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Money: The dream is dying (If it’s not already dead)

August 11, 2021 Leave a comment

You’ve gotta love the way that the mainstream media somehow manages to keep on missing the real news.

In a week when the plight of Geronimo the Bovine TB+ive Alpaca was creatively made to look like some 160,000 deaths of infected cows over the same period that his owner has been fighting Defra simply didn’t exist, the pillars of our information rich society managed to overlook the further £1.15Billion of Bonds that the Bank of England has bought, extending Rishi Sunak’s mammoth money printing and public spending spree into realms which really do now span into the complete unknown.

Don’t get hung up on who is buying or who is selling what to who, when it comes to any kind of financial ‘product’, when the Bank of England or the Government are involved. Either way, this is a process of injecting even more obscene amounts of cash into an already overladen economy – all of which is effectively debt being run up on the public tab.

The thinking that underpins financial jiggery-pokery of this magnitude isn’t only flawed; it is also exceptionally dangerous. The repeated bouts of money creation that the Johnson Government has instigated since the Covid Pandemic began are so high, there is no practical way that this Country can pay anything near the whole amount back.

There is talk that our children and grandchildren will still be paying the bill. But the Johnson Government really have gone too far.

What is more, they have done this not off the back of owning something secure like gold – that actually exists.

They have literally created all of this money out of thin air, all on the principle that the system will keep rolling, accumulating like a rolling snowball, and that as long as it keeps rolling in the same direction (That means the money available gets bigger and bigger), then those driving it and who are responsible for it will never suffer from a fall.

What this apparently bright idea overlooks is the stark reality that exits when the amount of money available increases exponentially, whilst products, land, houses and capital assets that we can actually own, increase at a significantly slower rate – that is, if the amount of them available actually increases at all.

Those at the top of the money chain – who always end up with the bulk of all this newly created cash, have increasing buying power that the majority of us can only dream of. Meanwhile, they push the value of everything up significantly – alongside all the others who are milking the system or taking out value without giving anything back – whilst those on the lowest wages and increasingly even the middle classes too, simply don’t get the wage rises that mean they can keep up with price rises just enough to stand still.

By now, you will probably have realised that this isn’t a Covid-related problem. In fact, this problem isn’t really that new at all. It’s been in the making for 50 years or more.

What’s different now, is the way that the Government and the Bank of England under its instruction, has upped and is continuing to spend.

It is a matter for debate whether the money pumped out to keep the economy moving during Lockdown should ever have been needed at all. But we are well past that point now. And if we go back to the snowball idea that I mentioned above, the reason that so much money is being created and pumped into the economy, is literally to keep the whole thing moving because the Government is terrified what will happen if the whole thing stops.

SPOILER ALERT: It’s going to stop. The snowball will stop rolling and will not be able to grow any more.

The financial system and the economy are going to crash.

It’s not an if. It’s a when.

And the only question that we and ideally the media should be asking, is which will be the straw that finally breaks the camel’s back.

There are a range of different ways, and the list is growing. It could be the escalation of cost-of-living prices, like the energy price rises coming in the autumn, or even the flattening of the additional £20 per week allocated to families on Universal Credit as part of the Covid ‘bounce’. It could be a shortage of food on the shelves being caused by a shortage of drivers (that has more to do with the ridiculous standards and licensing requirements that the EU imposed on the industry rather than any lack of EU drivers caused by Brexit) and the unadulterated greed of shipping companies that have created a worldwide shipping monopoly that is seeing prices for goods transport go stratospheric – not for any good reason other than that they can name their price, based on making obscene levels of profit alone. Then there are the issues that are out of our hands such as the precarious state of the US economy, which itself is on the edge of a precipice so large, that it could end the US hold on everything economic as we watch the position of the US Dollar as the World Reserve Currency simply implode.

Whatever tips the balance, it really doesn’t matter. The way that money and economics works today is already well and truly sunk.The neoliberal dream that money can be whatever you make it is dying. That is, If it’s not already dead.

Instead of using the borrowed time that the Bank of England and the Government has left to do anything that they might be able to try to mitigate or offset this coming disaster, they are instead upping the throttle and increasing the speed of compiling and contributing events, literally treating the whole thing as if a disaster is impossible and will never happen. They are working on the premise that they can literally fake it til they make it, by printing more and more money until they believe they will have completely weathered the storm.

Think very carefully about the relationships you have with the people, businesses and community members located around you. Do all that you can to cultivate and develop them in positive ways. Because a time will come perhaps very soon, when we will all have to trade, borrow, barter, help and support the people who are immediately around us – just as life for everyone in this Country once was.

Obsessed with big headlines and the powerful job titles that each and every one of them is sniffing out next, MPs and Government Ministers focus only on what bigs them up, rather than fulfilling the roles that they were elected for.

