking power.

The banks are being bailed out, the citizens are being fleeced. Quelle surprise.

“A frustratingly slow economic recovery in developed nations is holding back the global economy,” pronounced the World Bank yesterday while cutting its world growth forecasts for 2013.

We’re cutting forecasts, cutting expenditure and cutting corners. But nothing’s cutting it. The Slog’s long-predicted emergence of Spanish banking reality is creeping out shock by shock. Bankia’s shareholders  may lose most of their investments and probably all of them says the Spanish bank rescue fund in its latest report.

According to the Fund for Orderly Bank Restructuring, Bankia has a negative value of 4.2 billion euros, and its parent group BFA is 10.4 bn in the red.

So now we’re cutting wealth too. Bankia is about to receive 18 bn euros of eurozone aid. But not its customers.

Greece’s banking system needs 27bn euros. Its total worth is only 22bn. Finance Minister Stournaras says bondholder hair will soon be cut too. The euro and the banks must be saved.

But not the citizens.

Greece’s environment ministry yesterday announced that the 10% electricity price (inc tax) will actually be higher still as the Public Power Corporation hands them another 2.9bn in increases. Stournaras confirmed that the Euro Working Group should next Monday approve the disbursement of the January bailout tranche, which amounts to 9.2 billion euros.

None of it will go to the citizens.

The Fed and the ECB are both verging on $4 trillion balance sheets, the total for all of the world’s central banks is $14 trillion.

This is being readied to prop up banks – not people and their livelihoods. Take a look at this from the UK’s largest financial publication, Money Week:

‘We believe the outcome of this problem is inevitable… and the recession, joblessness and instability you see right now is only the first stage of it. Many people think the slump we’re in now is as bad as it will get.

But the truth is, it’s only the start. In fact, you will certainly see the consequences of this deep-rooted problem unfold across the cities, towns and villages of Britain. No one will escape the fallout.

In all recorded history, no country has ever recovered from the financial position we find ourselves in today.  No government has ever been able to reverse this trend. No emergency action has ever come close to a solution. This inescapable problem has only ever had one outcome: financial collapse.’

Now of course, this is MW trying to attract new subscribers. But sticking their necks out this much and then being wrong won’t be good for sales.

The fact is, they’re right. It’s time to focus even more on how you and I can come out the other end of this in one piece.

The Sharp eyes of Sloggers across four continents are to be greatly thanked for contributing to this analysis.



123 thoughts on “Cutting outlooks, wealth, services, electricity supplies, and hair. But not banking power.

  1. Perhaps we can get the minister for the NHS to stick a large enema tube into the back doors of Parliament and run to a safe place and watch an unprecedented amount of crap gush out the doors.


  2. The case of the conveniently-undocumented horse-meat in burgers is simply a manifestation of the transparent integration of Britain into the EU – those crooks Clarke, Mandelson and Clegg should be delighted.


  3. Lets hear no more of the horse meat bluster!

    Would there be such an outcry if they found parsnips in the carrot mash?

    Horse meat, cow meat, dog meat, chicken meat, its all the same protein-based foodstuff derived from animals.

    The whole ‘story’ is based only on the fact that we have some sociological taboo about eating certain animals that make this worth a mention.

    Its another filler to divert attention from the real news: that the citizenry of the western world is being enslaved.


  4. Most contributors to the Slog know that the banks are being “looked after”,, The population at large though are oblivious to what’s actually going on behind the scenes.
    Over Christmas my partners children with their partners descended on us. All university educated, all in secure well paid employment and when questioned… actually believing the Westminster politicians “answer” to the current crisis.
    I explained to them why the stock market was so high, what QE was and where that money was actually going blah…blah. The wry smiles around the table were something to behold… conspiracy nut Dave was off on one again…. humour him.


  5. Nearly at the point where this becomes a ‘newsy’ ‘preppie’ site…..
    I can’t help wondering just how far all these leaders heads are actually into their rectal cavities.
    The emperor’s new clothes doesn’t come close to this.


  6. Had the same conversation with a (similarly educated) mate over Xmas. Also had the same sort of response. Particularly as my name is Dave as well … :-)


  7. Watching and listening to various MPs as they appear on TV/radio, or on the select committees they grandly attend is rather like listening to my six year old granddaughter as she lectures my son-in-law on the finer points of managing the household budget. (“Petrol is very dear Daddy – have you put that on your list?”).

    The addle-brained fools in Westminster are completely at the mercy of the banking, corporate and media gangsters who are busily gorging themselves on what is left of the banquet, even to the crumbs which are normally left for us peasants. Their lack of shame knows no bounds and is almost sociopathic.

    My suspicion has always been that QE and hyperinflation will be the weapons of choice. Anything rather than address the underlying faults in the system, naturally. And it will all be explained to us in such reasonable and logical tones…

    It’s going to be a bumpy ride as the wheels start coming off and we must all try to plan how best to protect our own families.


  8. I am slightly more fortunate in that my two eldest boys are on side. My eldest doesn’t live with us and frequently we exchange emails/calls when something stupid/funny/or sinister catches the eye. My next is probably just a result of ‘dad-aganda’. Although he is very switched on and at least has had the experience of someone doubting the official line out loud, listening to the argument then making his own mind up. I worry for him and his younger brother though, emigration on qualification might be their only way out -but where to?


