Turning it around


This is one story that I will be watching closely because it fits in with my own theory about economics :). The BBC news reports that government borrowings in the UK have dropped dramatically.

As you will be aware, I actually think that we are either approaching a period of stagflation, or that we are in fact in the middle of a period of stagflation. Since I graduated from university in the middle of the worst period of stagflation in the 1970s, and could not find employment, the issue has always had an impact. More than that, it was at university that I first heard the term stagflation, and it was the first time that any economics lecturers actually came out and hinted that Keynesian economics did not work. However, no one really followed up on the 1970s to discover why we had the stagflation.

As I have watched the world head towards a severe recession, and towards stagflation again, the one phrase that I keep repeating is “it is the 1970s redux”. There is some commonality between what is happening now and what happened in the 1960s and the 1970s. From what I understand, the middle to late 1960s in the USA was the period of the LBJ experiment. It was a big spending era. Richard Nixon had to reign in the spending whilst the Vietnam War was still raging. Please note: Keynes actually wrote that in times of war taxes should be higher but at other times taxes should be lowered. Please keep that in mind, and then research whether or not each successive Congress has stuck to that formula. The mid 1970s was of course the beginning of the Carter disaster. It is also the reason why, on the global level there is that feel of 1970s redux.

Here in Australia, there was a similar pattern to the one in the USA, although the big spending occurred after 1972, and it is my belief that the big spending by the Whitlam Government and the resultant deficit blowout was the cause of the prolongation of that stagflation. Please keep in mind that my belief is just theory, it has to be tested. We have noticed over here that when the ALP is in charge of the government there is a blow-out in spending and in the budget deficit. This time around, when John Howard lost, there was a budget surplus, which was frittered away in less than 12 months by KRUDD, and a massive deficit has occurred under Juliar Dullard (Julia-the Marxist – Gillard). The Gillard government has no legitimacy (watch this space for news on the convoy moving towards Canberra for a big protest next week).

This brings me to the UK where there had been a Labor government under Tony Blair and Gordon Brown. The deficit was also very high when the minority Conservative government (with the help of the LDP) took over. The task of the minority government has been to introduce austerity measures that would bring the deficit under control. This is why the news that government borrowings have been significantly slashed is all important. What we need to watch in the UK is whether or not the slashing of the government borrowings impacts the community in one of two ways: (1) more investment dollars being available for the expansion of business or (2) a worsening of the situation in the UK.  I am actually expecting that there will be a rise in private sector borrowing because more money is available for private sector investment as a result of the reduction in government borrowings. I am expecting that any rise in private sector borrowings will lead to an increase in employment opportunities which will have a flow on effect throughout the economy.

 

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16 responses to “Turning it around

  1. YES! Must watch!!

    PS – I’m tired of that other thread with all it’s spaghetti twists and turns. Let’s all move up here!

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  2. Carlyle, no one is taking any notice of continuing conversation on another thread 🙂

    Two big things are happening right now. First of all, today is the arrival of the “convoy of no confidence” from all parts of Australia. Canberra is expected to be gridlocked, and the odour sniffers have their panties in a twist. We continue to hope that the Marxist Prime Minister will fall especially where there is a scandal that is gaining traction. This happened in 1975 when the Whitlam Government fell. It was the scandal that broke Whitlam.

    The other big thing (besides who won “The Block”), is the action in Libya. The end game has begun. I am currently reading up the news reports and have up a post on one of my alternative sites, where I will be giving updates due to the information that has been gleaned. There are rumours that Mohammed Gadhafi, the oldest son has surrendered. He is a non-combatant and he should be fine. It was rumoured that the opposition had captured Saif al-Islam but that is unconfirmed. Other leading figures have been captured. Importantly it is the residents of Tripoli that have risen up!! Stay tuned….

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  3. Well, I am going to continue the conversation up here anyway.

    I am OK with the “KGB” story. I mean it makes sense.

    But I am not OK with the “why”. If it were even remotely possible – and Zero’s actions have more than amply demonstrated THAT – then why the hell is there not an investigation and an impeachment. WHAT IS IT that makes “the elite” cover for him and seem not to care about what he is up to?

