When Will The Lying – From Police Statistics to the Economy Stop?

Plato wrote seven books on the training of people supposed to look after society – his Guardians.  I gave up after The Republik – you can get this free on line.  My rating of even this famous tome is dross – somewhere below a Zimbabwean high interest bond.  Students never came into my business maths modules to learn the maths and understand the limited application of such.  They were instrumental, after a piece of paper that would help them get a job.  They restricted their in class learning to being able to do the sums set in tests, not unlike the cops and others in ‘diversity training’ and other hapless nonsense learn ‘correct speak’.

Police statistics across the developed world show a consistent drop in crime.  Cops know there is really an increase in crime.  I’ve heard many comment that the burglars become ‘borrowers from  shops’, that there is a massive increase in fraud, the war on drugs is lost and so on.  What makes sense of the repeated claims that crime is dropping is a proper understanding of “performance management” – and ultimately the old Soviet style of performance management has taken over our societies.  Can you really say the word “targets” these days without wanting to spit?

Not long ago we were being told a new knowledge society was being formed – the left denounced this decades ago as a “risk society” and critique of mainstream neo-liberal, neo-classical and neo-con (there is no alternative) buffoonery stretches back more than a century.  Critique largely comes from people on sinecures of one form or another and largely fails to engage the population at large.

Pretty much any complex formal reasoning is beyond most of our population.  Universal education has largely failed in this respect.  I know plenty of people who can spot that police statistics lie and that bankers lie about their systems and the personal brilliance and risk taking through which they merit vast bonuses.  It is also easy to dismiss cops struggling in the day-to-day lunacy of the Swamp, Reservation and Everglades who believe ACPO are pathetic, careerist pen-pushers (think NHS, Care, Banks too).  This is “envy” or the attitude of malcontents.  The Catch 22 is that to avoid being envious or malcontent one must produce soundly argued critique and any such critique is broadly wasted because the population won’t be able to understand it.  Hence ‘dictatorships of the proletariat’ and other unimpressive top-down solutions that first require proles run towards bullets.

Most banks across the world have undergone ‘stress tests’ since the crash.  Banks in Cyprus passed theirs 18 months back and are now clearly worth as many multiples of a bag of rocking horse droppings needed to produce a big, fat, zero.  The UK and USA are very similar on the debt front on household, corporate and government debt per capita.  The UK has vastly higher financial sector debt.  I have seen no public exhibition on whether this financial sector debt is a good or bad thing, or even whose money is involved or at risk.  I can say, on the other debt, that a 30% wealth tax would put the UK and USA to rights  (i.e bring household, corporate and government debt to the supposedly optimal 180% of GDP).  When polices statistics get in the news it’s very rare for the material to be treated as performance management and the figures are taken at face value.

We are now 5 years post-Lehman and every six months or so the books get cooked again in front of us.  A magician tells us everything is hunky-dory and we get on with waiting for the next bail out – and now post-Cyprus for bail-ins that will take our savings accounts.  Across other performance managed tedium we wait for the next Hillsborough, next Baby P, next Nico Bento, next lousy hospital, next miserable treatment of the disabled and old – and so on.

The simple answer is that our “professionals” are lying to us as surely as any Soviet apparatchik (there the apparatchiks have become the entrepreneurchiks).  What we have lost, if we ever had it, is accounting based on reality.  A question I want an answer to is what would really happen if we collapsed the financial sector entirely, replacing it with small, local banks doing real investment and utility work.  Would we starve, not be able to have homes, medical care and things we really need?  This is a basic question about our security and one would think politicians and media-types would want us to know.

I regard many organisations as much worse than the police – social work, lawyering, accountants, banksters, politicians and my own academy.  The idea of a more “professional” police fore fills me with dread.  Our local bobby and CPSO are fine – the problems are in management and we should be looking at much less of this, not paying it more through professionalisation.

The bankers’ (and I think bankster now the better term) role in our society is not explained so we can understand what they do, and much the same can be said of our managers and politicians across our society.  They all seem to need vast amounts of produced wealth (sort of money) to do these jobs not explained to us.  There were claims not long ago that the financial sector might be producing as much as 40% of our GDP – but now it seems the accounting of this is in multiples of the bag of rocking horse droppings standardised in Value at Risk.  They can make up their accounts and do so based on various fantasies.

We need some good management – but I suspect we can’t get any until the lying stops.  In the police example we keep hearing the same performance management figures and such matters (if we look) as vast increases in the recidivist criminal population that suggest an opposite of any decrease in crime.  Our prisons are full, yet huge numbers of new arrivals already have a dozen community punishments.  Politicians may ponse on about human rights, but keep quiet about the UK (and US) as a very poor place to get legal help and access to justice in the developed world.

I take the guess that financial services are almost entirely criminal and no use to anyone decent (we only need utility banking and would be better off with general rather than ‘personal’ pension plans – to cut fees that destroy much of the investment – and banks that could invest in facilities we need and not chase “international rates of return”).  No one is explaining to us how our contributions to bail outs is supposed to work and why the vastly competent super heroes of finance can’t use their own kryptonite.

