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By David Malone
 
Does anyone anywhere believe anything they are told, on any subject, by any government official, financial expert or banker?  Beneath all the outright lies, hopeless spin and half truths there is a more fundamental and corrosive problem. WE DON’T BELIEVE YOU!

The global reserves of credulity have been pillaged and squandered. We have been told too many times that this or that economy was fundamentally sound, that problems were contained, or would definitely be over by Christmas, that Spain was not Greece, Italy was not Spain, that Ireland’s banks were fixed, that we were all in it together and that all the banks are superbly well capitalised.

Even the banks don’t believe. Each protests that they are fine and yet none of them trust each other and won’t lend a dime.

We have found ourselves living in an entire economy of lies. Borrowers lied. Lenders lied. Insurers insured the lies but were lying themselves. The regulators who oversaw the lies lied about how sound the lies were and the people who rated the lies were the most AAA of liars themselves.

Lies like debts can be printed up at will. In fact most of what is being printed in banks and newspapers are all lies related to each other. But what none of the liars remembered is that lies can only be redeemed if there is an equally endless supply of credulity. And although we frequently lament the stupidity, cupidity and cowardice of ‘people’ even they have a finite supply of credulity. And it has been exhausted.

Credulity cannot be printed up, borrowed or electronically magic-ed into existence. There is no EU stockpile or emergency supply. Once its gone its gone. And some time ago I think we reached Peak Credulity and it has been in steep decline ever since.

I certainly have none left at all. And that is a problem for those bankers and politicians whose wealth and power is based entirely on the economy of lies. The market for their lies is wreaked and soon to shut entirely. The entire economy of lies is bankrupt.

I want no more lies I want no part in the economy that trades in them.

Give me the truth or go to hell.


Courtesy of David Malone - http://www.golemxiv.co.uk

Comments  

 
# mountaincadre 2011-09-23 06:47
Refreshing article that sums up how an awful lot of us plebs feel.
 
 
# RaboRuglen 2011-09-23 07:25
Hi there,

What we need is a New Bank of Scotland (NBS) which will be run on co-operative principles. Something along the lines of the old TSB but offering updated services. Currently none of the independent building societies offer the range of services required and Scotland's only independent bank, The Airdrie Savings bank is too small to be a practical alternative.

Not holding my breath though.

Regards,
 
 
# Somerled 2011-09-23 10:18
Did you not see the news yesterday about the Airdrie Savings Bank and the plans it has for expansion with the help of Sir Brian Souter ?
 
 
# Legerwood 2011-09-23 13:04
News in the paper today that the Airdrie Savings Bank, which is run as the old TSB used to be, has opened a branch in Falkirk.

Brian Souter did the honours at the official opening.
 
 
# The Laird 2011-09-23 10:39
How about the "Scottish National Bank" (SNB) ?
 
 
# Somerled 2011-09-23 10:43
There was once the National Bank of Scotland but it was taken over by,I think,what used to be the Bank of Scotland.
 
 
# Robert Louis 2011-09-23 12:00
Caledonian Bank, Central Bank of Scotland, Perth Banking company, Thistle Bank co., Kilmarnock Bank, British Linen company Bank, Paisley Union Bank, Ship Bank, all at some stage merged with or were consumed to form the Union Bank of Scotland, which ultimately became the Bank of Scotland.

in one of its later acts, the Scottish Parliament established the Bank of Scotland on 17th July 1695.

Very good news about Airdrie Savings bank. Now all we need is a branch in Edinburgh. Sems like they are following traditional Scottish banking policies. Unscathed by the banking collapse. I think there is a lesson in that.
 
 
# UpSpake 2011-09-23 07:29
Somewhere out there is a giant fan and a mega bucket load of s**t. The two are heading for a giant collision and the excrement will cover all the land.
After a period of settlement, green shoots will appear ?.
 
 
# Caadfael 2011-09-23 08:34
All of which is why I am buying physical Silver.
Not Sterling ( .925 purity)but .999 minimum, coins or bars.
If things go seriously ATF, precious metals will be about the only thing left of any value!
 
 
# pa_broon74 2011-09-23 09:22
I doubt even that, my money is on tinned soup and dry goods.

The thing about the whole economic mess is I don't know whether to be bothered about it, people still seem to be going on holiday, I know of maybe two or three who have lost jobs and arguably only one was as a direct result of the 'crcedit crunch' and its associated problems.

