MAYDAY! MAYDAY! They can’t save the economy, so the gargoyles are going to save themselves

For the first time in seventy years, to be radical is to be responsible


They are outnumbered, but we are alone

Some of you may have already seen this, but yesterday Mohammed El-Arian (the brains behind Pimco) wrote a typically succinct and clear piece in the FT about why most contemporary economic optimism is deluded bollocks. This was his end paragraph:

‘At a time when Europe continues to struggle, and growth in emerging economies has tapered, many now see a more robust American recovery as the key to maintaining the momentum of the global economy. They are right. And Friday’s jobs report will help shed light on a crucial requirement in this regard: the progress the US is making in shifting from assisted to genuine growth.’

That final phrase there is right on the money, because it sums up the need to tell real from confection in looking at the situation on this 2013 Mayday. I doubt if El-Arian would agree with all of what follows, but his sentiments as expressed yesterday have at least brought me back to the basics: where are we, and what happens next?

That is, where are we economically and fiscally, and where we are going next socially and politically…unless a major figure and/or movement emerges over the next five years in the West with the avowed intent of both stopping drift and resisting oppression.

There are ten fundamental problems with the econo-financial structure of planet Earth at the minute:

1. So much mass wealth in the West has been ripped out of the mass-middle demographics, it has become almost impossible to restart the growth cycle.

2. The growth cycle itself raised market expectations to silly levels over many years because of its increased dependence on forward money – credit – not earned money, as in post-tax cash. Remove the credit liquidity, and nothing can restart the growth.

3. Faced with this double-whammy problem, nobody in power is taking the obvious step of querying the one criterion for success: growth. Equally, nobody in Office is querying the neocon-Friedmanist religion that dictates we must have low tax, inequitable wealth spreads, and accessible credit.

4. In the East, a mass middle class has not yet emerged, so the tiger economies are forced to export almost everything they make to keep up consumption levels. Their cheap goods undercut Western alternatives, and their cheap labour merely accelerates the movement of factory location from West to East. This results in a permanent pool of Western unemployed….and governments unable to afford the consequent welfare overheads. Add medicine’s success in prolonging life to that factor, and you have every Western government borrowing more and more. Add that building debt to recurrent trade deficits in the EU, UK and US, and you get debt mountains which are unrepayable…at least, by level playing-field means.

5. Globalism has encouraged and helped create this impasse. Instead of focusing on self-sufficiency and a broad level of citizen wellbeing, the West took Theodore Levitt’s mercantile theories and built a greater and greater share of world commerce for bigger and bigger multinational companies, and a greater share of the wealth for fewer and fewer people.

6. Capitalism has thus morphed from multi-sourced risk capital being lent to dynamic new business, into one where monopolies are sought – and then their ever-increasing competitive lockout is funded by globalist investment banks who underwrite megamergers. (By the time Lehman fell, its business was virtually dependent on such deals).

7. Globalist investment banks act as marriage brokers between bourse investors (increasingly institutional and hedge-fund technology driven) and multinational Goliaths to ensure that more jobs move East and more sales are international. Today, after thirty years of plying this trade, banks have no national ties or loyalties any more; equally significant, they are tied into each other like a thousand unstable dominoes; and worst of all, they too have encouraged people to see the surreal valuation of derivative products as if they might be proper, tangible wealth.

8. The consequence of this bloated derivatives sector is that we now have a global gambling den in which all bets are thought to have been hedged and insured (netted) but the sheer degree of off-piste, devious further betting used to pump up profits still further over the years makes this extremely unlikely. There is thus the ever-present danger of a bank being seen as wobbly, trading partners calling in debts on the basis of that perception, and that doubtful institution collapsing.

9. Having collapsed, the devoured prey in turn leaves behind a trail of unfortunates who netted with it – and now no longer have that safety. One by one (the likelihood is) those netting partners in turn become the object of suspicion, they too collapse – and more banks still are left without cover. As there has always been an unhealthy relationship between megarich banks and overspending Sovereign governments, enormous pressure is now put onto those already indebted nations to bail out their exposed banks.

10. This is effectively what happened from late 2008 until mid 2009. But reform has been resisted by most players in the banking system, Friedmanite economics have produced systemic obstacles to Sovereign recovery, Asian States selling to such strapped economies have seen their expansion slow down, and so the globalist mercantile leviathan of expansion has shuddered to a halt. Unfortunately, it needs permanent acceleration to make everything else work: the longer it remains idle, the higher the Sovereign debts become, the more fragile banking confidence becomes, the more politicians are under pressure to save money via austerity, and the less consumption occurs. It is the ultimate, closing, vicious noose with which we are hanging ourselves.

In response, the following policies have been adopted by technocrats, central bankers, and governments around the world:

1. Interest rates have been driven to zero (‘Zirp’) in a bid to slow down sovereign debt accrual and encourage nervous businesses to borrow at low rates. Not only has this not worked, it has failed to understand that given the West’s ageing population structure, some of the biggest consumers are people dependent on interest-awarding investments. Many have now switched to stock investing, causing market bubbles throughout the West, whereas consumption levels have continued to fall.

2. Quantitative Easing (QE) has been introduced with the stated intent of increasing lending liquidity – to stimulate both business output and consumer credit driven consumption. In fact, its unstated objective has been to help restore bank balance sheets and, via priming the multinational profit pump, also keep confidence high in the stock markets. Each application of QE has delievered less and less return in relation to growth stimulation, made the stocks bubble bigger still, and fuelled the inflation pipeline.

