Now, I am sure that we have all heard the cliché; "locking the stable door after the horse has bolted."
Only, we now seem to have a broader reaching solution; " Horse bolted? Burn down the stable, and then shoot the horse."
In this case the stable is the economy, and the horse is the banking and credit market.
To show how important the banking market is perceived to be in the UK, can be gathered from the following comment by one of the Government's "more influential" economic advisers, whom
the UKNDA (UK National Defence Association) reports as having said that
"Defence, aerospace,
manufacturing and engineering have no value to us". The unnamed adviser
allegedly added that only high-quality professional and financial
services had "any real value" and that the rest of the country could be
"handed over to tourism". Since this individual was speaking under
Chatham House rules, the comment can be denied; but it sounds like an
authentic, if flippant, exposition of government policy."
Not wearing a good pinstripe suit? Get baking scones and ordering Olde English Tea Towels from China to sell to tourist coming from... ermmm... yeah... somewhere.
Further stable burning is taking place with the introduction of Quantitative Easing in multiple countries, including the USA, Britain, Switzerland, and many other places, basically devaluing the currency. The public is not fooled according to a CNN poll, they know when things are going to be work, unlike the currently rather paralyzed governments.
So, that is the stable being burned by inflating and devaluing the currency, but what of the horse, is it any better condition after its joyful canter over the last decade? Likely not, with the well publicised insolvency of the banking system. So, just when we need to have a light load on the horse, it seems that the shackles will be put on to punish it for running away, and making sure that the poor half dead beast nevers runs (away) again. (Assuming that all actors world wide agree not to undermine each other. What could possibly go wrong?)
Comments