I mean, in practical, layman's terms, if say for example Greece did default, what would actually happen to the Greek nation and its people? I understand Germany would lose a ton of money as would France and the UK (sic).

So far it's all been a bit like watching a video game being played by spiv/toff bankers/politicos, I could of course be being selfishly inward looking and cosseted.
 
 
# Stevie Cosmic 2011-09-23 10:23
What indeed would happen to the Greek people? That's exactly what Greeks are asking themselves. We are in the 2nd half of a 48hr transport strike today that covers everything from taxis to planes (ATC are rolling 6 hour strikes). The Greeks have had enough.

While Lagarde waxes lyrical about capital investment and austerity measures designed not to hurt the poor, the Troika have imposed further measures on the Greek government which will see the tax threshold being lowered to 5000 euro, a further 20% cut on ALL state pensions (some pensioners are already on 300 euros a month) and an additional property tax on houses of all sizes which is set to raise rents when income is declining. Yet more damned lies then; nothing to see here folks, everything's just dandy in Greece.

What indeed then for Greece if she defaulted?

It is a widely accepted fact that the measures being imposed on Greece are doing nothing but damage to an already sick economy in recession and are infact designed for the sole purpose of protecting Germany and France, a motley crue that were happy to look the other way from corruption while they made hundereds of billions from Greek industrial and defence contracts.

It has to be asked, and it's the question on a rapidly growing number of Greek lips : Can default be any worse than this?

There is a moral deficit at play here. Papandreou, the plastic socialist who's lack of tie, open shirt and rolled up sleeves is an affront to all who voted for him, has caved in to the troika at almost every turn and imposed some of the most inhumane austerity measures ever seen in this country. It is the poorest who have suffered most from these degrading and humiliating cuts in living standards, with VAT and taxes on everything increasing while income decreases. Ironically, the one measure that has been stonewalled, the sacking of 100,000 public sector staff, would go some way in addressing the moral and financial imbalance, Greece having the largest public sector in Europe per capita, but George doesn't have the gumption as it would upset the rest of his champagne socialist buddies (read thieving bastards) in the unions, who have stripped this country and her people of billions over the last few decades. In a cruel twist of fate however, Papandreou's party is now 5 points behind the centre right Nea Demokratia, the party who got Greece in this mess, the party who doubled the national debt in 4 years, the party who ballooned the public sector to almost double it's size by employing all their relatives and extended families in 'jobs for life' that didn't really exist, and the party who is now calling for a general election.

It's no wonder the kids are crying revolution. They're sick of the lies.
 
 
# Robert Louis 2011-09-23 12:01
seeds and a plot of land.
 
 
# Saltire Groppenslosh 2011-09-23 09:51
Caafael, I have given great thought to purchasing silver or gold, however, I cannot see what good it would do in the chaos of a proper global financial meltdown.

The trouble is you see that if you start thinking along the lines of "what happens on the day that the banks close their doors" and "what happens the day after and the day after that". It's not so clear cut is it? Perhaps your precious metal might get you a meal if there's enough food in the system to trade.

The one thing that I know is the same as Mr Malone says" We have found ourselves living in an entire economy of lies". As a member of the society that you belong to, if the financial system that we use comes to an end, please tell me what good would a whole hill of silver make once the food has gone?
 
 
# pa_broon74 2011-09-23 10:05
We could start by eating the bankers and politicians?

I mean, we are talking last resort?

;-)
 
 
# Robert Louis 2011-09-23 11:45
If we started with Fred, then the notion of SHREDdies for breakfast would have a whole new meaning.
 
 
# Arbroath1320 2011-09-23 13:10
Quote:
We could start by eating the bankers and politicians?



I think you may be able to pick up a few of them fairly cheaply soon pa.

I reckon with all the shenanigans currently going on in the financial markets quite a few are getting extremely close to the window ledge. Just one more little nudge and they'll start to fall out the window. Hey presto banker/politician meat on the cheap. :D
 
 
# J Wil 2011-09-23 10:11
The Mormon philosophy about self reliance seems to be a good idea in these difficult times. They have a spare room or a basement where they store food which would keep them going for some time in an emergency situation. In normal times it is organized so that it is used up continuously and replaced according to its viable life.

It can't last for ever but it does give some time to make decisions that would otherwise be difficult.
 
 
# pictishbeastie 2011-09-23 10:23
I know more about Mormonism than I ever thought I would,for various reasons,and would seriously avoid following their lead on very much at all,tbh!
 
