Monday, March 23, 2009

Tories should be 'honest and straight' with the public sector

Janet Daley does her usual Torygraph line on hoping that the Tories will give up on millions of public sector votes, to bring in sensible state-shrinking policies. I thought her efforts deserved a rejoinder:

(I must also be in a moderator's good books, because my comment appeared in minutes rather than the usual hours! :-)

Jack Maturin on March 23, 2009 at 09:08 AM

The conservative party has no point. It is merely a socialist party which wears blue jumpers rather than red jumpers.

This dancing on the head of a pin about taxation policy is simply pathetic. Margaret Thatcher, if she was dead, would be rolling in her grave.

The clue lies in the title of these people who think they are our masters. 'Public Servants' are meant to be there to serve the public.

When the public can no longer afford the luxury of having so many servants, many of whom serve no greater purpose other than being government vote fodder, then these servants should be 'given the opportunity to serve elsewhere', that is, sacked.

Will I notice if a legion of NHS smoking counsellors in Sunderland are sacked? Only if I get a tax rebate on the savings, and perhaps later if I find cheaper goods on the market, because these people are doing something useful instead, that people are voluntarily willing to pay for out of their own private incomes.

As a self-employed man who is finding work increasingly difficult to come by, I will simply not make greater sacrifices so that 'public servants' don't have to and so that feckless weak-willed smokers in Sunderland can have as many 'free' services as they want.

Because 'public servants' are allowed to vote, we have now reached a country in which figurehead governments of all colours have been captured by the voting power of these 'public servants'.

Because the tax consuming beneficiaries of the public payroll now control the law-making, inflating, and tax-gathering machine, the supposed tax generating masters have become nothing but defacto slaves.

Such is always the inevitable road to the serfdom of democracy. But I will not pay 45% taxes or hand over 45% of my children's inheritance to help these people stay in their cushy numbers, while my business withers and dies under a policy of borrowing, taxing, spending, and inflating.

I will not allow my children to be burdened by paying ever-greater tithes to these useless parasitical 'servants' for the rest of their lives.

The shores of Dubai, Singapore, Hong Kong, Vancouver, Sydney, and Auckland beckon. And what a relief it will be, once I have managed to figure out a way to escape there.

The tax consumers in this country may think they can hold the tax generators down to the ground to bleed them dry, but if this process is continued by both the blue jumper socialists as well as the red jumper socialists, then the brain drain of the 1970s will seem like a trickle compared to an oncoming tsunami, as wealth generators flood out of the country, to be replaced by nothing but a tide of ever more rent seekers.

What will all the tax consumers do when all the tax generators have left? Send threatening memos to each other? Confiscate pencils from each other? Eat tax demands?

Yes, they could impose an iron curtain to stop us leaving, but if they leave me nothing but my shirt to leave in, then I'm still going anyway. And what will they do once they have eaten my frozen bank accounts?

And if they prevent me from even physically leaving, why do they think I'll then get out of bed in the morning to continue facing an old age with a destroyed pension, so I can work hard all day to feather their index-linked nests?

No, we have reached an impasse in this country.

The state must either roll itself back, or it will rolled back on a sea of tax generator emigration. If it does attempt to chain us in, we will simply withdraw our labour, as our fellow-travellers did in Russia, and merely do enough to personally survive, without generating any extra roubles to keep the useless nomenklatura class going, in the style to which it has become accustomed.

Let us go or keep us chained in? Either way, they lose.

The gravy train is over, boys and girls. Get used to it. The most sensible thing those of you at the higher end of it can do, to keep yourselves in gravy, is let the bottom half go.

If you don't, you're all going to get turfed out.

The problem with socialism, of course, is that eventually they always run out of other people's money.

Well, now they have run out. Again.

The game is up. And for the conservative party to revert to type and to join their red jumper friends in threatening to bleed the tax generators dry to fund tax consuming voters, marks the bitter end.

There is now simply no point in voting for anyone in this country. It doesn't even matter if Gordon Brown fakes an emergency, to avoid going to the polls.

It makes no difference who is in power, because they have all just proven themselves to be in thrall to the client state.

Democracy is dead.

It is a God that has failed.

Though I am actually afraid of going to Dubai. You see, they don't have NHS smoking counsellors, over there. They consider them a bit of a waste of money.

I know; it's terribly uncivilised. They expect you to take personal responsibility for your own actions and apply personal willpower. They even expect you buy your own nicorette patches if you want to give up smoking! Fancy that?

Still, at least with a zero-rated income tax scheme, I'll be able to afford them.

Back from Dubai

Approximately the view from my hotel - though now the 'Burj Dubai' is almost full height!

For those of you who have already been, of course, you will know what I am about to say next.

Dubai? What a place! Unbelievable. The twenty second century has arrived. Marvellous. Incredible. Simply unbelievable. Have I said that already? Mind blowing. Fabulous. Fantastic. Simply indescribable.

If you are single and sick of socialism, get on the first plane out there for a holiday. While you are out there, figure out how you can stay there permanently, to get away from the encroaching fascism/socialism of our rapidly disintegrating western world.

Someone said to me recently that he thought the world would shortly form several new first rank hubs and relegate New York and London to the second rank. One of the most important of these newer hubs will be Dubai, he said. I didn't used to believe him. I do now.

(Just follow the Formula One program, if you want to see where these hubs will be.)

As someone who has been very lucky in his life so far, I have managed to visit Vancouver, New York, Sydney, San Francisco, and Vienna, plus other wonderful and beautiful cities, so I feel I am qualified to pass the opinion that Dubai blows all of them away.

As a Hoppeian, it was also very strange to be in a land held together by tight-knit social organisations, in an absolute minimal state ruled by an almost absolute monarch, who is able to rule in such a way through close cooperation with these tight-knit social organisations, based upon strong family values and the absolute intolerance of crime where the property crime commandments of the Christian bible are rigidly adhered to by the Muslim religion.

Add to this negligible tax levels, incredible entrepreneurship fed by these negligible tax levels, and a society built upon the voluntary personal relations of independent clans, tribes, and families, and you are almost entering a Hoppeian WunderLand. (Though realising of course that the Professor is an anarcho-capitalist, and sees Monarchism only as a route back to freedom, not an end in itself.)

You might have also figured that I was simply blown away. I may also have said that already.

Alas, I can reveal no personal photos, because that would give the game away on who my clients are, who are very private people. Suffice it to say, that when I got back to Britain I became extremely depressed and wanted to get on the very next plane back out again, without going through passport control.

We are living here in Britain in a deep dark hole. You only realise how deep and how dark this hole is when you go somewhere like Dubai and come back again to face the dreary government officialdom of Heathrow and the newspaper headlines of the Daily Mail.

I cannot wait to go back. I look forward to the day when this will be a one-way trip. The sooner the better.

Absolutely marvellous.

Friday, March 13, 2009

Jim Rogers - If the IMF unloads its gold, then buy it

Lord Rogers of Alabama continues his denunciation of the fools in government, in the second video in this series:

The gold rush: Is it too late to jump on the bandwagon?

