Monday, 19 January 2009

The Great Depression Phase 2 - The Crash Quickens Pace

This morning, the British government announced its plans to insure all the crap debt the UK banking system has taken upon itself, effectively bankrupting the country. This is a historic moment: rather than a rapid, precipitous collapse, and a possible rebuilding in a 2-5 year timeframe, resulting in a new economic status quo where the reckless fat cats have gone to the wall in accordance with their beloved "market forces", our supine government has once again shown its loyalty is to big business, and not to the British electorate. It has elected to give unlimited guarantees to the debt-ridden financial sector, thereby turning a 2-5 recession into a Depression which will last a minimum of 10 years. The last time the UK took on a debt liability of this size was the Second World War: it took 50 years to pay that off. This at least is what we are looking at again.

Manuscripts Don't Burn has said this again and again: the biggest wealth transfer in history, from poor to rich, continues apace, reversing all the social egalitarian successes of the post-war era. When the dust settles, we will be back in 1910, with most of the population living as impoverished tenants working off indenture and grateful for the crumbs thrown from the tables of the rich.

But first - the collapse of sterling, hyperinflation, and national bankruptcy. Only now does the tip of the CDS iceberg begin to heave into view.

The fat cats are stuffing their pockets with what little is left of taxpayers' assets, and presumably leaving these shores like rats deserting a sinking ship. Manuscripts Don't Burn took its "assets" and left the UK years ago for saner climes - mene mene tekel upharsin being scrawled everywhere we looked.

And then, of course, the ship sinks. Sauve qui peut, because NOBODY else will.

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