 
# J Wil 2011-09-23 16:11
But there is no logic in discarding a good idea based on some prejudiced views!

I thought most posters on here were keen to get away from such foolishness.
 
 
# Robert Louis 2011-09-23 11:50
In the event of a financial meltdown, you would find that your pound sterling would be worth nothing. In such circumstances, Gold retains an intrinsic value, as the last currency, as its supply is finite, and quite limited. You cannot just print Gold. You can print Sterling/Euros/Dollars until the cows come home.

In countries like the former yugoslavia that underwent hyperinflation, where the price of bread doubled every day, and a loaf equalled one weeks salary, then Gold and precious items became effective bartering tools.

Did you know that long ago, the pound sterling was the world's reserve currency, and not the US dollar?
 
 
# Holebender 2011-09-23 12:49
And did you know you could exchange a One Pound Sterling bank note for one pound of Sterling Silver when paper money was first introduced? Talk about inflation!
 
 
# Legerwood 2011-09-23 13:06
Gold price dropped about $70 per ounce yesterday. Apparently commodity prices in general fell yesterday too.
 
 
# Holebender 2011-09-23 14:18
A good time to pick up some cheap(er) precious metals!
 
 
# Legerwood 2011-09-23 16:08
Ah - you have found the silver lining!
 
 
# clootie 2011-09-23 10:07
I stopped beileving years ago. Even those who are honest are basing their case on information that is being constantly manipulated.

What's the difference between an optimist and a pessimist = experience!
 
 
# Marga B 2011-09-23 10:24
Good article, small point - surely it's "credibility" not "credulity"?
 
 
# Robert Louis 2011-09-23 12:02
there's always one.....
 
 
# cjmjr 2011-09-23 11:31
What will happen if the Greek's simply walk away saying you will get your money but only when we are in a better position to pay it with no interest whatsoever, have a nice day
 
 
# John Souter 2011-09-23 12:05
Sanity will begin to be restored -and a few greedy psycopaths and their legions of hangers on will yell Armageddon and expect you to pull them out of the dung heap they have created and wallowed in.

Just as they're trying to do now.
 
 
# cjmjr 2011-09-23 11:33
Whatever happend to Scotlands £200,000,000 fossil fuel levy ? has Westminster spent it,Scotland has asked first the Labour and now the Tory's for this money but nither seems willing to give it to the Scottish Goverment are they afraid that the SNP will spend to benifit Scotland to the detrament of the Conservatives/Labour Party's
 
 
# Robert Louis 2011-09-23 11:43
Quite cynically, that great former Scotsman, Danny Alexander said he would return the money, but then remove an equivalent sum from the block grant. Ha ha how they all chuckled in Whitehall...

So, the money is still sitting in London. Money to which Scotland is entitled. Its retention by London is criminal.

That cynical attitude by a man who comes from a Scottish constituency can only be effectively summed up by one word, and it rhymes with hunt.
 
 
# Aucheorn 2011-09-23 13:06
If there is paperwork that says clearly that this is Scotland's money, can we not raise an action for theft and damages against those who will not return it ie. the westminister government.

Or the individuals witholding permission for the civil servants to transfer it.
 
 
# Arbroath1320 2011-09-23 13:18
Quote:
If there is paperwork that says clearly that this is Scotland's money, can we not raise an action for theft and damages against those who will not return it ie. the westminister government. Or the individuals witholding permission for the civil servants to transfer it.



Oh PLEASE! :D

Can we ensure that the law suit is against Westminster and ALL individuals involved in deny us right and proper access to OUR money.

Just had an "outside the box" moment.

Can the Scottish government not take Westminster to court in claim for this money citing denial of our human rights? :D

After all Westminster loves human rights cases.
 
 
# Robert Louis 2011-09-24 22:29
haha take them to the 'uk' supreme court.
 
 
# Arbroath1320 2011-09-24 22:50
Love it RL. :D
 
 
# Arbroath1320 2011-09-23 13:05
If Greece went bankrupt would they send in the bailiffs? :D

I think they, the bailiffs, would have a hard time getting the Greeks to leave Greece.

Perhaps, for Greece, bankruptcy may not be a bad think in the long run. They could leave the Euro, re-instate the Drachma and get rid of all those faceless banking bureaucrats who are currently telling Greece what to do.

Leave Greece to the Greeks!
 
