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Psssst France: Here Is Why You May Want To Cool It With The Britain Bashing - The UK's 950% Debt To GDP
While certainly humorous, entertaining and very, very childish, the recent war of words between France and Britain has the potential to become the worst thing to ever happen to Europe. Actually, make that the world and modern civilization. Why? Because while we sympathize with England, and are stunned by the immature petulant response from France and its head banker Christian Noyer to the threat of an imminent S&P downgrade of its overblown AAA rating, the truth is that France is actually 100% correct in telling the world to shift its attention from France and to Britain. So why is this bad. Because as the chart below shows, if there is anything the global financial system needs, is for the rating agencies, bond vigilantes, and lastly, general public itself, to realize that the UK's consolidated debt (non-financial, financial, government and household) to GDP is... just under 1000%. That's right: the UK debt, when one adds to its more tenable sovereign debt tranche all the other debt carried on UK books (and thus making the transfer of private debt to the public balance sheet impossible), is nearly ten times greater than the country's GDP. To call that "game over" is an insult to game overs everywhere. So here's the bottom line: France should quietly and happily accept a downgrade, because the worst that could happen would be a few big French banks collapsing, and that's it. If, on the other hand, the UK becomes the center of attention (recall this is the same UK that allows unlimited rehypothecation of worthless assets, and the same UK that unleashed the juggernaut known as AIG-FP's Joe Cassano - after all there is a reason why the UK has 600% its GDP in financial liabilities - financial innovation always goes there where it is least regulated), then this island, which far more so than the US is the true center of the global banking ponzi scheme, will suddenly find itself at the mercy of the market. At that point the only question is whether the vigilantes will dare to take down the UK, as said take down will result in an implosion in the very fabric of modern finance, much more so than what even a full collapse of France could ever achieve, or if due to the certain Mutual Assured Destruction that would follow a coordinated UK onslaught, the market will simply very quietly proceed to ignore the elephant in the room.
Source: Anthony B. Sanders testimony to Congress, December 15, 2011
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Victory by doing nothing, that should suit the French very well,
Whent the shit hits the fan, how much will half of zero be?
Same as it ever was?
http://www.youtube.com/watch?v=xNnAvTTaJjM
It feels like we're on the road to nowhere.
http://www.youtube.com/watch?v=8EnJjD6L5nU&feature=endscreen&NR=1
Great chart - makes Japan look good by comparison, and the US, Canada, Australia and NZ look like paragons of fiscal virtue. Everything's relative nowadays...
"Everything's relative nowadays..."
Incest is like that. I don't say this lightly. The banking system is a product of incest. Somehow, this is how fractional reserve lending strikes me. Incest is a universal taboo for a reason. It is an evolutionary dead end. No new imputs, no corrective imputs, nothing from outside the closed system to add to what is already there, and you double down on the flaws.
A very well reasoned post which caused me to ponder your thoughts for a while. Thank you Milestones
...and it pondersmy thought for longer than a while, +10000000000000000.
Thanks for sharing the pondering.
My neighbor adopted a kitten. We knew from observation that this kitten's father and her mother's father was the same cat. (They all lived in the basement of our apartment building.) When this kitten grew up it demonstrated some very disturbing behaviors. She would constantly chew on her paws and tail. Her tail would bleed and was prone to infection and festering wounds. The vet eventually just amputated it.
What to do, what to do...
Is it true the English Channel is actually a moat?
The British can borrow in their own currency in amounts only limited by their countrymens' sense of absurdity.
Even debt service is not a problem as it can be monetized. UK has been monetizing debt for centuries, why stop now?
Great Britain can easily borrow $10 x 10^23d or even $10 x 10^23^23d ... which is a really large number. Trust me.
Then what? UK hasn't produced anything of VALUE since the Beatles, yet massive debts have only become an issue right this second. Why is debt so important now?
Because the next step leads beyond 'economics of denial'. Make the connection between zero value produced over long periods and the NEED for massive debts and finance. If the UK and the rest of the countries could produce value without the debts it certainly would.
Life is easy right this second, we all live on borrowed time (with borrowed money, too.) We are lucky our children don't murder us in our sleep, not for the debts, which they will simply refuse to honor but for the mess we've made of their world.
@steve from virginia
Have missed your comments of late.
I see your point, but too many of today's young people are docile and dependant on the kindness of otehrs. There is not much rebellion in this group (yet?). One part of me thinks of the women turning into Sasha Grey or Kim Kardashian clones, the other part thinking of men turning into Ashton Kutcher or Will Farrell. Sad.
One part of me thinks of the women turning into Sasha Grey or Kim Kardashian clones, the other part thinking of men turning into Ashton Kutcher or Will Farrell.
What about the obese ones? I mean, the supermajority?
On second thought, let's just not think about it.
