Call me paranoid if you like,but when the British establishment starts getting all it’s troops into line and sets up a concerted noise about something…my immediate reaction is..Ok What are they hiding that they don’t want us to know?
We are seeing such an event right now!
Since the beginning of December they have been gradually building up the noise about whether or not an Independent Scotland would remain in the EU or would have to reapply for membership. The facts are clear, Scotland will be in Europe, one way or another.Negotiations will have to to take place,as would be expected, one way or another. We are all citizens of Europe,and that will not change. So what the hell is all the fuss about?
Initially when the headline news the day after Osbournes Autumn statement was made, was s supposed secret letter from the EU president to the House of Lords casting doubt on whether Scotland would remain in europe or not, seen by the Scotsman and reported extensively by the BBC, I wondered what they had? It was another letter entirely,and no letter had been sent from the President. All nonsense, but they still persisted..Why?
I thought perhaps that they just wanted to distract us from the atrocious conditions that the State is imposing on the working poor and the welfare system, but It wasn’t that..for the noise just kept on coming!
All eyes have been focussed on this spectacle and phony war over Europe. Acres of Forest have been cut down in press column inches of newsprint, The tv and radio have devoted endless hours of coverage discussing it, the social media and bloggers have been skirmishing over it. I briefly said my piece, decided it was a red herring and moved on. I went instead on a search for what they were hiding,and I found it!
It wasn’t so much what they were hiding, but rather what they didn’t want us to hear! The information was already in the public domain,hence the cacophony of noise to distract us from it,and to misdirect us into focussing on the Euro claptrap!
You may recall that recently the major Credit Agencies have been saying that the British Government is very likely to lose it’s coveted AAA credit rating. It was briefly reported, but the press and media moved quickly on.
But as in all good crime thrillers, if you want to know who done it? You follow the money!
And so off I set, gathering information from all areas of history, from statistical tables, from economic and social reports,from official government tables, and a whole number of other places.
I soon had on my hands enough information to write several articles on differing subjects and enough statistics to melt my brains in deciphering. But where to begin? The subject area was massive!
But at last I found a report released on 1st December which is terrifying! It also satisfied to me,exactly why the British Government were doing as they are to the general populace.
I will link to the article in the Money Week magazine, but cover its basic points here from a Scottish perspective.
The article is so terrifying that it carries an X Certificate! In my opinion it should be a XXXX Certificate, because if they are correct, On Scotland leaving the UK, the rUK will really live up to it’s other alternative title of fUK (Former UK) as they will be absolutely FUKed!!! If we are kamikaze enough to remain with them, we will be Utterly Fucked!! As it is,we are going to Really suffer over the next couple of years,as they try and leach out of Scotland every damn thing that they can get!
The article is entitled ” The End of Britain” and it really is Apocalyptic.
Here is some of what they say.
“Britain is about to be flattened by a tidal wave of debt. It doesn’t matter if you vote Conservative, Liberal, Labour, UKIP – or for no party at all. The facts are the facts.
Let’s take a look at some numbers…
Two and a half years ago, when the Coalition government formed, we were already in a huge amount of debt. In fact, the previous government had left the country sinking under £700 billion’s worth.”
“our national debt is still growing at an incredible rate.
Despite David Cameron’s talk of “austerity”, he’s going to add an estimated £700 billion to the national debt in just five years. That’s more than Tony Blair and Gordon Brown added to the national debt in eleven years. It’s more than every British government of the past 100 years put together.
The fact is, when you look at our finances as a whole, the Coalition isn’t cutting anything. State spending is going up… our national debt is going up… and our interest payments are going up.
By the next general election in 2015, our national debt is estimated to stand at almost £1.4 trillion,”
“Compared to the size of our economy, Britain is now one of the most heavily indebted countries in the Western world. That’s official. Our total debts stand at more than FIVE TIMES what our entire economy is worth.
Proportionally, that’s more debt than Italy… Portugal… Spain… and almost twice as much debt as Greece. Those are four countries already in the throes of financial crisis. We’re the odd one out because we haven’t collapsed – yet. But things can’t stay that way for long,In fact, our debts tower above almost every other nation’s”
“That’s absolutely incredible, isn’t it? Yet you’ve probably never seen this fact reported in The Telegraph or on Sky News.
And the worst part is, even THAT isn’t the full story…
Because when you add in all of Britain’s “unfunded obligations” – promises the Government has made on things like public sector pensions – our debts swell to 900% of our economy.
That’s right – when you add everything up, we owe TEN TIMES what our entire economy is worth.