3. All Western Central Bankers and their governments have in turn followed policies designed indirectly (and covertly in some cases) to reduce the value of their currencies. The aim here is to make their debts smaller in real terms, and their export products more competitive. The idea is gaining ground in the US, and is the central plank of incoming Bank of England boss Mark Carney’s policy. It is also being employed on a massive scale to by Tokyo to reduce the value of its Yen. The only end result of this is a zero-sum game, as recessed countries devalue and creditor countries buy those devalued currencies to counter the process. Further, debtor countries’ import costs rise, and thus their debts rise too.

4. We are now just beginning to see a move towards lowering labour costs in the West by reversing the usually desired supply and demand relationship between jobs and workers – primarily to make exports more competitive. Eurozone central banker Mario Draghi has openly presented this as a key success strategy to EU finance ministers. The austerity policies in ClubMed (especially Greece) have already produced spectacular wage deflation. What this socially dangerous and shortsighted policy must also do, of course, is further reduce consumption by the mass middle….and do potentially irreparable damage to the social infrastructure of every Nation State.

5. In turn, we saw in Cyprus (and the revelation of similar plans elsewhere) the kick-off in a concerted effort by Sovereigns to hand responsibility for funding bank bailouts to depositors. Angela Merkel admitted in Dresden last week that Germany could no longer cough up for such bailouts. The three problems in this equally short-sighted strategy are (i) stealing savings simply reduces consumption further (ii) it drives more citizens into the welfare trap…both of which increase sovereign deficit and debt, and (iii) it can never hope to make up the difference between what governments need, what banks might lose, and what the citizen could (or would) give.

The region in the most trouble at the moment is Europe.

In the eurozone particularly, loose lending policies and economic under-performance have led to dangerously high Sovereign borrowings, particularly among the so-called ClubMed States. Thus not only bank bailouts but Sovereign bailouts have become necessary…in the absence of any willingness by the banks to write off loans they should never have made in the first place.

So here, a particularly harsh form of austerity has been applied to Southern Europe. The obvious results of this monetarist inflexibility – drastically cut GDPs, further pressure on debt bonds, and latterly citizen/politician rebellion – are there for anyone to see.

As I posted earlier today, this has left Germany isolated, and sealed the fate of the euro. It has also left France in particular dangerously exposed to Greek and Spanish default.

In Europe outside the eurozone, without question the most endangered State is the United Kingdom, which three years ago overlaid an austerity programme on an already unbalanced economy and overpopulated island. In being far too little far too late, the Osborne policy leaves Britain with a terribly weak outlook: little space for agriculture, a tiny manufacturing sector, a dominant but fragile banking sector, a generous welfare system, and far too much net migration into the nation.

What is the big change in élite objective that now looms on the horizon?

Some of the flaws in the latest ‘thinking’ and ‘solutions’ being put forward among Western Establishments are so Page One obvious, the informed observer is drawn to the conclusion that not every one of those suggesting them can be a brainless clown.

For me, the emerging feature now is that the fight to save mass-economic growth has been tried, and it has failed. What the officers in charge seem to be doing now is focusing on saving themselves, rather than their citizens’ livelihoods.

This is not to suggest a carefully planned conspiracy, although I have no doubt at all that the reality of the situation has been discussed in these terms by the top media, government, political, business and banking opinion-leaders around the world. It is really nothing more than the logical conclusion of the directional mindset these people have: ‘We are the Alphas, and we are more important than you’.

On the Titanic – as the movie hinted at one point – the underlying assumption of only enough lifeboats for the First Class passengers was that the lower orders would be left to their fate.

When the ideological political madness of the 1947-1989 era was at its peak, the locations of nuclear shelters were kept secret from all the major nations’ citizens. Each shelter had a clearly defined and enumerated list of those who would get in. In Britain, the rest of the population – in a ridiculously mad leaflet, Protect and Survive – were encouraged to take doors off hinges and hide beneath them.

Since those times, the tendency of those in senior public life (I would contend) has been to become more sociopathically concerned with their own fate, not less. In 1963, there was an insane political face-off: fifty years on, there is an equally mad economic/fiscal debt face off. That is the only difference between the two sets of circumstances.

The Establishment’s sauve qui peut approach is unlikely to work, because – sofa-ridden as we seem to be in 2013 – not even telly-deadened idiots will simply lie there and starve. To the natural survival instincts of even the most stupid people has been added that sense of entitlement contagion that has infected the West since roughly 1975. “Because I’m worth it” is now a universal belief. Jarrow Marchers in the pre-war slump merely wanted food on the table and shoes. Today, everyone thinks they can have it all. It is yet another mismatch between expectation square and vicious reality circle…only in this example, the circle cannot be squared without violence: either the élites cede power, or there will be widespread social disorder.

How will our ‘leaders’ respond next?

They will react as control freaks always do, by amassing more control. Several technological, legal, social and media factors have already moved to favour repression against rebellion.

All the social network sites now know who we are, who we know, and what we look like. All the ISPs now know what we write and what we say: in emails, on websites, on mobile phones, in media comment threads. All the security services now have full access to ISP and telecoms switchgear. All the supermarkets know what we spend and what we buy.