  9. If it gets that bad you won’t care as long as it’s hot.
    Ridiculous to some it may seem but it could get that bad, the only problem I see with it though is that there ain’t as many horses or donkeys as there used to be.
    Cannibalism might be fun though if you could catch up with some of the B’stards that dropped us in it. Pass the nettle gravy dear, I need some for Cameron’s flabby haunch….


  10. “we must all try to plan how best to protect our own families.”

    Hear, hear.

    None of the collectivist solution bullshit of the past. The ‘aware’ will for trade routes in the aftermath and the economy will once again emerge.

    Any attempts at some bullshit collectivist solution will be warped and corrupted by the current bunch of debt-enslavers, e.g. Rothschild, and will become a waste of time.

    Protect yourself and your loved ones.


  11. Try some logic gates and see where that leads you Caractacus.
    Is it going to happen? Y/N No -don’t do anything
    Yes -next question
    Am I going to try to plan and prepare? Y/N No -your screwed
    Yes -next question
    How bad will it be? Speculate very bad down to not too bad

    You can work the rest.

    The one that really does matter is when is it going to happen. What will be the tipping point signs?


  12. The path of walking away will be different from person to person.

    Most of us either passively or actively support this monetary paradigm of debt-enslavement and corruption. If you have bonds, a savings account, work for the government etc you are a cog in the ‘machine’.

    Walking away is more psychological than physical.

    Remove toxic people, toxic thoughts and toxic assets from your life and you will have made a good start.

    Personally I aim for a ‘smallholding’ in which I can produce my own food…….alas I’m not there yet, but I have a ‘gameplan’.

    Removing toxic people is quite easy, and exchanging your toxic savings account, bonds, pensions – in fact anything that’s denominated in Rothschild’s debt-based fiats – is also easy. Change it fro commodities esp PM’s and especially PHYSICAL silver.

    Walk away, bud, walk away.



  13. I’ve been planning for the last twenty years. My son and daughters can survive on next to nothing and are all trained in unarmed combat and basic weapons handling. They understand the broader points of financial independence and, if nothing else, they have absorbed from me the deep distrust of anyone who says, “Trust me”.They lead perfectly normal lives in the arts, teaching and care. But when the ordure hits the air-conditioning they will have a better chance than many. Hopefully.

    For myself, I fear that with advancing age I become more dangerous, along with many other silver-haired citizens! We have little to lose and fear less. The fools in central and local government are oblivious to this, of course, and have even pissed all over their protectors, the Police, whom they will call in a panic when things go awry. If it wasn’t so bloody serious it would be laughable.


  14. “What will be the tipping point signs?”

    Something in the physical domain: a water shortage, oil shortage, war. It won;t be a ‘paper’ event such as a sovereign default, exposed corruption at a big bank etc. All ‘paper’ events can be, well, papered-over.


  15. Good piece JW.

    The sad reality is that when the farmer can no longer afford to feed the herd, he doesn’t sell the farm he culls the herd to an affordable level.

    A good dose of impoverishment serves two purposes:
    1. it kills of the problem sectors in society:
    the elderly who are a drain on the system with their medical needs and pensions;
    the social shepherds whose morals put them above the selfish dog-eat-dog mindset desired by the elite – they will fall to starvation or criminal predation;
    the educated middle class who can potentially foster unrest – they will adopt the ‘follow the herd’ mentality to survive

    2. it resets the expectation level of the citizenry. Since WW2 the standard of living for the majority has improved. To fund that, wages have had to rise and this has driven up cost which forces up prices in order to maintain the ever-increasing requirement for profit.

    Initially the costs were reduced by implementing efficiencies of computerisation and mechanisation – thereby reducing the human element. This had the knock-on of increasing welfare and social support costs. Which encouraged and increase in sedetary lifestyles with the accompanying increase in medical costs.

    But now we have reached the point where computers and machines have reached their maximum potential and the only way for the West to compete is to reduce the salary costs to a level where profits can be maintained by while the price at the till makes product affordable in the developing world. Five years of impoverishment, a reduction in the quality of cognitive education with an increase in education by rote, and a freeze on salaries will prime the workforce to accept, if not welcome, serfdom.

    The sheeple need to understand that this whole ‘crisis’ is not about a lack of money – there is more than enough money in the world for the economic process to continue.

    This is about greed.

    Its about individuals and corporations vying for top dog status and the only benchmark by which they can establish their dominance is by counting their cash. Barclays profit last year was £5.9 billion – thats not turnover, thats profit after all of the costs and taxes have been paid. And Barclays is a relatively small player.

    While some of this profit is reinvested, an increasingly large amount is distributed to the elite who put it trust funds to furnish the lives of the next generation of elites.

    But that reinvestment is not placed in the West – that would encourage growth which encourages salaries which is cost. Investment will be in the developing countries, where the population can be milked for more profit.

    The sad thing is – I can’t think of a way to stop it or an alternative.


  16. In any ‘collapse of civilisation’ scenario the best currency is bullets and something to fire them from. They are a bargaining tool with those your trust and a force-multiplyer with those you dont.


  17. Writing from Greece it is hard to believe that well-educated young English people think everything is on course and that this conversation is conspiracy theory.
    Especially if they live in London.
    The cities are the most vulnerable to starvation and disease.


  18. My kids and family are aware of my awareness to the situation even reminding me recently that my crisis food stash set aside some time ago had reached it’s sell by date! I’m obviously not as well prepared as I thought


  19. You’re correct is some aspects. but the cash stored by anyone daft enough to store will become worthless – probably very soon.