Our political leaders still like to see Britain as a world power. But let’s not delude ourselves. It’s clear to see: we’re totally broke.
It doesn’t matter which set of figures you use, or which way you look at Britain’s debts. We’re merely talking about different shades of disaster here.
A country can either pay back its debts or it can’t.
And it is very clear to us that Britain can’t.”
So they are very clear indeed about the real financial state that Britain is in. Unfortunately when a normal person delves into the thinking and societal values of High Finance and Market Traders, One needs to go for a shower and scrub themselves thoroughly afterwards, because these people are social psychopaths!
In a Canadian Study they measured the performance of a group of financial traders against a group of Clinical Psychopaths,and discovered that the traders were more psychotic than those that had been clinically diagnosed as psychopaths!
This lot reporting here, apart from knowing their financial and economic beans, go on to blame the reason for Britain’s Ills entirely on the Welfare State!
Which is precisely why the Government is hammering the poor, the disabled,the unemployed, privatising the NHS in England, areas of the Police force, and everything else they can lay their hands on. While cutting health, Social and Community budgets to shreds! They are in the hands of the Bankers and Financiers right up to their eyeballs!!
However back to their Financial Report.
“So what’s different about today? Why can’t the government just keep giving us MORE – and take on more debt to pay for it. That’s worked for 100 years – why won’t it work now?
The answer to that is simple. The explosion of government spending and government debt has mostly come in the past 30 years. And during that time, it’s been easy and cheap for the government to borrow money.
You see, interest rates on the government’s debt have been steadily falling for thirty years”
“Debt has been getting steadily cheaper for three decades. That has allowed the government to borrow more and more money, without having to face the consequences.
But these ‘good times’ are about to come to an abrupt end.
The simple truth is, if interest rates were at their normal rate of 5% – instead of the extremely low 2% they’re at right now – there’s absolutely no way Britain could ever repay its debts. In fact, at normal rates of interest we’re already bust. Not just ‘in over our heads’ but six feet under.
It’s simple maths. If interest rates moved back towards the normal 5% level, our cost of borrowing would triple.
Just to put that into context, if our current debt repayments tripled, the government would have to take drastic action – like abolishing the state pension. Or privatising the NHS. Or pushing tax rates back up to 90%, as they were in the 1960s.
In short, Britain would change radically
And that’s just if interest rates move back to “normal” levels. ”
“The fact is, when you’re in a lot of debt, interest rates are either your lifeline… or your death sentence. So long as rates stay low, you can just about keep things on track. You can service your debts… keep borrowing… and keep the wolves from your door.
When rates move higher… you get squeezed… and eventually, you’re finished. All of a sudden, you have to find more and more money to cover the interest on your debt. ”
“in 2009, the Greek government could borrow money at just 1%. Then in the wake of the financial crisis, the Greek economy hit the rocks, fell into recession and the markets realised what a complete mess the country was in.
Interest rates shot up vertically. And Greece imploded. Not just financially, but socially and politically too…
As you’ve seen on the news, there have been riots, suicides, overnight poverty, snap elections and crushing general strikes. People couldn’t get their money out of banks fast enough, businesses collapsed. In that environment, just keeping your family safe is a big challenge. That’s the danger of rocketing interest rates to a country with huge debts.”
“In Britain, interest rates on government borrowing now stand at record lows. If we’re not at rock bottom, then we’re incredibly close.
That means the most important trend of the next twenty years is almost certainly rising interest rates.
Debt has been getting cheaper for thirty years. Now it’s about to start getting much more expensive.
We’re now facing an unprecedented crisis. As interest rates rise, our record debts will become impossible to bear.
No one can say how quickly things will escalate. Interest rates could rise overnight. Or they could slowly and inevitably push higher, taking years to slowly strangle the economy, the housing market, the stock market… stripping us all of our wealth one day at a time.
What we can say with certainty is that sooner or later interest rates WILL rise. We’re approaching the day when foreign investors realise the scale of our problems, and demand higher interest rates… or stop lending to us altogether.
When that day arrives, we are certain things will get nasty. ”
So what happens to Britain when interest rates rise? What shape will the crisis take? And what does all this mean for you, and your family?
The first “flashpoint” will be the banking system. We’ve already seen this across Europe. This is because banks hold huge amounts of government debt. When interest rates rise, the value of government debt (bonds) falls. Even a small jump in interest rates would wipe billions of capital off banks’ balance sheets. It’s impossible to say exactly which high street banks – if any – could withstand that kind of hit.
the government simply won’t have the money to bail the banks out again.”