Paul Farrow and Richard Evans believe there may be a bubble in the gold market. They also question why the gold price seems to be staying so low, despite massive paper money printing going on all around the world?

Obviously, central banks will be having nothing to do with this.

But it is selfishly annoying for us gold bugs that Bell Hops and Taxi Drivers are now buying gold.

So all of you Bell Hops and Taxi Drivers out there, listen to Paul and Richard. Stop buying gold. Start buying stocks again. They're cheap. And quantitative easing will bring about a recovery, and make stockholders billionaires again. Yes, really, it will.

Just leave that gold stuff alone.

Gordon Brown and Bernard Madoff are separated by a single detail – Bernie's pleading guilty

No prizes for guessing the first link of the day will be to the Jeffster, at the Torygraph:

=> The Jeffster's Friday Think Piece

Splendid, splendid, splendid.

I really couldn't have put it better myself.

"Paper money eventually returns to its intrinsic value; zero."

Voltaire (1694-1778)

Thursday, March 12, 2009

Chris Clancy's Chinese adventure - Part 8

Estranged English Austrian, Chris Clancy, rediscovers his passion for teaching in a frozen Chinese classroom:

=> Living In China – Not Many Drop-Outs Here?

(Link to previous episodes)

The History of Economic Thought

Jeff Tucker at Mises.org has just announced the full release of the online version of Uncle Murray's astounding two-volume set on the history of economic thought. Read them and weep:

=> Economic Thought: Before Adam Smith - An Austrian Perspective on the History of Economic Thought, Volume I

=> Classical Economics: An Austrian Perspective on the History of Economic Thought, Volume II

All Jeff has to do now, is to get Tom Woods to volunteer to write the unstarted third volume; 'The Twentieth Century and the Madness of the Keynesians'.

In the meantime, you can get the beautifully produced hard-copy versions, here.

Gordon Brown broke Lloyds, and it should break him

Iain Martin speaks truth to power.

Bank plan to 'print money' begins


Major Neuheim waddles back to base after stuffing his uniform with half a million counterfeit pounds


Let this day be marked as the day when all madness broke loose in Britain and the British government decided to really let rip with fraudulent theft.

Let's check out the key quote:

In what economists deemed a success, the Bank received £10.5bn worth of offers for gilts - more than five times what it sought.
Obviously, they're talking about Keynesian economists. No doubt, when this madness fails, as it surely will, these same Keynesian economists will proclaim that it wasn't done quickly or hard enough, in the usual unfalsifiable way.

Yes, it will probably appear to 'work' in the short-term, in the same way that a heroin addict going through cold turkey is assuaged by an injection of diamorphine. The poll ratings for Gordon Brown may even go up again, as this green curtain magician appears to have pulled a rabbit out of a hat.

But let us be in no doubt that the medium-term and long-term results of this will be absolutely disastrous for the British economy, once the counterfeit effects of this paper confetti dissipate and people realise they are not richer and have no more real resources backing their plans, but they're just holding more paper tickets chasing after the same amount of stuff.

All you have to do, to see through this trick, is to imagine that a private criminal gang is doing exactly the same thing, printing up this undetectable confetti in a basement and then going out and spending it on whatever they fancy. If that makes it clearer, the reason people are fooled is generally to do with the formative years of their lives being spent in government brainwashing institutions, where the lesson is hammered into us that government can only do right.

Even now I notice this myself with news stories about terrible faraway places. I find myself unconsciously rooting for 'government forces' in conflicts in Africa and Asia, as opposed to 'rebel forces'. Despite being a hard-core anarcho-capitalist, I still have to consciously shake my head to break this spell of burned-in government magnificence.

You may ask, if 'quantitative easing' is such a terrible thing, then why are these gilt purchases so over-subscribed? Well, all you have to do is get hold of the Private Schulz video, and witness Major Neuheim stuffing his uniform full of perfect five pound notes, to figure that one out.

Whoever gets to spend this new money first benefits tremendously, at the cost of everyone else down the spending chain. Whoever gets it last, usually pensioners on fixed incomes, is ultimately robbed by these first spenders.

Yes, our friends in a socialist government are robbing pensioners through wealth redistribution to hedge funds.

The effects of such fraud have been known since Richard Cantillon, the cunning anti-hero of the Austrian School, who used this knowledge to make himself a millionaire in the Mississippi Bubble crisis.

The British government really are a despicable band of robbers writ large.

Wednesday, March 11, 2009

Feynman's lectures on physics

I was recently given a set of Richard Feynman's lecture notes on Physics, after a friend had spotted that I had all of Feynman's paperback books; I can only say that I am stunned.

The paperbacks are incredibly good, but the lecture notes are so much better.

If you can get hold of a copy of these lectures notes, I thoroughly recommend that you do so.

You will not need an undergraduate degree in mathematics to get going with them. You will just need half a brain and a willingness to learn about how the Universe works.

Just check out what you get:

Volume 1. Mainly mechanics, radiation, and heat
Chapter 1. Atoms in motion
Chapter 2. Basic Physics
Chapter 3. The relation of physics to other sciences
Chapter 4. Conservation of energy
Chapter 5. Time and distance
Chapter 6. Probability
Chapter 7. The theory of gravitation
Chapter 8. Motion
Chapter 9. Newton's laws of dynamics
Chapter 10. Conservation of momentum
Chapter 11. Vectors
Chapter 12. Characteristics of force
Chapter 13. Work and potential energy (A)
Chapter 14. Work and potential energy (conclusion)
Chapter 15. The special theory of relativity
Chapter 16. Relativistic energy and momentum
Chapter 17. Space-time
Chapter 18. Rotation in two dimensions
Chapter 19. Center of mass; Moment of inertia
Chapter 20. Rotation in space
Chapter 21. The harmonic oscillator
Chapter 22. Algebra
Chapter 23. Resonance
Chapter 24. Transients
Chapter 25. Linear systems and review
Chapter 26. Optics: The principle of least time
Chapter 27. Geometrical optics
Chapter 28. Electromagnetic radiation
Chapter 29. Interference
Chapter 30. Diffraction
Chapter 31. The origin of the refractive index
Chapter 32. Radiation damping. Light scattering
Chapter 33. Polarization
Chapter 34. Relativistic effects in radiation
Chapter 35. Color vision
Chapter 36. Mechanisms of seeing
Chapter 37. Quantum behavior
Chapter 38. The Relation of Wave and particle viewpoints
Chapter 39. The kinetic theory of gases
Chapter 40. The principles of statistical mechanics
Chapter 41. The brownian movement
Chapter 42. Applications of kinetic theory
Chapter 43. Diffusion
Chapter 44. The laws of thermodynamics
Chapter 45. Illustrations of thermodynamics
Chapter 46. Ratchet and pawl
Chapter 47. Sound. The wave equation
Chapter 48. Beats
Chapter 49. Modes
Chapter 50. Harmonics
Chapter 51. Waves
Chapter 52. Symmetry in physical laws