    Do what the elites do and get your hands on commodities.

    More importantly, stop supporting this system that enslaves you, your ancestors, and future generations.

    Their Achilles heel is the fact too many people give the elites their support: Wave flags and the slave queen lizzie, store virtual wealth in bank accounts, shop at international corps, and go and vote in rigged elections.

    Your emphasis of the farm is completely accurate. ‘They’ are human farmers with human livestock. The main difference is that cows etc do not consciously support the farmer, whereas most human livestock do support the human farmer.

    In danger of this expression becoming cliche, I express again, walk away!


  20. I think it’s outrageous that these are being removed from the shelves – they should be relabelled and sold off cheaply. It’s good food, I’ve eaten Paard in Belgium, and it tasted fine. I’d buy it.


  21. Including almost every single person of my acquaintance. It’s amazing that no-one can see the train coming. Or perhaps they can’t cope with the thought of the aftermath.


  22. Judging by the farce that is the energy policy in the U.K. I reckon the tipping point there will be sooner and more miserable than in other countries, 2015 is when by E.U. regulation a large percentage of ” dirty ” coal fired stations will be closed down, how ironic that the wood burning alternatives are dirtier still, sadly when the energy crunch comes the eco loonies who lobbied for the U.K.’s crippling 2008 energy law will be set upon before the bankers, over here, well, with all that Nuclear generating capacity, the lights won’t be going out, same too with food, the farmers will probably abandon maize production for ethanol for grain production for bread; my wife is urging me to build two coups, one for chickens one for geese, we grow vegetables, our motorcycle club president is a dairy farmer who sells unpasturised milk and my mother in law has an arable/ livestock farm, although there are many retiries from the cities moving in since the relaxation of the strict planning laws, the local communities are still strong, the hunts are well suscribed and the vineyards well cultured, I for one am not too worried.


  23. Give the children a little “chore” to sort through it all and rotate the tins etc and make lists. It will get them to think about it and help to get their attitudes adjusted to frugality without frightening them too much. They’ll soon be helping out. It’s a good way of educating them without lecturing.


  24. I am surprised that this mornings news wasn’t about a Muslim terrorist helicopter attack on MI6 aided by benefit scroungers following another terrorist attempt to poison us all with radio active horse meat by al quaeda communist dole fiddlers


  25. How old is everyone on here ?? I do think your views are clouded by your old ages. Yes life is going to be tougher, but people can adapt and manage.

    We have come off from a point in history when we have never been so rich – that’s each and every one of us. Including the underclass. We need to become a bit poorer to help balance the books, but we will still be better off than in the 1970’s. Technology sees to that.

    The worlds wages are rebalancing. China goes up, ours go down. Living in SE Asia has to be an exciting time because stuff is still going to be made there, even if jobs start coming back to the West a little more.


  26. You put the reason correctly in your previous post, John. “The culprits, respectively, are sovereign States, bureaucrats, big business, banking firms, politicians, and the increasingly blurred rainbow of media combines.”

    These are the culprits because these are the stakeholders government works for. These are the people that have the ear of government and politicians and where the ear is not enough, they have bribery, sycophancy and other means of influence. They may not realise it, given the hubris and apparent lack of wit enjoyed by most politicians, but government do the bidding of these stakeholders because it is they from whom they take their advice, it is their view they accept and their ‘expertise’ they turn to. The ordinary man has no voice any more (if they ever did have, which I doubt), politicians pay only lip service to ordinary concerns because those stakeholders convince or bribe them into accepting they know the answers. It is also those stakeholders that view the ordinary man as only fit for serfdom, which is why we have reached the point we have.


  27. “”I was 100 percent sure it was a terrorist attack,” he said. “There was debris everywhere, a ton of black smoke. Parts of the crane, parts of the helicopter. I heard bang, bang, bang — I presume it was the helicopter hitting the crane and then the ground. People were just panicking. Everyone thought it was a terrorist attack.”

    Er it wasn’t so why beat that drum ?


  28. Well, its already starting to hit the relatively posh, formerly well off, who have spent the last few years with their head in the sand hoping it will all go away. A mate of mine phoned me up yesterday, asking me if I could lend him….before he finished his sentence I said – sorry mate I don’t do that – 4 grand till next week. I repeated my reply…

    He then said, he’d got the bailiffs coming round his house today….so I was a bit startled…but went away and googled for a bit to find out exactly what his rights were….

    I phoned him back, and said – lock all your windows and doors, and don’t let the bastards in under any account…The law on debts and bailiffs is weird, but if you don’t know your rights, and follow the recovery script exactly, you will get totally screwed. Bailiffs have no right of entry, unless you have already peaceably let them in – or they manage to get in through an unlocked door or window..Then the game changes and they can clean you out..

    I also so, said – look you have got to come to some agreement with whoever you owe the money – most debts eventually get written off…but you have got to go through the process. You cannot just wait till the crunch comes…

    So he had already done all the wrong things, by not doing anything. As it was he raised the 4 grand from some other mug, so whilst his emergency is over, he still hasn’t dealt with his real problems which are still resolvable, if he gets his head into gear and gives himself a big kick up the arse. This guy is by no means stupid, but he has got far too much pride, and will not claim anything off the state, nor seek any other assistance that is still available.

    He could well be yet another future couch surfer. He is not the first by any means, of the people I know who have gone from relative prosperity to being booted out of their new girlfriend’s place, and living in their car, when she goes into psycho mode, having already lost his wife, house, kids and job, all for a quick shag.



