Tag Archives: United Kingdom

Does the world have the courage to deal with its debts?


Quite a sensible article from an MSM source, Telegraph of UK, that aptly discusses the real state of things on the Central Banks’ front of deflationary fighting and suggests several solutions out of this global economic crisis. I, however, do not agree with the proposed solution ouf of indebtedness problem that we the people should pay down the debts as the author puts it “very slowly, by sweat and toil”. This contradicts the very natural economic self-interest of the majority of hundreds of millions of people that were either duped into borrowing by financial wizards or had to do it as they saw no other way of being able to afford things as the wages stagnated for decades. No, I propose to default on all the debts, walk away and let the owners of this world financial system have it. I in essense call for a debt revolt, stick it to them and let them be crushed under their own debts.

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Sane discussion of deflation from MSM … for a change.


There are winners and losers, just as there are from most economic developments. The important point is that the people who lose are more powerful than the people who gain. That might explain why we hear about the dangers of deflation, and not about its advantages. It still doesn’t make them right.

There is no threat from deflation. It may even be desirable if it encourages a balance between saving and consumption, and discourages governments and banks from taking on debt.

Britain is now deeply in deflationary territory.


Britain is now deeply in deflationary territory. Inflation has registered its steepest decline since statisticians began compiling the figures in 1948. The broad measure of inflation, known as RPI, slumped by 1.6pc on an annual basis.

The Bank of England tries to keep the money flowing to stave off deflation.


The brainiacs at Financial Times are making their case for more Quantitative Easing (QE) by the Bank of England to stave off deflation in the UK. Somehow the geniuses of economic science in once Great Britain firmly equate the amount of money in an economy with the level of economic activity and growth. It seems now a certain thing that the only thing that will educate them is relentless deflation that will either overpower them or force them on a path that will lead to a colossal and spectacular blow up in their failed policies of pumping up an economy with money when all it needs is to be left alone and allow the unsustainable asset prices and levels of debt to deflate. This is a good example of what people can do when they don’t want to understand the nature of money and its function in the economy. The money is a medium of exchange, and not a good that you can produce and induce demand for it. If nobody is willing to consume and has nothing to exchange, then the only thing that people will do with money is do nothing, so no economic activity will result in pumping more medium of exchange into the economy.