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  how brown the clown turns profit into loss

“Due to the sudden rise in the share price of both Lloyds and RBS in the past 8 weeks, the UK taxpayer is now sitting on a £9.4bn paper profit on its investment.” [Raw data from uk.finance.yahoo.com]

But Brown the Clown says he must take still more tax from the economy in order to ‘safeguard the recovery’.

Meanwhile, he’s increased UK borrowings by over £23.5 billion in one month (March) as he tries to buy the election, equivalent to over £400 for every man. woman and child in the country.

The structural deficit in the UK is considerably worse than that of Greece.

And here we have the socialist government claimed tax figures since they moved in to destroy the economy, taken from a marxist source. The figures do not include the vast increase in PFIs, nor the huge borrowing figures - borrowings which will turn up as next year’s taxes.

Now, even by the government’s fraudulent figures, standards of living are falling in the UK for the first time since Noye was a boy.

“The second was from Andrew Lilico drawing our attention to the latest ONS stats on household incomes. It seems that households' real disposable incomes (ie real incomes after tax) are now falling - down nearly 1% in the most recent quarter.” [Quoted from burningourmoney.blogspot.com]

the web address for this article is
https://www.abelard.org/news/economics012010.php#clowns_swindles_270410

there remains basic misunderstanding of banks in a fiat money system

In France, lawyers, called notaires, deal with many transactions, house sales among others. Notaire’s ‘fees’ can amount to more than 20% of the house price! But ... the notaire only receives maybe 1%, if lucky, on which he pays tax. The rest of the fees are also tax, which goes to various layers of government.

In the UK, people sell lottery tickets. Again, most of the money ends up in the hands of the government.

The banks in a fiat economy occupy similar positions. They manage the money system wholly owned by the government. The government make vast returns on their money printing machines through ‘inflation’, a dishonest form of tax. The banks are also used by the government to impose all manner of other controls and spying systems. Naturally, the bankers, a disguised form of the old time tax collectors, tend to skim off a percentage.

And if the banks get in a muddle, then - why - the government duns still more tax to bail-out/fund their tax collectors.

It is a fundamental error to mistake banks for ‘normal’ real businesses.

Washing machine manufacturers may make washing machines, but, despite the widespread confusions of the tin-foil hat brigade, banks do not produce money. Money production in a fiat economy is entirely a government process under full government control. However, a part of that process is licensed out to the tax collectors, just as a part of the process is licensed out to lottery sellers or notaires in France.

related material

• the mechanics of inflation: The great government swindle and how it works
• economics and money zone at www.abelard.org

the web address for this article is
https://www.abelard.org/news/economics012010.php#banks_in_fiat_money_system_140310

on the ever increasing tensions caused by ever closer union and by the euro

“The introduction of the euro in 1999, it was claimed, would narrow the economic differences between the member countries of the monetary union. Unemployment rates would converge, as would other macroeconomic variables, such as unit labour costs, productivity, fiscal deficits and government debt. Ultimately, the differences in wealth, measured in terms of income per capita, would diminish as well.

“After the common currency’s first decade , however, increased divergence, rather than rapid convergence, has become the norm within the euro area, and tensions can be expected to increase further. The differences between member states were already large a decade ago. The euro became the common currency of very wealthy countries, such as Germany and the Netherlands , and much poorer countries, such as Greece and Portugal. It also became the currency of the Finns, runners-up in innovation and market flexibility, and of Italy, which lacked both, earning the apt moniker , ‘the sick man of Europe’ .”

More details at the link

From my document on EMU and the euro, written in early 1998. It was written in response to very widespread claims that Britain joining the EMU was ‘inevitable’ and could not be stopped.

“Alan Greenspan, one of the truly great masters of monetary consequences, has been reported by the Wall Street Journal as saying, “The Euro will come but it will not be sustainable”. He also recently expressed concerns over the EMU’s potential capacity to sow dissension between union member states, a central issue as far as I am concerned.

“Ted Truman, international chief of the Fed. (Federal Reserve - central bank of the USA), said that the Euro project could adversely affect the smooth functioning of the international monetary system.

“Volker, an ex-Fed. boss of great experience, said, “I’d rather start the intellectual process now than wait for the crisis and conflict that if not inevitable, are all too possible”.”

So far, much of the Greek debt appears to be held by Swiss and French banks. Further worries remain about national debt in Spain, Portugal and other European countries. Recalling the grave troubles of the international banking system, caused by toxic debt and fears to lending, met by vast money-printing and remaining uncertainties, it would be sensible to be concerned that any sovereign defaults could result in further panics and resorts to the printing press.