    There is a VERY LARGE and VERY MYSTERIOUS piece of this puzzle that is missing.

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  4. Carlyle | August 22, 2011 at 12:26 pm |
    WHAT IS IT that makes “the elite” cover for him and seem not to care about what he is up to?
    ****************************************
    There is no single answer that emerges. Somehow I don’t believe it is one huge, grand conspiracy that has infected all of “the elite.” Of course, I don’t really know (does anyone?), but it would not surprise me if there aren’t a number of different factors involved.

    First of all, their WAS a conspiracy back in 2008-2009 (even before?) to put O into office. That seems to have been proved by the actions of Pelosi and others in the Dem Party. Think back to how Res. 511 (I believe) was passed by Congress to state that McCain WAS qualified under the Constitution to be nominated as President, but the same was ignored when it came to O. Wasn’t O one of the sponsors of Res. 511?
    (My memory fails me and it is too late to look it up.)

    Also, there have been many actions by the State of Hawaii which smack of a conspiracy as to his eligibility. The Dems wanted to win so much that they could taste it. He would be the first U.S. black president. I’m sure that there was also great appeal because of his socialist-marxist background. After all, there are 70 listed members in Congress who belong to the Democratic Socialists of America, the largest in the country.

    But in moving on, in reflection we review the multitude of court cases that were stymied in such a way as to reveal that the entire judicial system seemed to have been primed to stay together in their decision-making – using various reasons, of course, in order to deflect the heart of the matter. That includes the SCOTUS. Then we all know that Congress has turned a deaf ear – both incumbents and freshmen, as well as candidates.

    20-20 hindsight is great. Not long ago we were made aware of a letter that was sent to all members of Congress on how they should handle inquiries as to O’s eligibility. That explains why so many responses that folks have received from their congressmen all seem to have the same general tone. They all deny that there is anything amiss. Why??? Well, there could be several reasons. At first, no one wanted to “rock the boat.” Then we began to hear by way of the grapevine that some feared that riots would break out among the blacks and other minorities. Carlyle, you implied that was perhaps your feeling months ago.

    Frankly, I believe that the judiciary has followed the same path – anything to avoid bringing this to a head. Now, I believe that another factor is in play. The SCOTUS won’t touch this one at all, we know. That leaves it up to Congress. SCOTUS does not seem to be interested in this matter, even if it caused a constitutional crisis. Could it be pure self-interest? A don’t “dirty-MY-hands attitude”?

    Now that we are gearing up for an election, frankly, I believe that the Repub candidates are afraid that they may not have O to run against if he is forced out of office before. They fear facing another Dem candidate who might be harder to defeat. So we have a continually changing scene which is much influenced by the machinations of mere mortals – namely, politicians who are mostly interested in their personal careers more than the welfare of the Union. This is abominable, imo.
    If they are thinking at all about the threat this man is to our nation, they choose to believe that it can’t happen here.

    This is brutal, but to me it is entirely possible. If this man is left to stand until the fall of 2012, we may be unable to rid ourselves of a pending dictatorship. It is not without the realm of reason to imagine that he could have a planned one-person terrorist attack to give him the boost he needs to reelect him (along with some fraud thrown in for good measure). The boost has worked for Clinton and Bush.

    Or, a more ghastly thought: He could do something to spark violence which would become so uncontrollable (previously planned) that he would deem it necessary to declare martial law. Suspend elections? We can’t afford to think it can’t happen. What would Congress do? Do we want to bet? ‘Nuff said.

    As I meditate on this dilemma there does emerge this one overriding thought – If there is any overall, grand conspiracy, it is one produced by the forces of evil, pure and simple – Those forces are more powerful than mere men, but as a person of faith, I believe with all of my heart that God is sovereign and they are on a very short leash.

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  5. Aussie, forgive me for the length of the above. You create such a great environment for freedom of expression that I just “let loose.” There is nothing new here, but it helped me to capsulise all of the thoughts that swirl around in my head.

