in God we trust on knife's edge

arabianmoney: UK most indebted nation in the world reveals new study

It is not only a race for the weakest currency - to play along the praised export route while we trust in God; it also is a negative race towards who built up the biggest debts. And that is even less funny:

A new study from brokers Tullett Prebon called ‘Project Armageddon’ has established the true scale of borrowing in Britain which amounts to a truly staggering £5 trillion or $8.3 trillion.
...
Once pension fund liabilities and PFI contracts are included the total public debt is £2.46 trillion or 167 per cent of GDP. To that you have to add the £1.34 trillion in financial sector bailouts. The total public debt is therefore £3.6 trillion or 244 per cent of GDP or £135,000 per UK household.
...
Then there is £1.2 trillion in outstanding mortgage debt and £210 billion in unsecured mortgage credit. Together public and private sector debt amounts to £5 trillion, or 340 per cent of GDP.
...
‘Project Armageddon’ is actually pretty thin on predictions as to where this debt mountain will take the UK, apart from flagging up the inadequacies of current government policies, namely that they rely on the resumption of high rates of economic growth that are impossible with 70 per cent of the economy laden with debt.
...
You are left to draw your own conclusions about the merits of holding sterling-denominated assets with this sword of Damocles hanging over the economy. And the investment conclusion about the UK is surely don’t go there!

Of course, e.g. Germany's debts calculated on the same bases as above are also something like €8 to €10 trillion. But that makes the ice on which we all stand no thicker; the conclusion can hardly be leaning back watching Euroland implode or the Dollar's Greens grow over while hoping for the Pound's Phoenix-like recovery.

There is a huge risk, I bet it being only a fraction off from 100%, that with these currency turmoils happening the Pound will implode as well - that might be even a good point to get rid of those astronomical debts and restart the game, may be our only chance: so in the eve of these things happening I recommend to do anything possible to strengthen and support national economy and purchase power, attract and create jobs and - that is the most important point - invest big scale into all kinds of education and training very fast and very furious. Why not print money for all the before, now, instead for the moribund banksters and insolvent economies and their never-come-back-spirals? 

Cuts are definitely the wrong way forward and cosmetic corrections, only, at this point; it needs investment into our all future not cuts into old, rubbish balance sheets.

Our leaders are too beautiful, too young and far too much lobby- and shareholder value-oriented to understand the big picture; it is time that even the most ignorant should by now have grasped that there is no debt relief pill where debts are beyond r/belief.:

The Euro will implode and/or be something totally different, soon. The Pound no different! Shortly before that Big Ben will show an even bigger declination, the clock will be much longer and as it happened in all hard times before our hope and trust in God will be much bigger.

Carpe diem!

the march has begun

... but Egypt and friends are just the beginning.

Official unemployment in Northern Africa, Arabia and Iran

source: GEAB

With no jobs (real unemployment is more like three times the above rates), no value-added chains, no production base, climate change and the banksters' commodity bonanzas, i.e. soaring food and energy prices, the way north sounds like the only attractive option.

The case for urgent action in the global food system is now compelling. We are at a unique moment in history as diverse factors converge to affect the demand, production and distribution of food over the next 20 to 40 years.
The needs of a growing world population will need to be satisfied as critical resources such as water, energy and land become increasingly scarce. The food system must become sustainable, whilst adapting to climate change and substantially contributing to climate change mitigation.
There is also a need to redouble efforts to address hunger, which continues to affect so many. Deciding how to balance the competing pressures and demands on the global food system is a major task facing policy makers, and was the impetus for this Foresight Project.

The above you will find in a foreword of  Professor Sir John Beddington CMG, FRS, Chief Scientific Adviser to HM Government, and Head of the Government Office for Science for a report on "The Future of Food and Farming: Challenges and choices for global sustainability"; well worth reading, not only in reference to the above but in its repercussions for our own future.

Global warming has caused the more temperate regions of the earth to become uninhabitable. A group of several thousand Africans migrate across the dry oceans to Europe. But this so-called promised land is overpopulated already, sparking severe racial and nationalistic tensions.

Above summary of The March, a 1990 UK drama might have included dry oceans and exaggerated the climate development; however, incapable politics and unleashed banksters make a drama reality which will hardly limit itself to several thousand African migrates.

