Thursday, 6 October 2011

King says UK faces 1930s-style money shortage



Well then, and know doubt readers, comrades and of course my wonderful nephew ‘Tomas’ will all be wondering what is going on; he has not posted anything for what seems simply ages; is he still blogging, is he alright or what?

In the words of that adorable and memorable Dads Army character of real charm and appeal- Lance-Corporal Jack Jones (Clive Dunn) - born in 1870, Jones was an old campaigner who had joined up as a drummer boy aged 14 and participated, as a boy soldier, in the campaign of Kitchener in the Sudan between 1896 and 1898: "Don't panic! DON'T PANIC!"

I think I do most of the panicking, if I don’t write anything for the blog, but sometimes things get in the way or I have a dose of writers block, or just lacking in inspiration, stimulus and motivation. And comrades in truth that’s how it’s been for me during the last week. I went on a delightful, breathtaking visit to see my family in Scotland with the intension of having a break and doing some serous blog writing, well that was the plan, but in the end I did nothing, but spent quality time with my mother, oldest sister and some of her family, and I really had a great time, but more about that in a latter post this coming weekend.

Well so much has been proceeding and taking place in the world comrades, and when you take your eye off the ball for a moment these days you miss loads, and I need to bring myself bang up-to-date, but that won’t take long.

We can start by considering the shakes and moves made today by the Bank of England, and Sir Mervyn King who expressed fears that Britain is in the grip of the world's worst ever financial crisis after the Bank announced it was injecting £75bn into the ailing economy.

The Bank's governor said the UK was suffering from a 1930s-style shortage of money and needed a second dose of quantitative easing to boost demand and prevent inflation falling too low.

Shares are said to have rose strongly in the City, posting a rise of almost 200 points, after Threadneedle Street (remember that name from the G20 demonstration) responded to growing evidence of a looming double-dip recession and the deepening crisis in the eurozone with a four-month programme of electronic money creation. Dismissing concerns that the action risked adding to inflationary pressure, King said Britain was now facing a different problem from the days when too much money flowing round the economy pushed up the annual cost of living. "There is not enough money. That may seem unfamiliar to people." he told Sky News. "But that's because this is the most serious financial crisis at least since the 1930s, if not ever."
I don’t think the man really knows what he is taking about, and in truth I don’t understand his sort of talk anyhow, but am I bothered – not really.

Injecting £75bn into the ailing economy is I fear not going to do anything, the crises of global capitalism is such that whatever they do it won’t be a case of I don't but do you think you've done enough? Marx told us what was going to happen when he said: “Capitalisms sows the seeds of its own destruction” – but only now we all experience its ejaculation.

One last point you can say there isn't enough money in our economy as King has said and that this is very unusual but it’s happening. It happened in the 1930s and it's happening now.” Yes he got that right, but what do you expect growing unemployment and low pay becoming the norm during the last twenty years or so. 

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