Volume 2. Mainly electromagnetism and matter
Chapter 1. Electromagnetism
Chapter 2. Differential calculus of vector fields
Chapter 3. Vector integral calculus
Chapter 4. Electrostatics
Chapter 5. Application of Gauss' law
Chapter 6. The electric field in various circumstances
Chapter 7. The electric field in various circumstances (continued)
Chapter 8. Electrostatic energy
Chapter 9. Electricity in the atmosphere
Chapter 10. Dielectrics
Chapter 11. Inside dielectrics
Chapter 12. Electrostatic analogs
Chapter 13. Magnetostatics
Chapter 14. The magnetic field in various situations
Chapter 15. The vector potential
Chapter 16. Induced currents
Chapter 17. The laws of induction
Chapter 18. The Maxwell equations
Chapter 19. The principle of least action
Chapter 20. Solutions of Maxwell's equations in free space
Chapter 21. Solutions of Maxwell's equations with currents and charges
Chapter 22. AC circuits
Chapter 23. Cavity resonators
Chapter 24. Waveguides
Chapter 25. Electrodynamics in relativistic notation
Chapter 26. Lorentz transformations of the fields
Chapter 27. Field energy and field momentum
Chapter 28. Electromagnetic mass
Chapter 29. The motion of charges in electric and magnetic fields
Chapter 30. The internal geometry of crystals
Chapter 31. Tensors
Chapter 32. Refractive index of dense materials
Chapter 33. Reflection from surfaces
Chapter 34. The magnetism of matter
Chapter 35. Paramagnetism and magnetic resonance
Chapter 36. Ferromagnetism
Chapter 37. Magnetic materials
Chapter 38. Elasticity
Chapter 39. Elastic materials
Chapter 40. The flow of dry water
Chapter 41. The flow of wet water
Chapter 42. Curved space


Volume 3. Quantum mechanics
Chapter 1. Quantum behavior
Chapter 2. The relation of wave and particle viewpoints
Chapter 3. Probability amplitudes
Chapter 4. Identical particles
Chapter 5. Spin one
Chapter 6. Spin one-half
Chapter 7. The dependence of amplitudes on time
Chapter 8. The Hamiltonian matrix
Chapter 9. The ammonia maser
Chapter 10. Other two-state systems
Chapter 11. More two-state systems
Chapter 12. The hyperfine splitting in hydrogen
Chapter 13. Propagation in a crystal lattice
Chapter 14. Semiconductors
Chapter 15. The independent particle approximation
Chapter 16. The dependence of amplitudes on position
Chapter 17. Symmetry and conservation laws
Chapter 18. Angular momentum
Chapter 19. The hydrogen atom and the periodic table
Chapter 20. Operators
Chapter 21. The Schrödinger equation in a classical context: a seminar on superconductivity


Absolutely blinking marvellous.

G20 meeting heading towards train wreck status

Ever since the state was invented, several thousand years ago, it has been nothing but a collective agreement between swindlers and thieves to use force to rape and pillage the rest of us.

In the telling picture above, the first pharoah of Egypt, Menes, is smashing down on the face of the conquered people of Lower Egypt with a stone mace, as he rampaged down from Upper Egypt, just to bring the point home. This image, and the many like it which followed, has always been the emblematic icon of the state.

The voluntary world, based on the free market, despite being continually smashed in the face by the state, has managed to overcome this force, to deliver us into a condition of relative civilisation. However, the state has now grown so large, even the market may fail to overcome its destructive use of power.

For example, the forthcoming G20 meeting is going to be a disaster, because it will aim to try to use force to destroy what little remains of the free market, especially in the financial world.

Fortunately, even now, we can tell it is going to be a train wreck, because everything we hear about it is based on force and one-sided self-interest. Although they will try to burden the rest of us with their insane nostrums, the meeting will be so chaotic and so filled with acrimony, just like everything else the state touches, that enough of the free market may slip through to save the world again. Just check out these stories:

=> Ambitious Harman accused of 'muscling in' on G20

=> G20 ministers set for clash over economic crisis solutions

=> G20 summit: EU and US are sparring, not feuding

=> G20: Europe has done enough, Juncker tells US

=> G20 summit: US Treasury department won't answer their phones, says top UK civil servant

But then, what do we expect from a bunch of people who deliberately got us into this mess through their central banking systems, who refuse to take the blame for anything despite taking vast salaries for 'being in charge', and who cannot tell one end of a balance sheet from another, unless it tells them how much is personally in it for them?

The language of the free market is always based on voluntary agreement and two-sided mutual self-interest, thus is diametrically opposed to the state. Fortunately, it also provides us with a global mechanism to solve all economic problems, if it is left well enough alone.

Let us hope that the pygmies at the G20 conference are so concerned about trying to screw one over on each other, that they leave the rest of us well enough alone to actually try to start a recovery.

We can but hope.

Road to nowhere

By God, you thought I was a misery guts. Just wait until you read this latest piece by Uncle Gary.

(Readers of a nervous disposition are advised to remove any sharp instruments from the regions of their wrists, before clicking on the above link.)

Obama's private dancer


Guido has found the funniest thing I've seen in months.

Check out especially the bit where Jon Stewart compares Gordon Brown to the dancing character of Albert Brennaman, in Hitch. Priceless.

Former Woolworths manager reopens closed store as Wellworths

Maturin Towers wishes the very best of luck for Claire Robertson, and her attempt to revive the store she used to manage for Woolworths, a few months ago.

Her new business venture is going to prove tough in the teeth of a recession, in a politically correct business environment weighed down with onerous government taxes and regulations, but this is the kind of entrepreneurial spirit and vision we need if this country is going to get up from its welfare sofa or government sinecure and start working and producing again.

Once again, Joseph Schumpeter's creative destruction process has cleared out the bad managers at the Woolworth's head office, and replaced them with a plucky local manager in the figure of Claire Robertson.

Lesson to Whitehall: No more bailouts. Let the bad asset managers go to the wall and let a new generation of managers take their chances on managing these assets instead, to try to make them productive again. Oh, and while you're at it, sack half the civil service for fun, and give us back the saved money as tax cuts on investment taxes. I would say 'sack the useless' half, but both halves are useless, so that's tricky. I know! Just sack every civil servant whose surname begins with a consonant. Yes, we'll lose 'You blithering idiot, Blenkinsop!' But at least we'll keep 'You blithering half-wit, Atkins!'

Sir Victor Blank, Gordon Brown and why the Tories should be screaming blue murder about an epic national scandal

Iain Martin, on the money again, with the strange case of Lloyds, Brown, and HBOS.

Tuesday, March 10, 2009

Most important prediction of 2009

Robert Kubica will win this year's Formula One championship, in the Swiss German BMW Sauber.

At least he'd better, otherwise several crates of Belgian Belle Vue Kriek beer will be wasted in vain, though much fun will be had in Zurich Canton, in drinking it.