Recent political events – from Obama’s re-election campaign to Murdoch’s BSkyB bid, from the systemic paedophile cover-up to the Libor scandal – have demonstrated how startlingly easy it is for the guilty to stay out of prison, and the innocents to be brought under the control of the State. Privacy invaders, senior cops, bankers, politicians and wealthy media moguls will only ever go to jail if it suits the Establishment to send them there. The rule of law and equality before the law have become – first under New Labour and now under the ConDemned – utterly diluted and subverted. Everything results in things being set aside, or enquiries opened, and no case found to answer. Nothing is ever open and above board. A minister has only to say “I have done nothing wrong” to be exonerated in the face of overwhelming evidence of guilt. Spin doctors bully international legal advisers and Prime Ministers lie to the Mother of Parliaments.

Face it: we no longer have any protection. We can no longer guarantee that some among the powerful will be on our side. And we already have a very large pool of unemployed. ‘Security forces’ and ‘special riot operatives’ could quickly be hired…no doubt by G4S. The very society that these greedy people have created offers a thousand excuses for recruiting such people:

* Dangerous terrorist immigrants threatening our ‘freedoms’ (as in the Boston Marathon)

* Looters threatening the respect for law and order (as in Croydon)

* Gun-gangs peddling drugs and endangering the lives of innocent bystanders

* More surveillance cameras ‘entirely for our own protection’

* Controlling rioters who threaten important institutions of government and finance

* Expanding laws from it being illegal to incite non-payment of tax to punishment of calls to action on civil resistance

* Extension of the imprisonment without trial limits

* Expansion of Court cases held in camera

Those who doubt the speed with which fanatics would bring in these measures (and query whether they’d find officers to execute them) must be terminally naive, or have been asleep for forty years. The man lauded as a fine chap qualified to be Prime Minister, Boris Johnson, is the companion of crooks, defender of fraudsters, and accomplice to violence. During the Croydon riots, senior Met officers openly suggested that texting the location of riots should become a criminal offence. Last year, a measure by the French Asembly to make satnav two-way was only narrowly defeated. In Athens, the police force is already heavily infiltrated by Golden Dawn thugs. Over the last two years, elections have been bent in Ireland, abruptly turned down in Greece, and democratic processes usurped in Italy. The central bankers of the UK and the EU will be, in two months time, former Goldman Sachs employees. Until recently, the Prime Ministers of Greece and Italy had the same background. The Spanish Assembly last month passed a law forbidding the use in the media of the word ‘illegitimate’ in relation to its leaders. Greece has a law blanket-pardoning all Government ministers of any and all corruption charges.

What the élites and their agents will do is bully citizens into acceptance, put themselves further above the law, and try to employ just enough people at just high enough wage levels to keep everything relatively calm. I would expect they will also use the media’s lack of self-control as the excuse to block and take down any form of ‘seditious’ criticism. Given that the entire media set in most Western States is now in the hands of power-freaks who own islands, control politicians, listen in on their readers, peddle pornography, hide paedophiles and evade tax, it seems highly unlikely that such will be a tricky operation to carry out.

It still won’t work – at least, I think it won’t – because the very expectations these leaders have created will wind up being their downfall as life gets increasingly harsh; and the more consumption and output fall, the bigger will be the deficits. They will also, along the way, take too long to organise the repression….and thus lose control. Finally, they’re largely incompetent – which can only serve as a bonus for the rest of us.

Is there an answer?

Yes there is, but the vast majority of people either pour cynical scorn on it, or can’t be bothered to get involved.

The following steps would deliver us from the existing tunnel leading to serfdom:

1. The creation of a citizen movement to be a regulatory watchdog for everything undertaken by the State

2. The abolition of central-government administration in favour of regionally-based mutual organisations

3. The rejection of a failed public sector and neocon capitalist model private sector in favour of an economy of mixed motives

4. The rejection of globalist mercantilism in favour of national self-sufficiency plus trade in surpluses

5. The diminution of monopolistic investment banking and multinational business, and rapid expansion of credit to new smaller manufacturing sectors

6. The separation of all ISPs and all security agencies of the State

7. A massive push behind turning remaining (UK) land over to food production

8. An immediate guillotine on any further inward migration

9. A reduction in the emphasis on consumption growth, but with vastly more emphasis on selling higher-margin products to Asia

10. The reaffirmation of a separate Judiciary, the restriction of litigation law, and the preparation of a written Constitution guaranteeing liberty and democratic rights to all law-abiding citizens.

Realism alongside radicalism.

The Slog is not and never has been in search of Utopia. It is merely one of millions of sites seeking an end to self-serving Establishment élite bollocks, closed political Parties following outdated agendas, dysfunctional greed-and-credit fuelled economics, and BIG in every walk of life.

Homo sapiens will always be Homo sapiens: we are appetitive, irrational, and prone to unwarranted fear. But when under pressure, Man is a pack animal whose success is based as much on cooperation between packs as competition within them.

Whatever we end up creating as a result of radical reform will be a curate’s egg: that is inevitable. But the alternative on offer is poverty-stricken dictatorship. I choose the former. If you believe in self-reliance, self-respect, and community freedom, keep coming back here: it’s all I and many others of like mind have to offer.

93 thoughts on “MAYDAY! MAYDAY! They can’t save the economy, so the gargoyles are going to save themselves

  1. “All the social network sites now know who we are, who we know, and what we look like. All the ISPs now know what we write and what we say: in emails, on websites, on mobile phones, in media comment threads. ”

    Good. I don’t have anything to be ashamed of, all I have been doing is simply shouting my head off about the abuse and reabuse and reabuse I have been subjected to, and I know others would say the same. We’re not the ones who should be cowering in terror. I know they illegally spy and snoop on all us Pindown victims, they’ve used the Anti Terrorism laws to hack my email and spy on me. Why should I be cowering from the wicked bastards who have done that – I just wont.