We know damned well what would happen if we abolished the police force and I doubt even criminals would vote for that (the rest of us would kill them).  Abolishing ACPO is another matter, as collapsing financial services to utility status would be.  Getting on with management reform after collapsing the lies might even give us more cops and allow guaranteed employment (I’d invest in cattle prod futures on account of our more recalcitrant welfare spongers – including banksters newly separated from their ill-gotten gains).

We Have To Stop Lying

Over the years I’ve been urged to teach British managers techniques from overseas.  The first muck was Management By Objectives (MBO), an American interpretation of Soviet production targets.  Then fashions turned Japanese, with quality circles, just-in-time, continuous improvement and various kwality initiatives (TQM, TPM, TPM) and even poga oke (fool proofing).  German stuff rarely got much mention as it involved such “socialist” dangers as works councils and rigorous training.  There was plenty of British stuff about, from Action Learning, the Industrial Society, MRP1 and MRP2 (manufacturing recommended practice) and ISO 9001 (as amended).  Most of this stuff was found to fail as often as succeed and it was all considered seriously as management fashion.  Utter piss like excellence was popular.  Much was just a rehash of organisational management 101 – like business process re-engineering.

There are decent management techniques and ideas – but they are lost in social effect because the system is based on idiot notions of profit and income distribution.  The underlying spirit of this muck is fascism, with leaders ‘creating reality’ for the rest of us mugs.  Thatcher is often associated with this ‘modernisation’ that has led us down the road to serfdom.  The crass promise, remade by Bliar and Camerooney (merely Bliar 2), is that getting us all super-efficient will allow us to dominate world competition, earn our way in the world and so on.  The truth, of course, is that it set us on the route to Chinese wages and conditions of employment – and probably set a Chinese Empire in motion – giving them manufacturing expertise was the equivalent in geo-politics of selling guns and whiskey to the Indians in the old westerns.  It was traitorous.

I have no doubt we should be efficient  where we can be – the real reason being to make work easier and for there to be less of it and for us to be able to do other things with our lives in a secure environment, not to get swollen ankles and suicidal feelings working for a Chinese gang-master or Indian load shark – or be ripped off by the rich and the offshore empire based around the City of London, Wall Street, Hong Kong and Singapore – or to see the efficiency gobbled up by lawyers and accountants.

I teach double entry book-keeping and various techniques based around profit and loss, balance sheets and cash flow.  The stuff makes sense when you get the hang of it – even derivatives in basic form as insurance (though we could use other instruments).  Most  people can get enough of a hand on the basics for it to be worth teaching the complexities that underlie business information.  Business runs in cycles and there is a need to build up cash and reserves to survive hard times and innovate.  There are ways to cut costs through financial moves (e.g. repos being a cheaper way to ensure cash flow than bank borrowing).

If I can’t get much of an understanding with most students, I can get them to learn to use the systems – the spreadsheets are much like driving and maintaining a car as opposed to knowing how to build one.  The real problem is dishonesty.  Rather than variations on primitive double entry book-keeping, we have systems that look more like the two sets of books Al Capone’s accountant might keep.

Here’s an example of German government debt.  This is as close to the real situation as I can find (it’s from zerohedge somewhere).  All you need to do is track down what should count and do the sum.  Simples!    It doesn’t suit Frau Merkel to have the situation like this, but if she was CEO of a large company, trying to pass off her figures (which exclude a lot of contingent liability) would get her arrested.  She likes it listed at less than 100%.

German Gross Domestic Product (GDP):                                   $3.2 trillion

Official German Sovereign Debt:                                               $2.618 trillion

Percentage of Liabilities at the European Union:                          27%

Percentage of Liabilities at the ECB                                           18.94%

Germany’s Percentage of the ECB Debt ($4 trillion)                    $757.6 billion

German annual cost for the EU budget                                      $46.36 billion

German Guarantees for the Stabilization Funds                          $280.6 billion

German Guarantees for the Macro Financial Assistance Fund      $211.14 billion

German Target-2 Liabilities                                                     $656 billion

German Guarantee for the EIB Debt                                        $157.29 billion

Sovereign Guarantee for KFW                                                 $588 billion

Total German Sovereign Debt & Guarantees                             $5.315 trillion

Official debt to GDP Ratio                                                             81.8%

Actual German Debt to GDP Ratio                                            139.8%

Of course, I teach all my students that there are no prizes for being technically proficient in commercial or public sector statistics and plenty of cash for signing off on dud ones.  This is the immediately transferable skill!  We are now a pathologically lying society and it needs to be stopped.  It’s much worse than the example above as we are not allowed to do any stock-taking and accounts offshore cannot be accessed.  The problem has been known at least since Gresham and concerns the fact that once immoral practices are allowed they expand to become the norm.  My gaming on the sports field always increased against opposition who did it.

Our problem is umpiring (and let’s face it we can’t trust them without all the technology and public scrutiny).  We are currently wasting our productivity gains on highly inefficient finance and managerial non-jobs.  We can’t even argue properly because all the figures are fudged and we are more ideological than even the Soviets managed.

