Reblog from “The Slog”

I have been following “The Slog” by John Ward of UK resident in France mostly.  I enjoy his hard-hitting criticism, well-informed, wry, colourful prose.  He asked for this essay to be re-blogged, so I have.  I think it an important glimpse into a not very cheerful future.

If you want to follow his other ramblings go to http://hat4uk.wordpress.com/ .

THE SATURDAY ESSAY: More looting-levies, more asset taxes. Now it’s default or die.

Why electing defaulters to power is the only way left

Friday having seen the enthusiastic support of De Nederlandsche Bank President Klaas Knot for Djisselbloem’s plan to pick the pockets of every despositor in Europe, there are now hardly any major nations still in the closet when it comes to Global Looting.

On Thursday, Canadian bloggers cottoned on to the plans of their government via the annual budget statement. On pages 144 and 145 of “Economic Action Plan 2013″ (already submitted to the Canadian House of Commons), it openly proposes ‘to implement a ‘bail-in’ regime for systemically important banks’ there.

The second wave of evidence about what’s coming I referred to yesterday: the banks hastily sending out acres of fly-shit to their customers to blame any future disappearance of money-substances from their accounts. The general line of defence being offering by these creeps is “ve are only obeyink orders”. The first one out of the blocks appears to have been Santander. Yesterday, the one from HSBC started landing on Slogger doormats. Guess what? The wording and headings are exactly the same as the Santander mailshots.

In short, the entire operation is being coordinated and run by the Treasury. Any chance of Ed Miliband – our friend in tough times – asking a PMQ about this next Wednesday? Don’t hold your breath. Our MPs these days simply do as they’re told, or what they want – whichever is the easiest and most profitable route at the time.

What we are seeing come to pass at the moment is what those previously nutwhack sites from three years ago were screaming at a deaf audience: in the end, they’ll confiscate our money to bail out the lunatics. But where will it end?

There’s a Radio 4 audio clip of Michael Winner at his best in the BBC archives, grumbling two decades ago about how restaurants steal from their customers. Winner says:

“I called a waiter over and said look, you’ve added an obligatory 15% service charge to the bill and a cover charge of 10%. Now my credit-card slip has arrive and you’ve left a blank space so I can add a further gratuity on top. Should I just undress so you can have my clothes as well?”

Bizarrely, we now have to ask ourselves the same about Djisselbloem Plan…and where it will end. After all, there’s plenty to go at.

For example, behind the guise of us “all being in this together”, George Osborne could painlessly announce an emergency Budget in the UK, and slap a 5% levy on all houses valued over £250,000. “The rich must help depress house prices so the young can get on the bandwagon” the Squeaky Draper would allege. If nothing else, this would please Vince Cable, who has been demanding a ‘mansion tax’ for two years already. Note the use of ‘mansion’ there, to suggest ‘a tiny minority of the rich’. But it wouldn’t be of course: a good 60% of all houses in London are now worth over half a million, and the average British house price is currently about £160,000. So at least 40% of property owning Brits would have to cough up £10,000.

How they’d raise it is another matter – which is why thus far the emphasis has been on theft via a willing intermediary. There, the government takes what it already knows you’ve got available….without taxpayers having to bother the poor banks for a loan, they too having no money either, allegedly. The increasingly vicious nature of this circle is mind-blowing.

But such complications about property are seen by Treasury nomenklatura (and their accountancy advisers) as merely obstacles needing some creative thought applied to their removal. One said to me earlier this week, “It would actually be remarkably simple: the tax would be declared, payable with interest on the sale of the house. It would simply be a disguised way of bringing the Stamp Duty further downmarket”. Easy when you know how innit?

The problem for the Brussels-am-Berlin rapists in Greece was that they were (and still are) forced to demand tax monies from those who haven’t got any left. When one gets to the same stage of madness as Louis XVI, it’s time for a rethink. Cyprus was it, and this is now – quite clearly – going to be the future for all of us. But care must be taken not to turn a depression into a slump, so direct takes on future purchases have to be avoided: even the FinMin mobsters can grasp that much.

So the next stop could be property. But how much further could they go after that? I would say “not much”…because again, it is a classic case of taxing the sans coulottes and raising the price of their bread: you don’t collect any tax, and it results in Bastille-storming. Greece is, I would say, very close to this stage now, as is Italy. I suspect that only Tsipras and Grillo can stop it. Who might come after them, however, doesn’t bear thinking about.

For what it’s worth, here’s my two-pennorth: I suspect that what we’ll get is banks being ‘rescued’ worldwide, the quicker to empty them of SME and private deposits. It would be Communist seizure spun as national necessity.

Take the situation with Britain’s RBS. The Treasury has been trying to flog it for eighteen months without any success, and its CEO Stephen Hester has tried to rape his SME customers but been caught, stupid boy. Along the way, to save its subsidiaries the bank has had to inflict several ‘glitches’ to avoid paying some £80 billion by a certain date. But the situation inside the bank remains as dire as ever.