  2. And if they ever send ruddy Rentathug to my house, or any of my relatives houses ever again, tell John blasted Hemming MP (MI5) that they will be caught on camera this time, I expect he will flap his arms around like a demented penguin again when he reads this though.


  3. That list of ‘solutions’ sounds more like a manifesto by Enver Hoxha or Kim-Il Sung. Juche anyone?


  4. I’m sure a policy of National Self Reliance that reduces the availability/increases the cost of just about everything that the average Sun reader consumes, or aspires to consume, would be immensely popular.


  5. I was thinking more along the lines that our dear leader is a month late with this particular rant…

    Although in fairness Aprilday Aprilday doesn’t have the same ring to it.

    Pinch punch


  6. A laudable list, some of which I believe the Transition groups are leaning towards, such as local energy, food and governance; as Jim says, the costs might not be so popular with the sheeple.
    And we need to remove the ‘elite’s’ first.
    Interesting read about the Trilateral Commission linked- I hadn’t heard of them…….


  7. @John Ward”””””””9. A reduction in the emphasis on consumption growth, but with vastly more emphasis on selling higher-margin products to Asia’.”””””””””””

    I said, ages ago, that the last thing the elite wants is a return to growth. This situation of contraction we are in was planned years ago. Growth will NEVER return because the elite doesn’t want it to. I posted links to the documents (well, one of them) which explains in minute detail why there won’t be anything other than a squeeze from now on. We are the “Useless Eaters” and we were gobbling up the World’s finite resources at an increasingly unsustainable pace. It’s over now, never to return. The whole aim is to achieve a reduction in demand along with a reduction in population and this is how it begins.
    Some of you younger people will be able to tell your grandchild (you’ll be lucky to have any) that you were there, right at the start of the reversal of “continued growth / continuous expansion”….and you didn’t realise it at the time. Welcome to the birth pangs of a Type-1civilization..


  8. Spot on analysis.
    IMO this global one player/ sided Chess game, planned for decades, is almost over. The Kings, Queens, Bishops and Knights are ready for the final push before they scurry back to their Castles. Leaving the Pawns as indebted surfs.
    There is one move in this game you haven’t addressed above, the move toward global conflict. (Syria, Iran etc)Together with economic collapse = Check mate.


  9. That’s hardly the point is it.

    The objection is that supposedly democratic states spy on their citizens, often illegally. Period. There’s nothing good about that. It’s obscene, power grabbing and controlling and absolutely neglects the rights of citizens.

    But that’s where we are today.


  10. Good read, John, and one that I suspect has been bubbling on the back burner for a while.

    Not sure that the international moneychangers and industrialists have been given sufficient space with regard to the fact that they truly could not give a flying Freddie Uncle Charlie Katie about what happens to nations and their populations. It doesn’t matter to them when entire populations are driven to starvation, or that children die in their millions all over the world for want of a bowl of rice and a drink of water as long as profits and control expand relentlessly. They are utterly without conscience and show no signs of acquiring one in the near to medium term.

    So your entirely admirable list of ten steps to improve matters will remain, I am sad to say, theoretical as long as people are kept under some sort of control. TV, fast food, and decent sanitation … doesn’t take much. This may sound like criticism of your splendid essay, but it’s not really. I agree wholeheartedly with your suggestions about the best way forward. If I could tentatively offer an 11th – and that is to shut me in a room with a few international financiers for half an hour or so for a stand up chat, sans coffee, about the uses to which a length of lead piping may be put – that would be good.

    I have been banging on for years that the ability to defend oneself and ones family is of fundamental importance. Each of us will have a view on what that means. My own is pretty implacable and certainly not curtailed by half-arsed legislation made up on the hoof over the years by a series of opportunistic and corrupted governments.

    If there is one thing that we are inclined by nature to do, it is to see the world in terms of our own lifetimes. There is a degree of freedom in taking a step back and watching the weavers of Fate over centuries and more as they do their work.


  11. Your analysis of the situation is the best I have seen.The free-market system has ground to a halt because there are not enough markets and there does not appear to be any prospect of more emerging on the scale required. However,I do not agree with your solutions. The problem has to be tackled as far as possible on a world basis.We are in a 1940’s situation and a coalition government is necessary with no general election for some time.Byelections when MPs retire etc should continue.The judiciary should be kept as independent as possible.Conscription to allow construction of roads etc should be introduced. We need to have directed(planned)economies with rewards for entrepreneurs to avoid getting into Soviet-type stagnation.What are the chances of this happening?????


  12. You could write a book in about two-weeks, John :-) The speediest blogger in the West.

    Your solutions are valid, but I reject your criticism of those such as my self as being so simple as ” but the vast majority of people either pour cynical scorn on it, or can’t be bothered to get involved.”

    We have gone ‘too far’, and there are too many people fast asleep. The BRICS are establishing their own trade currencies, and ditching the dollar. The $US is set to meet the fate of ALL and EVERY fiat currency since time immemorial, and when it does, the global PONZI schemes and accompanying trade will disappear along with it. When? I dunno, but I doubt it’ll go past this decade.

    Although the sheeple are asleep, they’re awake enough not to trust TPTB and will turn on them eventually.

    Unfortunately, John, although you may regard me and others as “cynical”, we perceive ourselves to be the realists. This ‘ship must sink’ before another can be built…….by the survivors, of course.