@Jim in MN
LOL. I should have said Monica Lewinski. Will Farrell is fat. It's just really sad that so little has been expected of young people that, consequently, so few of them (other than the IT crowd, future farmers of America and a few refugees from high school metal shop) know how to be productive. It's a Facebook Twitter socio-economy, unfortunately.
No doubt. My brother didn't bother to get his college degree until recently as an afterthought; he works for a specialty engineering firm that designs and fabs the gear to test--i.e. break--medical devices. They also install and maintain clean rooms for huge companies (Medtronic, Honeywell) all over the world. Basically advanced metal shop. Productive.
As for Millennials or whatever they are, who knows what potential lurks. I don't think human nature changes much, it is adaptable and responds to the situation. If there were a culture of entreprenuership and value (and all the virtues that entails), then I do think they would respond. But, that is not what we have at least on the surface. Even my bro essentially had to be a rebel and just walk away before circling back and finding real work. It's there if people get the message and throw off the programming.
I'd guess half the readers on ZH have read it, but I recommend the book "The Fourth Turning" by Strauss and Howe (I think). Good stuff and explains the nature of the millennials well. They'll accomplish nothing and be serial underachievers until the Crisis finally hits, at which point they will play a pivotal role in forming a new societal consensus. That's the theory anyway. They (we) are a generation capable of great things, but ONLY with the help of great leadership. No great leader equals chaos from us; a bad great leader equals Nazi Germany from us.
...so Ron Paul 2012 please.
I'm a member of the young people's group. We are starting to understand that we all have college degrees and we are all still working at Starbucks. We need a few more years of not getting the careers we were told we would get before we get seriously pissed. Watch Ron Paul's numbers to find out how many of us are getting pissed enough to google shit for answers. Most of us are just putting in applications and hoping things get better. IMO, the only way to spread the information is through viral internet media. My generation grinds through more media in an afternoon then most old people do in a month. You want to see change? You circulate videos like the ones from goldmoney.com, but you spice them up. They need to be retard-proof and designed to relate the known to the unknown. You explain the fractional reserve fiat system, throw in some cut-scenes from the matrix, V for Vendetta, and fightclub, and you throw somebody with style and attitude behind the camera. Like Joe Rogan. Someone really bold has to step up and be an obnoxious asshole to call out the corruption. Then that dude has to point at Ron Paul. We have the patriot. Now we need someone who isn't running for election to stir the pot. Get the lazy hopeless fuckers off the bench and into the game. Many people are still saying Ron Paul can't be elected. We need someone to step up and vouch for him. Seeing Rogan on Leno was fantastic. Rogan needs to keep that shit up, and get louder.
"You explain the fractional reserve fiat system, throw in some cut-scenes from the matrix, V for Vendetta, and fightclub,"
Suggest showing the gallows scene from "Hang 'em High"!
"My generation grinds through more media in an afternoon then most old people do in a month"
Which is exactly the problem You think playing games on your phone equates to a valuable skill and knowlege. I've got news for you -- you should have actually learned some math and science in school. That's what makes productive things. That mindless entertainment is no different than sitting in front of a television eating bon bons all day.
My "old" friends all have degrees in things like civil engineering. They can actually build things. None of us have time for silly iCrap toys. Hence, we have incomes and careers.
Now go pour someone a cup of coffee and think about how you've messed up your own life, with nobody else's help.
oops. double post
"UK hasn't produced anything of VALUE since the Beatles"
Yet happens to be the 9th largest export nation in the world.
Weird....
"The UK happens to be the 9th largest export nation in the world".
Big deal, that's volume.
Per capita exports, the UK is nr. 36...just after Gabon.
+100
I've refrained from the France-v-GB who is worse debate since it was a foregone conclusion and I happen to be a Brit. Even the msm (Saturday's Daily Mail) have noticed companies that supply emergency stocks of food in Britain are doing a roaring trade right now, supplying (guess who?) mostly bankers at £3000 a pop for 6 months of freeze dried food.
As I've posted on numerous occasions, I've come to the conclusion that we have passed the breaking point a long time ago, but as long as the IMF-SDR exists in its present form, the four countries that benefit the most (Britain, USA, Japan, EU) will limp on indefinitely sucking the wealth out of the rest of the 187 countries. When there's nothing left to suck, and we're rapidly approaching that point, the whole thing collapses. The whole deck of cards is being sustained on fantasy, tradition, faith, and lack of any real alternatives.
As any student of the LSE will tell you, the City has made the convolutions of finance a creative art, not a science based on logic and reason. We have long stood dumbly by the sidelines while the Masters of the Universe invented ever more technical-sounding words to mask their daily activities: Thieving and lying, because we erroneously believed they only stole from 3rd world fools and not from us, or their activities somehow enriched our country. Now we know better, but I dare say most of us are still dripping with the basest human instincts: Greed, pride, and lust for power, vicariously through those working in finance, with unprovoked hate and envy for any country like Germany or China that does better than us. Just when I think my countrymen are better than the Americans, the jingoisms resurface to disappoint me deeply.