Politicians are making everything worse

With Bastiat-like allusions, Lord Rogers of Alabama tells it like it is:

Worst collapse in UK manufacturing in four decades

Well done, Gordon.

Whoops, sorry, it was nothing to do with you, was it?

I keep forgetting that being Prime Minister and Chancellor for 12 years means never having to say sorry.

'Run on UK' sees foreign investors pull $1 trillion out of the City

It would seem my escape plans to Dubai haven't come a moment too soon:

=> 'Run on UK' sees foreign investors pull $1 trillion out of the City

(Sean O'Grady, Economics correspondent, The Independent)

Trip to Dubai

My first trip to Dubai is coming up on Saturday, which I'm very excited about, so posts on AngloAustria could become fairly random for a week or two.

I'm currently working around the clock to make this trip as successful as possible, and if it all goes well, I'll be going out again in a month.

If that trip is successful, I could be going out for a week a month, for the foreseeable future. The aim, of course, is that I'm going out so often, that I'm spending more time there than here, until eventually I'm spending no time here at all, except for once-a-year pilgrimages to Bath, Cornwall, the Lake District, the White Horse of Uffington, and Avebury.

That is, of course, until the government adopt closed borders to keep their tax serfs locked in. As a good Hoppeian, it will then be my Austrian duty to suffer outside of this new iron curtain, over cocktails, in my air-conditioned Dubai or Singapore apartment. Which will be a nightmare.

Chin chin!

Marc Faber Says Government Actions Will Boost Stocks

There's an interesting post by Lew Rockwell, about Marc Faber's claim that there will be a stock market rally soon, boosted by increased government spending.

It's worth reading both Sir Llewellyn's angle on this, as well as Dr Doom's angle. If you're far cleverer than me, then you'll be able to figure out how to make money from this.

In the meantime, I'm still going to be buying gold.

Monday, March 09, 2009

Wall Street Unspun

Another excellent broadcast this week (March 4th), from Der SchiffMeister.

What made it particularly memorable this week, was when Peter Schiff quoted an email one of the Maturin Towers collective had sent him, on the Panic of 1873, direct from Murray Rothbard research as related by Thomas Woods, in Meltdown.

I nearly fell off my treadmill, down at the gym, when I heard this on the Podcast.

Marvellous.

Here's the latest video log, too, just for fun:

Bootle has his cake and eats it

Mr Roger Bootle is perhaps the grand-daddy amongst all the Keynesian shills on the Torygraph, which makes him intelligent enough to get his retaliation in early, with a piece on quantitative easing.

The article basically says we need quantitative easing, but we need to be careful as to how we implement it.

In other words, if it works, Mr Bootle will claim that he was right about its philosophical implementation, and if it fails, Mr Bootle will claim that he was right about the dangers of its technical implementation.

Whatever happens, Mr Bootle will be right. Which is nice work if you can get it.

Maturin Towers response:

Jack Maturin on March 09, 2009 at 10:52 AM

Quantitative Easing is nothing but counterfeiting, and just as a small private counterfeiter wrecks a local economy, a large public counterfeiter can wreck an entire economy.

You may remember the classic BBC comedy, Private Schulz. In this excellent portrayal of a real plan, the Germans set out to destroy the British economy through the mass production of 'perfect' British currency.

The Bank of England is about to do exactly the same thing, with exactly the same results, only 60 years later.

This kind of Keynesian-inspired nonsense kept the Japanese economy in recession for many more years than it ought to have been in recession. In Zimbabwe, this Keynesian nonsense has turned the bread basket of Africa into the basket case of Africa.

The creation of credit from thin air does not represent real capital savings, just fictitious ones, as we all recognise when it is done by private people in shadowy basements. Trying to fool people into believing that these new paper tickets represent real savings will no longer work; we have all woken up to how these Keynesians are trying to fool us into behaving how they want to get themselves off a political hook. It won't work.

Just because this wealth-destructive behaviour is executed by a public body rather than a private one does not make it any less wealth-destructive. It is going to fool nobody, and we will pay the price through either stagflation (if we're lucky) or hyperinflation (if we're not).

We ought to rename Mervyn King to Private King.

Mr Bean gets put in charge of Bank of England policy

Yep, that's right. Mr Bean really is in charge of the Bank of England's current counterfeiting run. Okay, so it's Deputy Governor Charles Bean, but it still raised a laugh in Maturin Towers, this morning.

And let's face it, with the current Keynesian madness going on in the La-La land of government policy, with its latest trick of trying to fool people into lavish spending in the depths of the worst depression since the 1930s, the real Mr Bean would probably make a better fist of it.

Which brings me onto the career of Rowan Atkinson. Why on Earth did a man so talented end up...[Ed. OK, that's enough pontificating, Maturin. Get on with some work for a change.]

Sunday, March 08, 2009

Liam Halligan rides in

As expected, the magnificent Liam Halligan rode in to the quantitative easing debate on the side of the angels, with an excellent side-swipe at the eco-mentalists thrown in just for fun. What a star! :-)

=> Quantitative easing is not the answer

It is a little bit of a shame, however, that the Torygraph gave much more front page prominence to the half-baked story below, which claims quantitative easing won't work, not because it is an economically illiterate thing to do, but because it fears that banks will once again just keep hold of the new money:

=> Bank of England's £150bn injection may not work, economists warn

Keeping hold of this new counterfeited money is a good thing. It would be even better to burn it, to send it back into the non-savings black hole it crawled from, because in that way we will be able to experience the recession more quickly, to clear out all of the malinvestments of the boom.

The market is doing its damnedest to try to have this necessary recession, as quickly as it can. However, the economically illiterate bozoes in central banking and government planning are tearing their hair out to make this recession last as long as possible, in a desperate bid to kick Gordon Brown over the line at the next election.

They will therefore start trying to force banks to lend to bad risks soon, if the new cash does stay locked up within bank vaults. And then their plans will succeed in either giving us stagflation or hyperinflation, depending on how much they succeed with this anti-market policy.

This is why they are so desperate to force out all of those few bankers still opposed to their plans, including the misguided, Eric Daniels, who once dared to say that this entire mess was all due to the actions of central banking.

=> Daniels and Blank must be turfed out of Lloyds, the only question is when

I wonder if Mr Daniels is now beginning to regret his little chat with Gordon Brown, in which the one-eyed Scottish idiot persuaded Mr Daniels to buy HBOS? I should coco.

Saturday, March 07, 2009

Murray Rothbard would have been proud

We can trace the direct flow of hard-core Misesian Austrianism through an intellectual river composed of a handful of giants.

Starting with Carl Menger, a spring up in the mountains, we work downhill through the bubbling mountain stream of Eugen von Boehm-Bawerk, the waterfall-laden river of Ludwig von Mises, and the all-encompassing curves of Murray Newton Rothbard, deep amongst the valley meadows.