    I’m personally seeking solutions for AFTER the collapse of the $US.

    However, planning such solutions now is extremely wise.



  13. “We need to have directed(planned)economies with rewards for entrepreneurs to avoid getting into Soviet-type stagnation”


    That sentence is completely contradictory.

    You want fascism, right?


  14. People I know look at me like I have two heads when I state that this situation was planned (their first stab with global warming didn’t drive down living standards as expected).

    It is not intended for the ordinary public to continue living as they do, the problem is this has to be done gradually over a number of years not in a big bang type implementation or there will be a revolution on their hands.

    Me, I am seriously thinking of selling up and disappearing into the Pacific somewhere out of the way before the bombs start dropping.


  15. Unfortunately thats the way I also read it. Everything on the planet takes priority over the plebs. The pre planned big depopulation has commenced.


  16. I tell you what I find really depressing when walking down any high street in any town, doesn’t matter which, they are increasingly taken over by:

    i. betting shops
    ii. pound shops
    iii. charity shops
    iv. payday loan shops
    v. pawn shops
    vi. banks (hahahahah)
    vii. bugger all else


  17. One point in this you missed else spot on. The mother lode of a single trading economy. The word “single” should scream at you as a fail.

    If we reach this position game over because a trader needs somebody to trade with and a single global economy does not have a trading partner. All the money or all the goods in the world are both useless without ET to buy from or sell too.

    What we end up is where we are now a single global trading economy that MUST FEED UPON ITSELF TO SURVIVE. I am off for a Greek burger now and it is not French or Polish horsemeat (no offence to any Greek) but that is how you have been served up followed with a nice Cypriot dip with some Irish Crackers. Expect some UK pudding not far down the road neither.

    The one point mentioned in the article is the corporations, needing feeding is now driving sovereign debts. Imagine a global cut of all benefits the amount of ipads you will sell will plummet unless people are handed benefits to buy them.

    Still reckon within a decade I will get a new laptop in a packet of cornflakes.

    Out of control, means no control, free trade makes it happen. Kill it!@


  18. Some very good points,idolness is that really a bad thing,just watch at the efforts taken when a strike is mentioned they fear this more than life itself,would enough people have enough anger worldwide to respond just yet,would speaking out rallying people or just quicken measures to oppress them faster,No the hayeks can not see that they are producing a collective,that everything they do the opposite will in the end prevail,it is a dark place we are going to but light will win out


  19. Possibly one of the best essays of yours that I have read, thank you. I would love to respond in some detail but unfortunately having my own business, which sets constraints on my time.

    I concur with most of what you say but I think the end game will not lend itself to the introduction of an enlightened list of possible solutions. History, I believe, is a good guide and when socioeconomics has ever got this far out of balance, social collapse or instability has always occurred. This fear, for example, is one of the greatest driving forces in Germany and not hegemony as is often suggested. The Germans have lived through more than a century with periods of total instability and genuinely fear experiencing it again. The British, on the other hand, have come close to social instability but it didn’t affect the majority and is thus not a part of our national psyche. This is dangerous because we are blindly walking into a situation that could deteriorate incredibly quickly. Much too quickly for the establishment to control it, or if they did it would be through the use of a savage dictatorship.

    What is alarming is that the British establishment doesn’t have a long-term strategy for anything. Compared to China, who have twenty and thirty-year strategies, we have nothing and I mean nothing to say about our future and how we are going to survive in the world. It is so depressing and I would like to believe the positivists of the world but they are no longer plausible.

    Thank you again for your excellent essay.


  20. Sorry. Looking at the trees you are missing the forest.

    The number one cause why Europe (and partly US) got into the mess is the Basel Committees’ capital requirements for banks, which are based on “perceived risks” already cleared for in interest rates (risk-premiums) amount of loans and other terms.

    This has castrated the banks, and have them all singing in falsetto earning much higher risk-adjusted returns on equity when lending to The Infallible, like Greece and Spanish real estate, than when lending to “The Risky”, like all your small and medium businesses and entrepreneurs.

    With these capital requirements there is no chance in hell Europe could have become a prosperous Europe; with these capital requirements there is no chance in hell Europe can remain a prosperous Europe.


  21. Human nature young Slog. There is no answer to the question of human stupidity. People will always want to be put on a lead whatever the movement, whatever the government. Israel killed its prophets and it follows that the rest of the world will kill its prophets too. All positivity can be worked and suppressed to bend to whoever is in charge. Wasn’t it Cromwell who offered England Jerusalem? There were no takers. England returned to its own vomit and has continued to this present day. I hope you continue with your wisdom and counter the mainstream, but don’t hold your breath for any change whatsoever. Love, Cosmo. x.


  22. Pingback: John Ward – Mayday! Mayday! – They Can’t Save The Economy, So The Gargoyles Are Going To Save Themselves – 1 May 2013 | Lucas 2012 Infos

  23. Writing from New Delhi, after an absence of a few years, it just confirms the inexorable rise of Asia and the coresponding decline of the west. It is the inverse of what happened around 1815 when the west took off and the east went into a century or two’s decline. It’s the great levelling and we will become poorer no matter what policies are followed, just some will be worse than others. Gotta run. Meetings!