+1000% (sadly)
Q: How do you solve a debt crises without defaulting?
A: War. (h/t Gerald Celente)
The question of who is in worse shape doesn't really make that much difference anymore. The debt will not be repaid - we already know that. So the question becomes, "how do we at least keep what we have?" Because when the bill is due, collection is imminent be it gold, oil, land, or any other tangible asset you can think of. There just isn't enough fiat on the planet, nor will there be, regardless of how much is 'printed', to pay.
thanks for nothing one-answer-man.
You are looking for a more palatable answer then? When you find it, get back to me - I'd really like to hear it.
You are part of the problem. I actually agree with most of what you have to say. But, I'm not so willing to just give it up and follow the script. Use your imagination (if you don't have one I'm genuinely sorry for you and also hate you at the same time).
I'm part of the problem? Yeah, I have debt, so maybe I am. It doesn't take imagination though to understand what needs to be done. Default. Period. End of story. Only problem is, life is going to suck for billions of citizens who have become dependent on their ability to run up debt, be it personal or government. Standards of living are about to change dramatically. Additionally, you don't have to be willing to follow any script here, as you have no choice in the matter. If you live anywhere in the western world, your standard of living will go down regardless of what is or isn't done. Perpetual growth via the exponential function is pure fantasy. Critical mass (e.g. peak everything) is scientific fact. And since you have decided to make it personal, "stick that in your pipe and smoke it!"
okay - still agree with everything you're saying except why does default have to = war? I don't have any debt and won't bother to gloat about why that's the case. I'm all for a full re-set. shit is fucked. I'm not going to be someone that goes along with "war is the answer". Twat!
and, I'm glad you actually know how to spell "though".
OK, I think I see the disconnect here. Why is war the answer? Well, my friend, I wish I could tell you. I don't want war. For fuck sake man, NO ONE wants war. I'll bow to your quandary though, and I will admit that it is avoidable. Perhaps there is another way out. History says different, but maybe, just MAYBE, the population of this planet has grown in wisdom just enough to avoid it. I'll step aside and let you have the last word here, as I have no quarrel with you or your comments (except the personal stuff. I have a fragile ego ;). Good debate sir, thank you.
Where there's a WILL, there's a way. They want to quash the will. Fuck TPTB. I will NOT lay down. Come and get me. . . why do i have to resort to "I didn't start it" - like fucking grade school?
Peace, brother.
Why is a war 'necessary'? Because it stirs patriotic fervour in the sheep, who are then too busy bleating USA! USA! USA! (or UK! UK! UK!) to notice the government printing money hand over fist to write off the debt, and transfer even more wealth to the oligarchy.
Destroy the currency, destroy the economy, and destroy the lives of millions of people, and it's easier to re-impose collectivist slavery over the cowed remnants of the populace.
Governments know (at least the deep thinkin neocons) that if the money pumps have to run 24/7 in a 'coordinated global bailout' that the price of key commodities will need to be controlled (READ: the west will need to do what any broke ass company does, and stooge it's suppliers).
Otherwise the bailout fails.
I expect the likely outcome will be massive invention in commodities markets, 'shutting down the speculators' whilst at the same time declaring war on Iran, so as to give the sheeple an excuse for disrupted supply of goods and services. Secure energy below cost, artificially drive down the price of core commodities. Problem solved...
That's my nightmare scenario anyway... It's what I would do if I was a crazy ass politician with chip on my shoulder and a 3rd grade understanding of economics...
Well, fortunately one of the benefits of being broke is you can't go to war in any meaningful way. Nobody in Europe has any military to speak of. Germany fight France or the UK, in any combination? They each have tiny armies.
The brits sent 10k solders to Iraq at it's peak. And couldn't hold one minor city? Other countries in the dozens or hundreds. I think they were assigned a school building or two.
war is a racket, the most profitable industry in the world and the PTB control it.
@sitenine
There is so much discussion in financial circles about "hard assets," "stuff," and "commodities." In the near to intermediate term, we will have less of everything because we've had too much of everything. It was a bubble and that bubble has popped. 60 Minutes was interesting tonight. Cleveland and other cities are having to demolish vacant houses to make neighborhoods safe from vandals and squatters. The population continues to age and young people are choosing not to start families. We won't see good times for many a year to come....
All this graph says to me is that the US has a lot more room under it's rug, in which to stuff paper.
The gauntlet has been cast, Federal Reserve and US Congress. Are you man enough to step up to the plate?
Or are you going to let the limey poms have the tallest house of cards on the street?
Too true, the real Federal reserve numbers will be written large in the history books, when we are dead,after the war, the British account will be considered modest in comparison, zeroes divided, debt from nought.
