- Will the UK pound be devalued? It is inevitable. Anyone who buys UK gilts (ie bonds) must have their head examined! Great Britain is bust, not so great for past many decades. The sovereign debt crisis is not over. It is just the beginning. What these governments will do is: print money out of thin air (or electronically) and inflate their way out of debts via debasement of their currencies. The Independent UK reports:
Britain is in a far worse financial crisis than many realise. Drastic action is needed, says venture capitalist Jon Moulton ….
The debt that Britain faces is monstrous, and neither Tories nor Labour will admit it. …. they are taking part in, in effect, a conspiracy on the British people. To make it worse, much of the media is allowing them to get away with it, presumably because they think – as the politicians seem to believe – that the public doesn’t want to hear the bad news. In short, we are complicit in a con.
Let me take you back to the terrible old days of the mid-1970s. The poor country was in a shocking way and we had to be rescued by the International Monetary Fund (IMF). The UK government was told what it had to do and the population suffered. You will have some mental pictures of industrial strife and large-scale job losses in those bad old times.
Thank goodness, it couldn’t happen now – or could it?
In 1975 the UK had government interest-bearing debt of about 45 per cent of the total economy (GDP) and the debt was rising at about 8 per cent per year. We then had to crawl to the IMF in 1976. Today, that interest-bearing debt is about 65 per cent of GDP, rising nearly 13 per cent a year. A degree in economics will not be necessary to spot that things are a lot worse than in 1975.
Actually, quite a few other things were better in the mid-1970s: unemployment was half of today’s level. The 1975 decline in the economy was only one-seventh of what happened to us last year. And the UK had much less of the largely unmentioned other debt – mostly, the pensions promises that will have to be paid by future generations, which now represents perhaps 125 per cent of GDP but was near 20 per cent in the 1976 time frame. Not a reassuring background.
The mid-1970s IMF crisis was triggered largely by the fact that foreign buyers of government debt were so nervous of the UK’s ability to repay debt that interest rates roared into the teens. Inflation was a much bigger issue then than now, and foreigners and Brits alike also feared we intended to “repay” our debt with relatively worthless scraps of paper.
So there was a buyers’ strike on government debt and we had to be bailed out. Rationally, the currency collapsed in value, and as the cost of importing oil and the like rose, so did inflation. The observant reader may have seen some of this starting to happen in the past few weeks. Should overseas buyers of UK debt worry about our ability to repay? Well, probably not – we have now come up with a new term, quantitative easing, to replace less attractive phrases like printing money or debasement. So last year the UK government did £200bn (20 per cent of GDP) of this latter-day version of slipping lead into the silver coins to buy roughly as much debt as it issued. So we can always repay with something – it might not be worth a lot, though.
So it really does feel as if the pound in your pocket will dwindle in value as the Government tries to drive interest rates down. Trying to destroy our national debt by letting inflation rip is quite attractive.
At some point the fear is that the debt markets will move their focus from Greece. Horrible but true – we have quite a lot of economic statistics worse than Greece. We might be one of the next to suffer, rather like the big banks a couple of years ago when they many found themselves with too much debt. The markets will probably attack one after another in a loss of confidence.
So here we are spending madly. Put simply, in the past year for every pound of receipts the Government spent £1.36p. And the gap is filled by borrowing. That gap is roughly £180bn a year. Wow. The last Budget shows borrowing continuing to rise for the next five years. Beyond doubt, there will therefore be an ongoing risk of a market panic with high interest rates and considerable economic effects throughout that period. However, you should not pay too much attention to budget forecasts – the 2008 Budget forecast that last year the Government would spend 99p for every pound it raised. Honest.
As debt rises, the cost of paying interest and making repayments obviously rises, too. To the extent this money is paid overseas, this is money leaving our economy and weakening it. At some point that cost will mean our economy cannot grow – even the Budget predicted a drop in government investment to one-third of last year’s level over the next five years, which will not be good for growth.
The inflation route was explored a lot in the 1970s and 1980s; it’s chaos and permanently weakens the economy. Increasing taxes is not going to get there. We need to get £50bn plus in each year to stop the debt from rising in five years’ time. Look at the bickering about National Insurance rises – try 10 per cent on VAT as a political idea to make a good dent in the budgetary hole. It’s inconceivable that our current politicians would have the stomach to do this. In any case, the tax load would probably become counterproductive with businesses and people moving overseas to less taxing environments.
