As soon as the money supply was checked house prices had to fall
and there had to be a recession. If property prices collapse
so will the UK banking sector.



  1. There are no easy fixes for the current problems in the British economy.
  2. If the value of the dollar halves then the price of the oil should logically double as most oil is not extracted in the USA but is still priced in dollars
  3. No-one, other than the British Government, believes that the rate of inflation has ever been less than 7% over the last decade and today it is clearly more than 15%.
  4. Growth and inflation are the same thing. It just depends upon where the Government cares to draw the line. If inflation is officially 3% but in reality is 6% then the Government can claim a 'growth' rate of 3% even if no 'growth' is taking place.
  5. When it took office the current Labour Government arranged for interest rates to fall to a very low level to facilitate a high level of borrowing. This kept the economy running but jeopardised the whole future of society.
  6. As soon as the money supply was checked there had to be a recession. If the recession is sustained then the UK banking system could collapse because the sums that have been borrowed and which are now at risk are so great.
  7. The 'growth' in the profits of most western companies since 2000 are really due to understated inflation figures.
  8. The governments of the Western Nations have depended upon their people borrowing more and more as their manufacturing capability has been lost.
  9. Ultimately the money will flow to the country which has the lowest costs of manufacture or the most plentiful supply of natural resources.
  10. Low interest rates that do not reflect the real level of inflation will always encourage people to borrow and spend but the consequence is that saving is pointless.
  11. It does not benefit the pensions industry, the banks or the Government to admit that any young person that saves for their old age is wasting their time.
  12. In the long term even the most solvent pension funds (except monopolies) will fail as life expectancy continues to increase in a world where there is no profitable place in which to invest money.
  13. A child born to a healthy well fed woman will live much longer than one born to a poorly fed mother. When the post war babies reach their 80s they are not going to go away. For this reason all pension funds (except monopoly companies and State employees) will eventually fail.
  14. Global warming could be stopped but it would mean the Western Nations adopting a lifestyle reminiscent of the 1930s.
  15. Recycling the by-products of unnecessary consumption is usually as damaging to the environment as the initial consumption.
  16. Property will not be a good place to invest cash for the foreseeable future.
  17. Natural resources are limited as are a nation's wealth. Any competition for resources will come down to one simple fact - who has money to buy them
  18. Over the life of a typical PFI project the total cost is three times what it would have been if the State had paid the full cost of construction and the subsequent operating costs.
  19. It would be possible to have a country where one third of the population is employed doing nothing other than looking after the other two thirds of the population who are retired, unemployed, students or Civil Servants. Britain is already close to this position.
  20. Although it has not been spelt out to them most young people know that they have no real future and that many of the opportunities that their parents had will be denied to them.
  21. As a general rule politicians do not lie. They just say what the majority of the population want to hear.
  22. The role of a modern politician is to persuade people that everything will just go on getting better, without disruption to their lives and with no effort on their part.
  23. The simple truth is that Government policies are not supposed to work. They are only generated to create the illusion of progress.
  24. The lack of any critical evaluation of any Government policy makes the media a vital part of the Government's propaganda machine.
  25. The senior Civil Servants who work in Whitehall will never address the fact that the Governments policies will never work even when the evidence is placed before them.
  26. People's standard of living has improved in the last twenty years but only on the back of cheap, imported goods, and because service jobs, have been transferred abroad.
  27. No British politician could persuade the majority of the population that they should pay twice as much for their consumables just so that a company based in the UK and burdened with a high tax regime can compete with a manufacturer in China.
  28. .....all activities that can be relocated outside a high cost environment will be.
  29. The point at which the British economy will fail is when China and India force the price of oil up due to their own consumption, when the number of elderly people reach the level where the medical and social services are overwhelmed, and when the savings and wealth of the nation are exhausted.
  30. What is happening in the Western Nations today is no different to what happened in the closing stages of the Roman Empire.

Published: August 2008