Tuesday, 25 August 2009
'Traditional Economics' - Here comes the Spin
Spinning 'recovery' is well on it's way ... and as my previous blog pointed out, it's likely to 'work' for a while ... but not for very long*. Comments that 'house prices' are 'stabilising' are abound, and the Institute of Chartered Accountants is the latest 'group' emphasizing the upturn in confidence after they surveyed 1000 accountants around the country ...
The fact that it is in the interests of this group to make such statements should always be taken into account, but I have decided to refer to this article for a very different reason ... and mention it because it refers to the significant upturn in confidence in the 'banking', 'finance' and 'insurance' sectors, and "in particular the remarkable 'upturn' in the banking sector given the turmoil of the last two years".
To me (and many others) this will come as little surprise, as bankers are the only group the Government have helped (at the expense of all others), by bailing them out and presenting them an 'open cheque book' - offering them all of OUR money, which hard-working people will have to payback for generations to come through increased taxes (and less services) ... paying (and continuing to pay) for their failures, bonuses and greed. The Government have also done nothing to reverse the decisions that caused the banking crisis in the first place, or to stop it from happening again.
The Government have once again demonstrated the 'values system' they support and 'economic foundations' (or more precisely the lack of robust 'economic foundations') they have chosen to lay ... based on Poweromics** and the support of 'wealth manipulation' over 'wealth creation' ... and our nation will continue to the pay the price until this changes. My previous blog highlighted some of indicators capable of charting the real situation, but the Government will not surprisingly stick to referring to house prices and quoting simple GDP figures, even though more and more commentators are pointing out they are the wrong measures and completely floored.
They may have delayed the future 'battle' slightly, but not for very long, as the illusion of 'wealth' and 'recovery' will not last for very long, and things will quietly (and rapidly) get much worse (e.g. unemployment, debt, trade deficits, stress) ... especially as the nation believes it's own 'spin' and stops addressing the fundamental problems it actually faces.
The internet/communications technology will eventually change everything (including the 'balance of power', 'politics', and 'economics'). All the 'illusions' will quickly evaporate and the 'bubble' will finally burst. All of these are entirely predictable ... and history (and all current evidence) are telling us that we are not very far away from this now ...
* The Government are hoping it will up to the next general election (which is getting close) and perhaps a little longer.
** Poweromics = People using position and power for their own personal gain, based on poor moral values, self interest and greed.