  24. I tend to agree that the paradigm as it is at the moment is so utterly rotten and corrupted that it must either be destroyed or be allowed to fail.
    I was watching Ed Miliband trying his best not to admit that his plan to stimulate the economy would result in increased borrowing and I did for a good hour or so consider writing to him and asking to abandon his left/right keynes versus friedmanite approach and instead just tell the public the truth – the truth being basically the content of JW’s piece above.
    Let people understand that they have been sold a lie and offer people a future that might be austere but will at least be sustainable instead of this futile plate spinning and short termism that politics has descended into.

    I thought in quite some depth about the arguments and examples I would give to illustrate that the game was up and the fact that people were now able to educate themselves and share opinions via pages like this.

    So… should I write to Miliband or is it futile????


  25. “So… should I write to Miliband or is it futile????”

    If he agreed with you he doesn’t need anyone else to tell him what he believes anyway, after all, we are told he is a ‘conviction’ politician.

    If he doesn’t agree he wouldn’t read it and wouldn’t change his mind anyway, we are told he is a ‘conviction’ politician.

    You asked so I’ll offer my penny worth, yep futile, for the reasons given above.


  26. I wrote to Milliband & Cameron, but I confined my letter to Cromwell’s speech to the Long Parliament. I couldn’t bring myself to address the letters to ‘The Right Honourable’, so I just put ‘Mr.’ in both cases. Of course I have not yet had a reply. They probably never even got past the flunkey who takes in the post, but there y’go!


  27. You could also add local authority Parking Shop, Asian Discount Off Licence (with Special multi-pack deals on Tennents Super and extra strength cider) and a shabby no win no fee solicitors office.


  28. John,

    This is quite a tour de force and boils down to a basic question; How do we seperate economics from politics? As things stand powerful lobbies get to influence (I am too polite to say bribe) on their pet micro policy. One example is a compamys duty to maximise profit.

    Sounds great in theory but on a macro scale it produces corporate behmouths and a banking system that are simply no use. It halts upward mobility in it’s tracks and the truth is dawning that even if you play by the rules you’ll get exactly nowhere. The majority of wages now don’t support a family or mortgage.

    The over riding message is get lucky. this is evidenced by the growth of lottery, betting shops and rancid Tv shows. This is what happens when the profit motive replaces the moral one.

    Your crusade which is also mine is to find an alternative that’s not socialism. I would start with full emploment and a guaranteed job for all.


  29. Same for me. 7bn people on this planet all looking for a Western lifestyle. Can’t be sustained, something has to give. I said have said before that the answer to ever deceasing resources is to reduce the drain of them.
    Their only problem might be leaving enough of us (fit and active) alive so as to be able to service their needs.


  30. One wonders whether the likes of Tubby Barroso and Rumpy Pumpy et al are in on the plan or, just useful idiots!


  31. Well put.. the risk of a sudden and catastrophic collapse is all too real. If you read Alistair Darling’s memoirs (not the best book in the world..) he describes how close we can to pulling the plug on the entire chip and pin/cashpoint network when RBS was teetering on the brink.

    I recount this story to people and they smile but they really don’t think its true…


  32. “So… should I write to Miliband or is it futile????”

    IMHO it is futile, but be your own guide on that one.

    Instead of spending X calories and Y time on writing to Ed – the man with the remit to politicize ALL charities – why not read a bit on organic gardening, monetary history etc.

    However, what you do is your business, dude.

    I just ignore them, whilst deliberately and methodically set out to destroy this PONZI debt-based enslavement I was born into.

    I wouldn’t pi$$ on a politician even if they were on fire…….I’d just walk away and state, “hell awaits you, Rothschild SHILL”.

    Anyways, G’luck.


  33. What I find strange, is you never address the root of the problem. The ‘money changers’ at the fed and the real owners of the BoE and all other central banks.

    Debt isn’t incidental. It’s exactly where they want us. Paying off the unpayable like useful little slaves.

    US growth? They’re going down fast. Boston bombing, terror? Don’t make me laugh (although a perusal of some of the obviously staged events might).

    This week, the evil europeans actually achieved a ban on some of the more harmful pesticides which are decimating the Bee population, rather integral to our survival. Guess what; the morons in the UK government voted against.

    Quelle surprise.


  34. A very good piece John.

    I can only echo what has been said above, the constand drive for year-on-year growth has, and always will be, an impossible aspration in a closed-system economy.

    Growth is measured on profits and profits are driven by sales, raw material costs, and labour costs. The megacorps control sales and raw materials and so, in order to sustain growth, they need to drive down labour costs. But they cant do this in a society where everyone has the expectation that their wages shouold be sufficient to buy the things they are being encouraged to buy by those same megacorps.

    The megacorps need to create a new, cheaper workforce. One that will work for next to nothing and be grateful for it. A workforce very much like that of Indo-China 10 or so years ago – before they got all aspirational.

    I agree that politics is now about preservation of the self rather than preservation of the state. The sheeple, and those of us who are awake but swamped by the herd, are just commodities. We have human right, but only if they do not interfer with the enrichment of the elite – like animals whose welfare is protected by law, unless that welfare is not profitable.

    Do I think there will be open revolt? I used to pray for it but sadly when I look around me I see only sheeple, whose empathies extend no more than 6 inches from themselves. Spin it right and you could make them burn their own babies. Society has been destroyed by years of ‘social integration’ and the destruction of places of discussion such as pubs and clubs (not the disco sor). There are people who have lived in the same house for years and yet do not even know their neighbours’ names.

