Friday, April 23, 2010

Blazing A Trail

Speculation is running rampant that Great Britain will be the next country to sink into a quagmire of public insolvency. Greece has scraped together a survival plan designed to preserve the Euro so the vultures are looking around to figure whose turn is next. The awful part about these failures of public finance is that the parties that helped engineer the failures stand to profit most from them. Investors bet the country in question will fail and make their bets (known as "short positions") public thus engendering a fatal lack of confidence that makes the short position a self fulfilling prophecy. And they take home the money they bet on the failure.

The main indicator of future failure in Great Britain is the presence in late 2009 of Goldman Sachs executives in the country meeting with financial leaders in government. That combined with a May 6th General Election is enough to drive speculation that Britain's government has been cooking the books with Goldman Sach's help just as they cooked the books of Greece previously. Things have come to a pretty pass when an investment banker's presence suggests financial thuggery might have been taking place.

Britain last had to get help from the International Monetary Fund in the mid-1970s and this time around it won't be an isolated incident. What this failure to function does tell us is that Britain, like the US, is teetering on the brink of becoming second class and slipping into irrelevance. No economy means no clout and begging for hand outs means our economy is in tatters. May 7th may mark the beginning of a whole new world after the British votes are counted. Where Goldman Sachs goes disaster is sure to follow. One would like to think the lawsuits building steam against Goldman Sach's thuggery will develop into a full blown shit storm from which there will be no recovery for GS. That would be nice, and then we could ignite the trail blazer who has been blazing far too many trails to disaster.

4 comments:

Bryce said...

Somehow the UK shall survive. However in reading some of your commentary keep thinking in the back when you and wife do retire, that motor sailing that you did once before may well be not a bad idea to continue.

Methinks the USA is already way over the edge in too many locations and no amount of currency will help.
Money is a form of wealth, yet wealth to many of us is not in monetary terms. Your regular night shift and your somewhat settled lifestyles is good evidence, DINKS
with a four-legged exception.
Mind you seem to be happy, unlike those up north on the so-called mainland.

Conchscooter said...

We've talked about getting back on a boat but i honestly wonder what sort of retirement we late baby boomers will have if budgets are somessed up already with so many unfunded mandates and pension funds.
In the Us when you lose your job you lose yur house, your health insurance (if any) your self esteem and your place in society. with 25%un/underemployed we are lucky as we are.

gainesville365 said...

CS, your observation about being jobless is true. I can't speak for the rest of the world, but one of the first questions an American will ask is, "What do you do?"

Then, watch as the interest turns off if you admit to being jobless, or to having a job that is not on some predetermined level of social acceptability relative to how you are initially perceived.


Thanks for the education on Britain's financial state. This blog is a tremendous resource and I am recommending it to my friends.

gainesville365 said...

CS, your observation about being jobless is true. I can't speak for the rest of the world, but one of the first questions an American will ask is, "What do you do?"

Then, watch as the interest turns off if you admit to being jobless, or to having a job that is not on some predetermined level of social acceptability relative to how you are initially perceived.


Thanks for the education on Britain's financial state. This blog is a tremendous resource and I am recommending it to my friends.