  29. Peterloo, it is not about ‘greed’…its about total control. A NWO. The mega corporations are major shareholders in each other. You will find many of the same Zionists sitting on twenty different boards. And Barclays is a far bigger player than you imagine. Divinecosmos provides many shocking details.


  30. There is only a certain level that the thames barrier can cope with to prevent flooding………. we would not want to swamp the whole of London ! After all, it would be a bit of a hurrah day for the Insurance industry…… parliament sits for half the year so they could justify increasing premiums to cover the ‘fall out’ from the constant crap which eminates from that Oh so illustrious place………. :)


  31. Dried Pasta, rice and tinned food is also a good investment…. buy it cheap (don;t tell anyone you’ve got a stash)……… It will not matter when you are hungry whether it is top quality stuff………. get matches in bulk, lighter gas, candles etc. All will last a long time and you can cook over a ‘hole in the ground’ if you need to.

    I know we have been here before………… but it is always worth the preparation………… and think of the fun you can have ripping the p1ss out of those who you care for but used to snigger behind their hands at your conspiracy !


  32. Problem is….. it could even be French involvement in a war….. in Mali…

    That is the problem……… we will not know exactly what sparks it……. only that it will be burning ! Prediction (as we have seen) is in the realms of astrology…………. the only certanty is that if it cannot go on….. it won’t !


  33. Complacency is an issue………. I fyou are not too worried then you will be wrong…… people will take from you what you desire………. no property laws will be enforced as the collapse of the system entrophies in anarchic behaviour from those who did not believe it could happen and have nothing prepared……….. and there will be one hell of a lot of them….


  34. t
    This is the state propaganda machine you are talking about here………. give it a week and they’ll get there……….. and require a law to make it illegal to crash a helicopter – and instigate a global internet surveillance program and listening devices on every lamp post…. To ensure its enforcement……….. spot fines of £500 for those who mention anything which rotates will be issued by post !


  35. Technology does not work if the windmills stop turning……….. or you don’t/can’t pay your bill……….. how young you are to be so idealistic…. it would be nice to feel that way……….. but life just is not like that in the long run when those leading the way forward have not got a clue !


  36. Which is why I mention the hunt, in France there are regulations as to the range of the rifle depending on region/population density, however owning a rifle/shotgun is so much easier than in the U.K., robbers of all persuasions go for the weakest/least able to defend themselves, as I said I am not too worried.


  37. My neighbours here in Catalunya (still part of Spain) keep telling me how awful the economy is here (agreed) and how wonderfully prosperous is the UK. When and how will they be disabused of this notion?


  38. yo John
    RE: your next post? Lets hear your comment on the Blundersbank’s request for its gold to be returned!!
    Oh happy days (cue gospel music)


  39. Colin,

    when you have been out of work for 12 months, your kids are cold and hungry because you cant afford to pay for food and energy as well as a roof over their heads, and you are at your wits end as to how to provide for them, come back and read what you wrote above (if you can access the internet).

    Its not about how things are now, its about how they will or may become.

    There is plenty of money in the system – the probelm is that its all accumulating at the top.

    “but we will still be better off than in the 1970′s. Technology sees to that.”

    Really? So our bosses can contact us 24/7 on our Blackberrys while paying us less. The elite can travel on faster planes and cars while we watch on enviously unable to afford such luxury. We wait for months for uregent medical treatment – albeit technologically advanced – and have to abide congested, infected wards, while those in charge get seen immediately and reside in single-occupancy rooms paid for by our taxes.

    To those in charge we are but sheep and cattle to be fleeced and milked for their personal gain. And if some of the herd die or suffer through neglect or mismanagement they think that that is acceptable. Alas too many sheeple in society think that if its not them then it doesn’t matter – all too late they realise the error of their ways:

    First they came for the Socialists, and I did not speak out–
    Because I was not a Socialist.

    Then they came for the Trade Unionists, and I did not speak out–
    Because I was not a Trade Unionist.

    Then they came for the Jews, and I did not speak out–
    Because I was not a Jew.

    Then they came for me–and there was no one left to speak for me.

    Martin Niemöller (1892-1984)


  40. You know you’re right. I can imagine Kingsley Amis having one of his Old Devils contributing to a thread like this. The Americans are worse, seem to be millions of them with acres of land, generators, fuel, weapons, canned goods, water, booze…Not that it’s not going to happen, but it does make for amusing reading. Is it wrong to laugh in the face of doom?


  41. Personally i think Tesco are doing us a service. In the none too distant future we might be glad they weaned us onto ‘novel’ meats. We’ll be less disgusted with ourselves when we resort to eating the family pets!


  42. John wrote yesterday….. @John Ward…..””””””””””Some nutters will argue (and probably already believe) that an alliance of bankers, globalist business and information controllers can take over entirely from elected legislators in the end. They will see the use of increasingly cheap labour among the squeezed middle as the spearhead for a fightback against Asia based on price. They will perhaps think, “To hell with the Chinese and what Washington owes them – we ain’t Washington.””””””””””””””””

    I have to say that John has a wonderful ability to describe events and explain them in detail and with evidence. Unfortunately, John also has an irritating ability to take the information and interpret it in a way in which wishful thinking and denial form a big part.
    I do understand that John does not want The Slog to end up being tarnished as “Yet Another Conspiracy” board. I understand it and to some extent support it.
    But it would be reassuring to see this constant “eyes-closed” mantra relaxed once in a while. If it looks like a duck, quacks like a duck and swims like a duck, the odds are that it could be a duck…..and not a platypus.