19-02-2011

... and why Sterling should take shelter:

Proportion of the population under 25 years old in Arab countries and Iran
Source: Le Temps, 02/11/2011 - GEAB

About half of the Arab population is under 25 years old; in extremely difficult circumstances with soaring food and energy prices, low wages (if any), rising unemployment, reduced to a wasting away farming industry this young Arab generation will fight fundamentalists taking over; they want democracy; that might be the nice side of the picture. But with no infrastructure in place and old bonds and hardliners hardly giving up easily it might take a generation (≈ 30 years) to establish reliable democratic structures.

Meanwhile the once-was-superpower's influence is fading away fast leaving behind a powder keg filled with oil and Israel with a burning fuse as just that superpower's protection for the last resorts of despotism will just not do its job leaving behind more uncontrollable chaos.

With Russia watching and China being prepared the time of the Petrodollar is coming to its end.

Pound Sterling! You should just watch and be prepared for the very moment when it will be time to take shelter under what ever EURO there is for the simple task to weather out the storm! May be as soon as tomorrow!!?

Carpe diem!

new year: old news

All the best for another year of more of the same: unsolved but mixed problems! Take it easy!

On the Euro and the Yuan;
China and Grangemouth;
Affordables, efficiencies
and the Scottish Expo!

The Euro's main function now during its finale seems to be to assist the US $ in paving the path for the Chinese Yuan to become the world's sole key currency. Sounds odd?

Nothing odd about China's intelligent moves to install themselves as the one and only superpower while the decadent rest watches and applauds. And really, for all their investments they use that green paper covered in rot and mold while most of their investments into e.g. deprived harbours in Portugal, Greece or Scotland are covered by petty cash:

The operators of the Grangemouth oil refinery have struck a deal with China's largest oil and gas producer to safeguard the future of the facility.

At the weekend, it was announced that Scotland and China had sealed a major green energy deal, worth $10m (£6.4m).

Petty cash that opens a flood gate - for China:

It will see technology pioneered in Scotland used at a new renewable energy conversion plant in China.

Combined with technology transfer: clever deals, China! I would like to see that "technology pioneered in Scotland"; to me it rather seems like Grangemouth needs an urgent upgrade itself to possibly understand that 20 or 30 metre high flare flames from burning off flare gas 24/7 could be considered as an substantial waste of energy, not to mention an enormous carbon belcher - obviously it is not any financial problem: we, the stupid customers using stupid gas pumps or desperately in need of energy to fight the cold in our eco-houses will be paying the bill: anyway!

Oh: and two flames are heating up that frosty sky above those human ecotopes at least twice as efficient!

Those Low Energy Home Tenants sitting in eco-friendly homes representing all those stupid marketing credentials while facing sky high power bills would probably love to have their share in those Chinese flames of Grangemouth.

"Some of them are switching the heating off altogether because they cannot afford to keep it going. To build eco-houses that people cannot afford to live in is just not right."
The development, a mix of flats and two and three bedroom houses, was built by Tulloch Homes Express just over 12 months ago.

The properties are fitted with under-floor heating powered by an exhaust heat pump system which recycles hot air. In its 2010 annual report Cairn boasted that the homes would provide tenants with low heating and water bills.

By the way, I commented on the article; must have been lost for many days or could it actually be the case that the Inverness Courier does not want to lose an express client?

This is old news, again an unsolved but an ever increasing problem; the modern society's version of "biting the hand that feeds one..." called progress, growth, prosperity and a human life!? In Germany it is currently called "dioxin crisis", you could also name it "Haiti" or "banksters" or just "peak globe"!

click to enlarge

That last August, remember? I dared to write about our visit to the Scottish Housing Expo, a lot of criticism, some asked me why I would be so grumpy? No mention of me being unfair, wrong or untrue. Here is an update on its sales:

Sales of properties at the site of Scotland's Housing Expo have been mixed almost five months after the event finished in August last year.

Albyn Housing Society said it had sold 10 of its 11 homes at Balvonie Braes in Inverness.

The organisation added that there was interest from someone in its remaining property.

Highland Housing Alliance, one of the expo organisers, has still to sell all of its 27 homes.
The event, showcasing eco-friendly and energy efficient designs, was held during the whole of August.

Backed by Highland Council and the Scottish government, the expo attracted 30,000 visitors.

This "backed by ..." you can find here; a +two million package with mixed sales and modern cladding:

No, I am not a grumpy old man; not yet, just an old, slightly mixed sarcastic realist.

Carpe diem!