But the crisis will not be confined to the financial sector.
” The next domino to fall will be the housing market. Most mortgages are linked to interest rates. As interest rates shoot upwards, millions of people will be pushed “underwater” by a combination of falling housing values and rising mortgage payments.
But that isn’t all…
When a financial system ceases to function, the social fabric begins to fray. We are not simply talking about shares falling or house prices dropping, which is devastating enough. We are talking about the breakdown of social order.
The important thing to realise is that Britain is going to change, very significantly. Things might never be the same again. ”
“Most people think Britain’s debt collapse can’t happen. Of course, it’s hard to picture. Banks look safe until they announce they’re broke. Governments say everything’s under control, until they beg for bailouts.
These events often come as a shock to the public. Many people assume they’ll never happen. But assumptions can be misleading. Especially ones that are widely held.
The Victorians thought the British Empire would last forever. Americans in the 20s thought the stock market boom would never end. And here in the UK, during the 90s and early 2000s, we thought we could keep borrowing and spending forever. ”
“Anyone around fifty years old will know that, we’ve had our own taste of financial and social collapse, in the relatively near past.
Around forty years ago, Britain entered its own ‘lost decade’ of economic chaos
Back in the 1970s inflation ate into cash savings at a rate of 28%. Yes, 28%. It seemed like every time you turned your back, bank savings lost more of their value. Every single day, you became a little poorer.
The FT30 entered the worst bear market in history, falling 73% between 1973 and 1974. Even gilts – our so-called “safe-haven” – collapsed as interest rates went sky high.
Rising interest rates buckled the financial system. But it went deeper than that. The speed of the social breakdown was frightening…”
“The general strike meant dead bodies went unburied as gravediggers joined the picket line… Stinking piles of rubbish rotted on the streets, towering inside Leicester Square… Those lucky enough to have jobs had to swallow huge wage-cuts during the infamous ‘three-day-week’. Shoppers scoured supermarket shelves by torchlight during blackouts.
That’s not to mention the violent civil unrest, where thousands of the unemployed and strikers clashed with the police. For millions of people trying to keep their hard-earned money secure, it was a nightmare.
As the top rate of income tax peaked at 83% in 1974, foreign investment steered away from Britain as if it were an island colony of lepers. We were the ‘sick man of Europe’.
Property and banking crises meant that, people’s lives changed dramatically for the worse: jobs were lost, family businesses closed, people had to dig deep into their savings just to make ends meet. The country was brought to its knees”
“But the day of reckoning is approaching.
Well, we can’t say exactly. It might be a long, slow drawn-out process that drains your wealth over the next decade. Or this time next year, the financial system could be breaking apart. It’s impossible to say.
The vast majority of people here in Britain will have no idea what action to take as they watch their wealth and financial security drain away, out of reach, perhaps forever”
“Escape is impossible
If you take one thing away from this presentation, it should be this:
In recorded economic history, every single country with debts as big as ours – every single one – has suffered a devastating economic collapse. There are NO exceptions.
During the Great Depression – when thousands of ordinary people lost everything – America’s total debt hit 252% of GDP. In any circumstances, that’s bad.
But things can get worse. During the Japanese economic collapse – which triggered more than two decades of deflation and a 75% drop in the stock market – Japanese total debt hit 498% of GDP. That’s twice as bad as the level of debt seen in America during the Great Depression.
If Britain’s current debts were at those kinds of levels, it would be worrying. But in truth, our debts are now much worse than either of those two examples.
Shockingly, our debt load is now on a scale comparable with one of the most frightening economic disasters of the 20th century…
We’re talking about the Weimar Republic. ”
“Back then, suffering under the weight of brutal war reparations, civil unrest and shattered public finances, the Weimar Republic’s total debt equalled 913% of its economy.
Of course you know what happened next: the government printed money and hyperinflation took off. In the end, it was cheaper to decorate your home with bank notes than wallpaper. Ultimately, the country descended into a period of economic and social crisis… a catastrophe that ended with the rise of the Nazi party.
And that was with debts worth 913% of the economy.
Today, Britain’s total debt equals 900% of the economy.
When you add in our financial sector debt, government debt, personal debt and corporate debts… our debt load rivals the Weimar Republic in scale.
To put it mildly, this worries us a great deal. It should worry you, too. Because this simple fact alone proves just how inevitable Britain’s coming crisis is.
Remember, as you saw earlier the only thing delaying the crisis right now is the fact that interest rates are at historical lows. That’s what allows life to carry on “as normal”.