    Anyway, here’s a question for anyone who thinks they have an answer. John also posted this comment………”””””””””””The globally mercantilist competitive set, for example, is multifaceted and incoherent. Thus although at present we see a ‘worldwide’ acceptance of near-zero interest rates, it isn’t really a worldwide consensus at all. Sooner rather than later, one sovereign, financial, business or central banking element will break ranks for advantage…”””””””””

    Wrong! Now ask yourself why NONE of the banks (who are allegedly NOT working in collusion nor working to a higher instruction) haven’t, after 4 years, broken ranks and decided to put up the rate of interest for their depositors, thereby increasing the bank’s liquidity and thus its ability to lend, at interest plus, and make a profit from its loans. Why not?

    The World is being manipulated by a tightly-knit group with aims that have no benefit whatsoever to us Useless Eaters.
    Merely closing one’s eyes and saying “it isn’t a conspiracy” doesn’t make it go away.


  43. Well, well, quel surpris.
    It is called the “Fund for Orderly Bank Restructuring” or FOBR for short…it should be FOBOFF:
    Fund for
    Occupied in


  44. Worse things happen at sea. See the life of Pi for example. Everyone has their ups and downs. That’s what life is all about. Most can usually recover from the downs, with a bit of luck and help from their friends. But even if you do all the right things, and are really successful etc… One of the guys I used to work with, fit as a fiddle, gorgeous wife and everything. Very talented, and also a very nice bloke…he was about 45..and suddenly for the first time in his life developed a bit of a beer gut – though he didn’t drink much beer. 3 months later he was dead of stomach cancer.

    When I was young, I was addicted to risk. It was as if I wanted to kill myself. At least I wasn’t a soldier fighting someone elses war, but I got to the age of 25, and looked myself in the mirror. If you don’t stop riding that Suzuki GS750 like a lunatic, you will not make 30. So I got myself a 3 Litre Capri, and took up gliding much more seriously. But the bike had to go. Eventually you calm down a bit, get married and have kids – if you are lucky – but even then at any point the shit can hit the fan and probably will.

    You are limited as to what you can do to protect yourself. I think the most important thing is to find someone who is a heart of gold, who you want to spend the rest of your life with, and do lots of exercise, eat fresh food that you cook yourself, be honest with yourself, and try and be nice to others. Its also good to learn some basic practical skills when you are young. The time may well come, that you cannot afford a plumber, or a car mechanic. Its all very well to be able to perform all of the works of Shakespeare in Amateur Dramatics, but these are skills you may find rather difficult to trade. Its much better to be able to fix someone else’s car, or computer or blocked drains. Whilst they probably won’t have any money to pay you with either, they might well have their own large garden – or even a council plot, and have loads of their homegrown food to share with you when the shit really does hit the fan as it may.

    If you can believe Gordon Brown, the shit nearly hit the fan in 2008, when the ATM’s were very close to the point of no longer issuing money. That may still happen. Personally, if it does, I think gold will be useless. You’d be better off with a load of Benson & Hedges, but since the Tories got in – Customs are now very sneaky. They nicked all mine off me. I’m sure they must have X-Rayed the cases. What did they do with them? I just signed a bit of paper, and they sent me on my way.



  45. “In all recorded history, no country has ever recovered from the financial position we find ourselves in today. No government has ever been able to reverse this trend. No emergency action has ever come close to a solution. This inescapable problem has only ever had one outcome: financial collapse.'”

    The core problem here has not been explored. We must ask the salient question: why are the banks failing and the answer is cheap credit or failing loans from other sources.

    In initiator of the core problem here is mostly government who, in their socialist fantasies, decides they are going to be egalitarian and give wonderful services to the polis, with, most important, the shift of the voter base toward them in perpetuity.

    This debt and deficit spending thing is not going away and can only end in disaster given the past history. There was a detailed study of such actions by Carmen M. Reinhart and Kenneth Rogoff: This Time is Different: Eight Centuries of Financial Folly. Quoting Reinhart this always ends in tears. We won’t get a change in policy until we have another crisis like the Depression of 2006, ongoing.


  46. Maybe you underestimate John. I think some of the stuff he writes is absolutely brilliant, but I suspect I won’t be able to get either him or Craig Murray to read Extreme Prejudice by Susan Lindauer – for much the same reason, although politically they appear to be poles apart.

    Those American politicians are really not nice, but Susan Lindauer makes the spooks seem like the girl next door.



  47. Next they’ll be testing the veggie burgers, and finding Uniquorn!

    (Please accept my apologies. I couldn’t resist)


  48. @Ryck Stout

    The core problem is quite simple, fiat currency and fractional reserve lending as practised are a con, a ponzi scheme dependent on ever increasing credit, funded by the interest paid on the credit. Once credit hits the limit there are insufficient returns to keep the thing going, the position since 2009. Once this point is reached things start to fall apart, hence ZIRP and QE which provide a temporary illusion that the system still works, but this only has a short lifespan and that end is happening now. Because fiat currencies have no enforceable foundation of tangible assets they cannot provide a fail-safe, a level playing field where the failure of credit can be absorbed. Sensible governments like Germany and China (and the elites) are repatriating and stockpiling gold in order to provide some sort of foundation, unlike the stupid countries preferring to hoard paper rather than gold collapse, for when the real econogeddon hits. I leave it to you to decide which camp the UK sits in.