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  6. Cabby there is no need to apologize. This is very well thought out as a response. I do not know the answer on this subject. I do not know why. I can only think of the links to William Ayers, Bernadine Dorhn and of course Jeremiah Wright. Those links go back to Østupid’s mother, and they touch on Østupid’s years in Chicago.

    Just keep in mind that we have a similar usurpation in Australia. The difference is that the female stabbed KRUDD in the back to gain power. The truth about this woman has been stifled by our LSM. In fact the scandal that I referred to touches on the scandals of the past for this same woman. Yes, it is union business, and it is about stealing union funds. The union members should be screaming over the issue, but there is crickets.

    It is not the action…. it is the cover up….

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  7. Aussie, is there any provision for parliamentary removal of the usurper you are dealing with in your country? If there should be, are there enough to go forward with it? Does anyone have the will? How much awareness is there among the general populace as to what is happening, or is it like in the U.S.? Here in our country I would say that there are relatively few who understand what is actually going on, although more and more people are getting fed up.

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  8. Cabby, we have no way of removal at this point in time.

    Our system is different from yours. The Opposition actually gained more seats at the election but the witch made a deal with the devil (the Watermelon Green Party) which gave her the balance of power to form government. She holds power because of 3 Independents and 1 Green member of the House of Representatives. The Watermelons have the balance of power in the Senate. This is different from what happened when we finally got rid of Whitlam in 1975.

    However, it will only take the demise of 1 ALP MP to remove this government. At the present time this could be the dishonourable member for Dobell. He used his credit card to purchase services from an “Escort” agency (think Al Gore and massage)as well as withdrawing more than $100, 000 in cash via the credit card. The MP in question denies that he was responsible, but it was his signature on the docket!! The ALP have been trying to cover up the growing scandal. However, the pressure is on, and if the dishonourable member falls, and there is a by-election it is expected that the Oppositon (the Coalition of Liberals-National Party) will have sufficient seats to unseat madam. Only then can we get the new election that we are demanding.

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  9. Cabby:

    My dear Friend,

    Certainly and without doubt, there are many new theories posted here – unbeknown details to me – yet excellent acceleration of plausibility, such as the KGB group. This is a conversation I will most likely not have the ability to post upon (and far beyond by research capability), as it would take quite a bit of my time to “catch up”. I will however enjoy the continued reading. At this point, anything is possible by government(s).

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  10. Maybe,

    I may be able to offer one comment pertaining to the KGB theory. Of course, Regan brought down Russia and its collapse known even by the Russian Government – without a shot being fired – economic Cold War Regan theory. However, in retaliation, Russia promised the same to America; Sovietising the United States, without a shot being fired.

    This was confirmed by a retired chief KGB head during an interview. I believe it was back in the mid 90’s and was during a t.v. show dedicated to him. History channel? I don’t remember, but do remember watching it. I also don’t remember his name. But I do remember he lived privately in a large wooded area, hunted boar and bear, and was highly passionate about growing wild mushrooms.

    As he summarized, KGB agents had been highly trained and already in American Government positions. He also said that America would become like the Soviets without even knowing it.

    That is about all I can add. My apologies I do not remember his name. Mushrooms…….

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  11. Hi William,
    Glad to see that you made it over here! Did you also check out a few of the other threads?
    Don’t for one minute feel that you won’t “have the ability to post upon”; I definitely know otherwise. 🙂

    No question that Aussie and Carlyle are “olympic swimmers” when it comes to knowledge and imparting it, but others and I just jump in the “pool” anyway and splash around. It is just great to share with some folks who don’t post just out of impulse but do some serious thinking, if you know what I mean. You won’t find silliness or repetitive stuff here.

    Your comment about the retired chief KGB head and his prediction that we would “become like the Soviets without even knowing it” is chilling indeed, but not surprising. Fifty years ago a man by the name of John Stormer wrote a book, “None Dare Call It Treason”, before the Barry Goldwater defeat in 1964. It spread like wildfire and many folks were awakened (including me) to the dangers we faced as a nation because of the deep infiltration of communists into every area of government. (BTW, that book is still available at Amazon. I reread it about a year ago.)