A few other rivers come in, such as Henry Hazlitt, and a few other streams depart, such as F.A.Hayek, but we can still see the general flow, which feeds upon the initial rainfall of the Spanish Scholastics, and the great pivotal figures of Turgot, Say, Bastiat, Nock, and Aristotle.

But who is next in this mighty river? Thankfully, I think we’ve reached the point where the whole weight of economic truth is no longer riding upon the narrow shoulders of a single man or woman. We have now hopefully reached a delta, where there should never again be a single person who has to bear the difficult cross of being ‘The Austrian’.

But some are closer to the central outflow of this delta than others; I think with ‘Meltdown’, Tom Woods has finally joined this central outflow. In many ways, Meltdown reminds me of the writing style of Uncle Murray himself; precise, concise, and acidic in its condemnation of the mistakes of the state.

Arguably the most important Austrian book since ‘Man, Economy, and State’, if only on the basis of its timing, it is essential reading if you are to defend the free market from the incessant attacks of the numskull legions of socialists.

There will shortly be a slew of Socialist/Keynesian books in this vein, written by all the enemies of capitalism, denigrating capitalism and blaming it for this crisis, whereas all Austrians know that this current economic crisis is entirely due to central bank and government manipulation of the world’s money supply, for short-term political benefit. It is to Mr Woods’ great credit that he has got this book out before all of them, to muddy their waters, hopefully to the point where their writings are made irrelevant to serious scholars.

The terrible shame of the 1930s depression was that there were only two men alive who knew what was happening, Mises and Hayek, who were both peripheral figures barely able to make themselves heard outside of the German-speaking world. (Largely due to the rise in prominence of the devil incarnate himself, John Maynard Keynes.)

With Meltdown, plus the Ron Paul movement, plus the entire loosely-connected world of Austrianism, which sustains such fellow travellers as Jim Rogers and Peter Schiff, this shut-out of correct economic thinking will not be allowed to happen again. Yes, obviously, a lot of people will be sticking their fingers in their ears and shouting ‘la-la-la’ at the tops of their voices, because they don’t want to hear the Austrian message that governments should just leave well alone, but they will be choosing to do this. It will not be because they never heard anything in the first place.

That is why, as an aspiring Austrian, you need to buy this book, to read it, and then to distribute its ideas to everyone you know. For it contains an entire distillation of the core components of Austrian theory, plus a narrative describing how the foolish governments of the world got us into this mess by breaking the rules of sound economic thinking.

For instance, scientists know how the cycles of the lunar-driven tides occur, but non-Austrian economists still have no real explanation for how the business cycle occurs. The best they can come up with is ‘animal spirits’, or ‘a failure of greed’, or some such other silly nonsense, without explaining why these animal spirits seem to come together only every ten years or so, or why greed magically disappears for nine years out of ten.

Woods explains the Austrian Business Cycle Theory in very clear fashion, as well as the Austrian theory of money and credit, and how the world’s governments fed the central banking bubble in the post dot-com period. He also blasts apart the myths of the 1930s depression, why bailouts will extend this current depression, and what we should really be doing about it all.

He does this with a certain amount of dry humour, without lessening the seriousness of his words; again, this is very much in the style of Uncle Murray, who took Woods very much under his wing when he was still with us.

So why do you want to buy this book?

Because if you’ve found yourself in a pub recently, around closing time, and the bone-headed socialist you’re with is still banging on about how the current mess is all the ‘fault’ of capitalism, if you buy this book, you will be armed with more than enough ammunition to swat this annoying insect. Obviously, it won’t do the actual socialist any good, because very few of these sad unfortunates ever recover from their terrible affliction, but at least the other people listening in will get a different viewpoint for a change, and we can bring the arguments of the Keynesians to a standstill and then get them on the back foot for the long retreat they need to endure.

That is the beauty of this book. It is ammunition to defend freedom. It is a first step on the long road back to freedom. I cannot recommend it highly enough.

Private King: The last resort

Mervyn King, the government's chief counterfeiting officer, yesterday told The Times that the last weapon in his locker, quantitative easing, would definitely work.

Well, he would say that, wouldn't he, because for him personally and for every other member of this stinking regime, it has to work!

Obviously, they give no reasons as to why quantitative easing has to work, except perhaps to rest behind the flimsy shield that it is the last thing in their locker, therefore it must be the only thing that can work. (Otherwise, we would have to conclude that the entire state-paid staffs of the Treasury and the Bank of England have no clue what they're doing, and therefore should be sacked immediately for all being hopeless incompetents.)

Keynesian shill Edmund Conway also gives it his best shot, here, but his argument paraphrases along these lines:

...it failed to work in Japan, because it wasn't long, fast, hard, or strong enough...it will work here because we're going to make it longer, faster, harder, and stronger...
So, nothing to worry about there then.

Have any of these people thought about what's next if it doesn't work? Will it involve their sacking and their replacement by people from a different school of economics, who have half a clue as to what's really going on?

Of course it won't. When quantitative easing fails, as it surely will, all of these people will once again prove Murray Rothbard's core dictum that "Nobody Resigns!".

They will all go on taking their salaries, and they will come up with further mad cap schemes to 'make' Keynesianism work, thereby increasingly lengthening this government-induced depression. All of these schemes will further increase government power, diminish the wealth of the people, and attack liberty. None of them will 'work'.

The only thing that can 'work' is a return to a free market, with three immediate policies to be implemented before anything else is considered:

=> No more bailouts

=> Let interest rates float naturally

=> No more inflation

The longer we leave this single genuine solution, the harder the pain will be when we finally take our medicine.

What we need is, in the words of Peter Schiff, 'Tough Love'. All this endless Keynesian/Socialist government interference is going to generate is the economic basketisation of Britain and a final victory for Robert Mugabe, who with some justification is now able to claim that Gordon Brown is finally copying his policies, which brought so much wealth and happiness to Zimbabwe.

Perhaps Gordon Brown really will have to instigate a military dictatorship, 'due to extraordinary circumstances'. It may be the only way he can get out of the country unscathed, before he flies off to his cherished 'World Dictator' role at the IMF.

Though of course, considering his latest policy wheeze of flooding this country with increasingly worthless paper tickets, none of which represent real savings, he ought instead to get on a plane to join his spiritual socialist brother in Harare.

UPDATE: Half-decent Torygraph articles on the quantitative counterfeiting madness:

=> Gordon Brown's reckless ruse to make money (Simon Heffer)

=> Tories must oppose the Bank of England's mad experiment (Iain Martin)

=> Printing money: Has Mervyn King turned into Paul Daniels? (Alistair Osborne)

I look forward, with great expectation, to the forthcoming article on this by Liam Halligan.

Economics in One Lesson: Online edition


Obo has found an online HTML edition of Henry Hazlitt's 'Economics in One Lesson', a book which I believe the Mises Institute have been prevented from distributing online in its latest PDF-ed and indexed format.