    You are also correct that it is the developed world’s post WW2 infatuation with social democracy (big state, big regulation, big welfare) that is the main driver of this madness.


  49. @ boncourage

    It probably means you will have to buy an extra pint or so to achieve the same ‘buzz’ – I assume they haven’t reduced the price per pint as well?

    To be fair though, John Smith’s bitter always tasted like witch’s pee – Sam Smith’s or Theakston’s are (were, if they are both no longer going concerns) considerably tastier.


  50. Thanks for your post.

    Funnily all politicians have mentioned that letting the banks collapse will plunge the economy into further chaos, but will it? If we all say that we saw a white horse with wings flying, then it becomes true?

    Who has given them this advice? Are they the same bankers that if banks collapsed would loose their jobs?

    They cannot say that they are doing this for the customers, since savings are guaranteed by safety mechanisms.

    They cannot say it is credit that will be affected, since banks won’t lend until they know it’s a good investment, and a sound bank can loan the same as a rescued bank, and I would trust more a sound bank.

    So where does the collapse of a few banks affect the economy more than it is now affected?


  51. they are living the real life………. they see only the propaganda from the UK. All is not well and it is not going to get any better………


  52. Could it be that if a bank increases its interest rates to gain investors – they won’t be able to lend the money to anyone because they will be charging that interest rate + the profit rate so no one will want to borrow it when they can get a lower interest rate elsewhere………. ? Maybe ?

    Now I am not saying this is the total reason and I do believe that there is cartelling aplenty going on by the big corporations……… but there is also a political interest at stake……… and the lawmakers will look after themselves (and their own interest first and foremost). Thus the corporations will comply/bribe/compell the political class until they have between themselves an acceptable ‘balance’.


  53. @tonyOpmoc A GS 750? Pah! I had a GS Fauzund (1000) with all the Yoshimura bits out of the back door from G.B. when they changed the limit to 750, in a stock frame (modified by Lester Harris) riding it made me realise what heroes Wes Cooley, Dave Aldana and all those U.S. Superbike riders were. If you really wanted to kill yourself back then either a Kawa H2/Z1 or a knackered Triton were the way to go………


  54. They do xray all the cases ! I was told that by a customs guy when ‘stopped’ having a case load of ciggies ! Which is why my case got pulled off until the end…… when the group I had ‘loaded’ with all got their cases in ‘normal time’……….and had to wait around………. I was within the ‘suggested limit for personal use’ and after the usual ‘hold up’ for 3/4 hour whilst they checked out my stash and previous………. I carried on through ! It is all about making life as uncomfortable as possible for those who actually make use of (THEIR beloved EU) ‘legislation’ to avoid a bit of the old ‘ciggie duty’. Can’t let the plebs get any of that free market economy they sold us (and we pay for,) can they :)


  55. Sell by is a date only for use when stocking shelves (and to make people spend more by thinking food needs throwing away when it doesn’t).

    If its not past a USE BY date then it’s fine to eat any time.


  56. Gemz, I read it…..but not willing to put details on-line to get the ‘advice’ they offer, assuming any of us can afford to invest of course!
    Very damning stuff, and logical to boot; I recieved today 1kg of dried shiitake mushrooms . A good anti-cancer agent, edible, and will store for years. All I can do, really …


  57. One of my (grown up) children is in finance in the City, has been waiting for years for the crash to come – and still smiles indulgently on me as a conspiracy nut. The elephant in the room is so huge they can only see a thick, grey, impervious wall in front of them.
    I saw the MW editorial but I’m too cheap and have too few assets to actually subscribe. I guess their advice was for folks with money to invest, who don’t want it confiscated by government. I have no idea where they suggest placing your hard-earned for security.
    I sincerely believe that a double hit of a new influx of low end EU workers claiming benefit, combined with a hike in the interest rates the government will, sooner or later, have to pay, would see us in the same state as the poor people of Greece. The MW article compares our situation to that of the Weimar Republic


  58. Maybe they’re right. But clearly it will be a crisis during which MW continues to publish:
    ‘And if you wish to continue to receive our work to help guide you through the crisis, you’ll enjoy a huge discount on the cover price (normally £3.45 per issue).’


  59. Max, that was my take……dried foodstuffs, water purifying tabs and a firelighter as basics.
    Tesco’s (spit) were doing 2kg red lentils for £2 last week; anything similar is a must as it lasts years and you don’t look like a panic buyer!! Just get a few…..along with rice and pasta. I won’t be buying a loaf when it’s £30 +
    Tinned stuff will eventually be tainted, but dried stuff if kept very dry will last donkey’s years. Seed from egyptian tombs was still viable.


  60. The answer to the economic problems is quite clear – market forces should prevail, but alas they don’t because two things remain unsold – air and people. The government should get on the case sharpish and start selling Brits to the foreign johnnies. “Psst, Angela. Wanna buy some Brits? They’ll work for less than your ‘guest-workers’, good investment.” “Dis donc, Francois. Wanna buy a couple of million Brits? Just across the channel – no problem to send in the bailiffs if they don’t pay for your electricity.” As to selling air, well, taxing it – please see the
    interview on my site with the Environmental Minister. Thank you.