    The lack of knowledge and failure to do much about it at that time is one of the reasons we are where we are today. “Know thy enemy.”

    Come back and impart with us your thoughts whenever you feel like it!

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  12. William, another thing – Although not everyone agrees with everything posted here, there is respect and understanding. Aussie would not put up with any nonsense. There is freedom of expression without fear of chastisement by another poster who disagrees. You will never be harassed by someone like at the place over yonder. Also, this blog is not as fast-moving as a number of others, but it runs deep.

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  13. Well, dear ones, you make me weep.

    If my pushing and prodding and speculating does nothing more than to “encourage” or even “stimulate” some discussion and dialog that is going on here, my life is worth living. I view my mission in life as being “provocative”. I hope to “provoke” people to think deeper and think wider. To examine all aspects of a thing and arrive at object and defensible positions.

    I strive to navigate the fine line between “official narratives” and “standard explanations” as against rabid lunatic “conspiracy theories”. I believe none of the former, but wish to stay clear of the latter.

    And to you, William, you once entered into the spirit of this elsewhere. Please hang out here once in a while and contribute – or even just ask questions – or shoot a (rubber tipped, of course) arrow at someone (anyone!) who might need it on some particular issue.

    (God knows, I abuse Aussie mightily – especially on one issue. I hate Lord JM Keynes, but she apparently grew up on it and is reluctant to quite let go. Other than that particular quirk – she is near perfect – LOL).

    Finally, a fine old quote that probably describes me “to a tee” and certainly describes what I am trying to do here!

    Great wits are sure to madness near allied,
    And thin partitions do their bounds divide.

    John Dryden, 1631-1700
    Poet Laureate
    (Greatest English Poet)

    And, of course the following observation by Polonius in Shakespeare’s Hamlet:

    Though this be madness, yet there is method in’t.

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  14. Carlyle | August 23, 2011 at 2:41 am |

    Well, dear ones, you make me weep.

    If my pushing and prodding and speculating does nothing more than to “encourage” or even “stimulate” some discussion and dialog that is going on here, my life is worth living.

    ++++++++++++++++++++++++++++++++++++++++++++++

    Then Carlyle,

    Allow me to briefly tell you something you are obviously unaware of with such statement pertaining to myself, without guessing. I have taken due notice many years ago when Obama first became an issue. Most all of my current credit of self re-education and furtherance comes directly from the legal suits early on related from Cmd. Kechner and Mario Apuzzo. Such directness forced me to go back and review the Federalist papers – many times over – for completeness and deviations astray over time.

    Having such ignition (a spark under me arse, as Aussie would say) I began my personal investigations and journey into the ventures of lies and deceits, to find some truth for resolve and in the minor, exposures. You (Carlyle) may remember, back in early 2010, many of your posts for hypothesis, corruptions, ect. I took due notice of such and stuck out to expose such in addition. Yes, you also had a direct influence on my research, don’t cut yourself so short.

    To this day, I have successfully exposed in my Washington D.C. District of Columbia Federal Court Sworn Affidavit that the DOJ and their Defendants, have mislead (Lied) on FOIA releases, False Programs, and much more. Furthermore, I have taken your advice to become proactively involved back in 2009 (as Aussie would say) a wee- bit- further. I have continued to be a researcher for many with current legal suits for exposure. I also have my own investigations ongoing for the same.

    So, don’t think for one moment, that you have not influenced, as you and your comments over the years, have definitely got me involved, and neck deep….

    I appreciate you Carlyle,

    Just saying,

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  15. William, welcome as a visitor to my blog. This is somewhere that you can speak without fear of being ridiculed by a certain person who is to remain nameless, and you do not have to put up with the repeat postings of another individual who has no idea about what she is posting (please watch as I bang my head multiple times after trying to wade through the stuff that she has posted.).

    Please keep us up to date on your own court cases.

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  16. Thank you Aussie,

    You can thank Cabby as she informed me via our email exchanges of this site.

    As for the “He who shall not be named” and clearly see you banging your head on the “She has no clue”, sounds like a Harry Potter Movie… 🙂

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