Anyhow, here it is:

=> Economics in One Lesson (HTML)

Perhaps the finest short book on economics ever written, or ever likely to be written, Economics in One Lesson is the first book every aspiring Austrian should read. There's an old edition of the book, too, which you can read via PDF, if you should prefer that format:

=> Economics in One Lesson (PDF)

If you want to buy the hard-copy edition, here's the link to the Mises site:

=> Economics in One Lesson (PAPER)

The free market. Always giving you choices! :-)

UPDATE: And there's more! Twelve videos from Mises.org discussing each chapter one by one:

Video 1: The Lesson
Video 2: The Broken Window
Video 3: Public Works Mean Taxes
Video 4: Credit Diverts Production
Video 5: The Curse of Machinery
Video 6: Disbanding Troops and Bureaucrats
Video 7: Who's Protected by Tariffs?
Video 8: "Parity" Prices
Video 9: How the Price System Works
Video 10: Minimum Wage Laws
Video 11: The Function of Profits
Video 12: The Assault on Saving

Retirement plans of millions of Britons at risk after Bank of England 'prints money'

So, you thought you had a pension? Think again.

After 12 years of theft and economic destruction, Gordon Brown has destroyed most pensions in the private sector, the engine of wealth generation.

In the next decade or two, he plans that the only people who will receive worthwhile pensions will be the members of his client state.

What few in the public sector have factored into their own retirement plans, however, with their 'guaranteed' index-linked final salary pensions, are the following points:

1). When you destroy the private sector's motivations and ability to generate wealth, you kill off the goose that laid the golden egg

2). State sector pensions can only be paid for through taxes or inflation

3). Private sector people will simply stop working if taxes go to the levels mathematically necessary to pay off the state drones, therefore there will be no state drone pension payments

4). If inflation is used, with the index-linked element massaged downwards to mask it, the state drone pensions will be worthless anyway

5). If most of the tax that people are forced to pay is used to fund state drone pensions, then people will simply refuse to pay these taxes, for which they will be getting very little in return, except the satisfaction of seeing state drones pick up weekly groceries cheques

However it pans out, state drones ought to stop being so smug. Because Gordon Brown has imperilled their pensions too, as much as he has imperilled the pensions of everyone else. They should therefore join us in getting rid of this tyrant.

Chris Clancy's Chinese adventure - Part 7

Chris Clancy continues his discovery of China:

=> Three Weeks In and My First Day Out

In this non-politically correct episode, our trail-blazing hero smokes his way through a medical, consider's eating duck feet, and learns how to cook through the mother of necessity.

(Link to previous episodes)

Friday, March 06, 2009

Bow down before me, insect!

As Britain falls ever more precipitously into the clutches of a Mugabe-esque police state, we saw a little picture of what that might be like recently, when a policeman in Liverpool arrested a man for laughing.

Just like in Germany, where humour is a serious business, this really is no laughing matter, but is symptomatic of the dreadful state of the tax-subsidised police here in Britain.

Liverpool itself is blessed with one of the highest violent crime rates in the United Kingdom, and yet one of the city's 'hard-working' police officers found it necessary to harass a law-abiding man, for over half an hour, for laughing, sending him on his way with a further requirement to check in at a police station.

When Britain's police were founded by Sir Robert Peel, this was against an angry background of public opposition. The public were afraid that they were going to be forced to support an organised gang of former criminals and other malcontents, and they didn't want them. To assuage this opposition, Peel proposed nine principles of policing.

Let's see how our Gestapoid Nerk in Liverpool fares against these principles:

1. The basic mission for which the police exist is to prevent crime and disorder.

FAIL. This state drone obviously sees his role as harassing the proles.

2. The ability of the police to perform their duties is dependent upon public approval of police actions.

FAIL. There is not a single ordinary person in this country who approves of this petty and vindictive action.

3. Police must secure the willing co-operation of the public in voluntary observance of the law to be able to secure and maintain the respect of the public.

FAIL. I wonder how the victim of this harassment feels about his own levels of respect for the police?

4. The degree of co-operation of the public that can be secured diminishes proportionately to the necessity of the use of physical force.

FAIL. Most police in this country walk around the place like medieval army soldiers occupying an enemy city. They clank from one police station to another, covered in all sorts of restraints and other coercive equipment, many of them also now openly bearing firearms. Sir Robert Peel wanted his policemen to look like ordinary citizens. Now they look more like sci-fi combat soldiers. They obviously feel that the degree of co-operation they are getting from the public has severely diminished over the last few years. They are right. Due to their continual harassment of virtually everybody, from drivers on down, the police in this country are beginning to be hated.

5. Police seek and preserve public favour not by catering to public opinion but by constantly demonstrating absolute impartial service to the law.

FAIL. The police don't care about public opinion any more, as this case clearly demonstrates. All they care about is pleasing their political masters, to secure more goodies for themselves.

6. Police use physical force to the extent necessary to secure observance of the law or to restore order only when the exercise of persuasion, advice and warning is found to be insufficient.

FAIL. Whenever you deal with the police you know that behind the aggression and the impoliteness is the very real threat that if you resist them enough, the guns will be coming out. Stopping someone for half an hour and then ordering them to attend a police station, via the threat of physical force, for the 'offence' of laughing, is laughable. Except, of course, that if you do laugh, you will be arrested.

7. Police, at all times, should maintain a relationship with the public that gives reality to the historic tradition that the police are the public and the public are the police; the police being only members of the public who are paid to give full-time attention to duties which are incumbent on every citizen in the interests of community welfare and existence.

FAIL. The police are now a special class in every way superior to the public. They can arm themselves, order everyone else around, take papers from the House of Commons, help themselves to taxes, and never be prosecuted for anything themselves, from murder all the way down to theft. The sooner we get rid of them and replace them with private police, as already found on gated estates and in shopping malls, the better.

8. Police should always direct their action strictly towards their functions and never appear to usurp the powers of the judiciary.

FAIL. This state drone is obviously under the impression that he is Judge Dredd in everything but name.

9. The test of police efficiency is the absence of crime and disorder, not the visible evidence of police action in dealing with it.

FAIL. Crime levels in this country are horrible, particularly when it comes to violent crime, which is particularly high on Merseyside. No amount of tinkering with the figures can hide the fact that most people in Britain avoid certain places at certain times, and avoid many places at all times.

So that's nine failures out of nine. And I'll bet we can add a tenth failure to that list. Because it's an absolute certainty that the non-laughing policeman involved will almost certainly fail to apologise for his act of arrogance and stupidity.

But he's not alone. The police in this country as a whole have failed. It is therefore time we ended this one hundred and fifty year experiment of Sir Robert Peel's, and replaced it with something better. State police are not 'inevitable'. There was a time before them, not really that long ago, and there will be a time after them. Let us get to that point as soon as possible and the provision of private police services.

Come on, I'm an anarchist, what do you expect? :-)

Peter Schiff video blog - Thursday 5th of March

Latest video blog post from Mr Schiff (including a brief mention of the Bank of England base rate cut):

Part 1:


Part 2:

The 'Great Inflation' begins

So, the button is pressed.

