BBC show making fun of ‘Wife Swap’, showing how Victorian workers lived with humor, of course.
Long ago, I pointed out an obvious historical fact about bubbles: they always destroy social systems and bankrupt entire nations, they take twice as long to recover from the bubble as it took to grow in the first place and thirdly, the main reason why bubbles are so very destructive is because people love bubbles and do everything possible to restore the status quo of an infinity bubble rather than to balance things and make they operate on a sustainable, sane level. We see this yet again, as history runs in circles like a dog chasing its own tail.
This news does not surprise me at all, I can hear the Bank of England governor, King clearing his throat before delivering his speech because he knows ever bit as I know, there is NO easy exit from a bubble blow up. It is like expecting to walk away from this: Ferrari crash: Akshay Panducherry dies from injuries sustained in high-speed crash. His first car, an expensive birthday present from his international finance parents. Dead as a doormat. Quickly, too. The higher speed the gift, the quicker the death.
More than one spawn of these super elite rich has annihilated themselves this way and it is rough justice, I expect most of them to die young due to extreme high money with no labor involved. Back to King: Downturn to continue for a generation, Bank of England governor warns
In a speech delivered in Cardiff, Wales, on Tuesday evening, King said that after a period of “lopsided” expansion marked by growing trade deficits, increased debt levels and a collapse of their banking systems, “advanced economies across the world are facing a huge adjustment.” The scale of the shift meant that the generation coming into the workforce “may live under its shadow for a long time to come.”
King warned that over the past year “the economic sky has darkened.” The clouds coming from the euro area had not lifted and new ones had developed with China, Brazil and India, the three largest “emerging market economies”, all slowing. According to the latest International Monetary Fund projections, output will fall in no less than 10 European economies this year.
Like other central banks around the world, the Bank of England has engaged in its own version of “quantitative easing”, cutting the bank rate to its lowest level ever and purchasing £350 million of financial assets in order to inject money into the economy. But while this policy could ease the pace of “adjustment”, it would not continue indefinitely and there were “limits to its ability to stimulate private sector spending,” King insisted.
“In the long run, we will need to rebalance our economy away from domestic spending and towards exports, to reduce our trade deficit, to repay our debts, and to raise the rate of national saving and investment,” he said. King did not spell out the implications of this “adjustment” but it means a further significant lowering of living standards in order to make British capitalism more internationally competitive.
This is the end result of free trade which I detailed over and over again over the years. After destroying even the most feeble of protections for homebase workers, the elites got filthy rich moving jobs offshore and pocketing the profits when reimporting goods once manufactured at home. They did this relentlessly, constantly and with full force.
The US is on the verge of electing one of these creeps who make multimillions doing exactly this. And he is appealing to workers to fix the job losses while having zero intention of doing anything of the sort. Jobs will come home but only when wages here drop below wages of the poorest communist nation such as say, Cambodia or Vietnam.
So, are the Brits anxious to match Asian lifestyles? Now, in Asia, people live with no heating thanks to the planet being fairly warm. In England, they will die of the cold or be forced to live like Victorian labor in tiny tenements ten to a room with no heat. Here is another Horrible Histories parody of a TV ad for Victorian Servants for the busy elite housewife:
Here is the modern take on controlling maids so they work even harder than ever: In Hollywood Hotel, Maids are Watched by a Dog Named Rex as a Federal Agency Seeks to Halt Hyatt’s use of Housekeeper Tracking Device. Anyone who thinks Romney won’t heartily endorse this is nuts.
Of course, this has been predicted by science fiction writers. I can’t recall which book this was in, but I remember clearly a story about a young man who has a computer talking in his ear while monitors track his every movement in a store and he notices over time, he is more and more like a robot with no free will whatsoever and furthermore, isolated while surrounded by others who are equally isolated as they listen to the detailed instructions of the monitors in their ears.
They even are told what to say, when and are not allowed to deviate from this or are fired and a mob out back is begging for jobs so everyone is scared and don’t resist. Sort of like how travelers must live with Homeland Security treating us like we are prisoners. This is a reality that is right on the horizon and increasing in power.
Like so many other social forces, the robot assassin to the robot auto welder, there is increasingly a sense that workers are not needed except they are cheap robots requiring no repairs, just throw them out if they are injured. Then there is one place robots can’t go: nuclear disasters. This requires humans. Who die.
