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Monday, 4 February 2013

The paradigm of the necessity of the state is false.

It would be nice to believe that our conundrums are simply the result of ineffectiveness, inefficiency and incompetence alongside of greedy capitalists taking advantage where they can.  I do not think so.

I think, opposite to the apparent shambles being the result of poor planning and management, the slow death of the global economy results from a long-term global manipulation of central banks and the currencies they issue. 

The so called 'political leaders' are bit-part patsies who are selected to go along or be destroyed.  Democracy is a hollow sham devised to give the impression these people represent the interests of the plebiscite.

The desired outcome is to drive the current human-tax-slave tax-farms known as 'nations' into every deeper integration within a series of pan-continental unions and in turn drive those unions towards a single union of global governance; an ambition referred to, by our political masters, as the 'New World Order'.

Alongside of this is the necessity to draw the variety of currencies issued by this plethora of 'nation-state' tax-farms into similar pan-continental union currencies (the EURO the AMERO the AFRO etc), then represent their international transaction with a SDR based currency and eventually supplant all with a single global unified currency.

Conspiracy or Cock-up?

If everything that goes awry at the hands of government are just more and more cock-ups, please when do we declare the whole concept of the state a busted-flush - that it is a belief as muddled, deep-rooted but as wrong as that of religion (sorry bible bashers).

Or do we accept that the degeneration of so much, when so many great minds ponder endlessly upon all, is not all accidental but deliberate and failure is core to the perpetuation of the state; at which point we should too declare it to be a busted-flush.

The paradigm of the necessity of the state is false.

Money - a mechanism of diminishing returns

If one looks at the value of the UKP, USD, EUR AUD & JPY over the last ten years against GOLD the trends are evident.

You can right click and select 'open link in new tab' to see a large version of these charts

Not only have they fallen 80% in value over that period but they have, within a ferret's whisker, all faired much the same.  The UKP and the USD have been tracking each-other since 2009 previously the UKP was tracking the EUR.

Since 2010 the JPY broke through the value of the EUR to be running closest to GOLD but still the whole basket is massively floundering against this measure.

Regardless of the notion that GOLD is the true fixed measure of value (and all currencies have been enormously depreciated against this base-line measure) the trend between the currencies shows there is little real variation (and they are all heading to hell).

The AUD has broken out a little retaining a stronger position in comparison over the last decade (decayed) but viewed over the last two decades this can be viewed as less pronounced too - just matching the JPY.

The JPY has recently been artificially weakened but this can be seen as a correction of the effect resulting from the Tsunami which appeared to cause the currency to strengthen as a result perhaps of converting overseas investments to fund reconstruction work.

I don't specifically recommend GOLD as being guaranteed to produce, over the next couple of decades, or continuance of this level of apparent growth or resistance to depreciation (though I would not mind gambling that it will).  GOLD is as vulnerable to market manipulation as the currencies undoubtedly are.  I just wish I had put my eggs into a precious basket!

I am (clearly?) illustrating that all currencies have depreciated at consistent levels with each-other and demonstrate that adjustments in this parity are, on reflection, small.

I do not agree that governments want inflation to 'stop people hoarding cash and stopping the economy'.  A public that build-up reserves of cash under their beds is improbable if the banking system pays a viable rate of interest to stimulate investment with their deposit accounts. 

I conject that inflation is driven by central banks, not directly by governments, and that it suits the producers of money that the money they produce falls in value - that is their profit.  Inflation is a form of invisible taxation.

Money is a representation of value and so cannot be measured by itself only.

If balloons all leak air over time you cannot say my red balloon is unchanged just because your blue balloon has remained the same size as mine over the same period.  Or is that all balloony!

Friday, 1 February 2013

Why the EU despises the UK's economy

The idea the city would flounder outside of the EU is the inverse of the truth.

The UK is a tax haven albeit one for the very rich and multinational companies.   For the wealthiest 1% tax rates in the UK over recent decades have fallen. The highest rate of income tax in the UK was 60% in 1980 and soon it will be 45%. Corporation tax rates were more than 50% in 1980 and soon they will be 22%. National Insurance rates have gone up. The base on which income taxes are charged for those on lower earnings has been expanded, considerably. VAT was 12 1/2% in 1980 and now it is 20%.

That means the poorest have been paying more and more tax (and I want to see an end to that, the least able are paying for this haven).  Conversely Non Domiciled Individuals can live the high-life in the UK drawing from their off-shore stash for a one-off annual fee to HMRC of £50,000 that allows these UK non-domiciled individuals to keep unlimited sums of money offshore and tax free or make tax-free remittances (including making tax-free investments into UK based companies).

Combined with other UK tax loopholes, non-doms and their families can hold large overseas bank deposits, share and property portfolios including holiday homes and pay very little or no UK tax.
This is the target at which the EU is aimed and this is the meat on which the City of London thrives.  There is NO FUTURE for the City of London without this favourable tax environment, for the worlds wealthy, remaining open for business.

The EU will chip away at the tax-haven that is the UK - along with the efficient network of trustworthy tax-havens that operate in tandem with and under the UK's auspices (Channel Isles, Isle of Mann, Cayman Isles, Barbados, etc).

Remaining in the soviet that is the EU the City of London will, sooner than later, be left dead. The European nations want to hammer a wooden stake into the heart of this remaining and vital vestige of the Great Britain that once ruled a global empire.

And the reason why this one element of empire remains is because it is the complete and utter core mechanism that funded and profited from that empire. The mechanism however can still strive to profit without directly controlling an empire but it needs the right 'culture' on which to grow.