UK 2012 And The Rolling Lies Of Debt

Britain is much worse off than statistics claim and our vapid bimbo-media lead   Part of that lazy thinking that inspires journalists to keep speaking of “the government” spending money on this or that, as if “the government” were somehow sitting on an infinitely large pile of “government money” that most of the time it was unreasonably withholding from worthy causes.  This money essentially comes from the people.  Further lazy right-wing thinking then starts to say we must rely on a healthy private sector and treats tax as an evil.  We need deeper thinking than this.

Before getting to the depths, one needs to understand we are being lied to and that a big confidence trick is taking place.  The reason our economy is knackered is not because successive governments have indeed pandered to subjective worthy causes with money that those governments did not possess.  Stuff like hospitals and the rest of the public sector arise because the private sector is crap.  Otherwise Mr. Plod and surgeons would be working for it.  We will be paying bill. It is not government money because the government doesn’t have any. It has liabilities only. It is taxpayers’ money.  Yet we would be spending the money to “private landlords” otherwise.

The only achievement to date of the UK’s coalition government has been a triumph of PR – hardly surprising given that PR appears to comprise the only work experience Cameron has ever had outside politics.  Our ignorant media is complicit with the line that the British government has started to deal with the grotesque debt inherited from the previous government. Yet government spending was actually higher for the fiscal year 2010/11 than under the last year of the hapless and reviled Nulabour.

The UK debt figures are also much worse than conventionally believed because 2011 debt including “interventions” stood at  about £2,270 billion as at September 2011, or 150% of UK GDP. To this we should add public sector pensions (£1,100bn+), PFI (£400bn+) and sundry other off-balance-sheet obligations of the state.  The bleak real summary is that after five years of supposed austerity, UK government spending will be back to 2005 levels… but with twice as much debt.

There has been no real austerity yet in the UK, unless you’ve lost your job or benefits, or seen your pension halved.  There has been no real deleveraging in the global economy at an aggregate level either.  Global credit market debt stands at $220 trillion, having grown by 11% annually since 2002, versus 8% nominal GDP growth (and no one really believes this nominal figure).

I understand people wanting government off their backs, but is the public sector really the great drag or is it really a highly inefficient private sector that is the problem?  Nothing is more private sector than the banks.  We’re in much deeper than we’re being told and part of this is the expectation that the private sector is just waiting for the opportunity to bring about a rally.

If the problem is the public sector we seem doomed the the privatisation of health, education, policing and the rest.  There  is no evidence this is a good thing.  Drivel about private sector efficiency isn’t going to help us.  The actual system is that the government is lying about how bad it is and using the clapped-out private sector cavalry bullshit.  Nothing has been done for 4 years now except extend and pretend in the hope of a windfall from “growth”.

 

 

UK Financial Sector Debt and Assets May Be A Good Thing

National Statistics (ONS) say our external liabilities were £6.7 trillion in Q2 – 461% of our annualized GDP.  The UK is presented in a number of horror headlines as ‘the world’s biggest debtor.  Given most of us see debt as owing someone else and as a bad thing, all the financial services debt tends to be seen as a very bad thing.  This neglects that there are two columns to consider – debt and assets.  UK overseas assets are also big. They‘re £6.4 trillion. So our net overseas liabilities are just £309.4bn, 21.2% of annualized GDP. This itself largely a reflection of the fact that we’ve been running  small current account deficits for ever and a day.
Our huge gross assets and liabilities, to a large extent, reflect the UK’s position as a financial centre and much of the debt-asset combination is actually held by foreign banks operating in the UK.

If a UK bank  swaps a loan with a French one, UK assets and liabilities vis-à-vis France both rise by the same amount. The UK does more of this sort of thing than other countries, so our overseas assets and liabilities are disproportionately big relative to other countries.  We may have some severe problems if we’ve been doing dodgy swaps with Greeks, but if due diligence has been observed this won’t be the case.

In Q2 we actually had a small surplus (£3.4bn) on net investment income, as our assets yielded more than our liabilities.  This excludes capital gains or losses, but is what you’d expect from prudent investment.  After all, a business borrows money and incurs debt in order to make a profit – the idea is to make profit faster than you spend on costs.

Our big overseas assets and liabilities are just what we need if we haven’t just been buying pigs in pokes.  As sterling falls it’s a good idea to have foreign assets, though I guess our foreign currency assets are largely matched by foreign currency borrowing.

There are many questions on whether our financial wizards are keeping honest books and any of the assets are worth more than a ton of Max Keiser‘s goat poo, but in principle this aspect of UK debt does not turn us into the world’s largest debtor and could actually be healthy unless the assets it bought turn out to be high yield, delta-hedged Greek honesty bonds or securitisation of sub-prime mortgages in Gary Indiana. The question is whether the money was borrowed and pissed up the wall (in bankster bonuses), or used to buy investments that will pay an income or appreciate.  You’d think some overpaid BBC BimboJourno would be able to tell us.

