"If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or your arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that you were our countrymen."

Wednesday, 15 December 2010

The Money-Go-Round

Flicking through the DT this morning I was struck by these three articles about the state of the global economy:

Belgium - threatened with a downgrade.
France - threatened with a downgrade.
Spain - threatened with a downgrade.

Banks shouldn't be immune from market forces. Governments had no business butting in and propping them up with money from taxpayers or by taking out loans; governments should not be subsidising banks.

Ireland is being plucked by a 3% profit margin on top of the interest rate imposed by the EU.

The UK is hardly in a better position.
'Greece is insolvent, Portugal has a liquidity problem, Spain has a liquidity problem, Belgium has been cooking the books for a long time, Italy has been cooking the books for a long time and the UK is totally insolvent.'
...While debt owed by the British government is less, relatively, than the amounts faced by Ireland, Greece or Japan, the UK's debts in total are 466% of annual economic output once consumer debt is included. That's second only to Japan.
As one commenter succinctly says: "Here's my economic prediction for 2011 - we're ****ed." To that I can only add that someone, somewhere is growing very, very rich on the back of all this.

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