The legalized counterfeiters at the Bank of England have lowered interest rates as much as they can, to virtually zero, and they are about to embark on that most inflationary measure of all; the direct purchase of government bonds. (I use the word 'purchase' advisedly, of course, in the same sense that a private basement counterfeiter would 'purchase' goods with bits of coloured paper extracted directly from a two-sided colour photocopier.)

With the £150 billion pounds Mervyn King is about to create out of thin air, expect an assumed fractional reserve ratio of 10% to turn that into £1.5 trillion pounds over the next few months, or approximately £25,000 pounds for every man, woman, and child, in the United Kingdom. That is a whole bag of kebabs. And we may never recover from the Great Inflation which it ignites.

And do we think that this will be the last bout of 'quantitative easing' that these bozoes indulge in? No, my precious, I don't think that we do.

For more on what we are about to experience, please read Chapter XI of 'The Mystery of Banking', by Murray Rothbard (p.160):

The Mystery of Banking, by Murray Rothbard

What didn't work in Japan, is now not going to work over here too:

Insanity: doing the same thing over and over again and expecting different results.

Albert Einstein
As Captain Blackadder said to his troops before they went over the top of his trench and ran pluckily into a wall of German machine gun fire; 'Good luck everyone'.

Thursday, March 05, 2009

The inflation panic button about to be pressed

We will know today at 12:00pm GMT whether the Bank of England has dropped its interest rate to 0.5% or even the 'magic' 0.0%!

With M4 at 17.5% it hardly makes much difference, I suppose, but it will further underline just how desperate the government is becoming in trying to re-inflate this bubble.

So what's the prediction from Maturin Towers?

=> Stick at 1%; 4/1 shot
=> Drop to 0.5%; 2/1 shot
=> Drop to 0.1%; 8/1 shot
=> To heck with it, let's get this charade over with and drop to 0%; 8/1 shot

There is one other really extreme outsider:

=> Stop printing money to prop up these artificial government-induced interest rates and let the free market work out a sustainable interest rate which will more properly coordinate the capital structure of markets over time, punish the imprudent, reward the prudent, encourage the appropriate level of saving commensurate with the overall desired balance between production and consumption, and efficiently and effortlessly manage the market in the same way that the principle of 'survival of the fittest' auto-manages the process of evolution; 1 million to one shot

Gordon who?

Gordon Brown must have dreamt of this moment for years, addressing both Houses of Congress in the United States, so I simply shudder to think of how many taxpayer-financed man-hours went into his dreadful toe-curling speech, with its reckless calls for worldwide inflation and its shameless reliance upon flattery.

However, each satrap must have his day in the sun, bathing in the divine light of the Median God-King. So let us not be too churlish, while Gordon sets about building tomorrow's low carbon world today, along with all of the other flimsy windmills in his delusional mind.

Because when he and his press corps fly back to England, in their high carbon plane, promptly forgotten by everyone in the modern Persepolis of Washington, that will have been the noon-tide of this satrap's reign.

Even The Times, that most New Labour of newspapers back in 1997, thinks it is time for Gordon to go. As do his entire cabinet, who are currently fighting like ferrets in a sack, over his succession, to get their hands on a prime ministerial pension pot.

So enjoy the photographs while you can, Gordon. Because from now on in, it's a one-way trip to the dumpster for you. Just like the text of your speech.

Wednesday, March 04, 2009

Official: Britain really is ruled by a lunatic

I make mistakes. I make predictions that fail to pan out. I choose the wrong suits. I often wear horrible socks. I have also made some HORRIFIC decisions over women.

But this just makes me human.

Apparently, no such humanity applies to Gordon Brown. Despite having been the british government's chancellor for 10 years and then the british government's prime minister for two years, NONE of the current financial problems afflicting us here in the sceptred isle have ANYTHING to do with him.

Yes, any 'successes' there may have been, can all be laid at his door. But ANYTHING which smacks of any kind of failure really must be laid at the feet of ... well ... anybody else, whether it's 'shadow banking systems' or 'tax evaders'. It doesn't really matter who it is. But what we do know, is that it was nothing to do with him.

Dear God! Even I will take some of the blame for this mess, due to my tangential involvement with the british banking system. But for the former long-term chancellor of the exchequer and current prime minister to deny any involvement whatsoever, truly does defy belief.

Can the men in the white coats please drag this embarrassment into the hospital as soon as possible? For the love of God.

Is the ghost of Weimar about to slay the Euro?

The Germans have suffered at least four great inflations in the last 100 years, and although all of their central bankers and politicians would quite willingly create another one, if it meant they kept all of their kleptomaniac goodies, the German Volk have other opinions. Let's look at those inflations:

1) 1914 - This war-paying inflation allowed the last Kaiser of the Second Reich to kill millions of Germans either on the Western or Eastern Fronts, or in the mass starvation brought about by the food blockade savagely administered by the Royal Navy. This war and its subsequent starvation engendered an entire generation of bitter angry men, foremost amongst them of course 'Mr Inflation' himself, Herr Schicklgruber.

2) 1923 - The famous Weimar inflation finally finished off the middle classes of Germany, after a century of growing prosperity, and led to the rise of the German international socialists and national socialists, who spent the next ten years fighting it out in the streets for political supremacy.

3) 1933 - Yet more monetary expansion allowed the re-construction of the Wehrmacht in preparation for its land-grabbing expansion in the early 1940s. The subsequent death of millions of Germans, whether in labour camps or fighting on the Front for the Third Reich, as well as in the appalling war crimes of Dresden et al, were all fed by this inflation. The consequent split of Germany into the American and Soviet imperial bastions, was also a direct result of this monetary expansion to pay for all of the tanks, planes, submarines, battleships, and death camps, used by the Wehrmacht.

4) 1945 - The Post-war inflation, administered by the Allies, took the average calorific intake of the typical non-connected German down to fifteen hundred calories a day. There are still many Germans alive today who remember this starvation horror. They are perhaps outnumbered by the numbers of East Germans alive today, who remember the days of the Trabant. These people also had to grow up in a national socialist country (the Third Reich), to then spend their adulthood in an international socialist country (the East German Democratic Republic). Could anything possibly be worse?

All of the above situations were a direct consequence of the ability of national governments to inflate. Of all the peoples in the world, the Germans have thus perhaps been on the receiving ends of the worst of this short-term ability to prop up long-term misery. This is why they will not tolerate another great inflation, despite the willingness of their current supine crop of politicians to consider it.

This is also why they were prepared to tolerate the hard 'Austrian-lite' economic policies of Wilhelm Röpke and Ludwig Erhard, once the Post-war Germans had managed to throw off the Keynesian economic shackles of the Americans in June, 1948.

