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Interesting Times - Which Way Will The Global Economic Crisis Go In 2010?
Which way will the economic crisis go in 2010? Cracks are apearing in the Europen Single Currency scheme and China which has massive holdings of US treasury bonds is making unhappy noises about the dececits being run up by the Obama administration as they pursue loonytoons economic policies.
Interesting Times: The Economic Crisis In 2010?
by Ian R Thorpe.
2010-01-03
CREATIVE COMMONS: Attribute, non commercial, no derivs.
KEYWORDS: Economic, global, finance, financial, euro, EU, Europe, European, Greece, Eurozone, Single Currency, Britain, USA, Obama, dollar, China, American

Because New Year's Day fell on Friday this year and today is only Jan. 3, real news has not yet started happening again after the Christmas break. This gives us a chance to catch up on some significant events towards the end of last year that were skimmed over by the mainstream as the print and broadcast media went into hysterics over climate change before and after the Copenhagen Climate Change summit.

Most significant of these events was the downgrading by credit agencies of the rating given to the Greek government. What this means is that international credit agencies think Greece, a Eurozone nation, will not be able to service it's debts.

One of the best decisions Britain's last Conservative government made, although they did it for all the wrong reasons, was to stay outside the Single European Currency. The rigourous economic controls imposed by an unnatural linking of weak and strong economies was only ever going to be sustainable in an era of vigorous economic growth. Many poorer nations were struggling even in the days before recession kicked in. Now membership of the single currency is having disastrous consequences across Europe. Even the stronger economies, Germany, France, Holland and Sweden are feeling the bite of the recession as they face the prospect, under Eurozone regulations, of having to prop up the failing nations.

Greece is the first Single Currency zone nation to be weighed down by the cost of debts it has incurred through membership but it is likely not to be the last. And the expense of higher interest rates demanded by bond holders in the international currency markets is not the only problem. Lack of industrial investment due to the exporting of jobs to low labour cost Asian nations is creating massive unemployment particularly among the young. The welfare benefits EU members must by law pay to the unemployed are having to be financed by borrowing thus swelling the debt. At the moment in Greece the rate of unemployment in the 16 - 24 age group stands at 25%. Other troubled nations, Ireland, Italy and Spain have youth unemployment rates of 28, 27 and a startling 42 per cent respectively. (figures from Eurostat the official EU statistics source)

Outside the single currency group thanks to John Major's prescient decision to hold off sacrificing Britain's economic sovereignty for the sake of being a good internationalist, our Labour government can fall back on the traditional response to global downturns by letting the currency depreciate thus reducing the real cost of servicing the crippling debts they have incurred. It is ironic that the party of centre left internationalism that derided Major as a Little Englander and an economic reactionary for his reluctance to commit to the European leg of the New World Order project should now be benefiting from from his economic caution. The significant fact is that unlike Gordon Brown who went from full timed education straight into politics and thus is well equipped with theory and short on life experience, John Major, before he went into politics, was an accountant. He did not attend a University full time, getting his higher education through the accountancy profession's own system while he held down a job as a trainee. Studying one day a week and at night and weekend meant he combined the theory with real world experience. Through that, by instinct, intuition or observation he became aware of the perils that lie in wait when nations surrender the right to manage their own affairs.

It is even more ironic that while in a position to benefit from Major's decision is too committed to pipedreams like internationalism and globalisation to take advantage of the opportunity.

We may ten expect 2010 to be the year cracks emerge in the structure of the Eurozone.

Another internationalist chicken that will come home to roost is the decision by the USA's terminally PC Democratic Party to grab the opportunity presented by widespread disillusionment with the outgoing Bush administration to shoehorn a black candidate into The White House. Politically Correct Thinkers are seldom clear thinkers and the chosen candidate Barack Obama was not only painfully inexperienced and the proud possessor of an ego far larger than any talent a single human being could hope to be granted.

