Wealth transfer to China

Jeez! not only do we have the bankers to worry about, and inflation, we have the destruction of Western economies by China now! Every time I go to the shop I have to look at the made in badge. If we keep buying chinese goods we are selling our countries down the river.

Every town has a Pound Land or a Dollar town, these shops sell cheap Chinese goods, which we are all used to, but in reality its not about cheap tools and bad plastic toys anymore, its about fully blown technological appropriation, and the hording of scarce resources, such as the rare metals used in the production of electronic goods such as mobile phones etc.

A week does not pass that a ship will leave a western port full of high tech machines and manufacturing technology which has been unbolted from some factory floor crated and then shipped to China. Our bankers, industrialists were so craven in their greed that they could not resist the lure of cheap labour, and manufacturing capacity which was previously offered by China. This actually no longer represents good value as Chinese labour costs have soared, and the resources have increased massively in cost.

After the Chinese destruction of manufacturing capacity in the West is complete, and we can't even make our own beds never mind anything else the Chinese will begin a new era of global super power domination, except that this one will have the added dimension of the ever increasing world population and  ever decreasing resources especially food. This will lead to an ever increasing destabalisation of the World political and social landscape.

I hope to discuss these issues over the coming months years, and to understand the treasonous activities of our governments and financial elites. I hope people can enlighten me with their comments.


Here is a small essay on the financial state in the UK.

The Appropriation

Depreciation and Inflation

Seizure by the Elites

By

Andrew Freshfield

The Appropriation, Depreciation, and Inflation, Seizure by the Elites.

In the past three years we have seen an unprecedented crime unfold, one which has been allowed to occur under the guise of national economic security, politicians have shown crass irresponsibility with regard to the future of the nation, and the economic and social well being of the UK’s inhabitants. Our political elites have also missed one of the greatest opportunities to realign a system, which has created some of the greatest examples of inequality ever seen in modern Britain.

The story is a simple one, it is all to do with how little people know about the mechanics and theory of money. What is money? Some seem to see money like water, something that is eternal and exists, it is simply ‘there’ most of us are so busy trying to actually acquire the stuff, we have little time to engage with the abstractions of what money actually is. We need it like we need air but like air if it becomes debased and polluted it becomes useless. 

Money is one of the human creations, which has taken on God like proportions, but in reality in real crisis it is no God, it withers and dies, and leaves us stranded like the most pathetic of fair weather friends. The illusion of value gone, for money is just that, an illusion, a stand in for value, an agreement, a receipt to honour a debt, but the receipt has become the item of value in our minds, and that has led to our dangerous and corrupted idolisation of money over real assets and producers of value.

The monetary system has allowed those with a true understanding of the nature of money to acquire and appropriate real value in the form of assets such as oil, food, manufacturing, etc, etc. Money in its current form is tool for the rich, and a burden for the poor. If you have the resources and true assets with real value, you have little need to worry about monetary value, as the value of assets, will always locate their “monetary value” through inflation, or deflation, or whatever means are used to establish a value, such as a re-issuing of a currency such are the Rentenmark issued after the 1920’s  hyperinflationary collapse of the currency in Weimar Germany.

From what we can observe in the UK it would seem that our politicians, have already thrown in the towel, with regards to looking at the fundamentals of the monetary system, and are seeking some kind of magical resurrection of the failed economic model that relies on endless growth. Once the coffers seem to be empty it is slash and burn time, get the family silver, throw the gold at the pawn broker, and rip out grannies gold fillings.

But even more sinister than the above is the crass and obvious appropriation of wealth from the workers and savers of Britain, most people are so used to rising prices, but rarely do they think of depreciation, the destruction in value of the money they earn and that they save. Rarely are rising prices just due to the vague movements of the markets, in reality the endless chipping away of the value of money by profligate governments is the cause.

The UK is in the grip of a depreciation crisis of gargantuan proportions, is the price of your house stable (if you have one)? Or is the pound and your house just devaluing in a concurrent downward curve? The stability of the price is not the same as the value. Your house could be worth £100,000 more in ten years, but actually have less value than ten years previously, as the rot of inflation chips away at the value of your money. If you were around thirty years ago ask yourself what you could have bought for £100,000!

Because the banks have been involved in the biggest destruction of wealth in modern times, it is impossible that our governments will be able to simply rectify the situation through, fiscal policies alone. One only has to observe the pitiful savings rates to see the contempt, which banks hold the deposits of its savers, and the true value with which they perceive money to have.

In reality the government and the banks are in a duplicitous game to engage in a controlled destruction of the value of the pound so that un sustainable debts can be inflated away by debasing the currency. The debasement of currency has been a con trick through the millennia, from ancient Romans re-smelting coinage to reduce the precious metal content, to pay for the expansion of the empire and to raise armies. It is the tool of governments in crisis, reduce the value of money, and reduce the value of your debts. Inflation is policy, it is necessary as the system needs it to grow, a need for never ending growth in turn fuels this inflationary cycle. The above is fine if you know this, and can hedge against it through asset purchases and investments. During the current down turn Britain’s wealthy elites have seen their fortunes leap thirty percent (Times rich list 2010.) Cuts in public services and redundancy hold little worry for them.

