interesting times

What the fuck is going on? How could apparently professional people, some with an economics background, drop interest rates by 1½%? It's madness - and here's why.

The banks are cash poor, that's why they are not lending to each other, let alone anyone else. To increase their balance sheets they need to draw in cash - and lots of it. To get that cash they need to offer high interest rates. Interest rates should be going UP, not down.

The second part of the equation is that the world is in an economic mess because of cheap credit. Yet our idiot government's cure is - make credit cheaper.

This is a potent moment of danger for the UK.

Those companies that depend on cheap credit, rather than cash reserves, should GO TO THE WALL, not be bailed out by this weak government.

Again, to flourish, hold gold, silver, oil shares with value, land, skills, seeds and friends. This is going to get a LOT worse.

Also posted to future economics

morons

The Bank of England fucked up again today. They didn't raise interest rates.

To rebuild our shattered economy after 20-odd years of Credit Cruncher abuses aided by craven governments we need to rebuild our national balance sheet, and the best asset class is cash in a strong currency. We get that two ways - by building a strong industrial base that underpins a strong currency, and by encouraging our citizens to be thrifty and SAVE. We're not going to do that with interest rates so low. My money's going into gold, silver and land, REAL money.

These fuckers still haven't learned the lesson. We need economists running the country, not idiot politicians whose only interest is in keeping the sheep grazing.

Expect REAALY bad economic news over the next year or two, and to avoid it just read this blog!