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..There's a little Samuel Pepys in all of us..

Sunday, October 05, 2008

It is disturbing..
Watching governments worldwide buying private debt, and effectively expunging it, should have the man on the street concerned.. at the very least..
But it appears, for the moment at least, is an almost irrational sense of relief..
The fact action is being taken.. until the recession really kicks in.. is seemingly enough to placate the middle-class..
They see literally trillions of dollars.. Euro's.. Pounds Sterling.. being 'injected' into a system which had allowed itself to become so debt-heavy.. so entwined with paper value, as opposed to realistic equity..
One might as well say 'thrown away' as 'injected..
Are any of the economies involved in these bail-outs solvent in themselves..?
We had France.. Italy.. Germany.. and the UK meeting in Paris this weekend to decide
how much money they can get away with printing.. India's Finance Minister was there as well..
With the outcome today of Germany guarranteeing all bank deposits and.. let's use that word again..'injecting' 50 billion Euro's into a morgage company/bank bailout..
This will put enormous pressure on Gordon to effect the same measures here, and why not..?
'In for a penny..', as they say..
The pundits seem to have reached agreement on a term of 6 months..give or take.. for the markets and the High Street to bounce in and out of recession.. there is consensus on inflation, and the universal effect it's going to have on consumers worldwide..
How this arbitrary timeline was arrived at is a masterwork of spin.. Truth be told, there can be nothing more certain than an inflationary spiral.. increasing unemployment..until the waste and paper debt is paid for..
Six months would appear to be somewhat optimistic..
Especially when we take the coming chnges in administrations.. Canada.. the US.. the UK..
Might be a power shift developing in North Korea.. and Pakistan is still ajusting to the vacuum left by the departure of Mussharraf..
Fun times ahead..

And on our own political scene.. we much extend that pre-eminent Doctor of Spin, Peter Mandelson, back in Cabinet in charge of the nebulous Portfolio of 'Business'..
Leaves quite a wide mandate there..
Peter will certainly prove to be amusing, if nothing else..

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