Obviously those with debt (The state and the Banks) see a reduction in the value of their debt relative to the original rate of exchange for good and services, but this is at the expense of those who are more prudent, those who seek to live a sustainable life, are penalised, their savings devalued until saving becomes a pointless charade, a matter of habit, nothing more than a pathetic attempt to follow the western calvanistic economic values which have been instilled into the populace over generations. In reality this game has been played many times, but never has such obvious and blatant contempt been shown to those that fuel the machine, the taxpayers and workers of the UK.

One of the most odious examples of the current crisis has been the sickening resurrection of the very institutions, which fuelled the crisis in the first place. Those very banks now have access to the security offered by the UK taxpayer, can borrow unprecedented amounts of money at a massive discount from the bank of England.  If you have to pay 18% APR to a UK bank for a loan. that same bank has been able to access cash by offloading toxic financial garbage and getting cash for less than 2% APR! What business could not survive with an unlimited source of almost free capital and massive profit margins?

Banks have become the absolute antithesis of prudence, they are like the drunken gambler at the table who has spent all his money on black or red, who then walks out the door and robs the nearest passer by only to return to the table without sanction. The banks have been given first dibs on our money, but not only do they get our money, they actually get to acquire it at its highest value.

Because once the money has been accessed through the Bank of England’s QE (Money Printing) program, it can do nothing more than set in motion the depreciation of the currency, there is one steadfast rule with money that is eternal, the more money you print the more it decreases in value, but the first to get the money, gets it at its greatest value (the banks) as the money is spent into the economy, the rest of us get a debased pound. The banks get to gamble with tax payer guaranteed money and pay bonuses at our expense. Robbing us twice, through QE, than again through depreciation, which in turn leads to inflation.

Those with access to this cheap cash, can then buy assets, gold, property, manufacturing farming, etc, the same old interest groups get the cream, but they get to buy it at a discount provided by the UK tax payer, that’s why Kraft could buy Cadbury’s (RBS funding) using UK tax payer money loaned from a UK bank to appropriate UK industry and ship the profits back to the USA.  Our banks are a cancer in the UK’s body, they are involved in the destruction of wealth, and value, and aid the foreign appropriation of UK assets, thus robbing us of the nations family silver to boot, destroying UK owned companies through investment capital buy outs, and various carpet bagging methods which allow great companies to be sold off, chopped up, or simply destroyed to aid the expansion of other more powerful nations. Technology transfer to China, India and the Middle East, the enfeeblement of indigenous technological and manufacturing ability are the only results, thus leaving us even less capable of building a sustainable future.

It is truly shocking to see what can be only be described as corporate welfare being given to banks at our expense, it’s the sickest and cruellest of jokes. When you see the people of this country seeking hope for the future, in the pathetic epithets of politicians, and the sad hope of a bright future based on a dying economic model. The system needs to reboot, the real players know this, they don’t care, they know the rules, buy assets, buy the staples of life, the investment bankers and speculators are after our food next, and our water, they can’t stop and they won’t stop until people say no more.

At the height of the banking crises, our politicians allowed themselves to be hoodwinked and conned by the Banks, there was a window of opportunity to realign the system in favour of the people of Britain. Banks could have been nationalised, thus allowing for resetting of the corrupt and degenerate economic system which is now in place. The elites squealed that the world would collapse, what they failed to say is, that it was their world that was collapsing and they needed us to save them.

These people see the money supply as their money not yours, this can be seen by the brazen and criminal appropriation of the future tax revenues of the UK by the banks and in turn their share holders. This has been done to re capitalise the banks, just like a penniless gigolo who’s Ferrari has run out of petrol needs to fill the tank, the banks have refilled their tanks with your money, and now they are off, giving you the finger as they go. But the system is dying, they may know it, we know it, who knows how long the present economic system has left, but in reality the pursuit of unending growth is coming to an end, and that is because regardless of what we, or the banks or governments want, it must.

Regardless of the above, a new wave of mergers and acquisitions is on the way and “monetary velocity” (The speed of money through the system)  is increasing, as the cheap tax payer backed discounted money is leant out to the already super rich, and investment companies by the banks. This so they can engage in a spending spree to pick up “bargains”. Lawyers will be paid fat fees, CEO will receive astronomical bonuses, companies will be “rationalised”. This will in turn lead to higher inflation, and the destruction of the value of the pound in your pay packet, and in turn lead back to the ‘races’ where the destruction of wealth cycle will begin again. This cycle is inevitable, it acts as a kind of elastic mechanism, by which the powers that be snap back the real wealth “assets” through the controlled destruction of the monetary value of these assets through the use of the ‘recession tool’, i.e. the controlled demolition of the economy, to a size where it then makes economic sense to reboot the system, and once again begin the merry dance.

A new era is coming, the value of your house (if you have one) is the least of worries, place bets on the price of a loaf in ten years, see if you can win some money. Its wage freezes for us, and bonuses for bankers and those in the loop paid by your taxes. If you’re not in, you are definitely out, never was there a more divided nation than this bankrupt isle.

John Kenneth Gilbraith: “ The process by which money is created is so simple the mind is repelled.”