The UK has been buying a lot of US paper of late (along with the other major international debtor Japan).  It may be that all this debt is part of a giant Ponzi scheme and that all will go tits up if some parties stop doing the trades (China and Russia are pulling the plug on US paper).  I can’t tell and the standard analysis, still absent from BBC Bimbo levels of reporting, is as above.  Nothing to worry about if the money has been used to buy real stuff or in honest trades.  After all, if you owe a few million, invested in houses and the rents pay the mortgages and give you a net income, life is sweet.  If you pissed it away on tonsil lubricant down the local or bet on a donkey in The Derby, it ain’t.  The latter would be the case if this UK financial sector overseas debt is floating on Greek credit derivative swaps.  Some hedge fund may well be betting this is the case.  If banks weren’t allowed so much secrecy I could tell you.  If I was a BBC journalist, I’d be making enquiries – but then who’d want to be that git Robert Peston?  I’d place a bet on him being next in line for Royal toadying.  Given our useless media, we’ll have to wait for the umpteenth Greek bailout to fail to know just what UK and foreign banks here have been buying.  I already have a bet on that failure!

In the meantime, we need to remember that debt is an investment and working out what to invest in instead of the doomed austerity project.  Crap like Facebook and business models based on advertising revenue won’t do and nor will financial services that need bubbles and asset inflation.  I’d go for an investment in our young and unemployed people giving them all three years international service administered by our universities and hopefully partnered across the EU and USA.  I’d put this on a war footing without a war.  And I’d make the rich pay by investing in the project.  The real problem with debt is we’ve been investing in the wrong things.  Money shouldn’t be allowed to make money and income should either be earned through work or invested in developing people rather than riches for a few.  Debt should be a matter of honour and gratitude for that investment, not debt peonage to the rich.  And what would be better than the entrepreneurial, creative private sector doing this public good instead of flooding us with plastic crap from China and horning in on those parts of the public sector already run better by the State?

How Long Before We Have Real Street Protests?

Interesting in a democracy that we aren’t seeing much reporting of a mass movement of protest that’s starting in the USA.  There are a few ‘campsites’ forming in the UK, but our social security safety net cushions people from the kind of homelessness and hunger that brings anything to attention and action in politics.  We just don’t care or want to care, do we?

Around the world, research shows that government cuts of 3% or more lead to substantial increases in the amount of protests – ours (UK) are just about to start hurting and exceed this figure (see Jacopo Ponticelli and Hans-Joachim Voth – ‘Austerity and Anarchy: Budget Cuts and Social Unrest in Europe 1919-2009″ – Centre for Economic Policy Research).

Philosophically we might start asking, instead of ‘when is a terrorist a freedom fighter’ the question ‘when is a police officer an agent of repression’?  I like the latter question as it assumes policing has a lot to do with democracy and freedom, which it does.  Instead, those of a more practical bent might start wondering where to spend the over-time.  The link to the paper is – http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1899287 – students and those interested will find a wealth of material at this site.

I have as little to do with the system as I can manage.  If you earn more than £50K it’s barkingly obvious you don’t deserve it, though we might want to preserve wages (not earnings) up to £100K for motivational purposes.  No one should be able not to contribute work to the system and we have a lot of idle rich and putative ones.  The are as scum as any evil poor,perhaps more so as they must know they are looting.  It’s now taking £4 to £8 of debt to produce a quid in increased GDP – this is because the rich maintain a system that plunders and enslaves.  If my next book sells well and the rest it could make me more money than I have otherwise made in my lifetime – farcical – and then some poor slobs end up having to work to pay the interest when I lend it to them (indirectly).  I don’t wish to be a slave owner, however indirectly.  I might be more effective than the whole of ACPO if given the chance, but I’m not worth one of their salaries.  No one is and we’ve been conned over the years into beliefs in all kinds of unproven crud on expertise and the need to pay for it.  I know universities don’t teach much expertise outside of science and medicine, and just how poor most business graduates and MBAs really are.  Don’t confuse me with a leftie -I’ll be well to the right of anything you think up.

We’re about to see a lot of household incomes drop,including so-called middle income groups.  Those with kids and big mortgages are already struggling – inflation is at 15% onimportant stuff like food and general living expenses.  Jobs are nowhere to be found in our bleak areas, immigrants are everywhere we could once drop down to and the economy has changed structurally so as to prevent growth in jobs.  We still have mad notions that GDP increases mean an economy is growing rather than burning the planet, and don’t understand we could now largely emancipate ourselves from work.

I’ve just read a short book by a police officer concerned the job is so stressful it drives most people away within ten years or so – it does.  Women lasted an average of five years last time I looked.  The answers are couched in terms of much I’d agree with as a start – but I think we need to go more radical.  I suspect work is generally bad for us and we wouldn’t do most of it if we didn’t think we needed the money.  And I think we could get by much better than we do now on a 30 hour 3-day week.  Work is fundamentally non-democratic and the means through which the ancien regime continues as an Undead.

Street protest will not be about considered change to our society.  If a three-day week seems fantastic to you, remember the last real one when Heath was PM lost only 4% of national production.  I can find you Wall Street and City Men who will tell you unemployment is now really at 15% – but my company doctor analysis is that it runs closer to 70% if we add in useless work.  You can approximate to the figure by imagining, say, that all ACPOs were killed this morning and when we’d notice.  I can show you detailed analysis of work that shows most of it conforms to the Pareto principle.