Will growth get us there? Well, very short-term growth will probably return as the economy restarts. But the fact is that over the past 10 years the economy’s ability to grow has reduced – largely because we have moved from 40 per cent of the economy being public sector to 50 per cent. Civil servants do not really generate growth, so a smaller private sector has to support a larger public sector. We have casually added about a million people to the public payrolls. No one actually knows what the economy’s growth potential is and our government merely hopes for the best. However, it does not seem feasible that growth will be enough to plug the gap over the next few years.
Now that really leaves the only route to stability, which is to cut the public proportion of our economy, which means reducing spending, increasing the ability of the economy to grow and reducing the number of civil servants, and probably their pay and pensions. And the numbers are large: we need to take out several hundred thousand public sector jobs. We need to reduce the vast liability for public pensions that clouds our future. The politics – and human costs – of this are not palatable. Tough choices have to be made as to what we can afford.
But, actually, we have to do this. Only the timing is uncertain, because either we work up the stomach to do it ourselves or the debt markets will at some point stop buying UK debt; interest rates will rise, probably rapidly and a lot, and we will be forced into doing it by the IMF and the debt markets on their terms.
- The global monetary crisis is coming! Make no mistake about it. There is no sane way Japan can repay its debts. How can it, when the country is running budget deficits after deficits? The Illuminist money power intentionally engineer this coming collapse.
- The plan is to destroy all major currencies which will lead to financial and economic collapse worldwide. The cabal will trigger a World War 3 to distract the sheeple from all the real problems. War will be used for depopulation, destroying the current world system and forcing the people to accept the Satanic New World Order, One World Government. The Mystery Babylon Whore of Revelation 17.
- The Telegrapgh UK reports:
Japan’s ruling party has called for drastic monetary easing to devalue the yen by 30pc and halt the slide into deflation, putting it on a collision course with the Bank of Japan.
A draft by 130 lawmakers from premier Yukio Hatoyama’s Democratic Party of Japan said the country needs a radical shift towards growth policies, calling for an inflation target above 2pc. The exchange rate should be steered to ¥120 against the dollar, from the current ¥90. Shizuka Kamei, financial affairs minister, said the central bank must monetise government debt to support the market for state bonds and prevent deflation becoming deeply lodged in the economy.
The Bank of Japan’s governor, Masaaki Shirakawa, told lawmakers that it would illegal to fund state spending by printing money. “History has proven that central banks directly buying government securities caused severe inflation and dealt a blow to the economy. The BoJ is now providing adequate funds,” he said.
Tokyo is still able to issue 10-year bonds at ultra-low rates of 1.4pc, relying on a captive savings market, even though gross public debt will reach 225pc of GDP this year, the highest in the world. However, there are growing fears of a “malign scenario” where rising rates set off a debt compound spiral. The IMF has warned that borrowing costs may rise sharply as Japan’s aging crisis bites in earnest.
Junko Nishioka, an economist for RBS, said the BoJ is haunted by hyperinflation after World War Two. It is afraid debt monetisation could back-fire, triggering the very crisis that everybody fears. “We don’t think a fiscal accident is likely yet. Pension funds will keep buying debt for another five or six years. After that pressure increases,” she said.
- See also:
Sovereign Debt Crisis At ‘Boiling Point’, Warns Bank for International Settlements! As Greek Bond Rates Soar, Bankruptcy Looms! Gold Hits New Euro Record as Bank Run Hits Greece!
U.S. Debt Crisis Startling Facts !
Alert, Euro On Verge of Real Crisis !
Bob Chapman: The United States is Going Bankrupt With 19 Other Countries! This Is A War Against The Illuminati Secret Government!
Sell-off in US Treasuries Raises Sovereign Debt Fears!
The United States Is At A Precipice !
Niall Ferguson: Greek Crisis Will Grip Whole Western World !
Greece Debt Crisis To Trigger Financial Tsunami Across Europe !
Bond Market Verdict: Treasuries Riskier Than Toilet Paper!
Philip Manduca: “We Are At A Tipping Point” And The Only Thing That May Save The Euro Is A Collapse Of The US!
Europe Rocked By Greece, Portugal Debt Fears!
Jim Rogers: Greece Bailout, Euro And EU Future!
This Year US Public Debt Could Reach End Game !
U.S. Is Riskier Than Euro Zone; So Says CDS Market !
Gerald Celente: Great 2010 Crash is Looming !
Bob Chapman: The Illuminist World Economic Collapse Bomb!