Fiction sells.and the buck is fiction.
Clearly the Eiffel Tower of Cards and the Leaning Tower of Pisa (Cards) can each be knocked down by a middling stream of piss. The London Bridge of Cards might take it in stride. Surely a Mighty Pentagon of Cards can withstand such trifles.
I think some of this graph for hte US is off base; however, why is noy France listed separately?
I recent saw on a graph that ur unfunded SS and Medicare totaled over 100 T which is 6 times our GDP.
I think some of this graph for hte US is off base; however, why is noy France listed separately?
I recent saw on a graph that ur unfunded SS and Medicare totaled over 100 T which is 6 times our GDP.
Frenchies aren't there as they don't have their own currency.
I got that chart off of Zero Hedge last week and used it in my House testimony. I mentioned it in orals to!
HTTP://confoundedinterest.wordpress.com
Thanks to Tyler Durden(s) for all your info and the debate.
Holy crap, look at who's reading AND CITING Zerohedge.
God bless you sir.
...It would be nice to see you give ZH a mention on your blog though. ; )
France is leveraging all croissant export production forecast to 2015. ECB is warming up to collateral offerings.
Comfortably Numb,.. cracking open that bottle of Woodford...
That " Old Lady of Threadneedle Street ", her upper lip is getting stiffer and stiffer...
That's why it's called "The City."
Not notice the elephant in the living room? How about sitting in the easy chair sipping tea while the whole f'n house is on fire.
do you want fish to go with those chips?
ah f*ck it, Cameron got the pound to be bid. that is a good thing. France sits on a EUR that will collapse in 6mths (parity with the USD)
But UK is done like the rest of Europe, no escaping that. As for the charts, jeez Australia's debt/GDP is frightening for a small population.
Size of pop doesn't matter - iceland. Steve keene has been pointing out for a long time now how kaput Australia is in terms of private debt load, even compared to the US.
Let's hope it remains private. If it does we'll be basically ok after the bank collapses, but if the Govt turns it into public debt, we also will be screwed.
I'll be down there throwing rocks with the unshaven uni students if the government even hints at bailing out our banks *when* they explode.
Hopefully someone will give Keene microphone when things get wobbly... and hopefully people listen.
That's my main fear for this country... mortgage blow up, then the government does what it's told by foreign lenders and rolls the debt onto the gov. ledger.
Our polies are always trying to emulate americans... I hope they don't get their chance.
Damn.. I sound like a european... so much misplaced hope for the future :P
You'd hope Her Majesty's Opposition would have by now immunised the Australian public from accepting any such sick arrangement in the event of collapse ... but with Swan and a that shit-breath gerbil Bob Brown involved ... we'll see.
As it's "Her Majesty's" right of centre opposition I would expect them to go along with the bankers, when push comes to shove. They always do, they'll just bitch about it for a few months.
Take some rocks for me.
so now we have the piukigs?
You missed out France. So it's the Fukpiigs.
in over 5 months, you make one post and this is it?
wtf, i don't know whether to laugh or cry
i'm conflicted, BiCheZ!!!
L0L!!! (i decided!)
rofl!
Funniest post today... lol.
I'm sorry, but I don't see how the financial industry's debt is the UK's. Aren't the country & people only responsible for the public and private debt? They are not responsible for any business debt (unless they decide to bail them out).
Absolutely right ! Problem is: who "represents" the people and decides whether to bail them out or not ? Brit's are in good hands, David Cameron will do what's right for the people ... in some other universe ! Iceland seems to be the only place that has had a functional democracy in this respect !!!
Yeah, point taken. That is why I included the "unless" option.
Wasn't trying to be a smart ass there. It just pisses me off that that "unless" is the norm ...
When the major political parties are ALL funded by Hedgies and the Prime Minister is the son of the grandson of the founder of Panmure Gordon; and the Deputy is the son of the chairman of United Trust Bank. With the larg4est Conservative Associations in Kensington & Chelsea it is hard to imagine Lawyers, PR/Media, Bankers wanting to go bust to preserve the notion that The Masses do not exist simply to serve The Classes.
What a bunch of wankers
http://www.forbes.com/lists/2006/181/biz_06uk40_all_slide.html
HSBC ($1.3 trillion is assets, marked to unicorn skittles I imagine)
RBS ($1.3 trillion in assets and we know what happened to these blokes)
Barclays ($1.6 trillion in assets--the winner--barf)
HBOS ($929 billion...she's gonna blow)
Lloyd's ($532 billion)
Aviva ($440 billion in assets)
Prudential ($352.8 billion)
Legal & General Group ($324.9 billion)
Standard Chartered ($215 billion)
Old Mutual
Standard Life ($205 billion in assets)
ICAP ($252.4 billion in assets--really???)
