Friday, September 07, 2007

The Golgafrinchams are Coming!

Nurse, the screens!

The injections are continuing, in the best Robert Mugabe-esque tradition of solving a shortage of wealth by ramping up the printing machines, or in the case of the Fed, the Bank of England, and the ECB, by ramping up the insertion of numbers into previously blank computer registers.

Yep, the Fed and the ECB between them have just 'injected' (a.k.a. counterfeited) another £44 billion pounds of extra paper rubbish into their currencies. Once the fractional reserve confidence trick gets hold of that lump of nervousness, we're looking at another £440 billion pounds worth of extra paper notes floating around the world's fiat-money-based economies (or £0.44 trillion), without including what the Bank of England are up to or the Australian Central Bank.

Crumbs. A trillion here and a trillion there, and pretty soon you're talking about real money. Though of course we're not talking about real money (which is gold or silver), but paper scrip of a kind the Weimar republic or modern-day Zimbabwe would be proud of.

I don't know exactly when it's coming. But a 'Big Bang' is coming to an economy near you, real soon. And no, I'm not talking about a theory of Richard Feynman, but the economics of the Golgafrinchams who on reaching Earth a million years ago, began using the leaves of trees as their major currency, before burning down the forests to contract the money supply.

Strangely, in a rather bizarre genetic coincidence, the first Golgafrincham man to suggest the burning down of the primeval forests as an Open Market Operation, has 100% of his genes represented in a handful of men still alive on the Earth day. Though I don't think I'll be giving out any prizes for pointing out that virtually all of these men now work as the heads of state Central Banks. Even a Mungoid like Robert Mugabe could have worked that one out! ;-)

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