What we need is a sensible change towards better quality of life (not that piss to mention at promotion boards) and reasonable equality.  They still have us thinking quite chronic inequality is necessary and that powers in work hierarchies that amount to droight de sneignor are needed.  We need to get rid of these hideous medieval practices.  One used to be able to moderate this stuff by earning your way out of it – but debt has kiboshed that opportunity for most.

The Arab Spring looks like a failure already.  Our own streets will fill as things bite in around 12 months time, but there is no plan to bring real change.  I saw some odious BBC woman asking what more kids in relative poverty would mean.  FFS!  This is how dumb we have become.  We are now massively productive to what end?  Poverty?  Cops paid by banks, earning property through over-time suppressing the people?  Where have we seen that before?

Good Luck To Our Cops In Coming Difficulties

American friends tell me the protests seen as the Battle of Brooklyn Bridge are going national.  All my political sympathies lie with the protesters, though I never forget the cleft stick police are stuck with.  Something has to be done about the loss of our democracy and the looting rich.  The facts on this are now clear and anyone mooting the old left-right arguments as out of it in ideological denial.

Briefly, production per hour has trebled since 1980 – wages should have doubled and have, in fact, gone down across the board except for a 15% of ‘high fliers’ and a growing super-rich.

Money (banksters) has routed democratic control and it’s not worth most of us voting for anyone.  The vile Blair is the paradigm case of politicians we don’t want.  Name me one we do.  In the States, each side will spend over a billion USD on the 2012 elections. Politicians have to buy positional power – a bit like Ms May having to put up half-a-million to be Home Secretary.

The bulldung around on ‘the economy’ is as feckless as any ‘new paradigm, empowerment, digitise the penguin, learning lessons, strategic mission’ dross witless managers use.  The bankster problem is as big across Europe as the US.  We don’t want to believe our politics as corrupt as there but I sense it is.  The problem is broadly mass unemployment and that we are prepared to tolerate it and pretend their are educational solutions.  There aren’t – 50% of any population won’t benefit from ‘academic’ teaching and we can’t teach ‘smarts’ (though we could do more to prevent damage by ‘parents’).

We need a “New Deal” based in direct work with day-release or sandwich exposure to college.  No one is presenting one and the danger is they’ll offer Nulabour drivel and promises on private-sector innovation and all the old chestnuts.  Times have changed. We can do all the really necessary work much more efficiently – or could if we could invest in it.  The money has instead been going into speculative gambles and property bubbles that leave many without decent housing.  Research shows most so-called wealth since 1980 has mostly come in the stuff waiting for a pin-prick.

The Arab revolts have been portrayed as ‘bread riots’ but this isn’t true.  Their middle classes have been key, ripped off by stockmarket scams and sick of terror and non-representation.  We should all be occupying our streets demanding new politicians and a completely new system at the bottom of guaranteed work.

None of this is going to happen because our politicians are cowardly and more or less bought up by the rich – they talk to the banksters behind closed doors despite supposedly representing us.  They are already divided and ruled, scared to break ranks.  They deliver inept economics through a gullible ’embedded’ media on an austerity plan that can’t reduce debt as they claim and only make things worse.  Freezing council tax equates to about average spending on tinned soup.  What we need is a conspiracy of western governments against the banks, making them and their shareholders take bankruptcy in coordination with private (mortgage) debt relief and new 60-80% GDP public debt ceilings.

We will, instead, see street protest.  One hopes this will quickly become a mass movement across the US and Europe, but we are now idle, lack solidarity and are apathetic.  It’s likely all we’ll see to start with will be on the fringe around public sector strikes.  I fear police will be instructed to go in hard against this and the results will be violence and long-lasting distaste as the truth creeps into the public gaze.  I firmly believe we should not put our cops in this situation, but we are back in post-WW1 economics and the record from then is shameful.  Cops were on the wrong side and we lurched into the worst war of all.  Churchill was JP Morgan’s bag man then, as was Blair in the Iraq farce. We don’t give enough thought to who funded the Nazis and what the massive excess of the rich funds now.

I’m glad to be out of what may be coming for our police and the last thing I want is their politicisation – though this is what I see happening by default.  The political class know the bricks and injuries won’t be coming their way and police will be left to ‘defend order’.  I wish the blue line would give way when the time comes but it’s likely to brave for that. Strangely, much as most cops are decent people, they will not be protecting democracy, but the people who sold it for their own purposes.  I would, incidentally, still stand in the ranks myself if fit and take what comes.  We can’t have rule by brick.  But we shouldn’t have rule by banks and debt either.  What a bloody awful situation.  An American colleague has just been involved in a foreclosure of a former colleague’s house.  He went himself to offer a spare room to the family.  God save us and I hope to be proved wrong.

How Do We Crack Selfish Indolence?

http://www.docstoc.com/docs/97122913/BCG_Back_to_Mesopotamia_Sep_11%5B2%5D

The Boston Consulting Group (BCG) claims to be the major player in global strategic issues.  Students may remember their portfolio management scheme of stars, cash cows, dogs and question marks.  You can get a short paper from them at the link above that summarises the economic stuff going on across the world and may help disabuse thoughts that QE2 is about shipping and so on.  They clearly don’t believe any of the IMF Bankster dross politicians use to pretend they do anything in our interests and there is a clear statement governments are not really facing up to the problem at all.