Foreign trade deals really aren’t going to help in a world that has to reject globalisation because of the fallout from covid and the fact that we are being woken quickly to the unfolding nightmare which is climate change.

Government should instead be investing the money it has available whilst it still has tangible value. Government should support the growth and sustainability of local economies and supply chains that really do away with every kind of unnecessary journey and make it both practical and cost effective for as much of the food we eat and the products we buy to have travelled next to no miles as possible.

We really should be taking this opportunity to focus proactively on going back to improved and better ways and models of working that value every form of human input equally, meaning that a happy debt-free, safe and healthy life is something that even the poorest members of our society and communities can afford.

These things can be done in ways that will remove a lot of unnecessary pain when they are done not by necessity, but by reasoned choice.

The Government has Bankrupted Britain whilst jumping into a trap that it will not climb out of if it continues to behave the same way

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Somewhere in London, a new kind of reality has dawned. We may note ever hear it spoken about or acted upon in any way or sense. But rest assured, a new era has now been born.

Six weeks ago, the Johnson Government took a series of decisions that are about to have seismic consequences for us all.

It began with the Lockdown. It was aided by the clever and manipulative messaging that was purposefully designed to make normal people too frightened to go out. It then culminated with a series of financial ‘support’ measures such as the so-called ‘Job Retention Scheme’ that has failed businesses, workers and the Country at large whilst addicting many to ‘free wages’ and polarising them against returning to work.

The Bank of England has today announced that the UK is officially now in recession, and this my friends is just the start.

The Lockdown itself was unnecessary. It traded all the certainties and regularities of life that we had like going to work, the pub, the gym, the shops, catching a bus or train or visiting whoever we might like to as and when we wanted to, for a gamble on what stronger leadership would have known would be a futile attempt to control a virus which they could only ever manage – not control.

The use of Behavioural Insights and mass manipulation, aided by an out of control media to install fear, purely on the basis of getting people to accept and adhere to the Lockdown and the Social Distancing measures that the Government imposed was a textbook example of both what to do and not to do all wrapped up in one.

Use of terms like ‘Stay at home, save lives’, ‘Protect the NHS’, and go outside on Thursday night at 8 and clap for the Keyworkers succeeded in securing such rigorous levels of buy-in to the Lockdown, Social Distancing and the measures taken, that many people genuinely and sincerely believe that acceptance of any and all measures that the Government dictates will be the only way that they can remain alive.

Many will not willingly respond to directives that go the other way, simply because the subject matter of the manipulation used has touched on the promotion of measures to avoid death.

Death and its avoidance is the primary fear that drives many parts of life and sits within the subconsciouses of us all. It influences so much in life, but rarely finds its way coming into our rational view.

The financial package that the Chancellor followed up the release of the genie with was much too clever for its own good. It over complicated matters when there was always a simple, fairer and much less damaging way to mitigate the fallout from the lockdown whilst addressing the issue of income for us all.

It is unlikely that senior members of a national government running the UK Treasury would not have known about or discussed the alternative options that were at hand. So we must conclude that the absence of real leadership at the top meant that the Government yet again went for what seemed to be the easy option rather than the right one, and in so doing laid out a giant trap for itself into which the Country is now about to fall.

In the coming days it is likely that the ties of the Lockdown will be loosened. But with the same ideas and mentality driving the direction now as we have experienced since the COVID-19 emergency began, it is likely that in only a couple or a few weeks from now, the Government will have to return us all to the full Lockdown again of not something even more punitive, because these so-called leaders have still not faced up to their responsibilities or the most salient facts.

That is of course if the majority of people still agree.

You cannot inflict absolutes on a population to resolve an emergency when no absolutes about the emergency like when it will end and how it will be ended are known.

It takes real leadership to go against the media and say that it is unavoidable that people will die, but we also have to maintain a level of life and functionality across everything that lies beyond the emergency so that we can make it possible for everyone else to live.

But that is exactly what we needed from Boris Johnson and Rishi Sunak at the beginning of the Pandemic, and even now, which such an incredibly damaging chain reaction for the economy now started and underway, it is the same thing that we need to hear them say.

COVID-19 is not going anywhere anytime soon and we cannot restrict every other part of life with Lockdowns and Social Distancing measures that are completely impractical until it has, just so the fearful believe that we have it all under control.

We don’t. We wont. And what the Government has been doing has been giving people they have deliberately worked up into a frenzy of fear false hope and a false sense of security. People genuinely believe that they will avoid death by following these measures without realising that they no longer have lives to live.

The Government needs to manage Coronavirus as the firestorm that it is. That means firefighting wherever the fire breaks out by focusing all the resources where necessary and not spreading them out so thinly that we will continually be overpowered by a Virus that they still don’t understand.

Only when the Government does this will they begin to be able to start addressing what is going to become the far more pressing crisis at hand: How do you manage an economic crisis when you cannot keep printing money and printing money is the only thing they can think of that will work.

 

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