Not only did Obama, immediately on being elected, start to behave as if he had been elected President Of The World, he also revealed an almost complete failure to understand basic economics by embarking on a lonytoons policy of printing money to fund the handouts he had pledged in return for campaign support. The result was inevitable. America's debts that had driven the economy for so long suddenly did not seem like such a good investment to developing nations like India, China and other emerging economies. This has sparked a gold rush as nations and banks return to doing business in gold because the US$, the only remaining reserve currency is not considered reliable. Nobody wants to be caught holding dollars when the USA defaults on its interest payments.

The state of the western economies was made clear when China's Prime Minister gave Obama a lecture on the unsustainability of America's deficit spending and told the President quite bluntly he could not rely on China buying US Treasury bonds to fund deficits any more. China had already ceased to accept interest payments on dollars, demanding that the US pay its obligations in gold.

OK, so forget the talk of recovery and a return to growth, the only growth happening is due to governments creating electronic money to pump into their economies, The Daily Stirrer has set out exactly how much trouble the western powers are in. The recession may be technically over but the slump is just beginning. Isn't it great to live in interesting times.

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Chancellor George Osborne has said the Coalition government's plan to cut child benefit for higher rate taxpayers will go ahead but after ministers' hints the policy could be made "fairer" Mr Osborne has agreed to review the plans. While Lib Deems and Labour MPs, the unthinking droids of the politically correct left wail and gnash their teeth at the prospect of any benefit being cut ever and the idiot fringe lefties at ...

Euro Zone Crisis: The Decline And Fall Of The Bureaucratic Empire
Euro zone leaders continue to insist the single currency must be saved even though any fool would recognise a dead parrot when they see one. So why are they prepared to sacrifice the furture for the single currency project. And was it ever really about money?


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COMMENTS AND RECOMMENDED REA.DING AROUND THE WEB

In this section we do not necessarily support the views expressed in linked articles but try to give a coss section of interesting and well written articles that we think are likely to stir things up a bit.

COMMENT:
(A random and ecletic mix of what we thought was worth reading recently)

Much Media Ado About Nothing What connects seemingly disparate works such as The Silence of the Lambs, Cape Fear, Mad Men, and Seinfeld? It is the philosophy of nihilism, first popularized by Friedrich Nietzsche in the late 19th century. But in the last few decades, how did it become the dominant worldview of Hollywood? Dawn Of The Ice Age Signals The End Of The Global Warming Scam Back then, the media and activists trumpeted the arrival of a new ice age, with the specter of ice sheets and glaciers covering half the northern hemisphere, and brutal winters in the remaining ice-free zones. The fact that the media and popular culture and academia have veered from one panic-inducing disaster scenario to another one which completely contradicts the first one is funny enough in its own right. But reading The Weather Conspiracy: The Coming of the New Ice Age opened my eyes to an even more significant aspect ...

Hundreds of Independent Bookshops Face Closure
Hundreds of independent bookshops could be forced to close unless local authorities do more to support them, a leading retail group has warned. The Booksellers Association (BA), which represents 3,500 independent bookshops across the UK, has written to almost 400 council chiefs urging them to do more to support their local high streets or risk ...

Solar Panels Subsidy Was The Most Ridiculous Green Scheme Deramed Up
A plan to subsidise solar panels on homes was “one of the most ridiculous schemes ever dreamed up”, a Government minister has said.
Lord Marland, an Energy minister, hit out at the cost of so-called feed-in tariffs, which the Government has axed as part of the cuts programme. Last week Court of Appeal ruled that the sudden axing of the tariffs ...

Goodbye Great Britain
Recently, there have been two powerful challenges to the conventional wisdom about the United States. First, Robert Kagan published a lengthy essay in The New Republic, arguing that predictions of America's decline as a global power are woefully premature. .Is it possible, I found myself wondering, to do something similar for Britain? Robert Colvile has a go in this Daily Telegraph article ...