The official date suggest that ‘the taxpayer’ already owns 82% of the Royal Bank of Skullduggery, which is of course bollocks because all we own is a ginormous debt. The Establishment owns and runs it as a means of trying the fleece the taxpayer. But it would be a matter of two days work to nationalise (“save”) the bank completely, and then enact a Laika-style assets freeze. The rules having been changed already (see mailshots previously spotted) the Treasury would simply say to everyone – “the rich” – with monies over £100,000 in the bank that they they were no longer insured. Money is then printed by Carney the Canuck in Threadneedle Street to amortise the RBS debt into a ‘Bad Bank’, and the rest goes into the freezer….aka Her Majesty’s Government. What’s left – smaller savers and investment banking – is then given to another disaster like HBOS, thus making their balance sheet look better. Sorted. Until HBOS goes tits-up.

Of course, in the end you run out of things to nationalise rationalise.  A wannabe popular Labour administration could dash in to stop electricity, water, gas and local councils ‘profiteering’ at the citizenry’s expense….an election winner if ever there was one. This gives you a free hand to put up all the prices and hand them straight over to the HMRC. But then you run out of things to improve, save, rescue and freeze. Inflation goes up and economic growth goes down. So ergo the tax take falls. What then?

It isn’t going to work.

The answer is that there is no “what” to happen “then”. The strategy is so obviously doomed, it cannot possibly get that far. Once the wealthy have all the ‘glitz bricks’ property and the gold, the global system will ban gold sales to the public. FDR did it, this mob wouldn’t hesitate to. For real people, there will be nowhere to invest, no way out of being levied, and in the end, nowhere to work.

But this still has no, zilch, zero and f**k all chance of monetising the debts, derivatives and other insurance calls sitting out there in the ether. What the Eunatics are doing today – and the other leeches will do the day after tomorrow – is a pointless waste of time, a last few yards along which to kick the battered can before it finally rolls over the cliff, has a string attached to it, and they all promise that hanging onto the string is the only way, and thus represents our socio-patriotic duty.

Wake up Dumbos, it isn’t going to work.

You’ve tried taxes, you’ve tried austerity, you’ve tried levies, you’ve tried asset freezes, and you’ll try every sneaky-snakey trick in your little black book: but it isn’t going to be enough. More and more money will go to Asia, more and more worthless fiat money will be printed, more and more debt will accrue in the West, and then one day when nothing is being produced and bond markets, stock markets and commodity markets are going through the floor, we will end up with what I identified years ago as Indeflation – inflated Sovereign demands, deflated goods value, and zero demand.

You will I’m sure all be bored by this by now, but as I have been saying since Spring 2009, debt forgiveness is the only way out.

The current asylum inmates will never do that: never never never. Be they BamBers promoting their euro, Wall Street running Washington, Beijing exporting crap and owed trillions by its buyers, globalist bankers, multinational producers, politicians, tax accountants or corporate lawyers, they will never relent. They can’t: if they do, the problems will be horrendous but soluble. Their downside is that there will no longer be any place in it for them.

While we still have the democratic electoral power to do so, the one and only way now to force debt forgiveness globally is for we, the People, to elect politicians who promise to default on all debt the day after they are elected. Yes, I know this will evoke a crisis via immediate capital flight from that country, but they’re just going to have to live with it. The alternative is, as I’ve tried to outline above, an unthinkable can-strewn road heading towards mass lemming impressions.

The first country to do this, I imagine, will be Italy. Greece may well be next, but I think Spain could still beat them to it. Without doubt, the nation that can do it with the least pain is France – given its relatively sparse population sitting on a huge amount of food-producing land. For Britain – dependent on services and hugely overpopulated – it would the the end.

But once such things happen, the game really will be up for mercantilist globalism. ‘Siege economies’ need be no such thing: self-sufficiency by nation – with judicious trade in surpluses – remains the best way forward: and the only way to avoid a cataclysmic thermo-nuclear conflict in the end.

Too many visitors to this site see me as ‘doom-mongering’, but they rarely leave anything in the way of rationally argued support for their opinion. My prediction is very simple:

1. Global Looting is coming and it will be self-defeating.

2. The people at the top are mad and stupid.

3. They will not countenance debt forgiveness, so they must be replaced by those who will.

4. The mercantilist model of global economics and Friedmanite econo-fiscal ideas are a busted flush.

5. Self-sufficient Sovereigns trading in surpluses represent the best future for the human race.

Tell me why I’m wrong – with the facts to support it – and I’ll happily listen. For me, it’s Page One sanity compared to what we have now. Over to you.