But things won’t be this way for long. ”
“Because the simple fact is:
When interest rates rise – and they WILL rise – Britain will face the greatest crisis in generations.
And there’s one more thing you need to consider.
The first danger you face won’t be the falling price of your shares… nor will it be the insolvency of the banks. Those things, we believe, will happen. But first, you face an even more immediate threat:
The desperate actions of our own government. ”
here is nothing the government can do to solve the debt crisis. Better people than David Cameron and George Osborne have tried to get out of similar crises in the past – and failed. As you have seen, the hole we have dug for ourselves is simply too big to ever fill back in.
But that won’t stop politicians making a series of bad decisions to fight the inevitable, while they are still in power. They must be seen to be doing something. And that’s bad news for you.
As the crisis deepens, panic will take hold. In a desperate attempt to pay off the debts and try to regain control, politicians will cast around for any sources of money available, and use almost any means to seize it.
Invariably, that means they’ll turn to their primary source of income: you.
Throughout history, when countries are in financial crisis, governments automatically raid the wealth of their citizens. It’s all they can do.
It goes as far back as Ancient Rome. As the Empire crumbled and inflation raged, the Emperors raised taxes over and over, squeezing as much coin as they could from their subjects.
Back to the 20th century… In 1933, President Roosevelt signed executive order 6102, forbidding the man on the street to hold any significant amount of gold. In the midst of the Great Depression, the government basically made it illegal for anyone but them to hoard the precious yellow metal. Refusal to comply with these demands was met with a five year prison sentence. That’s essentially how the US filled Fort Knox – by seizing other people’s gold.
Just last year in Hungary, facing a debt crisis similar to our own, the government nationalised all pensions. In effect, they confiscated people’s savings. Can you imagine waking up one day and being told that the income for the last 30 years of your life hangs on a government promise?
“In other words, in times of financial panic, the government will come after the people with money and savings. If you are someone who has worked hard, been responsible, considered the future, thought about your family, planned for your old age, and built up savings and some wealth – you are the prime target.
The government and financial authorities will never admit this, of course. They will never announce or admit to these ‘confiscation’ policies. In fact, their official statements are designed to conceal it.
And yet, in the end, their actions and the new controls they implement will undermine some of the core principles of the British way of life:
The protection of private property. Individual freedom. The rule of law. Clear limitations on the role of the State. Or to put it colloquially: “an Englishman’s home is his castle”.
It’s not just your home that will come under threat, it’s your money. And the outcome could be very uncomfortable indeed.”
“In Europe, right now, in Italy, Spain and Greece, wealth restrictions are already being implemented..
These measures have already been discussed amongst Eurozone finance chiefs. Limiting the size of withdrawals from cash machines, border checks, the suspensions of free travel between countries… there are draft plans to initiate these extreme measures under desperate circumstances.”
“Considering the UK has one of the largest debt to GDP ratios on the planet, how long will it be before your money is seized by our cash-strapped government? Will it be when interest rates creep up 1%… 2%? It’s impossible to predict exactly.
Unfortunately, you cannot stop the government taking this course of action. Even worse, these measures will primarily be aimed at people exactly like you. People who have worked hard, saved their money and paid their taxes. There may be resistance, even mass protests, but if things get bad enough, we think capital controls WILL be put in place once again”
So there we have it… frightening Isn’t it?
But they are not anywhere near alone in making such predictions after looking at the figures given by the government and from other sources.
The city of London has warned that the UK is in danger of slipping into an unprecedented triple-dip recession after industrial figures showed that factory output is at its lowest level for 20 years.
Michael Saunders, UK economist at Citibank, said : “Early data suggest the UK is heading for a ‘treble dip’, with GDP shrinking again in the fourth quarter of 2012. We expect the economy will continue to underperform the OBR’s forecasts in 2013-14, leading to further sizeable revenue shortfalls and deficit overshoots.”
Howard Archer, Chief UK & European Economist at IHS Global Insight said: “This is a dire set of data. The 1.3% drop in output in October is far worse than expected and very worrying. It means that industrial production fell by a further 0.8% in October and is set to be a significant drag on GDP. Unless services output can enjoy a strong end to the year, it looks increasingly inevitable that GDP will suffer a renewed drop in the fourth quarter.”
Batten Down the hatches folks….This is going to be a very scary ride if Scotland stays anchored to the UK.
It also explains the sudden sell off of the highest proportion ever of North Sea Oil licences!
If we stay in this doomed union…we will be the Ship going down with the Rats! And don’t come complaining to me that I didn’t warn you!!!
For Max Keiser fans…This one is for you.