Now on to nonhumans, the gnomes who run our banking system and wrecked it to the point, we have to beggar workers to fix the mess these greedy creeps created: Former Goldman Sachs director gets 2 years for inside trades | The Raw Story
US District Judge Jed Rakoff in New York cited Gupta’s “extraordinary” contribution to humanitarian and educational causes during his climb to the pinnacle of the US business world as the reason for rejecting the 10-year sentence sought by prosecutors.
So, if you give some pennies to the poor, it is OK to wreck the economy? Commit whatever economic crimes you wish, then you don’t go to prison if you give Tiny Tim a penny for being a good boy? The loot these gnomes give to schools is so their own spawn, if they don’t die in fast car crashes, can laze their way to a degree in legacy spots a la George Bush Jr.
Then there is this monster: Goldman Sachs CEO On CNBC: ‘Nobody Can Flagellate Themselves As Well As Goldman Sachs’. The AIG boss that had fake insurance with less than 1% capital support and who went bankrupt when derivative swap bets came in, these jerks who we, the taxpayers and retirees bailed out, are all snarling at us about how they feel degraded and punished. While stuffing 1% loans from the central banks in their fat wallets, they whine.
Meanwhile, my savings returns me nearly exactly zero while inflation rages and my energy, food and other bills shoot upwards. These entitled jerks really think they are better than us and their buddy running for office agrees…we peons should shut up, work harder, not complain and above all, pay more taxes especially the 47% who are lower class workers, retirees and the disabled, etc.
To this end, thanks to the Supreme Court’s Catholics dictating that all election laws restricting money is illegal, we now have a very stupid US election with advertising increased twofold from 2008, research shows | World news | guardian.co.uk
The research also found that the record number of ads is concentrated on fewer states than in 2008 – meaning a small number of Americans in the swing states are being bombarded with campaign messages on a scale never seen before.
Anecdotal evidence, not in the survey, suggests that some viewers now mentally switch off when political ads appear. But the same anecdotal evidence also suggests that many voters, when asked for their views, tend to reiterate ad messages.
Hello? How does propaganda work? Ah! Repeat, repeat, repeat and hope people do NOT listen but sit passively waiting for the propaganda to finish! So of course, the victims of this sort of mind rot will loudly declare, they don’t listen to it and then faithfully, mindlessly like Pavlov’s dog, repeat these subliminal messages word for word.
And this is why it pays to spend money, if you are very, very rich, to advertise during elections. You are fixing the serfs so they don’t go after you, the rich guy, and instead, kill the poor, minorities and foreigners.
One last thing, the Iran oil boycott is causing a lot of the latest downturn. Always, always, always, when the price of oil goes up, first world economies die and this is no exception and Zionists will die rather than tell anyone this obvious informations. Examples abound: Ford to Cut 5,700 Jobs With Three European Plant Closings while everyone is told, they should work for more exports and where do these go? China? HAHAHA. Japan??? No way! The one goal remains, the US and it is dying rapidly due to the huge push to beggar the working class, that unionized group that made out like bandits thanks to FDR to LBJ. Dead as possums in a hot pot cooking on a pile of used tires.
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24 responses to “Bank Of England Says Downturn Will Be Identical To Victorian ‘Long Depression’”
Rakoff brother teaches at Harvard.
I put ‘Jed Rakoff’ in on Google and the auto-prompt is ‘Jed Rakoff Jewish’.
The Rolling Stone’s Matt Taibbi recently wrote, “Federal judge Jed Rakoff, a former prosecutor with the U.S. Attorney’s office here in New York, is fast becoming a sort of legal hero of our time.”
 In 15 years on the federal bench, Judge Rakoff has written funny, blunt and occasionally reversed opinions.
In addition to pushing back against what he has described as superficial punishment by the SEC for companies accused of fraud, Judge Rakoff has held the federal death penalty unconstitutional, sharply criticized the U.S. sentencing guideline, inserted himself into corporate governance reform at WorldCom, and pushed for the public release of documents.
Elaine, I found this over at Taki, thought you might enjoy:
Australian right wing broadcaster ‘sent to political re-education class for having got a factual detail wrong’
By Kathy Shaidle
You’ll never guess — it was about “global warming”!
And the fellow who egged on the authorities is a “climate scientist” who’s made some far more serious errors of his own.
Really makes you want to opt out as much as possible doesn’t it?Where can you go to live free?Even if you buy land the govt can come along and take it from you.Crown land we are not allowed to live on unless we are a major forest corporation,then we can mow down trees for miles of suburb.
The open sea is still free but it’s a tough life out there.
Yeah and who knew being a Spanish geologist could be a dangerous profession?