Most people don’t pay any attention to economics or politics other than to protect their own lives from them.  It’s dull, bent and mostly demeaning because we can do so little about it.  I suspect we vote only to vote out governments that have become regal and smug.  In the meantime all our governments have been in league with massive debt creation involving banks and investment wizards who have sold out our interests to make fast bucks.

The financial crooks tell us they worked hard and deserve their massive bonuses.  This was always a lie – but now they claim it when it must be obvious to all they were always getting it wrong and their performance has been huge negative. We’ve been suckered and are allowing this to continue.

One of the ways we sucker ourselves is to blame welfare scroungers and so on.  I suspect this is really just a case of indulging our own selfish indolence towards politics.  I don’t approve of free-riding but the BCG material clearly demonstrates the big problem free-riders are rich, not poor.

We are tranced by gossip and have almost no ability t do the hard yards of argument.  We let all kinds of bad practices, from arse-licking at work for promotions not needed in already stuffed hierarchies to feckless policing of riff-raff form the basis of our day to day. We look after our own and in the meantime ‘we’ have mounted massive debts and let a bunch of spivs run off with out harvests year on year.  Some of still believe they keep the Jabberwock away!  We’ve been sold out to a foreign power as surely as any of the Soviet spies managed.  If you can cope,read up – I know most of you can’t face the music, wake up and smell the coffee – but some of us have to try and save freedom.

I believe the rich have prevented:

1. a world without war

2. working conditions that would equate to 6 months a year at work

3. a fairly crime free society

4.advanced leisure and health facilities

5.meaningful education for all

6. eradication of material poverty

7. sensible global population control

8. self-sustaining economic practices

I’d contend we could have had this now if it wasn’t for the rich – not in the future.  If you could read the BCG report you’d see they not only intend debt peonage for us through stealing our past opportunities, but through stealing from our futures to continue their infamy.  I suspect street revolution is closer to us than the Middle East.  ‘Intefresting times’ for cops ahead!

Cops, of course, tend to this selfish indolence towards economics and politics more than most.  That BCG and other generally right-wing ‘we’re only in it for the money’ organisations police usually protect as the status quo are admitting what the “anarchist left” has been posturing for over a century and sounds like the old religious argument ‘property is theft’ (did Christ own the clothes he wore etc?).  We are close to being back to the General Strike with cops strung out on the ‘wrong side’ of the lines.

A police commissioner can now ‘earn’ more in a couple of years than a lifetime of minimum wage toil.  This is worse than a farce.  The BCG story is one of debt peonage for most to a system that allows this kind of madness.  I think of it as the San Paulo variation in which people accumulating wealth end up in walled cities, the rest in shanty towns.  Not one of these ‘men of honour/ladies of virtue’ have the morality necessary to recognise they aren’t in place and receiving this loot other than through merit.  What we currently have is one farce justified by another – of course Peter Fahey is worth more than Wayne Rooney in turn worth more than some thieving politician like Blair or all the banksters put together. This just elides none of them being worth more than a woman pushing a tea-trolley in any monetary multiple of more than five.  This is not just about ‘equality’ but rather returning to wages and away from debt (if you can’t see why then you lack education).  Easily accumulated wealth a money rather than social capital leads to serfdom, whether to a dictatorship or rich elite.

We have know for a long time now that embodied knowledge cuts the amount of human work necessary across agriculture and manufacturing – that is that nearly all traditional forms of work require less workers.  A modern 500 man fighting unit could take on an old Division of 7000 from WW2. What’s coming if we don’t start to get accountable governments is mass unemployment and poverty.  When this hits the middle class as it did in the Middle East we will hopefully hit the streets.  If we weren’t selfish and ignorant this wouldn’t be necessary.

Many unnecessary jobs have been created to stave off mass unemployment, along with a whole army of tax credit part-timers.  The economy is screwed and has been for two decades across the world.  Labour would cut £3K of student fees.  This is school politics.  The Tories believe (apparently) that deficit cutting is a good idea just as depression hits and debt swell as a percentage of GDP (logic failure).  Clegg and his bum boys are worse.  Labour produced Blair, a CIA bag man now placed in the related bankster union.  All we can know is they will say anything and are useless, more than usually self-interested turds.  We can’t even know whether Blair was already working for the ‘CIA-JP Morgan’ axis of evil whilst pretending to be our PM (or that Churchill was not a similar OSS-JP Morgan’ bad man).  We are more likely to do ‘conspiracy’ on anal probing aliens than on the propaganda fed us.

I shouldn’t care much on any of this – my flat in Portugal will be all the cheaper, my sterling pension likely to go further.  I care because we have let ourselves down so badly and been conned.  Did anyone else notice our looters often looked like people taking revenge?

Can we stop profligate waste by the rich?

