A new study clearly indicates the government are talking complete nonsense about the economy http://www.leftfootforward.org/2010/12/who’d-have-thought-it-‘real’-welfare-is-working/
This just underlines what I keep saying, the government has no idea whatsoever what to do about the lack of money in the system as it’s all down to the banks and the government doesn’t want to come out and admit it a) has no real control over the economy and b) has no control at all over the banks. All this disabled-bashing is just to make it look like they’re doing something constructive and there’s no need for any of it at all. You might start wondering, when you realise, just what it is exactly that the government does have control over, and what it is exactly that we pay them for. Ah.
What happened was the multi-millionaire David Cameron walked into a room full of frustrated businessmen, talked a lot of old flannel and walked out again. He’s still a multi-millionaire and they’re still frustrated businessmen. What he didn’t say was the one thing they needed to hear, “Here’s the money”.
All that happened was the status quo was maintained. He’s got lots of money, they haven’t, and they can’t get it because they’re denied the funding they need to run their businesses. He’s rich, they’re not, and that’s how things are gonna stay. This is the message we take away from the occasion.
It’s suggested that the banks have had a stern warning from the Toronto G20. I say that’s nonsense. What would really upset the banks is the re-introduction of narrow banking, and I see no signs of that, or genuine competition like encouragement of public bank ownership and I see no signs of that either. I think that FRB is outmoded, any kind of reserve is outmoded and unecessary for a public bank as business needs what it needs and an enlightened culture will understand that it can be funded by the printing press without limit so long as money is created to support sound business in appropriate amounts. Any inflation would be technical not functional, and transient. Anyway, the banks have survived the G20 with their government guarantees intact, have they not? They can still take customers’ money, put it on the financial equivalent of the 3.30 at Kempton, award themselves huge bonuses if they win and apply for the taxpayer to bail them out if they lose. Banks uber alles! This is anti-social nonsense and it needs to end.
Taxing the banks, something both Cameron and Clegg are keen on, won’t work to impress the banks in any way because they’ll immediately pass any costs on to the public.
Also Prime Ministers, in case you were in any doubt, do not have the authority to order private companies to operate in a manner against the interests of their shareholders, despite assurances to the contrary from all the major parties. None of them can order the banks to lend to anyone the banks don’t want to. They could if they were in China, but they’re not. In China, the banks are owned by the government, so when the government commands, they obey. It’s known as a command economy. I suspect the leaders of our major political parties are hoping that few of the electorate will know or understand this. A vain hope, perhaps, in this – the information age.