Here’s a slightly different look at a bubble, and you don’t need to know how to do technical analysis (charts) to figure this out graphically. Just look at pre and post 1982.
In one chart this sums up why many of us are hearing the term “greater depression” being used by many analysts. I wish I could find this same chart that goes back before the Federal Reserve. That one is a real mind-blower.
Will it be deflation, or a monetary collapse? Everyone wants to know.
«the main reason why bubbles are so very destructive is because people love bubbles and do everything possible to restore the status quo of an infinity bubble rather than to balance things and make they operate on a sustainable, sane level.»
The bubble numbers for the UK are even more extreme than in the USA.
Just like in the USA 70% of voters are petty rentiers, property speculators. dreaming of making free money tax-free with endless capital gains on shares and mostly on their houses.
The numbers quoted by the BBC for the UK are:
«In 2001, the average price of a house was £121,769 and the average salary was £16,557, according to the National Housing Federation. A decade on, the typical price of a property is 94% higher at £236,518, while average wages are up 29% to £21,330,»
This means that in 10 years owners of average UK houses have enjoyed tax-free capital gains of around £12,000 (around $18,000) per year, or around 60-70% on top of the after-tax average earnings (around $24,000 in 2001 to $32,000 in 2011).
What the median UK voters want is startlingly clear: higher asset prices for themselves, and lower wages or welfare for everybody else.
They love the bubble. Even more than in the USA.
….like expecting to walk away from a Ferrari crash ….
It apparently has been done:
Debt Free Money System Proposed:
Want to know how a debt free money system works? Read history. Places that did this did not end very well. Only raiders who loot other countries can afford such a system. Like say, ancient Rome.
I think this concept is too important to us to know it. Could you please describe why debt free money don´t work in details ?
Perhaps I should cut to the chase here: Which one has WORKED in the past? Dreamers who think this is true should have a ton of proof already. Remember: all possible financial systems have been tried over and over again in various degrees.
If one suggests a ‘solution’ then one must provide background data showing it WORKED at some time. For NOTHING IS NEW. Nothing.
I am an old conservative when it comes to banking, an FDR Democrat and I have railed against the destruction of the regulations set up by FDR. This caused the mess. We don’t need some bizarre new system. We need to revive a past system that worked.
I do know that past attempts at 100% bank lending ratios doesn’t work unless you like riots, revolutions and violent crimes. I know that having the state print money that has no restrictions (like gold holdings backing it by 10% or some such) then we get hyper inflation…every time without exception. Always, and will never change.
The FDR system did confiscate personal gold hoards due to it being needed to back the currency. Since that time, the value of the dollar was very steady until the Vietnam war when it raced out of control faster and faster until the gold holding system collapsed.
Immediately, we had hyperinflation due to money printing being easy, popular and fun. With lending being the way of creating inflation, we had happy property inflation which in turn, is causing mass bankruptcy of the system as wage earnings collapse.
Typical depression after a typical bubble.
Anyone sane knows that RESTRICTING LENDING during good economic times prevents bubbles from forming and prevents crashes and this fact irritates everyone who want, desperately, for more money to magically appear like mushrooms after a rain. We love getting more and more, forever and ever.
Off topic, but I stumbled across a BBC documentary called “Iran and the West” on Youtube, and really liked it. About half of it is subtitled, so you know it’s good. http://www.youtube.com/watch?v=SNGEnhfAcEc They clearly imply that the US position on Iran is extreme. Their only reference to Israel is a brief mention of the invasion of Lebanon in the early 80’s, so nothing on AIPAC et al. But still very interesting.
FDR … yep, they say he saved Capitalism. Like in the game of Monopoly, the plutocrats had collected up all the money and caused the economy to grind to a halt. FDR took some of the goodies away from them and spread them around to the population.
But FDR had an advantage, back in the ’30s. He had an expanding fossil-fuel supply, and an lot of open land in the West. He could count on energy (and work) staying cheap and easy to obtain. Nobody needed to work hard, there was machinery to do much of the formerly backbreaking farm work.
In today’s bubble-pop, we once again have stupid greedy plutocrats, but we can now see peak oil receding in the rear-view mirror. And a human population that is what, about three to five times as high? With that and the vagaries of environmental damage … this depression is going to be deeper, longer, and more extreme than anything seen before by humanity.
ELAINE: Nobody had to work hard????
In the 1930’s???? Good lord. Go find someone who lived in that time! I knew many people who were workers back then. They were worked damn hard.