This is a picture of a Chinese pharmaceutical’s HQ.  The Chinese government’s balance sheet shows almost negligible debt.  We tend to think of China as a growth economy doing so much better than we are.  Most of its people still live in poverty.  There is massive debt we might call quasi-governmental – some estimate this at 200% of GDP which is as bad as most of Europe.  Some investors are short on China – meaning they bet on it coming down.

There are now more than rumours of a massive gas field under Lancashire – the once great county of industrial revolution that stretched from Derbyshire to Barrow.  Instead of sensible debate on what to do with this we are getting scare stories on earthquakes and blazing water taps.  Could we do something to keep these riches out of the hands of people who build ‘marble cathedrals’ and get into a genuine wealth creation for all?  My own recommendation would be for us to join the Scots in a new EU country broadly  north of the M62.

New Deal Money

There is a crisis in capitalism.  I can’t tell you how many times I’ve heard that slogan from some Marxist posturing with no clue why.  We can be pretty sure we know what the problem is now.  It’s about debt rising about 4% faster than GDP since the 1960’s and a service burden of debt in our economies of above 12% – this is all worse than in previous depressions.  This has been happening whatever shade of government we’ve had, across all OECD nations.  France may be an exception, but I’m looking into that.

What we have been resisting is letting crooked banks and speculators take the hits and forming a democratic alternative to casino capitalism.  Strangely, the very system we once thought could save us from the road to serfdom is trying to force us down it now.  The rich have accumulated nearly all the money and now want to buy up our public sectors on the cheap in fire-sales as economies crash. In trying to do this, they have replaced the Politburo as public enemy number one, though we are too dumb to see this yet.

What we should do is let the banks fail and start over with a new system of economics and a new world currency replacing the USD.  This would be a big change and bring about the end of American military supremacy, so it would require some thinking through.  The most obvious thing we need is to promote a more innovative economy and stop believing that is all about vast riches and super-brains.  It’s really much more ordinary.

My own belief is the crisis is ideological in the sense we can cure it if we change our thinking.  We can grow food, find new energy sources, find ways to stop bandits and mad, religious people doing terrorism, build decent housing and get on with fairly idle lives and stop ourselves breeding too much.  Only ignorance prevents us now.  So how can we get round to believing this?  You don’t need much brainpower to work it out.

What many of us have not worked out has little to do with advanced economics theories.  It’s to do with how little work has to be done to provide the things many of us struggled to “achieve” – a roof over our head, food, clean water and a family.  I’m guessing, but I’m pretty convinced 10 -20% of the work we do between 20 and 50 is needed to provide that for all in the absence of corruption. It’s amazing we don’t know this, assuming it is true.

My contention is first that we don’t know.  I’ve asked a lot of people and no one can tell me just how much work would provide a good basic standard for all. On reflection most people can tell me that much of the time they have spent at work has not been very productive.  We do not develop facts on these matters, let alone teach them.  Agriculture, which is basically what we live on is 4% of world GDP.  What we soak up is ideology.

We are told hard work leads to rewards and somewhere down the line this turns to justification of sports star wages and bankster bonuses as an inevitable part of meritocracy.  It’s more likely they are part of the widespread prevention of democracies that can turn capital on where it is needed.

We have been lied to wholesale.  Much of the rhetoric continues – the need to get highly skilled as a worker in the new knowledge economy sounds convincing, but we have poured money into education only for students not to do science and maths and “qualify” in equine management.  The education industry burgeoned yet employers sound the same now as they did 30 years ago when moaning about the skills kids leaving schools and universities don’t have.

I would still recruit for management on the basis of fairly simple maths and English tests rather than on ‘graduate status’ and the size of that pool has not increased because intelligence hasn’t.  Many people need to be in work to learn, not classrooms – and in education we gave up on non-bookish teaching because it was too expensive in our business model and many teachers and lecturers couldn’t hack other methods.  People we teach after work experience are way ahead of most leaving school – because work and growing up has taught them.  They may well find people teaching them from books that make no sense after work experience, full of drivel written 60 years ago on personal development, excellence, kwality and human resource management that all failed in practice.  They have all been written in new colours, but smell exactly the same.  These lecturers completely discount mature students’ experience and often don’t know the ‘excellence’ they teach was discounted 30 years ago, within 6 months of the publication of ‘In Search of Excellence’.

Courses are now organised to provide as little class contact as possible and assessments are entirely dubious.  An HNC from 20 years back is probably worth more than a degree now.  We have a serious problem because so many of our organisations are now run by hierarchies that learned to lie about what was going on.  The model is widespread and based on false-accounting that gives CEOs fat salaries and bonuses throughout the system.  Often the false-accounting provides well-paid work for armies of bureaucrats from the ratings agencies grading junk at AAA+, through the performance management teams creating beacon councils, drops in crime, increases in schooling excellence, favourable audits of Enrons and banks hiding massive losses and the rest.

All this is the ‘reason’ we have no money to create the jobs that people need to grow as far as they can as workers.  It’s so endemic I doubt we can get to a cure unless there is public disorder.  The people who need to listen to the real arguments are the ones with the interests in not admitting what has been going on.  These are the ‘Screwtape bureaucrats’ in an England gone to the Devil.