This basic Teutonic antipathy and hatred of inflation may then be why the Euro is about to collapse. Check out the following two articles, one of them admittedly by the only man in England, Simon Heffer, who despises the EU more than I do:

=> It's the Europhiles versus reality, and reality is going to win

=> EU pledges eurozone rescue

Obviously, when you're as jaundiced as I am, and as hard-core as I think it is possible to get within Austro-libertarianism (unless you are a certain Herr Professor), then I probably do read things into every article that comes my way.

But if I was a proper big time speculator, the news that the EU has a contingency plan to shore up the Euro would be music to my ears. I would be shorting the Euro with every Swiss Franc in my arsenal. Because if you're big enough to maintain this squeeze, I reckon you are going to make tens of billions of Swiss Francs when/if the Euro collapses.

Fortunately, nothing in this life is inevitable, not even Death if you believe Aubrey de Grey, but let us see if my prediction holds: The Euro will be dead soon, within the short to medium term, and the Germans will kill it.

Tuesday, March 03, 2009

Is Darling puffing himself up for resignation?

If I wasn't forced to contribute towards his salary, expenses, and pension, I could almost feel sorry for Alistair Darling, the british government's current chancellor. Well, when I say that, of course, I really mean cardboard cut-out chancellor, because whereas Tony Blair only used to steal the role of his foreign secretary, Gordon Brown has gone one better. He is currently holding down three jobs; prime minister, chancellor, and foreign secretary.

Which makes Darling completely superfluous. Hence Darling's bleatings today in the press, which have apparently enraged Gordon, who felt the need to use an aeroplane to cross the Atlantic today, rather than just flying over there himself powered by his usual red cape.

All pivotal figures involved in the transfer of trillions of pounds of british government obligations to banks such as RBS and HBOS, all report to Gordon Brown, rather than the chancellor, and Darling knows he is really only there for one job.

That is to be Gordon Brown's scape-goat when this all of this Keynesian counterfeiting nonsense goes horribly wrong, as it surely will when all of these RBS and HBOS toxic debts start going belly up.

So if Darling is to get out of this with his sanity intact, he really has just one choice; that is to get his retaliation in early.

Obviously, being a tribal parasite socialist, Darling is an utter coward, so will make a meal of it and give Brown lots of opportunities to take him seriously. But Maturin Towers predicts that Darling will resign before he is sacked. The curse of Geoffrey Howe will once again return, to bite a standing prime minister.

How soon? Who knows. It could be tomorrow. It could be this evening, but you can be sure that it is currently the only thing on Darling's mind.

Darling may only be a dead sheep, but when Margaret Thatcher was savaged by a dead sheep, in the unlikely figure of Geoffrey Howe, it quickly proved fatal to even her, the Iron Lady.

Let us hope Darling builds up the nerve to resign soon. The sooner we are rid of Man of Steel Brown, the sooner we can start rebuilding this country.

Gordon Brown arrives in US for meeting with Barack Obama


Superman meets Jesus. What a combination. No doubt we'll all now be saved.

Please wake me in the interval.

Gang of pensioners convicted for running Britain's biggest counterfeiting operation

No, this story actually fails to involve the gentlemen above. Apparently some other old codgers have set themselves up in the same business, without first getting permission from the gang bosses in Whitehall.

Obviously the headline is also completely wrong, because the gang in question had only counterfeited about £5 million pounds.

This is going to be microscopic chickenfeed compared with the hundreds of billions of counterfeit pounds Brown and Darling are set to unleash with their 'quantitative easing' scam.

Sunday, March 01, 2009

Gordon Brown emulating Private Schulz

Private Schulz was a brilliant BBC comedy shot about 25 years ago, starring Michael Elphick and Mole Gerald himself, Ian Richardson.

The story centred around an attempt by the Nazis, in WWII, to destroy the British economy by flooding it with perfect counterfeit cash.

This week, Gordon Brown is similarly going to destroy the British economy, by also flooding it with perfect counterfeit cash.

Well done, Gordon. Sieg Heil.

UPDATE: You can watch the whole first episode of Private Schulz, on YouTube. Part 1 is available here.

Part 4, below, contains the crucial moment where Schulz thinks of counterfeiting the pound and where Hitler agrees to the idea to destroy the economy of Great Britain - though the idea is initially opposed by the German Economics Ministry, mainly on the basis of their memory of the Weimar inflation of the 1920s - Das ist sehr Fantastisch, nicht war! :-)

Just watch from 2:00 minutes through to 4:00 minutes, if time is short:

Counterfeiters about to go public

For over three centuries the Bank of England has been counterfeiting surreptitiously under the counter via the smoke-screen of the hilariously named open market operations.

This week, this counterfeiting is about to go public.

Welcome to Gordon Brown's brave new world order and his attempt to prove that the Keynesianism which didn't work in Japan isn't going to work here either.

Rather strangely, of course, if I were to buy a superb colour photocopier and to start printing up copies of ten pound notes in my basement, to then "stimulate" my local economy, I would be quite rightly arrested and thrown in the public stocks for being a fraudulent criminal stealing the wealth from everyone around me. Everyone understands this. But when this private crime is done publicly, it somehow becomes good. If anyone would like to write in and tell me how my personal bid to "stimulate" the economy would be different in principle from how the government is about to start "stimulating" the economy, I shall be pleased to read it.

In the meantime, for more on Japan, and in fact the entire economic outlook for the entire world, you might want to check out a recent 41 minute Jim Rogers interview on Bloomberg. Necessarily centred on the US, it's easy enough to allude his thoughts directly across to the UK, where we have a mini-me economy without the benefit of having the world's reserve currency. Click through the picture or the direct HTML link to get to the interview:

http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vJzshG4o708g.asf

If you have 40 minutes spare, then the whole thing is worth watching. But here are the highlights:

4:18 Comparing this situation to Japan

4:48 Why this is worse than Japan

5:54 Why recessions are necessary cleansing agents

7:04 Einstein's definition of insanity

9:18 Why we need to take the hit now

14:50 Tripling of the Federal Reserve's balance sheet

15:40 Tough love and saying NO

17:10 Two or three years of pain is better than 18 years of Japan

19:10 How the US Army prevents US bond sales

27:00 Problems with central European banking loans

28:30 Greenspan's avoidance of blame

29:20 Bernanke does not understand economics

29:34 Bernanke will keep printing until we run out of trees

31:00 The Emperor's Ponzi scheme

31:30 China is the most capitalist nation

32:10 People can fail in China

32:20 Fannie Mae is a complete failure and fraud

32:30 Obama's biggest contributor was Fannie Mae

33:50 Why G20 will fail

34:00 G20 should go to the bar and leave us alone

34:30 The present approach did not work in Japan

35:00 Gigantic short positions in the Dollar

35:30 Why I am getting out of the Dollar

35:50 Why the Dollar will fail as the world reserve standard

36:00 Why the Dollar will debase

37:30 Current Dollar rally is artificial

38:10 Buying the Yen

38:20 Swiss Franc no good

38:40 Buying commodities

39:50 Asia is the future

40:00 Everything in Singapore works

40:45 The turkeys in Washington