Unless modded out, this post contains rude words... and hate speech about plebs

People stun me, truly, every day... How can so many people not understand, that they do not understand?

LOL, this is really boring so unless you're really bored or into economics, maybe find something better to do

Myself I used to work in the UK, City of London, at one point back in the day... did economics in university... and so forth.

So today there is a reported a ratio change coming between base rate and consumer mortgage rates in the UK.... no surprise considering the indicators but that is not important... this is what made me go 'What!!?

On *mod edit* forums some person Michael posts:

Michael: Bet the savings rate goes up when all the PPI claims have finished ... it's the savers who are paying it. Most PPI claimers only got their loan if they took out a PPI as they were bad payers ... and now they are after compensation.

WTF? Really? You actually posted that you mindless prick? What the hell has PPI to do with either base rates or savings rates? Oh but this ######6 prick will be one of those "I hate them banksters innit!"


PPi is Payment Protection Insurance and it was mis-sold to people who had no possible hope of claiming on it... self employed, house wives, OAP's and so forth. The banks were very naughty and have to repay the premiums etc, which is 100% correct.


Base rates however are set to control an economy for the best result for the economy... UK base rate sits presently 0.25%, 1st quarter growth rate 0.2%, worst in the EU by a country Km...... the UK is still doing QE and printing cash for pities sake, that's how 'well' the economy is

If the BoE puts up the base rate that will lessen spending and encourage savings... So it, the UK, obviously cannot do that, as it has basically no growth anyway and was in deflation last year. Also taking that 80% of the GDP is based on consumer spend and the UK has the most contextually indebted people in the world, even worse than Australia and Canada.... it's already not good. Indeed in the land of the Good/Bad thing... that's a Bad thing

So the question is why do these morons post this $#%^? Do they indeed go to the hospital and the specialist says "You have brain cancer Michael. As a specialist I recommend we operate today..."

"Hold on!" says Michael and maybe runs from the room to the A&E department to ask the assorted plebs what they think? Or maybe Michael says "No it is my ankle I do not listen to experts.....operate on that instead"

Why do they not understand they do not understand? If I do not understand something I ask, I read a book... I don't just make stuff up to please myself..... I so despise these people.

More indebted than citizens of the US? If so, I'm impressed.

[quote="Snaga"]More indebted than citizens of the US? If so, I'm impressed.[/quote]

Debt is how you look at it... it needs context to make any sense............ For example ask just about any member of the public "Which country has the most debt? They will say "USA", but actually in context it is Japan by a vast amount against GDP, which is what counts... America is 15th... indeed Belgium is more indebted @ 13th

US external debt is $18,286,510,000,000.... UK external debt is 7,499,400,000,000......... But per capita which is what counts, obviously, the USA per person owes $59,000 and the UK person $119,000... the USA is at 97% of GDP for this type of debt, the UK @ 314%... add in the UK national debt of c.$2 Trillion (Which UK people think is the entire debt... wrong!) and you're heading for minus 500% of GDP... Now that is bankrupt in anyone's language.... Plus that GDP is nearly all built on debt and the economy nearly all built on debt.... the debt is there because the UK has spent 70+ years trying to create a replacement self sustaining economy to replace the empire... and failed, 100%.

Take Brexit... UK is the 2nd highest EU contributor... Yes. But where is the context? In context, against income, the UK is 28th out of 28... but of course Boris and his dodgy mates didn't bother to mention that.

So indeed be impressed .....

The UK has been bankrupt since 1945, and the empire was over in all but name by 1945, completely disappearing by 1963. That caused, along with true global manufacturing/economic changes, the UK manufacturing sector to drop into terminal decline by 1969... That's where all the UK issues really start, loss of empire. It could not and still cannot grasp it is not an empire any more... it is indeed all 58 countries short of the full deck.

Today's UK GDP is @ $2.84 Trillion, in today's money the GB Empire c.1900 had a GDP of $13.97 Trillion, it did 48% of ALL world trade.... Now whilst not all of that money went into the UK island, much of it did... the devastating fiscal loss is obvious.

So the UK goes from the mid 60's with a GVA for tangible manufacturing of over 50% of GDP... to today, under 9% and still falling. That means that now instead of millions of low skilled but contextually well paid jobs, paying net taxation, the UK has moved for the past 30+ years to having the same class of people in low paid service industry work. So the UK economy gains a quadruple 'whammy' .... Millions of working poor not paying net taxation, millions of working poor needing benefits as tax credits, they have a total reliance on credit/debt to survive and the UK now imports 60% more than it exports.

In the UK presently c.25% are in, on or just above the poverty line (That will change in a hugely negative way over the next 5 years)... whereas in America that figure is already @ c.50%...... so they don't have quite the same debt issues, because many already just can't get credit.... there's millions of the working poor living the American Dream in their tents on supermarket car parks, waste land and in forests or spending 70% of their income on a cheap motel.. no proper residence, no credit.

Post industrialisation is the gift that just keeps on giving western politicians nightmares and they mostly don't 'get it' either.... Read about the Weimar Republic Hyper Inflation, a book like: When Money Dies by Adam Ferguson, it's about Weimar but in non-technical language... honestly you look at what they did and think... LOL....really?

I don't understand much- I'm not very clever- but it's my understanding that we live in a house of cards, yes....

Snaga..... Yes, indeed we do. It is all a faux

It is all perception, it is all the 'Kings new clothes'... currency does not exist, it is a promise nothing more. Be it paper or gold or diamonds, it is all a promise, a promise which we believe we can pass on because someoen else believes the same promise.

But in all my years working around currency and having met many an economic genius, no one has a better idea that people will accept.

Personally I say get rid of all countries, get rid of all currency, have one basic world government. Then everything is just created used, everyone gets what they need and mankind works toward shared goals... LOL, can you imagine that ever working?

There's going to be a major war soon imo, a whole WW3 thing... we're mostly not very sensible as a species.

If the Neo-cons in the US, and the US Deep State have their way, yes. They are infected with this madness to poke the Russian Bear, when instead we should be working together. I often feel as if the United States has turned into one large insane asylum for the criminally insane.

[quote="Snaga"]If the Neo-cons in the US, and the US Deep State have their way, yes. They are infected with this madness to poke the Russian Bear, when instead we should be working together. I often feel as if the United States has turned into one large insane asylum for the criminally insane.[/quote]


The basic problem is that the wheel of capitalism has turned and yesterdays certainties no longer count... The USA is no longer the world's greatest trade economy, it is 2nd to the EU and will soon be 3rd, below China, then below India in 20 years time

The USA is no longer THE superpower. It can't cope with that, politically or mentally

The UK's problem is that it lost the entire Empire by 1963; it had a terrible 20th century... 1900 the GB Empire was 59 countries and at it's zenith. It had 2/3rds of the world's population under it's control, 25% of the world's landmass and completed 48% of all trade in the world.... but by 1963 it is a tiny bankrupted island of 50 million with a rapidly dying economy. But with an arrogant population who still think they are an empire, as does the political classes to the most part.

Take the whole Brexit gig, much of the UK still believe the UK is GB, they spend a lot of time talking about 'How we saved Europe in WW2!" ... which is risible. But that is how far up their own backsides they are.

None of it will end well, the certainties the world has held since WW2 are rapidly diminishing and that spells danger because the change over from USA in power to China calling many of the shots will be painful for the USA. N Korea is just the start imo