‘allo, ‘allo, ‘allo… wha’ssis then? Candor from a Western leader?

I may be wrong and, if so, I can be taken to task some years down the road. My rantings are etched in the ether for all to refer back to.

As much as I’d like to think Gordon Brown is being candid, I am not convinced. Crocodile tears is more like it. Old trick: show contrition, say you’ve learned valuable lessons and ask for forgiveness. Result, mollify the masses and hope to get re-elected.

Cynicism? Maybe but the historical record says it isn’t. It is just reality.


And, by the way. For Pete’s sake! Now Obama is running around telling the world that the oldest James Bond plot in the book is a reality and he wants to create an agency that will be in charge of administering all nuclear material worldwide (ergo a global agency)?

Follow the money folks. We are bankrupt. We’ve been bankrupt for a long time. The difference this time around is that sovereigns in the West have lost the ability to induce inflation into the monetary system thus the effects of bankruptcy are now becoming felt. Your one and only indicator to the health of our economies should be tax revenue. For as long as tax revenue is declining, the traditional tools that have allowed us to postpone insolvency for the past fifteen years have lost traction.

This is not to say that our “leaders” wouldn’t run a false flag just to inculcate the reality of the threat into the mind of citizens. I certainly wouldn’t put it past them to do something like that.

Don’t take your eyes off the ball folks. Follow the money. Watch how public spending in the West is progressively curtailed and some programs are terminated… we are bankrupt…


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2 Responses to “‘allo, ‘allo, ‘allo… wha’ssis then? Candor from a Western leader?”

  1. David W. Lincoln Says:

    Take a look at this: http://www.telegraph.co.uk/finance/financevideo/7586220/Yves-Smith-Naked-Capitalism-and-Econned.html

    as well as this: http://www.cbsnews.com/video/watch/?id=6298154n

    • guidoamm Says:

      Hi David,
      Those are great links. There is absolutely no doubt that corruption and criminal dereliction of duty on the part of our leaders and regulators has been established.
      But most people are still blind sided as to the how and the why this should have been allowed to happen.

      Is it just corruption? Of course not. There must be something else at work. Considering the number of agencies and regulators that have a say in anything that is done, it is unlikely that corruption was the only enabler. The enabler, is the necessity to allow corruption to happen for the “sake” of the monetary system.

      What it comes down to is the efficiency of money.

      In a fiat monetary system, the system is predicated on inflation. However, as you by now know, inflation is exponential in character. Therefore, inflation conforms to the law of diminishing returns.

      Now! If inflation is necessary but its effects wane over time, it follows that the system must regularly be allowed to be purged.

      However, if the authorities do not wish to allow a reset of the system and insist on maintaining it on a constant expansionary trajectory, it follows that the authorities must employ unorthodox practices to short circuit the natural tendency of the system to purge itself. Bailouts and subsidies are the clearest and apparently most benign tactics to short circuit a fiat monetary system.

      However, not only do bailouts and subsidies create overcapacity but they also lead to entities that become too big to fail hence become inherently corrupt. The direct result of overcapacity and too big to fail entities is that more economically viable entities are at best stifled or, in the worst case scenario, smothered at birth.

      All this is perpetrated for the sake of the monetary system. That is because if the monetary system collapses then so does the state. Therefore, the monetary system is directly correlated to a sovereign’s raison d’etat.

      Thus, the genius of a fiat monetary system is lost the minute it is subordinated to political expediency. And in a society based on personal and political freedoms, the monetary system will always and everywhere be subordinated to political logic.

      Hence in an unchecked fiat monetary system, corruption is an implicit instrument of state in order to maintain the system going. This is also the reason why in a fiat monetary system government eventually becomes the largest actor in the economy (the largest employer and the largest spender). And this is why, in turn, in a fiat monetary system, the economy loses efficiency over time – ergo, towards the end of the inflationary cycle, financial value runs away from intrinsic value.

      What most people are omitting to see or do not want to discuss is this. If as is evident the efficiency of money decreases over time, it is clear that you can only keep the system going for a finite period of time. However, the longer you postpone the day of reckoning, the bigger the reckoning.

      Fiat monetary systems should be allowed to purge regularly. If we insist on refusing to take small hits regularly, we are bound to one day take a big hit that will annihilate society and the social order.

      I think we are there.

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