  61. The real answer is for a government to print it’s own money and not borrow money (which is already non-existent) from the bankers, who have themselves simply conjured it into existence themselves. The last politician who realised this and said he would try to issue his own currency, was President Lincoln. Pehaps the film is a warning to others who are tempted to break the banking families’ scam? They could back this new fiat currency with something useful and durable and which was trusted by other creditor nations, like, say, Gold?


  62. Well, that MW report was the biggest load of baloney I have ever read, a rather over hysterical sales pitch. It describes Japan rather rudely because Japan proves the entire concept wrong.

    Yes our banks will go mammary glands up and yes they’ll try to take us with them. It’s around then it is they who will discover they are poor after all. The real collapse, when it comes will be in the private sector just like 2008.

    We saved the world but sold our souls, a grave error.


  63. With respect to the Money Week argument it keeps comparing us to Greece when we are not Greece. We are fiscally sovereign, we print and control the currency in which we issue our debts. Unlike Greece we can guarantee payment of Sterling denominated debt as we cannot run out of Sterling.

    Its points about interest rates to trend upwards is valid and I’m not suggesting that the current situation is sustainable, but unlike Eurozone nations we cannot bankrupt as long as we are able to issue debts in Sterling.


  64. johnnyrvf,

    My older brother’s Triumph 650 Tiger which he had personally just rebored, was the best bike I ever rode.

    I went ahem – that is really nice and exciting, as I am not apparently allowed to use the two words that I really used one of which began with the letter F and the other one M.

    It also used to go round bends. Until then I was on my other brother’s BSA 250 C15. I rode it completely legally on my 16th birthday. He too was over 10 years older than me, and said if you can find all the bits in the cellar in our home in Oldham and put it back together then you can have it.

    The bikes didn’t kill em



  65. Moneyweek is offering a real doomsday scenario, but its a brave man who says they are wrong. All that’s needed now is a bump in the road, the chain will break and it will all unravel. One day soon London bankster capital of the world is going to be at the centre of the worlds biggest ever bankruptcy.
    Amazingly most of the populous appear blissfully unaware.
    I assume the main Moneyweek advice re wealth preservation is to get your money out of the bank and buy Gold.


  66. Rochdale Pioneers,

    You are completely correct, but pointing these salient facts out to the w/bankers seems to completely illude them. I try to point people to The Aussie economist who does his billyblogs Professor Bill Mitchell – but it still completely illudes them, in their quest to impoverish us all…Is illude a valid word???elude allude or illude?

    I did once or maybe twice make love to a girl from Rochdale…but I was under a bit of stress at the time, having just split up from a girl, I really loved and was shagging rather a lot. I naturally, assumed she was on the pill. Maybe I am your Dad. She was a Nurse and Lovely.

    How old are you?

    Its getting really cold, could barely open the bin – time to bring the beer inside to warm up.




  67. I think the crash will come when a spaniard gets thrown into the works of the EU.
    Sorry I should have said a spanner…..or perhaps not?


  68. @Rochdale Pioneer – actually Moneyweek states our position as regards debt to GDP is far worse then Greece and a better comparison is Weimer Germany. If the Government keeps up with the QE the inflation that will inevitably follow will destroy everything.


  69. @ tonyOpmoc, funnily enough I now spend my time repairing older bikes, particularly Brits, Meriden Triumphs can be made to go far, far better than their basic technical specification suggests, although for many the T120 was the ” best” in everyday terms a TR6 had a much nicer engine, they went round bends well enough but the OIF IS ultimately a better chassis. I ride about on a ’65 BSA Lightning and a much modded T160 ( in a T140 frame ) + more modern Jappers, the “sorted” later Z900 does not have the same stability as the T140 chassis, but things move on and the stuff from the last 20 let alone 10 years is mind boggling to ride, truly they make heroes out of fools. I grew up in west London near the imfamous Ace Cafe, in the sixties the death rate amongst young motorcyclists were horrific, a lot was down to very poor machine maintenance, but the braking systems even when new left everything to be desired.


  70. Nothing wrong with some dog meat either.That’s what I’m told but they have banned it here in Hong Kong. You have to go over the border to Shenzen to get the stuff now.


  71. I remember in the 1960s when McDonalds burgers in the US were mixed with kangaroomeat. Nothing wrong with that either but you should have heard the fuss!


  72. @coppersterling et al. My aged sister has always stockpiled tinned foods; an attitude she acquired in WWII and the ensuing desolate and rationed 1950’s.
    When a child in the war she and her brother were thrilled to have a meal of stewed rabbit after the sparseness of rationing. Then they went out in the garden to see their pet rabbit in its hutch and …. Oh dear. Those days will be upon us sooner or later.


  73. I hear you, I don’t have my head up my arse. So, apart from hoarding food and candles, just wtf am I supposed to stop the bastards??


  74. @Joanna. Ethnic food shops are a good source of cheap bulk dry foodstuffs. And you get to talk to a real live human, not an annoying robot voice that tells you to take your goods and F off if you’re too slow at the self service pay point thing.


  75. Kinda o/t, but I have been reading quite a few comments on other sites recently about ‘mortgage securitization’
    Specifically that if your mortgage holder/bank has sold on Your mortgage in a package of ‘securitized’ debt and been paid for it then they have no legal recourse to enforce/repossess your security as the original contract between you and your bank has been broken.

    Just want to know if any of you Sloger’s out there have any information or experience of this.
    If its true its going to be ‘the straw’ etc.
    Link below gives an insight.