Northern Rock
Friends Providant
Collins Stewart Tullett
but.. but... they said they all recapitalised.
I'm very disappointed. maybe a stress test is in order? lol
London Olympics and bank runs! Bitchez!
debt is a loaded gun every country holds to each others head to keep them on the boat headed to a ? oh hell a lenord cohen song
I hope that nobody here on ZH has any physical assets located in the UK because if you do, you don't.
*anyone* who has an FX or futures account almost certainly has exposure there.
I hope you're not implying that everyone on this site isn't a speculator! :P
If I start to see wobbles... I'll be pulling my money home. It won't take much.. and mine is with JPM... London. Check those contracts!
I figure the largest bank in the world is safe*... but all the talk of re re re hypothecation, and the increasing demarkation along country lines... things could get messy..
*relatively speaking
If you start to see wobbles???
Shits and giggly forum talk aside, we're a long way from an immenent systemic risk to the UK.. at least as far as SEG accounts go.
I love the drama as much as the next guy... especially when I'm out of the markets :) but right now all this news is 'noise'.
Theres a gulf of difference between a 30% sell off in equities, and a collapse of the global financial system... and we haven't even had a proper tanking yet.
The UK can issue IOUs until the cows come home, so can the Fed. so there is no liquidity problem. It will be a global solvency problem if / when it happens, and with UK and US yields where they are, and UK inflation where it is, I'm not especially concerned.
Would I be long in this market? Shiz no, but I don't see UK systemtic risk, to the point where they confiscate foreign assets a real risk. Neither do I see JPM as a major risk of going ballz up and wiping out customer accounts overnight. Could it happen? Maybe, but you'd probably see the US gov. go down with it, and I don't think thats likely.
Think about what either event would mean. Both are apocolyptic. We're not talking about some 2 bit bag man (MFG)
LOL- such paper muscles, "Thunder".... (why is it that all Austrailian guys see themselves as something more than the 5ft 6, 140-lbs-soaking-wet poof they really are?)
Sorry- you gave away your IQ with the JPM account babble- get back to washing dishes, Lunch is served at 11.....
Haha :) I thought a man of your age and 'experience' would surely have some stronger argument than calling poof at the outset? You'll have to talk in metric and pretend like you're part of the developed world.. all I got from your insult was poof.
Anything further to add? Perhaps you'd like to punch me in the arm and call me a girl too? It's must be hard to be that insecure.
So...ermm...it seems that London is counter party to the rest of the planet then? That sort of concentrated risk should work out well for all.
I call dibs on Big Ben for my part of the spoils. Or maybe Buckingham palace...Rehypothecated...guess that means I have to share.
The grand party that started under the Iron Lady is turning into a serious hangover
Under the Iron Lady?
Look towards Labour for all the ridiculous bullshit the UK faces.
I get that the generic cockroach meme is to say..."for the past 30 years..." blah blah blah, but use your fucking head.
Wow! This shows the UK as an extremely high debt. In reality, though, the US is competing for second place with Japan because the product of the US is much smaller than the US GDP measures. The US gets away with this with little notice because the USD is the world's reserve currency.
http://thesilverjournal.com/
Oh, how the collective We miss the simple.
"...and very, very childish..."
Take it to heart.
Imagine the fallout.
Kospi down 4% on Kim Jong...ugly. Black swan?
Good evening ZHers. A question only related to the article in so far as it’s about how you want to be setup when the whole shit house goes up in flames: Everyone here has their opinion on whether gold or silver will perform better, but here’s the Q: If you think about the worst case where you may have FDR-style confiscation of metals, do you think it might be better to fly under the radar with less popular metals such as platinum, palladium, something else ?
Oh and I know what many here think about lead. It’s a fair point but if Unlce S is really after you, I don’t really see that working out too well for most.
There are a lot of "worst case" scenarios, and I certainly don't know which will reach us first.
But what I can tell you is that I was holding a sizeable amount of copper in 2008, and when I needed to liquidate it, I couldn't move it because everyone was waiting to see if the price would collapse further. At least with Ag and Au, you almost always have a buyer- even if the price is lower than you'd want it to be. For my part, Ag is either a retirement account or a trading fund for tough times. Au, to my mind, is excellent if you think you may need to flee the country (small and easy to smuggle) or have enough wealth in metals that space and/or weight is a concern- the same things could be said for platinum and palladium, though I don't know how liquid they really are.
As far as lead goes, I have lots- but it's not for fighting the government. Certainly, it could be used to support militia action if it comes to that, but it's really there for defense against increasing crime rates and hunting. I still think it's far more likely that if I have to fight, it will be against someone who is desperate enough to break in because they have no other source of income and the unemployment tap is off.
That being said, you might do well with platinum and palladium. I'm seeing more and more copper bullion for offer, which tells me that people are beginning to open up their definitions of what constitutes a monetary metal. Personally, I think the more choices, the better. I wouldn't mind seeing Ti and Stainless alloys as semi-precious coinage as well.
