DC's concept for a foundation...

of a wise builder?



PM DC, 1:44 into the above video:

...I know that you can't see it or feel it right now. But think of it like this: the new economy we are building it is like building a house; the most important part is the part you can't see: the foundations. Slowly but surely we are laying solid foundations for a stronger future. And the vital point is this: if you don't stick with it it won't work.

A lot of can'ts, Mr. Prime Minister, but I like your metaphor: it is like building a house, isn't it:

²⁴ “Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. ²⁵ The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock. ²⁶ But everyone who hears these words of mine and does not put them into practice is like a foolish man who built his house on sand. ²⁷ The rain came down, the streams rose, and the winds blew and beat against that house, and it fell with a great crash.”

That's Matthew 7:24-27, known as "The Wise and Foolish Builders".

Yes, the foundation is very important; yet, in your speech it remains unclear what shall be build on this solid foundation: is it going to be a traditional construction, then, what would be new?

We need to tell the truth... you say, so is this new economy on what you describe as a solid foundation going to be like a Passiv Haus? Future-proof, healthy, comfortable and affordable?

I doubt it facing such basic but untackled problems like deficits and unemployment while I miss the strengthening or in some cases even rebuilding of the basic elements such like education, tuition, training, manufacturing and rational R&D into what will be the true elements of our future as well as setting any new standards for what you tell me I can't see or feel right now, Mr. Cameron.

All I see is more cuts and more debts or the same vice versa, trying to save banks, banksters, governments and incapacitated politicians just to preserve what can't be sustainable; is this all and again related to tradition or where and when will we see or feel any kind of learning effect coming in that will take us all forward?

Carpe diem!

Pretensioning the B(l)ow!

 UK's bubbling model...

The chart seen on www.querschuesse.de shows the UK's monthly trade balance in reference to food!

• August 2011: minus £1.436bn! 


• First eight months of 2011: minus £11.648bn!


• We are depending more on more on imports e.g. of meat, a minus of £3.601bn in 2011, alone!


• Same for such simple and relatively easy to produce dairy products! A minus of £1.391bn in 2011!


• Wheat and animal feed minus £1.382bn in 2011.


• Since 1995 we are net importers of oil with a dramatically falling output of North Sea oil.

Great Britain shows the classic bubble economy of a degenerated Anglo-Saxon model under permanent erosion of any kind of industrial output in relation to its GDP while running out of all kinds of resources; see oil and gas.

Along with the high import volume an ever increasing inflation is imported, the currency is weak even compared to US $ and the failing Euro.

Not my words, but a description of the UK's situation in the German blog above. Now, you might not like Germans, Germany or German cars, but what about the truth?

Inflation, even after tweaking all statistical possibilities, is up: 5.2%. In reference to food even +6.4%:

Another Catch-22 situation one should think as once Mr. King (Governor of the BoE) would decide to fight inflation by raising interest rates the government and the banks would have to declare bankruptcy; however, don't worry, inflation is the globally preferred idea to make debts look smaller.

As such inflation must grow faster...

as debts grow faster!

Don't mention the stability and value of the Pound, though!

"The UK fails to feed its population, Mr Neo and Mr. Lib "what are your answers?"


Carpe diem!

Do you know Liu Xiaobo?

Last Friday, October 8th 2010 the democratic activist Liu Xiaobo received this year's Peace Nobel Price. This is where he lives, a prison in Jinzhou, North-East China:

Der Spiegel

British media as most international does not cover much about the country he lives in and really not much about him - all in comparison to the country's size, its influence, its role, its power; the usual headlines are related to the suppression of journalism, shut down blogs and a bit more about the US trying to convince China to appreciate its currency, the Renminbi, better known as Yuan. Here is the reason why:

Unbelievable $1,600,000,000,000 (some sources even say 2,5 trillion) and no debts, no interest on debts, no sovereign bond crunch but pure investment potential, isn't it? The difference makes it twice as much!

China is pouring another $7bn (£4.4bn) into Brazil's oil industry, reigniting fears of a global "land grab" of natural resources. (The Independent)

And the UK is trying to cut some £5bn and close down a number of quangos just because sovereign debts, bad banks and interest payments are killing us; they question our creditworthiness while at the same time our industrial base is shrinking following the US model of neo-liberalism for the last 40 years. Yet, China is back on track:

This is all we (can?) do:

Question: Do you miss Mrs Merkel?

Answer: Germany does not really want to applause its hardest competitor China while it is copying same in taking advantage of an artificially depressed currency (€) allowing it to boost Exports and create another economic miracle; however, this time this miracle is neither sustainable nor will it last very long.

The trend is back to normal, a downward spiral for the US and the rest of the world while China invests in anything possible - including land which you hear and read not much about. China's severe protectionism not only covers for example its currency but also its land which is state owned, so one might be able to lease it, but an individual will never own it. So even China itself goes shopping for land and more elsewhere:

While much of the developed world is baulking at its debts in the aftermath of the financial crisis, China has continued a global spending spree of unprecedented proportions, snapping up everything from oil and gas reserves to mining concessions to agricultural land, with vast reserves of US dollars. (The Independent)

What will be the impact on the Pound once the wars on labour, resources and markets are united in what will be one global trade war sparing no currency and no asset? We might well see a soaring Pound, that's not optimism and won't last that long either, but one or two or three currencies out there will be loosing the war for the weakest one and will (have to) play the counterparts of what will be a crushed $, € and/or ¥. So we better prepare ourselves for rough times to come pretty soon where imports will include a big portion of inflation and challenge our industrial base; rather, what's left of it.

Der Spiegel

By the way, this is Liu Xiaobo! Why "by the way"? Just because I think that Liu will share the same experience as the Dalai Lama did when he was rewarded the Nobel Peace Price in 1989: nothing changed and China moved forward.

Carpe diem!