UK Economy: A cynic’s summary (in a single page)

Oh how I wish I could lay claim to such a “piece”. Succinct and introducing me to a great new word “KLPETOCRACY

We are living under a volcano.

Banks have been bailed out to the tune of £3Trillion by Central Banks and Governments around the world. They have used this money for two main purposes – to speculate on commodity prices driving the cost of oil and food to record highs and to short European Government Bonds inflicting huge misery and debt on the populations of these countries.

Ordinary people are paying for the bank bail outs through cuts in public services, pay restraint, job losses and higher inflation (due to speculation and quantitative easing).

The Banks are rewarding themselves with unbelievable bonuses and pay hikes. No apologies, no jail sentences for those who caused the crash – just business as usual and the middle finger of £7Bn bonuses.

In the UK, at least £124 billion of the money we have given the banks is being scored on the National Account as government debt.

This gives the Government the excuse to inflict £81 billion of cuts and tax rises on us.

The ConDem Government promised the electorate reform of banking remuneration

But due to their funding arrangements we won’t be getting it [Link]

People are realising that we are not in fact all in it together but have instead a kleptocracy

This copied directly and in its entirety from Robert Peston’s blog on BBC. Some great comments but this one really made me smile

In the shadow of the volcano

Leadership: “Thompson Twins” still raining on OUR parade

When will our political and [their co-conspirators] financial leaders, finally realise that for as long as they are the living embodiments of a ME culture (greedy and self serving) their actions will betray the falsehood of their hollow words!?

Any chance they have of re-igniting the embers of trust…over which they continue to dry the cold sweat from their twitching hands…is dying fast!

The game is up!

We have all seen damage that the creeping cancer of greed has done, to a greater or lesser extent, in every area of our lives: social; economic; environmental; cultural. Of course it is more readily identified in the area where it tends to thrive but just take some time to ponder upon “cause and effect”.

Self regulation is NO regulation

The Government developed an unholy unhealthy, dependence upon the vast tax revenues generated by an, essentially, unregulated banking sector. Taxes that have been mismanaged by our political representatives! They have shown themselves unworthy of our continued trust

(1) failure to adequately regulate banking activities – investment & UK personal credit

(2) expenses scandal – cringealongaJacquiSmith

“Police evidence suggested that between 28 June 2007 and 31 March 2008 Ms Smith spent 26 more nights in Redditch than in London – her account had suggested it was only two”

Someone who can’t readily establish the difference between 2 and 26 is, obviously, in need of some assistance…at least with their numeracy. Apparently her husbands eyesight has been deteriorating too…due, no doubt, to working long into the evening under a poor light whilst his Missus was stuck in London!!!?

BUT to make matters worse and confirm that it isn’t “number blindness”, or something similar, she even attempted to smear her sisters neighbours for daring to speak the truth about the amount of nights she spent in London. FACTS easily established by referring to Police records for protection staff locations.

How can these people even talk about “integrity”, “trust” and “transparency” whilst they continue to sell us “recovery” when they know that we STILL aren’t being told the whole truth. If the full extent of the financial abyss was truly known surely we would have heard about outline plans for a grand economic strategy unveiled during the party conference season. Instead what we got was a big box of patches and a “Taxation for dummies” style approach that will be the start of a process to introduce the worse news on the drip.

Fear of process to transparency is obstacle to change.
They have badly miscalculated the extent of the disgust that the public feel. They have also failed to realise that they have underestimated the collaborative tools now at the disposal of savvy and concerned individuals to entrepreneurs to collaborate, to provide, a more engaged sustainable strategy and leadership that will advocate transparency and sharing.

My fear is that, unless the clamour for change continues to gather momentum, the current or next government will continue to allow the banks (that we own) to divert funds away from an SME market being starved of much needed liquidity. Why would this be allowed to happen? Some may speculate that, IF things are as rotten at the core as I believe, we do not yet know the full extent. We have no reason to trust either institution.

IF the government intervention, on our behalf with our money is so, apparently, ineffective and the banks are using the same philosophy (as got us into this mess) to deliver short term results. It is a mere smokescreen whilst they regenerate, safe in the knowledge that they can get away with talking the talk until they can get back to peddling debt.

It may be nonsense and I could have drawn the wrong conclusions in which case I stand to be corrected. But the longer the government can stave off the  signs that recovery will be W -shaped (I am not alone in believing that this is – almost – inevitable) before an election featuring opponents who are only as bad as you, there may still be a chance of hanging onto power. Then both politicians and bankers can get back to business as usual.

If it is all the same to you I would rather not leave my destiny and that of my children in the hands of the people who have given us £30K debt per UK household whilst they amassed enormous wealth for themselves and, now, stand to add to that wealth as they manipulate this “new” money in the markets(hopefully) recovering the traumatic events of the last years.