MEP: Euro Will Collapse, ‘Pig States’ To Bring EU Down !
ECB’s Nowotny Says Governments May Face Threat of ‘Debt Spiral’!
Moody’s Fears Social Unrest As AAA States Implement Austerity Plans!
Jim Rogers: Social Unrest, Debt Default & Government Corruption!
Marc Faber And Mish Shedlock: We’re Doomed and Washington Can’t Do Anything About It !
Collapse of the American Empire: Swift, Silent, Certain!
Bob Chapman: World Constitution, World Government and World Currency Run by Banksters! The Rise of The ‘Mystery Babylon Whore’ of Revelation 17!
Bob Chapman: Sovereign Debt Default, Dollar Devaluation, Economic Depression and War!
Europe’s Banks Brace For UK Debt Crisis!
Max Kaiser Details The Banking Cartels Financial Criminality in Pillaging Europe!
Riots in Athens as Thousands Protest Against Cutbacks!
Bill Fleckenstein: Greece And UK Are Suffering A Dire Funding Problem That Is Headed For US Shores!
Fitch Warns Britain and Questions Greek Rescue as Sovereign Risks Grow!
Bob Chapman: The Albatross of Sovereign Debt!
Marc Faber: Forget US Stocks, Buy Gold Every Month ‘Forever’!
Bob Chapman: The World is Heading Towards Many Years of Economic Darkness!
- In Revelation 6, we see the image of the white horseman.
Revelation 6:1-4 (New King James Version)
First Seal: The Conqueror
1 Now I saw when the Lamb opened one of the seals;[a] and I heard one of the four living creatures saying with a voice like thunder, “Come and see.” 2 And I looked, and behold, a white horse. He who sat on it had a bow; and a crown was given to him, and he went out conquering and to conquer.
Second Seal: Conflict on Earth
3 When He opened the second seal, I heard the second living creature saying, “Come and see.”[b] 4 Another horse, fiery red, went out. And it was granted to the one who sat on it to take peace from the earth, and that people should kill one another; and there was given to him a great sword.
- The white horseman is a picture of the coming Anti-Christ, the false messiah and false prince of peace. This man comes to bring pseudo peace to the world: ‘He who sat on it had a bow’ but no arrows! ‘…he went out conquering and to conquer’. This is Satan’s son, a conquering king who comes onto the scene when the whole world is engulfed in wars. The fact that he is a ‘peace’ maker is also confirmed by the 2nd fiery red horseman, the bringer of war!
- The world is about to enter this period of intense wars: World War 3. What Gerald Celente and many are warning about is about to come true! The Illuminati shadow government is about to trigger this WW3 with a false flag (nuclear?) attack against America (and possibly UK?) .
- See also:
Alex Jones: Next False Flag in USA Maybe Nuclear!
Steve Quayle: Global Flashpoints And Apocalypse! False Flag Terrorism, World War, Depopulation, Return of the Nephilim Giants And More ….
Gerald Celente: Terror 2010 ! Another False Flag Terror Attack To Start World War 3 !
Medvedev: Israeli Attack on Iran Might Lead to Nuclear Conflict!
Unthinkable: Propaganda for False Flag Nuclear Terrorism and Torture !
Ex. British Military: The Illuminati Plans World War 3 in 18 – 24 Months!
Bob Chapman: The Illuminati Ruling Elite Are Planning A World War!
Lindsey Williams: The Elite Speak (Disk 3 of 3), War Is Planned After 18 Months!
Lindsey Williams: The Elite Speak (Disk 2 of 3), Planned Financial and Economic Collapse!
Lindsey Williams: The Elite Speak (Disk 1 of 3), The Coming 12 Months.
Lindsey Williams: Reality Disk 3. World War Planned After 2 Years. It Will Be Triggered In The Middle East!
Lindsey Williams: Hope Disk 2. Within 2 Years The Dollar Will Be Lindsey Williams: Tragedy Disk 1. The Illuminati’s Plan For The Next 2 Years!
Anglo-Israeli “Doomsday” War Scheme Advances!
Illuminati: The Hidden Agenda for World Government!
The United Nations and The Occult Agenda. The Coming One World Religious System!
Ray McGovern: Could The Next Major World War be in Iran?
Paul Craig Roberts: US Pushing For Nuclear War, “Leadership” Treasonous For Duping US Into Wars !
Major General Smedley Butler – War is a Racket !
9/11 Conspiracy Predicted in X-Files’ Spin Off – The Illuminati Card Game !