Don't worry. UK can just come over to join it's cousin the U.S.A. Then they all become one big happy family union of the U.K.U.S.A to against them the EU. Better also bring Queen E over to the D.C to preside over the Senate and the congress since they behave like 4 year old so they need the Queen granny to slap their arses once in a while.
We're all mutually assured destructing.
Just roll with it.
As long as the sun continues to rise we're all fucked.
Always were Bobby, always were. (Note our hosts' slogan in the upper right).
just until a few years ago I was as financially oblivious as 99% of the population still is today. To know the truth feels good on the one hand, but on the other hand it is terrible to see this mankind... stupid, hopeless, brutal, greedy, unable to learn... and being forced to be a part of it, simply because you are born...
You took the red pill. Welcome.
Ron Paul 2012.
As usual the Brits are the leaders. Everyone else has a lot of catching up to do.
Kim Jong may well ahve been the black swan. I'll go out on a limb. A perfect Asia storm is now brewing. Lots going on
man that one came out of the blue......perhaps interesting regional and global political implications will come about. maybe a lessening of the hard party line etc........who knows.........the chinese though will not allow nk and sk to combine imho..........
I am thinking Taiwan.......kind of crazy straw logic.....but always a major Chinese objective.
The Brits don't even have Coronation Street to turn to anymore, now that it's turned into a primarily a soapbox for the extreme left's latest fetish. Might as well find the Chinese equilvalent of that show and start watching that instead.
The Brits don't even have Coronation Street to turn to anymore, now that it's turned into a primarily a soapbox for the extreme left's latest fetish. Might as well find the Chinese equilvalent of that show and start watching that instead.
Time to stimulate the UK economy...with another war. I'm sure they can pick some small Sandwichstan somewhere to invade. And there's always Falkland sheep to protect.
There's a starving African baby. Is anyone even thinking about that?
Can someone PLEASE donate just $.50 to UNCICEF? It will save an African baby's life.
No sorry gota pay for those end of year bonuses ... necessary to retain the talent otherwise the financial industry will cause even more trouble... What a shit show !!
Through the Chunnel and over the pond, to hypothecate someone.
London is the bookie to the world. If anyone examines too closely, they may find all the accounts and investors have been MF'd. Someone already knows who's been MF'd by a lot of bookies, that also sold it and hypothecated to the Nth, to other bookies who did the same to others...... If it were the plague, it would have spread all over the world.
Which it has.
The United States has purchased 15 TRILLION in CDS Insurance from 1000's of companies, none of which will be capable of paying, on UK.
UK BKS triggering CDS.
Companies unable to pay the Federal Gov goto Treasury and get 'bailed out' and the money comes full circle being used to pay the Fed Gov which pays off the debt.
Gold? dont get me started
NEWS ALERT:
ISDA has determined that all haircuts are voluntary to include default and bankruptcy.
Creditors have been determined to have accepted these conditions voluntarily.
...and we are forever indebted to them for doing so...
Say again, Bob?
Meaning: All haricuts shall be voluntary, even upcoming involuntary defaults and bankruptcy? Or, all upcoming "defaults" shall be declared "voluntary", language that shall prevent CDS payouts? ie., Creditors voluntarily agree to all this to receive haircuts, instead of nothing? Thanks.
10:1 ratio. Sounds fractional reservish, the Goldilocks ratio. No worries, it's juuust right.
So I get into this conversation today about inflation vs. deflation with a couple of close people I know tonight. To be honest it was more of an intellectual argument.
Inflation vs. Deflation: which is worse
The delfation argument was that if you don't print money than many jobs will be lost and it will cause a depression. The act of printing money in this argument was justified under the thought that policy makers (central banks) have "tools" at their disposal like...raising interest rates, etc should inflation get out of control.
My argument was that printing money to avoid a depression creates malinvestment and not only moral hazard but also moral turptitude. This causes a degradation in society. More importantly however, once a loss of faith in the currency occurs, policy makers have NO tools and a complete breakdown in society occurs. In addition I had to explain that countries have never collapsed under deflationary circumstances, only under inflationary to hyperinflationary circumstances
On another note we both agreed that the term "crony capitalism" should be replaced by what it really is in the news medium...fascism which is when (big business gets in bed with the government) This is clearly the case in America.
Merry Christmas.
The Deflation Argument was BS. People forget which Audience was being addressed. Deflation meant writing down Bank Collateral to Market so they persuaded Governments to pump up the value of the collateral by creating ZIRP and it was like pumping chicken meat full of saline to plump it up. The Inflation comes from those Banks sitting on liquidity and making it work by speculating on commodities and energy futures driving up consumer costs. The Credit Squeeze stops the inflation cycle because Banks refuse to create credit and jack up credit card rates to 30% and refuse to roll over loans. So the private sector is gouged by the Banks and the Government
Cold shut down! as if.