Our rising debt levels are becoming unsustainable – soon we may be talking about wealth confiscation (By Daniel Knowles, Daily Telegraph)
Debt, debt, debt; we’re drowning in it. This morning, the Office for National Statistics published the latest estimates of public sector borrowing. Though borrowing is falling faster than anticipated, thanks to the fact that spending cuts are finally beginning to kick in, the national debt has risen to 64.2 per cent of GDP. More significantly,…

The Obama administration knifes Britain in the back again over the Falklands - By Nile Gardiner World
In yet another display of disdain for the Anglo-American Special Relationship, the Obama administration has weighed in on the mounting tensions between Great Britain and Argentina over the Falkland Islands. Just two days after Prime Minister David Cameron issued a robust statement in the House of Commons vowing to defend the sovereignty of the Falklands,…

Drones In The Hands Of The Paparrazi - It's an ethical minefield
America's use of drones for targeted killings is serious enough. But commercial and law enforcement uses are on the horizon. Whether you view them as model aeroplanes for grown-ups or the handmaidens of the killer robot, unmanned aerial vehicles (UAVs), commonly known as drones, are taking off in earnest. ...

The Observer uncritically regurgitates Trotskyist smears against Katharine Birbalsingh- By Toby Young, Daily Telegraph
There’s a disgraceful attempt to smear Katharine Birbalsingh in this morning’s Observer. Under the headline “Katharine Birbalsingh criticised over ‘wasteful’ free school project“, the paper’s policy editor Daniel Boffey tries to create the impression that there’s growing local opposition to the Michaela Community School – Birbalsingh’s free school – which is due to open in…

We’re being sent the bill for the euro crisis again – this time by the IMF - By Daniel Hannan First it was individual banks; then whole industries; then entire countries; now it’s the world. Western leaders have reacted to the failure of each bailout by decreeing a bigger one. Unable to admit their mistake, slaves to the defunct economist whose thinking dominates our economics faculties and central banks, they act like so many Nick Leesons,…

The Three Parent Family More on the progressive left's war on the family and the scientific dictaorship's attempts to dehumanize us all. Babies with three biological parents could be born within three years. Scientists have come up with an IVF technique that uses the undamaged DNA of a third party when couples risk giving their children a genetic conditions such as muscular dystrophy or ataxia. The Wellcome Trust has funded the research (the figures vary between £4 million and six million …

As Obama Positions Himself For A War In Syria We Learn That Like Gadaffi, Assad Is Popular With His People
Most Syrians back President Assad, but you'd never know from western mediaAssad's popularity, Arab League observers, US military involvement: all distorted in the west's propaganda war. Suppose a respectable opinion poll found that most Syrians are in favour of Bashar al-Assad remaining as president, would that not be major news? Well one did and we never heard a word of it in the Obama felching western media ...

Bullshit Sherlock
While other blogs are full of how great the cliff - faller ending of Sherlock Holmes was I felt a bit let down. The fake suicide was telegraphed all through the show. And the coda assured us Sherlock had survived. We should not forget of course it was the habit of ...

Will bringing back grammar schools boost social mobility? by Toby Young Daily Telegraph
The possibility that England may shortly see its first new grammar school in over 50 years has, predictably enough, re-opened the debate about selective education. Yesterday, for instance, Allison Pearson came down firmly in favour, while Fiona Millar shot back with an instant rebuttal. I’ll get into that argument in a moment, but first let’s be…

So Why Read Books Anymore
There is great “truth and beauty” in Homer’s Iliad, but I would not try to make his sale on such platitudes. Gibbon’s The History of the Decline and Fall of the Roman Empire remains a classic. But I confess it can be hard to get through. Conrad’s Victory or Knut Hamsun’s Growth of the Soil, if authored by writer X this year, would be trashed on Amazon.So what are the reasons, in this age of ...

Eric Holder and the Chicago Way In America Obama's Brownshirts are getting hysterical as they try to make race the major issue in the election campaign.

Dystopian Prophecies Are Coming True - The Government Will Soon Choose Our Wives
Thinking of this entertaining new literary award – “the Hatchet Job of the Year” – it was natural to turn to Macaulay’s Essays, for few reviewers have ever been less reluctant to wound. I had in mind two long review-essays, one on Robert Montgomery’s Poems, the other on The State in its relations with ...
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