  76. Mark,

    It is 20 odd years since Japan started QE so where is the inflation there? Oh look there isn’t any and they are spending yet more to try to actually cause some. the comparison to Weimar is risible. We have not had a supply shock and do not have war reparations to pay in a foreign currency. So when is the inflation and rampant interest rates?

    Always going to happen tomorrow isn’t it?


  77. Sam Smith’s Bitter! Are you kidding! Pish!

    They do an Ayinger Brau Lager at 8%. In pints out of a pump! Very messy. They banned it in one pub because people kept chucking them selves in the river after one too many :) Stil pish though.


  78. The original contract i.e. the mortgage liability is assignable by the original lender. The rights to enforce are also assignable and are done so when the whole lot are sold on-certainly that is the case in the UK.
    In the US there was a problem when some of the rights to enforce hadn’t been properly assigned and Obama refused to grant an executive order putting it right. That was some time ago. I don’t know if he eventually did or the banks sorted it out.


  79. @Kennyboy

    “…Anyway, here’s a question for anyone who thinks they have an answer. John also posted this comment………”””””””””””The globally mercantilist competitive set, for example, is multifaceted and incoherent. Thus although at present we see a ‘worldwide’ acceptance of near-zero interest rates, it isn’t really a worldwide consensus at all. Sooner rather than later, one sovereign, financial, business or central banking element will break ranks for advantage…”””””””””

    Wrong! Now ask yourself why NONE of the banks (who are allegedly NOT working in collusion nor working to a higher instruction) haven’t, after 4 years, broken ranks and decided to put up the rate of interest for their depositors, thereby increasing the bank’s liquidity and thus its ability to lend, at interest plus, and make a profit from its loans. Why not?…”

    Something about this put me in mind of (Iterated) Prisoner’s Dilemma…for the uninitiated this explains it much better than I.'s_dilemma


  80. Well, well, quel surpris.
    It is called the “Fund for Orderly Bank Restructuring” or FOBR for short…it should be FOBOFF:
    Fund for
    Occupied in


  81. Kangaroo meat is actually delicious-very low in fat and cholesterol and available in most supermarkets. ‘Gamey’, and great with red cabbage etc…also kangaroos breeding like pests in the bush. Emu also quite good. Eating the coat of arms! Emu farmed for oil and meat.


  82. @Bill – the comparison by MW with Weimer was in regard to the level of debt. As to inflation and QE we only have to look back domestically to 1976 to see what can happen.
    Your comment re Japan is a fair point but equally the opposite example of Argentina could be cited.
    No one truly knows what exactly is going to happen. MW have given a very bleak outlook and I suspect they will largly be proved correct. We shall see.


  83. Elenits,
    I would suggest that the majority of “well-educated young English people” actually don’t live in London these days, it is no longer an “English” city. Contemporary London is a modern tower of Babel ; according to the last census, somewhere between 55% – 60% of the population originate from elsewhere. I remember Sir John Stevens (former head of the Met police) forecasting this figure back around 2000; his view then was that by 2050, the figure would be nearer 100%. Where goes London, no doubt other places will follow.
    According to the Office of National Statistics, 2 million Brits have left the oountry in the last decade, leading one to suspect the two phenomena are related to some degree …………….


  84. @Mark, reply function goosed!

    Again I cannot accept your explanation of events. The UK in 1976 was undone by an oil crisis, which illustrates very well that our oil exports cost future consumption. back then it cripples us importing oil.

    Argentina had a currency peg to the dollar and all such pegs fail as Hong Kong is currently finding out. Add the sheer amount of graft and corruption it compares to the UK today minus the peg.

    The MW piece will come back to haunt them or my derision of it to haunt me. I win both ways as it happens. If MW are right sites like this won’t exist.


  85. Wow I thought I’d stumbled on to some American ,conspiracy theorist,survivalist,nut job forum. Anarchy UK? It will not be the end of the world because of a bunch of bankers. Get a sense of perspective. For sure things may well get worse while self serving politicians fiddle but the nettle will be grasped slowly. I read nonsense about”getting out,walk away” Where exactly? “Prepare your family” How exactly?” Buy commodities” What literally and store them where?
    Society is not going to collapse.


  86. Kennneboy (has a nice ring to it),

    The World is being manipulated by a tightly-knit group with aims that have no benefit whatsoever to us Useless Eaters.

    The Galactic Federation confirms this, unequivocally. They generally refer to them as the Dark, Which encompasses many dark organistions, the Illuminati being at the forefront. The GF informs us they do exist, and there will never be a NWO, This is no ‘conspiracy’. The GF guarantees that LOVE will defeat the Dark! All we got to do is beam out Love from our sacred hearts to every other Soul on the planet. And spread the God word! This will hasten Full Disclosure. After which, there will be everlasting Peace and Abundance for All, Louis Armstrong…all you need is Love, baby!


  87. @bill40 – Bill I think we’ll just have to disagree.
    As regards the oil price shock of course you are once again correct on that point but that was hardly the only problem. The UK economy had been spluttering along for more then a decade, the oil price finished it off along with an interest rise to 16% in 1976 and rising inflation. That and horrendous industrial unrest coupled with increasing social disorder.
    Jim Callaghan himself publicly admitted printing and spending money in an attempt to increase employment had not worked it had simply added into the economy ever larger doses of inflation.
    You can reply and have the last word if you wish.


  88. Nothing what so ever, it is a pun intended, wheels within wheels off topic thread with tonyOpmoc, a bit like tiresome infants chattering away because they can.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s