The answer is political and therefore impossible in England.  It’s to go ‘New Deal’ on money by cancelling debt, returning to primitive banking and bringing in modern National-International Service across the EU funded by a transaction tax and new taxes across society with an understanding we are building a new social contract.

This won’t happen, so my guess is this is a good time to re-brand yourself if you are a cop or invest in protective gear if your force won’t and prepare for overtime and more riots.  The good news is that European peasantry has more often been quiescent than revolutionary, but the bad is that it is more aware on the Continent of what has been happening to it than here – this news may start to spread.

We grew up not wanting to be consumed by the Sino-Soviet experiments and it’s weird that capitalism is what has sold us down a river not far from that.  The Chinese have been very astute in the deals that took our money into its enterprise zones, gave it manufacturing capacity and techniques, and leaves us with austerity and an underclass.  The debt is not of money we took and pissed up the wall, but of a speculative system that allowed big time looting.  That we have not set our criminal justice system into punishing these looters may seep through to our ‘lower orders’ and make them restless again.  Would that they march on Parliament instead of JD Sports!

Leftbanker’s alternative to the current economic clowning is:

A collective agreement by global governments on a debt default programme that minimises the damage done to the financial and economic system; Rather than own the banks but not control them and give them vast amounts of money to cover losses and lend to speculators (quantitative easing), take control of them and make direct investment through them to finance huge social projects that would benefit the public and private sectors creating jobs;Taxing the world’s wealthy who have seen a huge transfer of wealth to them over the last 30 years from the bottom 50% of society; and Collectively as society provide for people’s retirement instated of letting public pension funds and individuals bear the risk and cost of failing stock markets. This is the rationale alternative to the boom, bust, crash and burn that currently lies in store for all of us.

I think we have to do more on the behavioural side too and find ways to be more transparent in our organisational dealings.  Our Screwtapes are as bad as the nomenclatura in the Warsaw Pact countries and we need to do something to undo the damage they have caused and will continue to inflict.  We somehow need to leave them behind.  It’s not for nothing that Bratton insisted on getting rid of the whole NYPD hierarchy when he took over.

We hear much on Greece, Ireland, Spain and Portugal – but in terms of overall debt Japan and the UK are first and second at more than 460% of GDP.  Russia is very low in comparison at 71%.  Sleep tight!

Police Pay in the Light of Rioting

There is no special attack on police pay.  Wages have been shafted for everyone else other than an elite for more than 30 years.  This is clear in GDP figures.  The rich and well-paid have been getting vastly better off as the rest of us have had our wages cut in real terms.  Police and public sector pay and conditions fared better than the private sector.  The police and public sector did not stand up and be counted when this started and, indeed, police enforced much of the deterioration in the Miner’s Strike and other attempts to prevent the collapse of manufacturing.  We should note that the anti-union propaganda and similar are never aimed at those groups in our society using ‘guild’ techniques to maintain their earnings like lawyers (including judges), accountants, bankers and the rich.  The idea that we have a “meritocracy” is farcical – tossers like Blair used to go around quoting books with the term in the title that were highly critical of the notion as though they were arguments for it.

Cops are not generally well qualified, trained or skilled and the work could be done by any reasonably fit people.  In the past police wages were severely cut in times like this and the blue line still did what it was told.  There is no special case now and to make one is only likely to further inflame those who are really suffering poverty thanks to the rich and their toady-politicians.  None of this is to say .I don’t think cops should be paid less than lawyers, judges and bankers – I value police more than these parasites.

The reason there is no money is that the rich have had it – through investing abroad to take advantage of near slave conditions of employment and tax evasion (it is evasion because they use threats to leave with all their money to prevent fair rates).  The only investment in anything real (almost) has been through the public sector or highly subsidised by our taxes – the rich have formed a vast Ponzi scheme to get unrealistic rates of return and have stolen vast sums we needed to invest in meaningful jobs.

Most have not understood the extent and nature of the criminality of the rich – which is as bad as any of the evil poor’s doings – worse when land grabs involve forced evictions and killings.  If the reality sinks in, our police are going to be a thin line between a vengeful poor and their masters.  This is likely to be done by decimated ranks that will be protecting the bankster-terrorists and their smug political lackeys.  They are likely to find themselves between ‘white racists’, ‘disaffected immigrants’ and other factions – and with no political solutions offered because we have no real politics.

We are so dumb as a populace we haven’t spotted that the rich have been keeping more and more of the world’s wealth as debt and deficits rise – this is almost like your neighbour always having potatoes just after your crop has been raided and not making the connection.

There’s some chance this government may re-think on police numbers and pay.  As Gadget points out the amounts involved are nothing in comparison with banking thefts.  No doubt this would be a red rag to the rest of the public sector bull – but the Tories might risk it under some crime and disorder propaganda.  Policing as we’ve known it in the UK would disappear, and cops turn to a semi-military militia.

I won’t be here, having decided to up sticks long ago.  The IPCC make a statement later tonight.  I expect bullshit – hard to imagine what they could say now they couldn’t have managed yesterday when whatever they didn’t do played some role in making people angry and setting off the angry.