 
# J Wil 2011-09-23 16:18
I don't think they would need baliffs as there would be mob on the streets baying for revenge on the criminals who have ruined their lives.
 
 
# Mad Jock McMad 2011-09-23 16:28
Last time we 'got' the Elgin Marbles, this time we should go for the Acropolis itself :-D
 
 
# Arbroath1320 2011-09-23 18:14
It would need a hell of a lot of trucks to shift it. :D

I take it you were talking about the "royal" we when you said we got the Elgin marbles. :D
 
 
# Legerwood 2011-09-23 13:12
A good article in the Daily Telegraph yesterday, I think, about the Euro. In the course of the article the authors really put the boot into the BBC and also into Danny Alexander, Chief Secretary to the Treasury.

telegraph.co.uk/.../...
 
 
# Embradon 2011-09-23 14:56
Quoting Legerwood:
A good article in the Daily Telegraph yesterday,



An oxymoron, surely?
 
 
# Legerwood 2011-09-23 16:09
The article or DA?
 
 
# whitburnsfinest 2011-09-24 23:15
The article, Legerwood, DA doesn't need the "oxy" :-D
 
 
# Mad Jock McMad 2011-09-23 16:31
Peter Obourne's rather incisive stiletto-ing of the whole Westminster EU and Euro premise?

He hasn't missed his target - for once the old 'right' is, and it cause bile to rise and a gagging sensation to say this, right!
 
 
# cirsium 2011-09-23 17:48
thanks for the link, L. Another aspect struck me. Think of BBC Scotland and its treatment of the SNP. Does the following not look like the BBC's blue print for manipulating public opinion?
"Now let's turn to the BBC. In our Centre for Policy Studies pamphlet, Guilty Men, we expose in detail how the BBC betrayed its charter commitment and became a partisan player in a great national debate – all the more insidious because of its pretence at neutrality.
For example, in the nine weeks leading to July 21, 2000, when the argument over the euro was at its height, the Today programme featured 121 speakers on the topic. Some 87 were pro-euro compared with 34 who were anti. BBC broadcasters tended to present the pro-euro position itself as centre ground, thus defining even moderately Eurosceptic voices as extreme.
But this was not the worst of the unfairness. The Eurosceptics were too rarely given time to state their reasons for favouring sterling. Their position was too often covered through a paradigm of deep, "explosive" splits within the Conservative Party rather than the merits of the policy argument. Again and again the BBC led its news coverage on scare stories that failure to join the euro would lead to economic or industrial disaster. When those reports turned out to be false, it failed to correct them. In fact Britain was enjoying record levels of foreign investment: but when Office for National Statistics figures showed this, the BBC made very little of it.
As Rod Liddle, then editor of the Radio 4's Today programme, said: "The whole ethos of the BBC and all the staff was that Eurosceptics were xenophobes." He recalls one meeting with a senior BBC figure over Eurosceptic complaints of bias. "Rod, the thing you have to understand is these people are mad. They are mad."
In truth the Eurosceptics were only too sane. "
 
 
# Vincent McDee 2011-09-23 16:49
A sovereign default is a failure by the government of a sovereign state to pay back its debt in full.

Since a sovereign government, by definition, controls its own affairs, it cannot be obliged to pay back its debt.

Nonetheless, a government which defaults may be excluded from further credit; some of its overseas assets may be seized; and it may face political pressure from its own domestic bondholders to pay back its debt.

Therefore governments rarely default on the entire value of their debt. Instead, they often enter into negotiations with their bondholders to agree on a delay or partial reduction of their debt payments, which is often called a debt restructuring or 'haircut'.

Some economists have argued that, in the case of acute insolvency crises, it can be advisable for regulators and multilateral lenders to preemptively engineer the orderly restructuring of a nation’s public debt- also called “orderly default” or “controlled default”.

In the case of Greece, these experts generally believe that a delay in organising an orderly default would wind up hurting the rest of Europe even more.

The International Monetary Fund often assists in sovereign debt restructurings.

To ensure that funds will be available to pay the remaining part of the sovereign debt, it often makes its loans conditional on austerity measures within the country, such as tax increases or reductions in public sector jobs and services. A recent example is the Greek bailout agreement.

Sovereign borrowers such as nation-states generally are not subject to bankruptcy courts in their own jurisdiction, and thus may be able to default without legal consequences.

One example is with North Korea, which in 1987 defaulted on some of its loans. In such cases, the defaulting country and the creditor are more likely to renegotiate the interest rate, length of the loan, or the principal payments.