And for the rest of us who know the self-styled élite will wind up killing us all given half a chance, I’m making a special appeal for you to forward and repost this essay in as many places as possible. Hits are of absolutely no importance to me beyond the raising global awareness of the need to do something before it’s too late. Thanks.

A previous essay at the Slog: The Cyprus questions no politician wants

Being off grid

Possum Valley is off grid with just about everything.  I have built and am required to maintain my own power system, water system, drain and sewerage system, haul my garbage, and maintain the roads, etc.  Just about any service you might expect the local council to do, they don’t.  About once a decade the council will do a few hours maintenance on the road.  I do appreciate the local council here is responsible for an area (65,000 km²) nearly the size of the Republic of Ireland, off just 22,000 rateable properties and total population base of 47,000. That’s a population density of about 1.4 km² for every man woman and child.

Still I feel a bit hard done by paying the same or more rates then urban dwellers.  Rates are a tax going back to the medieval era when the landed gentry had the money.  These days the ‘landed gentry’ such as farmers may be in the lower wealth bracket compared to a dentist with a small property in town.

Yesterday, around 11pm, I noticed that there was no power from the hydro system.  I knew I could leave the system on battery power until the morning so went to bed.  Early next morning I packed a tool box to deal with the most likely causes of failure, broken belt drive and generator brushes, worn down or broken caliper springs.  Donning my leech-proof gumboots, with salt barrier bandages and well packed tool box, I went down to the depths of the rainforest to the generator.  Not belts, brushes or springs.  Next best guess is a tree or branch has brought down the transmission lines.  A visual check slogging through the rainforest reveals a negative there, though a fallen vine has pulled the wires dangerously close together and I clear that with my 6m extended pruner.  The problem I finally tracked down to the governing unit where a wire that had served for 30 years, finally corroded and failed.  You need a working mental model of your system and good diagnostic skills to do the troubleshooting.

The moral of the story is that being ‘off grid’ is a fine ideal, but the practical reality is that it will not save the world as it is so difficult and requires such a range of skills.  Don’t even think about ‘self-sufficiency’ until you have accumulated and practiced a wide range of skills.

Self-sufficiency will only become a viable lifestyle if our present economy based on division of labour collapses.  That is not beyond the bounds of possibility.  Indeed, seeming more possible as time goes on.  Unsustainable debt troubles many countries.

So even though I have have gone the self-sufficiency way, I do not advocate it as a solution for the future.  Rather a fall-back position as a result of catastrophe.

Where’s the rain?

I am hanging out for rain.  The hydro system is on the smallest nozzle to cope with the smallest flow and down to 25% capacity.  A feeble amount of water is overflowing the weir and when that is gone in a few days, shut down is imminent. The hydro has been operating 24/7  for 30 years with only a total of 4 weeks shut down.   It is all the original equipment and you could say I have recovered my investment costs.  maybe the solar panels can get me through. The leaves underfoot are crunchy in the rainforest.  The wild ginger is furling its leaves in self-defense.  Even the leeches have retreated to sulk until the rains arrive.  The storm season has failed so far though there is always the possibility of major downpours.

If I have to shut down the hydro, and the sun doesn’t shine to on the solar panels, I can still provide electricity to the property by patching in a generator for a few hours at night for peak consumption.  But if one is dedicated to green power, it is such a clumsy and inelegant solution.  Still 4 weeks in 30 years isn’t too bad.  I would say that my stand-alone system is more reliable than the mains.  I haven’t actually been without power in those 30 years.  Most of the district had no power for 4 weeks after cyclone Larry.  Like camping but at home.  Alternative power really does work, and a hybrid system is more flexible.

I confess to being an i-plonker.  I can’t seem to get up a comments button so you can reply.  Sorry.  I am awaiting the arrival of nerdy gifted friends to bail me out.

Golden Bower Birds

A few weeks ago, I had a Japanese film crew filming for a week at Possum Valley.  They were particularly interested in the golden bower bird.  They had heard from a friend of a friend of a friend that I had a bower just 100m from the homestead.  They found two more bowers on the hill opposite.  No mean feat in 200 acres of rainforest.  They spent 7 hrs a day sitting in hides at two locations.  Oh! the patience required for a few minutes of footage. I learnt about the skullduggery that went on between the birds as an adult male was pinching the trophies of a juvenile male.  The same adult male was also apparently giving bower building lessons to a second juvenile male.  It is rather surprising that it would help a potential rival, and it was assumed they must be related.

 

The trophies for the golden bower bird are a particular type of lime-green lichen collected to impress the females.  Apparently the young male was livid, but didn’t dare take on the adult.  They also found a tooth-billed bower bird’s bower of over-turned leaves.  A much more modest affair than the golden bower bird’s amazing pile of sticks.  The producer and cameraman from the film crew are back again at Possum Valley, this time for 9 days to take still shots.  The weather is on their side again.  Sunny and a pleasant 26C.