SORRY I PUT THIS HERE BUT IT'S UN FKN BELIEVABLE
http://www3.nhk.or.jp/nhkworld/english/movie/feature201112162004.html
Stop being such a cry baby.
Radiation puts hair on your balls.
No I think it works quite the opposite way.
I never wanted hair on my balls anyway.
There's nothing you can do about it.
Just thought it news worthy that the government is making plans to move people back into the area.
If anyone moves into the Fukushima prefecture they deserve to have fingers growing from their assholes.
No one with a brain worthy of any kind of intelligence is moving there.
Do the stats include the notional value of the darling of sub-prime traunch peel-offs the bond shops sweetened their brokerage offers with, the very famous, but unseen and unbooked dowstream of the brokerages, the very famous insider strip know as the "IOETTE"?
Fixed income brokers will sell wet shiney shit if it be packaged with enough IOETTES to feed the alpha suits in brokerage exec suites!
The more the sub-prime collapse (a really cool word for fraud, huh?) is noddled, and the more the axioms underlying the arrogance of avarice are understood, it would not be too unsurprising to find very portly strips of IOETTES collared inside the FBS (Fraud Backed Securities) at the center (thats what they saying on tv anyway) sub-prime [fraud] collapse.
I bet there were more of those guys being passed around, this time, than at any other time in the history of bond manufacturing. IOETTE distribution could be used as a leading indicator of fraud. They be magical money machines for sure dad-nab-it .
ABT Long, Gold Chart, IBM Long
Charts with Justification
Also, I just bought a $2000 telescope, stop by check out some pix, and klik some adz, I only need a mere 4000 kliks to help with the scope! Merry Christmas!
http://oahutrading.blogspot.com/2011/12/abt-long-gold.html
Telescope Pix here
http://oahutrading.blogspot.com/2011/12/indian-chistmas.html
Students of history will recognize that these negotiations fall within the framework of maintaining the IMS (international monetary system). The IMS subjects politicians to do the bidding of their international masters at the expense of their domestic constituency. The pendulum has swung extremely far to the former, as such one can only wonder if and when the time has come for it to reverse. It will be a huge hit to international prestige, but the Dollar as the primary reserve 'currency' needs to be rethought (sadly this is beyond the scope of most politicians, citizens, and news journalists).
Don't worry, the FED will bail them out.
Most of that 'financial debt' for the UK is actually debt held by foreign banks in the city of London.
By the early 1980s, the City had become an international banking bazaar. Walk down any of its narrow streets and you could enter banks from around the world; Moorgate was nicknamed “the Avenue of the Americas”. London played host to far more foreign banks than any other financial centre and had the biggest slice of the foreign-exchange market.
Business had gravitated to the City because its role was based no longer on sterling but on offshore currencies, predominantly dollars, held outside America.
london has a history of being the center of world finances with some like Lloyd's dating back before US even existed.
"Most of that 'financial debt' for the UK is actually debt held by foreign banks in the city of London."
How can the UK be reponsible for debt held by a foreign bank?
How can a government be responsible for the debt of a bank?
Most of the debt is RBS and Lloyds. They should have done an Iceland. Problem solved by now. No "City" of course.
The ZH writers seem to try to defend UK, I bet half of them live in the UK. They would love for the markets to ignore the UK.
Still the same US cheap propaganda.
Claiming that fundamentals matter.
What is going to happen: if France accepts to be targeted, they will show they are weak.
If they are weak, in this US driven world, it means they are matter to extortion, extorting the weak.
The French know this, they are US citizens, they know the game rules.
UK could be 2000pc debt ratio, it would not matter. What matter is who is going to feel the pain and who can inflict the pain.
It is the way it is in the US world order.
Simple. And yes, admitting truth and facts is now cheaper than the cheapest US propaganda.
Main problem of US citizen propagandists.
Armstrong is on KWN telling everyone in the US to move their bank accounts to London.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/19_M...
He thinks the UK is well regulated. LoL!
How do you reconcile that with this article?
Debt/GDP ratios are unsustainable. There's going to be a new global recession and property is doomed. All the stimulus did was kick the can down the road, and now the housing collapse will be even worse. It's driven along by excessive debt. To understand why unsustainable credit and debt leverage will have a hugely damaging impact to the real estate in the years ahead, read up on the excellent analysis here:
How Steve Keen predicted the GFC. GDP to Debt Ratios
Unsustainable credit/GDP ratios will always result in death for the property sector. Excess leverage is what made the property bubbles so devastating for the UK, Japan, America and Ireland. So if you want to blame anything for the coming property crash, blame the ramping up of debt (which incidentally hasn't stopped, the debt is still there, and it's being transferred from the consumer to the government). No good will come of this, the world is staring down the barrel of a multi-year recession and more massive property crashes.