In the 1998 Russian financial crisis, Russia defaulted on its internal debt (GKOs), but did not default on its external Eurobonds.

As part of the Argentine economic crisis in 2002, Argentina defaulted on $1 billion of debt owed to the World Bank.

Iceland did it too (Iceland's banks ended up defaulting on a whopping $85 billion) and is almost fully recovered now, read this advise by an Icelandic Banker suggesting Greece should let her Banks default:
www.businessinsider.com/.../
 
 
# Mad Jock McMad 2011-09-23 17:19
Here's the problem, as Mad Jock sees it:

World Governments have bought the lie that privately owned banks are too big to be allowed to go bust and after their lemming like rush to worship at the altar of the false idol - Gordon Brown - what is left for them?

You do not need to be a 'financial expert' to work out if you have one bean but pretend you actually can have lots of beans by 'leveraging' the original bean in CDO's, the reality is you still only have one bean.

The people want their bean back but world financiers do not know who actually has the bean and world governments will not accept it is their fault the bean has been mislaid.

In fact you could say that the neo-liberal capitalist model is now a 'has bean'.
 
 
# Andy Anderson 2011-09-24 17:20
Well David the plain truth is that most politicians and economiss do not know what the major economic crisis is, and have no idea how to respond to it. It is not all lies some of it is just confusion.

However Karl Marx, after studing Adam Smith's work on economics pointed out that there was a fundamental problem in the capitalist system which relates to how we evaluate capital and how it is rewarded per unit of production.

He explained that this system was unsustainable in the long term because the proportion of capital to labour in advances production systems was continuing to grow and would lead to increasing production creating more wealth, gross distortion of wealth distribution finally leading to an international body of supper rich with everyone else in debt and any attempt to develop further just increasing the debt.

That is now happening in capitalist world markets, the good news is it is indeed unsustainable and will not last we need to change the system. In the short term we need to invest and redistribute income from the rich to the poor. That is the truth David, but a lot of people do not like to hear it.
 
 
# enneffess 2011-09-24 22:03
This has almost certainly been suggested previously, but an alernative method for bailing out the economy.

Given the billions spent on the banks, only to see a fair percentage being paid out on bonuses, would it not have been cheaper for the government to pay off everyones mortgages (say up to £100k)?

Frees up a helluva lot of spending money and I bet it would have cost the taxpayer a lot less.
 
 
# Robert Louis 2011-09-24 22:24
Quoting enneffess:
This has almost certainly been suggested previously, but an alernative method for bailing out the economy.

Given the billions spent on the banks, only to see a fair percentage being paid out on bonuses, would it not have been cheaper for the government to pay off everyones mortgages (say up to £100k)?

Frees up a helluva lot of spending money and I bet it would have cost the taxpayer a lot less.


You could easily become president of pretty much any western democracy, if you stood on a manifesto based around that.

I watch with utter amazement, as the unelected head of the unelected IMF, struts around telling countries' elected Government what they should do. Do the IMF grasp the concept called democracy??
 
 
# Arbroath1320 2011-09-24 22:16
There you go again NFS. Being logical. :D

How many time do you have to be told Westminster doesn't do logic. :D
 
 
# Arbroath1320 2011-09-25 00:24
Some interesting stories in Sunday's papers covering the euro and Greece.

telegraph.co.uk/.../...

independent.co.uk/.../...

guardian.co.uk/.../...

Oh and lest we forget good old Tony Blair.

telegraph.co.uk/.../...

guardian.co.uk/.../...
 
 
# Roll_On_2011 2011-09-25 11:07
Arbroath1320

Oh and lest we forget good old Tony Blair.

I have got a ringside seat setup for the following program:

Dispaches

The Wonderful World of Tony Blair

Monday 26th September 8PM on Channel 4


channel4.com/.../...

After all the hype I hope they don’t let me down.
 
 
# Arbroath1320 2011-09-25 16:56
Hmm. Thanks for that Roll on. :D

I'll make a point to start watching the programme. Can't promise I'll see it all the way through though. :D
 
 
# Ronnimor 2011-09-25 16:22
Greece should see its imminent default as a blessing - an opportunity to re-establish its own currency and kick out the financial terrorists - this booklet tells how Scotland could do it & h13ow Malaysia did it in the nineties
-http://www.scottishmonetar yreform.org.uk/6.html
 

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