And a human population that is what, about three to five times as high?
Another Billion [with a ‘B’] every 12 years, at least up till now.
India has 30 million added to its population each year. If it has 20 million deaths, thats 50 million new babies. [50 M minus 20M = 30 m increase].
50% of British mortgages are interest only loans with the full principal payable after 25 years.Can you say sub-prime?
Needless to say none of them are saving any money for that time.
Here in Canada the real estate bubble is finally pricked.Do we win a prize for being the last country to pop?Or is Spain still the winner with 85% home ownership?(gasp)
House flippers loved the ‘interest only’ game on housing. And got very badly burned when the market turned down.
It should never, ever be allowed.
We didn’t have slavery. Agricultural machinery was primitive. Of course, farming is always work.
But yes, compared to 1850 nobody worked that hard.
Eventually people will work as hard as they did in 1850 again ..
ELAINE: You don’t understand factories, I see. Farming, I did that and it has busy times like harvest time but slow times like winter. Factories, you work year round and at a high speed with few rests. Farmers haying fields in Victorian times could stop and take a drink, look at the clouds, etc, periodically. Factory workers even small children had to pay attention to fast moving machines nonstop without hardly a bathroom break.
This fundamental misunderstanding the nature if work is common due to few Americans having any idea how Victorian lives were lived.
For example, I farmed with an ox team while living with no electricity and we were ‘Victorian’ and you move SLOW with oxen, slow and chewing on cuds.
“The FDR system did confiscate personal gold hoards due to it being needed to back the currency. Since that time, the value of the dollar was very steady until the Vietnam war when it raced out of control faster and faster until the gold holding system collapsed.”
Not according to this graph that I have seen many times. The $US started losing value as soon as the Federal reserve was created. They printed paper money like crazy and created the bubble in 1920.
The $ lost of value was steady before and after 1971 according to this graphic.
Kenogami, that link doesn’t really explain how the inflation they’re talking about was measured. It seems like they’re talking about the price of gold. But it makes sense that the price of gold was fixed while the US was on a gold standard, and shot up (in US dollars) after Nixon took the US off it.
If what they’re graphing is something like the amount of gold a dollar could buy, over time, then that shouldn’t look like a smooth curve at all. Wikipedia says gold was $37/ozt in 1970, $140/ozt in 1975, $590 in 1980… dropped in price through the 80’s and 90’s, then of course shot up again. http://en.wikipedia.org/wiki/Gold_as_an_investment#Gold_price But you can always get a computer to draw a smooth curve by giving it not much data to work with, and telling it to fill in the missing information with assumptions.
Yes, inflation was still pretty flat even with WWII spending until the damn Vietnam war. While cutting taxes for political popularity. I remember those days, I paid taxes starting in 1967, being an emancipated adult at 16.
Look, the real inflation took off like a rocket when Nixon cut the gold standard. I remember VERY well back then we had ‘WAGE PRICE CONTROLS’.
I was up for a pay raise that same week when it was announced and I couldn’t get it so my boss paid me under the table. I was very pissed off with this freeze because prices of food was soaring.
Sort of like…today!
OK, it was not quite true that nobody had to work.
Actually “minimum work” is just about the same time as “peak energy”, or right about now. Maybe a few years ago, since machinery has gotten more efficient. We now have time to contemplate the philosophical aspects of “work” and “job” and “employment” and whether they are important, and why.
As we ride the energy roller coaster *down*, we will gradually return to the Victorian model. Instead of 2% of the people growing food, more like 60% of the remaining people will have to grow food.
I’m not sure just what route we will take to arrive at that condition, but it won’t be pretty. And it won’t be comparable to any previous economic downturn. It will be far worse.
That first paragraph didn’t come out quite right, wish I could edit. Peak whatever is necessarily an approximation, since there are a lot of variables in it. Could be about now, could be in the next couple years, probably in the recent past. Minimum work might be delayed a little bit by technology and the fact that machines have gotten more efficient. But I’d guess that these events will be evident within the decade, to anyone who is paying attention (a tiny minority, admittedly).
After that, things like “career” will cease to be important, while things like “work” will once again be ubiquitous. The accompanying political/social upheaval will be amazing to watch.
comment 17: thats China today, yes?
100 hour work weeks.
Feinstein hubby [Mr Blum] has like 100 million dollars, thanks to his China INC.
And the wife, as an elected official had the nerve to write an article in the LA Times about ‘how things are getting better in China’, no mention of her factories there.
So what really works ? Real Bills ?