SOOOOOOOOOOO, ze english shopkeepers zey have verrry flexible wrists, zey play verry good games with photonic money in ze City. I am looking forward to the London Olympics when we will see ze Banks all running in the sprints and ze marathon.
Bank runs!!! what a show!
Meanwhile back in Gotham ville the new Superman of "clean the Augean stables", Mr Fulford, and the greatest show on earth of Dragon gold will unfurl, (unless its an Orson Wellesian type scam : the MArtians are a comin.), and we will know if and why WTC7, as maybe the other twins, came down like a prewired demolition. Wow, now that is truly "reality show" that beats Oliver Stone concocted fiction like Wall Street, JKF, and Nixon. When the real world of hard gold bullion meets the crazy world of out of control, photonic fiat ponzi; and Kissinger's legacy to the world can be summarised in one phrase : "I hadda do it, to save Rosebud".
Go figure that out!
PS : the NEW slant of this ZH article is very clear: the current Euro bashing is a RELATIVE scam of mad ponzi play, the true photonic ponzi intiators are WS/City. As already pointed out here on ZH by posters like myself, the so called notational regulators and the so called free market, have neglected this financial reality of the ponzi, going after the weak and enfeebled of the Euro zone periphery, then crawling in towards the center, which is totally corrupted by the private sector banking cabal world wide. I'm glad that ZH/TD now recognises this albeit relative truth of mind boggling magnitude. Small consolation anyway, as the world stills burns...Ask the Queen about Dragon gold, that should be a good bone to throw to the Bilderbergers! Maybe, one day we will really find out who killed JFK; its a haunting dream for my generation. But like they say, I dream (and drool) on!
Time to re-brand The UK as The U not oK
Or, with all that stench emanating from the City of London:
The pUke K or The Phew! K......
Think about it from the banksters point of view. When things are going up they make the most money. When they stop, it explodes in such a way that everyone else gets totally wiped out as well. It's in their interest to go all in. We win or MAD.
It's like the Cuban Missle Crisis all over again.
It took 4 years for some 1 to put UK issue on table and it was on wikipedia under countries gross debt all the time.
Maybe after the collapse of the EURO the USD will be the currency in the EU to make EU and USA under one roof. Da Plan the collapse all in one.
the USD is the mother of the ponzi; nobody in his right mind will EVER want to be mothered by such a witch, in a month of sundays; come hell or high water. It'll only occur at the end of a NUKE missile.
Now that could be the OTHER end game plan.
"financial innovation always goes there where it is least regulated"
Best quote I've seen in a long time.
not only is Blighty 2nd only to America in the number of regulations but also has the most Law and most spy cameras on the globe
Forgive me for thinking it is the INCREASE in regulation, law and State intrusion that leads to the MOST LAWLESSNESS and indeed most anarchy
When people wake up the penny may drop that Rules lead to chaos and more Law leads to anarchy
I shan't hold my breath waiting for the patently obvious (throughout history) to smack everyone in the nose ...it's been happening for Centuries and in every country but nobody has 'got it' yet
You can fool 99.999999999% of the people most of the time ...ain't that true
Pardon me. Do you have any Grey Poupon?
The City of London is the Financial Capital of Fraud. It's like the Wild Wild West of Finance, a Macau of sorts. A law onto itself. And in many ways, eternal central bank can kicking, wide scale fraud, investor fleecing and asset stripping could not be done without it. There is a reason that Madoff, Lehmans, MF Global, AIG and many other super stars have all come through the City of London.
it's probably because Rothchilds country house is just down the road
120% debt to GDP, 400% or 900% ....not much difference really when you're talking the finer points of burnt-out debt toasted into oblivion nation States
pass the butter and marmalade, we'll see if the politicians and bankers will swallow it
http://www.adamsmith.org/research/reports/the-law-of-opposites-illusory-profits-in-the-financial-sector
"as said take down will result in an implosion in the very fabric of modern finance"
Actually giving out I O U'S and wasting the gold is very old, nothing modern about it.
UK's financial debt reminds me of Iceland.
While what the article is saying is true in theory, we don't really know what the world would be like with the financial sector removed. I mean finance is only an added service. If it was gone, trading and transactions would still happen, only more inefficiently. Of course the world economy could collapse before the U.K does, we will just have to see.
It would be interesting to see what information they are using to add all this up. Using Official data private sector debt at the end of 2010 was 453.84% of GDP, which is higher than the end of 2007. Page 8 here: http://cdn.hm-treasury.gov.uk/2011budget_chapter1.pdf
The Great Britain experience requires a Steve Keen type analysis, and I wouldn't be surprised to see it coming given his reaction to the 1000% GDP ratio claim.
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LMAO