    No matter how bad it gets the sheeple will continue to graze on the MSM pap, and while saddened by the suffering of sheeple around them, they will comfort themselves with the thought that it is not themselves who is suffering. While we, the shepherds, will see that suffering and feel increasingly impotent to stop the suffering and get increasingly melancholy.

    Viva la revolucion!


  35. I, for one, would be prepared to contribute towards printing one of JW’S commentaries in the MSM. Somebody somewhere has to try and wake up the sheeple. Wether they would print it or not is another matter


  36. Thanks John. Excellent.

    Gerald Celente speaks of the ‘Presstitutes’ Add to that ‘Proftitutes’ the massively well paid conquering army of ‘Academic Experts’ who have strangled common sense and genuine leadership with their imbecilic theories, yet never been held accountable when their engineered crashes came….Unsurprisingly, their expertise always promotes the larceny of Big Banks, Big Pharma, Big Oil&Gas, Big Defence, etc. etc.
    This is hurtful to whores but think Michael Jenson, Larry Summers, Richard Rubin, Frederic Mishkin, Bernanke, Krugman, etc. etc.

    Time to toss out EVERY incumbent politician, starting tomorrow with the Council polls.

    P.S. Agree with you on Amanda Knox. Certainly morphed into a very polished girl… could Max Clifford be involved.. If she really needs to clear her name why not undergo a voluntary Polygraph?


  37. The Good Shepherd; One that slaughters a sheep away from the others so as not to alarm the others.
    The Bad Shepherd; One that slaughters a sheep in front of the others so as to frighten the others..
    Either way, sheep are for fleecing and slaughtering.


  38. [audio src="" /]


  39. ‘No more boom and bust ‘?.Balanced budget,last seen 14 years ago.Don’t get me on the wealth transfer under QE. Mr. Farage did not read PPE at Oxford.Maynard Keynes would never have advocated these economic policies,in response to 2008.The electorate gets the leaders they deserve.


  40. Peter, here in Gloucestershire one of the local shops has opened up as a micro pub. No smoking, no tv, no games machines, just barrel beers, ciders and red or white wines. Oh, and free soft drinks for designated drivers. It is a step in the right direction in encouraging discussion, but for anything like this to be successful it requires everyone who discusses to be open-minded. That, I fear, is in very short supply.


  41. An excellent article. Though I believe anti-terror laws and the forces of repression will be quite sufficient to do any job that’s necessary when the time comes; and serfs we will become once more.

    I have never found a better explanation for the direction the world has taken, and for the destination it is heading towards, than that given to Aaron Russo by Nicholas Rockefeller, told in the first five minutes of this video –

    Elitist conspiracy? Why not, they’re cleverer than us, richer and more powerful, and likely absolutely corrupt.


  42. @kfc
    “Their only problem might be leaving enough of us (fit and active) alive so as to be able to service their needs.”
    Scarily reminiscent of Nazi concentration camp policy……


  43. Discussions in a pub! I cannot even get people passing me by in the street to look me in the eye, smile and say hello!


  44. Pingback: EXCLUSIVE: How Draghi was buying Spanish bonds while claiming only that he “might” do so | The Slog. 3-D bollocks deconstruction

  45. “The electorate gets the leaders they deserve.”

    It’s very catchy to say it, but what does it mean and why is it so?


  46. An excellent and very thought provoking post, Thanks JW Please allow me to share a similar example from my own industry, that may well affect many of you.

    The new Enterprise and Regulatory Reform Act, which recently received Royal Assent allows all photographs, design and paintings considered to be an orphan work to get used for free. Orphan works are those works whose creator cannot be found. (after a so called ‘dilagent search’.)

    An orphan work is defined as an image that is without a copyright stamp, watermark or metadata, which show’s the author of the image, copyright, contact details and so on. The majority of websites and  social networks such as Facebook or Flikr strip out ALL of this data as soon as you post it. Your work, even something you shot a minute ago and uploaded, just became an orphan work. As such, it can now be used for free and for whatever purpose the thief of the image wants to use if for. Under this new law there is no legal redess for claiming later that the work is your copyright..and the new (corporate) own er, Facebook, Google etc can sell your work on as often as they like and for as much as they like. Farewell to the Copyright Act protection in the face of the march of corporate greed.


  47. Not sure I can agree with the eugenics theory conspiracy only because of the nature of those involved. Any supposed pre planning would take generations to come to fruition but the type involved are so egocentric with it all being about them, they want it now not for their kin! The two factors don’t fit!?


  48. @Joanna
    Many of the “members” of the Trilateral Comm. are also members of the Bilderbergers and Council of Foreign Relations, though the latter seems restricted to the US, whilst the first two are international.
    I thought this was a particularly apt extract from your link:-

    “There just does not seem to be anything anybody anywhere can do about it.
    It all basically boils down to the vast majority of working people in just about every country suffering the most perverse, unfair and blatant discrimination of all: when small but extremely powerful, unelected and illegitimate minorities discriminate against the vast majority of disorganized and as-yet-unawakened citizens.
    This is not a ‘conspiracy theory’ or any such rubbish. This is something that’s right before our eyes. All you need to do is look in the right places, see who are running this ‘greatest show on Earth’, and then think with your own commonsense mind ………..”

    It takes varying degrees of time and repetition for the scales to fall from the eyes of the majority, but once fallen, as the author says above “there just does not seem to be anything anybody anywhere” feels individually able to do about it.


