"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Thursday, March 05, 2009

Making money by printing money ,, winners and losers - and you ain't a winner pal ...

Boris Fyodorov, the late (died ,heart attack aged 50 Nov. 2008)reformist Russian Minister of Finance was a bastion of rectitude and struggled against the abuse of authority and the looting Oligarchs.

Confusion helps the powerful, he declared. Complex complicated bailouts, uexplained and unpublished (cf Paulsen's Pals Act) complicated government bailout schemes, multiple and vicious and volatile exchange rates, or high inflation, it is very hard (impossible) to keep track of market prices and to protect the value of firms. The result, if taken to an extreme, is looting (cf armed raid on Gazprom offices in Ukraine yesterday ) : the collapse of banks, industrial firms, and other entities because the insiders take the money (or other valuables) and run.

A noteworthy and powerful critique was his publication of a book of blank pages under the title The Economic Achievements of the Chernomyrdin Government.

Now that HMG / Treasury / BOE have decided today on their stop gap / stop go policy of £75 Bn (5% ish of GDP) (approved to the level of £150 Bn. by the MEPC) nothing is clearer. Confusion reigns.

Our analysis is that this move this is the same effect as a private limited company extending it's Purchase Ledger in the knowledge it cannot meet it's debts as they fall due . They become technically insolvent.

The major UK based banks will sensibly hoover up the funds pronto - including Barclays who the sleek jowled Varley assures us have no asset valuation problems.

Cui bono ?

The banks have greater liquidity which they will use as they please (owned by the taxpayer or not) and HMG have assets no-one (anywhere) is inclined to buy at any price.

So if £75 Bn doesn't work, we suck up another £75 Bn. Then what ?

On top of this we relentlesy dribble away tax payers funds ... as the following post shows.

Still Tranche 3 of the Eurofighter is to be cancelled anyday now, so that will save a bob or two on the Defence Budget.. probably enough to repair the Vanguard submarine loitering without intent under a French submarine sous l'Atlantique .

Next step 2 carriers sunk without trace ?


Anonymous said...

Wonder if this has anything to do with the today's slump in the DOW:

"Oil may touch $75 as China hedges US Treasury risk"

yahoo finance reports it like:
"Stocks fell initially after China deflated investors' hope that it would take new steps to stimulate its economy, but the discouraging economic data sent stocks even lower. The hope that China would unveil more government spending to help its economy was a major factor behind the market's bounce Wednesday, which sent the Dow Jones industrials up nearly 150 points. The rally followed a five-day pummeling."


ziz said...

Tha capacity of market makers to jusify higher prices be it oil, gold whatever is infinite.

.. see this comment later in market today 4.00pm EST (ish)
"Light, sweet crude fell $1.27 to $44.11 a barrel on the New York Mercantile Exchange."

Maybe, awash with US$'s it makes sense for China to convert into raw materials / energy rather than bonds / currencies.

Ultimately the winners have to be Asia as they have the low labour costs, access to raw materials, a young well educated workforce.

Cannle 4 news just focussed on how the Quant Ease might allow a baby clothes retail chain to fund Letters of Credit to buy their product from Asia.

That employs no one in the UK mfg sector, we (UK) have to buy US$'s to fund the imports, and only a few low tech / low cost retail /warehouse jobs are secured.

Meanwhile our energy costs and security problems soar and are under threat of supply.

Meanwhile unemployment (however fixed and fiddled the fiures are) rises inexorably.

Meanwhile House prices / sales decline and car sales slump.Construction has virtually halted.

Food prices are increasing for humans and farm animals.

Anonymous said...



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ziz said...

Nothing surprises me about Lockerbie - and the agument that 1 pounsd of mil explosive could ring a 747 down catastrophically has always eemed ...er..fortuitous


7/7 ther is still no official , in court explanation nor cross examination of the

1. Nature of explosives used with forensice post blast evidence supplied.

2 Nature of detonator- passive , active , timed etc.,

3. "bombs" in car (s?) at Lutonwere destroyed in car park as unsafe but "bombers" had happily carried them about.

4 How pictures / details of such "bombs" appeared in US newspapers when their only source must be directly / indirectly the Met.

It will be interesting to see how far these forensic experts evidence / testimony makes any changes to the official corrupt story.

The truth ?

What is Truth said Jsting Pilate and woud not stay for an answer? said Bacon in his essay on truth.

Drug running / CIA / Mossad are certainly in there somewhere plus corrupt judiciary.

Anonymous said...

March 5, 2009
“Where has the Money Gone: Collateral lists central to understanding government’s response to financial crisis”
“Fed Refuses to Release Bank Data, Insists on Secrecy”…
“The last official act of any government is to loot the nation.”
28 Feb 2009
“Barclays warns of a financial storm as Federal Reserve’s credibility crumbles”…

Things seem to be speeding up.This is going to be an awful year.

(C) Very Seriously Disorganised Criminals 2002/3/4/5/6/7/8/9 - copy anything you wish