  49. Simple. The electorate don’t want to be told the truth – that the West is broke, that we can’t afford to pay vast swathes of the population to sit on their @rses doing nothing, nor can we continue to afford to employ equally vast swathes of the population in State funded make-work schemes. The productive capacity of Western economies is nowhere near their appetite for consumption. Therefore anyone who stood for election and said these things would be regarded as a loon, and ignored. The only people who the electorate will consider voting for are the smooth talking hucksters who tell them what they want to hear – everything will be all right, you can going on living on tick indefinitely, you really can work less and less and consume more and more. And being hucksters they skim off a nice percentage for themselves along the way. Everyone wins – the electorate get the lies they want to hear and the politicians and their pals make out like bandits.


  50. As if the crisis didn’t strike before Basle 3.
    All euro-socialist countries were/are bust regardless.


  51. Sorry Jim, that doesn’t cut it. I’m part of the electorate and I haven’t had a government I wanted for the past several decades, so how is it that i get the leaders I deserve?

    Fact is I don’t even get the Leaders I want and as long as that pertains I will not accept that I somehow deserve what I get.

    And before anyone else says it, yes I have tried to have an impact on ‘the system’ and have singularly failed. Now I’m too bloody old and tired to fight the good fight any more. So do I now get the Leaders I deserve?



  52. thanks for the good article. all good points but i take a more reductionist view and see the lack of growth and rise of debt as inevitable due to having a debt-based fiat currency. money is created as debt, and has to be paid back, so there’s never enough money in circulation to pay back all the debt, and each year more of the total money in circulation has to go to paying interest.


  53. No form of government promises every individual what they want, how could it, as significant proportions of the public want utterly different things. Some people want a Republic, some a Monarchy. Some want to chuck out all the immigrants, other want freedom for anyone to come here. These are not reconcilable desires. So the fact that you personally are unsatisfied in the calibre/nature of our governments in recent decades is not evidence that the vast majority are unhappy with the outcome of their voting patterns.


  54. “These are not reconcilable desires. So the fact that you personally are unsatisfied in the calibre/nature of our governments in recent decades is not evidence that the vast majority are unhappy with the outcome of their voting patterns.”

    Of course, but that isn’t what you said, is it?


  55. @Jim
    “… is not evidence that the vast majority are unhappy with the outcome of their voting patterns.”

    Has any government ever had a majority of the people’s vote?


  56. Kudos Jon, you help me endure. I agree with the assessment and prescriptions. When I survey the wreckage of current economic policy I can’t help but conclude that it is almost all uniformly designed to crush demand.
    To create social conditions of insidious lethal attrition while proceeding apace with the commodification of the biosphere. These people believe that you do not have a right to anything you can’t pay for. That this is the only fair way to account for the value of global resources and see that they are deployed most effectively by current free market standards. As if free market standards equate to some relative objective fairness that only commerce can achieve. Honour still sinks where commerce long prevails. The rule of law, reflecting as it does current community standards and morals is abrogated and subverted where it impedes this process.
    And we are all outraged. Our response has to be more than commiserating over coping strategies in the self help ailse.


  57. I don’t knot if John has read “The breakdown of nations” by Leonard Kohr. The comment about “BIG(ness)” makes me think he has. Seek it out its quite readable and thought provoking.


  58. Spot on as always. My only fear is how the elite can render themselves safe. By getting rid of the rest of us? seems like it’s going that way. and the time for civil disobedience disappeared sometime when the sex pistols and the dead kennedys were making music.

    I knew all this at a very early age. Sad i didn’t react back then.


  59. Trouble is, no matter which party is running the show the outcome is the same,For it is those who run the parties make sure they have the same results who ever it may be,,It is a waste of time voting as it does not change how they work, never has,as they have always ruled over the shepherds who are there to watch their flocks,,Baastaaards!


  60. Here in the US we cheer the police who keep us locked up in our own homes and search them without a warrant. We get the government the people deserve to have. With their fearful attitudes and a desire to be protected by Big Brother the people sell their freedoms to the powerful and get servitude in return.


  61. I haven’t been here for a while. Glad I dropped by. Powerful post John and except for a couple of quibbles bang on! (that is the right expression isn’t it?).
    The news from Boston was an oh, oh moment for me. These kids were patsies and the whole exercise was an “experiment.” How much control can we exert, or shove down their throats? I’m sure the answer warmed their hearts. Oops forgot they don’t have hearts.

    We better learn to take charge, implement some of what John suggested AND start repairing the environment or we’re toast–literally!

    Oh, did I mention, it could get nasty!


  62. Nearly 90% of the electorate voted in 2010 for the 3 main parties, who are interchangeable really. Small tinkering policy differences, but the main thrust of the nature of government and relationship between government and governed is agreed by all parties. They are all effectively Social Democrats. So 90% of those voting are voting for the current system, whether they vote LD, Con or Lab. Given 65% of the electorate voted, that means approx 58% of the electorate are happy with the basic way we are governed, they just disagreed slightly over how to arrange the deck chairs on the Ship of State. They certainly aren’t voting for a radical realignment of the nature of UK governance.


  63. John Lydon’s “Word Destruction” – 1984.
    It’s like they wrote this song today:
    Hey, look out, the third world nations are on the rise.
    The Democratic-Communist Relationship,
    won’t stand in the way of the Islamic force
    The rich get richer.
    The poor are getting poorer.
    Fascist, chauvinistic government fools.


  64. @Cosmo
    “As the dog returneth to its own vomit, the liar must eat his own lie.”

    George Meredith – The Ordeal of Richard Feverel

    1859 – no change there then despite the passage of over 150 years…


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