Saturday 31 March 2012

Not one more penny


--Compromise falls short of EUR 1 trillion target set by G-20

--Crisis lending expanded to EUR700 billion

--Europe facing criticism not doing enough on its own

U.K. Chancellor of the Exchequer George Osborne told his European Union colleagues Friday that his government will reserve judgment on whether an increase in the region's firewall is enough to win extra U.K. funding for the IMF

An increase in the bailout fund's resources was seen as key to winning further funding for the IMF from other leading non-euro zone economies, including the likes of China and Brazil, as well as the U.K. Fresh IMF funds could be used to further boost the euro zone's firewall if the debt crisis intensifies




March 30,2012

Sir, regarding the meeting of euro finance ministers,

I have the honour to refer to the very serious calls which have recently been made upon the Home Nations taxpayers in an attempt to stem the collapse of the Euro on the Continent.

2. I hope and believe that our European Allies may yet be
victorious in staving off necessary bailouts for France and Belgium, but we have to face the possibility that they may be defeated.

3. In this case I presume that there is no-one who will
deny that England should carry on, even though the remainder of the Continent of Europe is dominated by the Germans.

4. For this purpose it is necessary to retain some
minimum financial strength in this country and I must request that the Monetary Policy Council will inform me what they consider this minimum strength to be, in order that I may make my dispositions accordingly.

5. I would remind the Monetary Policy Council that the last estimate which they made as to United Kingdom cash necessary to send to defend the Euro was 7 billion pounds, yet the latest estimates are now possibly the equivalent of one trillion euros.

6. Once a decision has been reached as to the limit on
which the Monetary Policy Council and the Cabinet are prepared to stake the existence of the euro, it should be made clear to the Euro Zone leaders on the Continent that not a single penny from British taxpayers beyond the limit will be sent across the Channel, no matter how desperate the situation may become.

7. It will, of course, be remembered that the earlier estimate of 100 billion euros was based on the assumption that the collapse would come from just Irish, Greek and Portuguese banks. We have now to face the possibility that default may come from Spain, Italy or even from the North coast of France and Belgium. The result is that the necessary bailouts become very much extended at the same time as our own coffers are much reduced.

8. I must point out that within the last few months the
equivalent of £7 billion pounds have been sent to France, and that the more pounds which are sent to France the higher will be the wastage and the more insistent the demands for further monetary reinforcements.

9. I must therefore request that as a matter of
paramount urgency the Monetary Policy Council will consider and decide what level of sterling reserves are to be left to the Treasury for the running of this country, and will
assure me that when this level has been reached, not one
more penny will be sent across the Channel however urgent
and insistent the appeals for help may be.

10. I believe that, if an adequate economy remains in this country, if the coalition remains in being, and
if sterling is not diverted into the International Monetary Fund we should be able to carry on single handed for some time, if not indefinitely.

But, if the financial reserves are drained away in desperate attempts to remedy the situation in Europe, defeat in France will involve the final, complete and irremediable defeat of this country.

I have the honour to be,


Your obedient Servant,

William C. Quango

Select Committee,
Her Majesty's Revenue and Customs.

{Apologies to Sir Hugh Dowding - CIC Fighter Command - 1940}


Anonymous said...

Can't disagree with your arguments but...just returned from Madrid this week having seen well educated locals begging on the street as a desperate attempt to provide something.

Perhaps the Spanish have a better class of beggar or there is a fundamental problem with the PIIGS which standing by will not help.

No man is an island.

lilith said...


Timbo614 said...

Excellent piece of plagiarism Bill.

I agree it really is that desperate, not just for us but globally. Unlike Spitfires and Hurricanes, ME109s Junkers and other weapons of war we can create as many Pounds Sterling, Euros & dollars as we wish at the click of a mouse. And boy have we got click happy!

Europe is devaluing the Euro rapidly. How much more printing before the Mr. Market gives up on it? We have a Trillion manufactured over the last 3 months to help banks, now another trillion (total) to help countries. Does third time pay for all? Or do we "leverage" the Trillions we have, say what? 5 to 1 - Woo hoo! 10 Trillion to "spend".

The UK must follow suit or no-one but no-one is going the buy the stuff we do make, and indeed Mr. King is doing so (sometimes getting in first).

For comparison 10 trillion is greater than World GDP in 1965 (just before the craziness kicked off).

Germany (currently) continues to benefit being the exporting power house of Euroland and as the Euro devalues more, so more benefit will accrue to them. But stuck with the same relative value money how is this ever going to help the less export driven less disciplined countries? It can't continue and wont.

Greece is already suffering "punishment" greater that Germany's war reparations, it's institutions have been robbed to pay the Troika, amongst other financial crimes. Ireland's per capita debt is a joke, Spain is heading the same way, next Italy.

Where then for all this ethereal money? Who gets it? Who gets to pay the interest? and when they do where do they get the interest money from? By creating a trillion at even 1% interest leaves someone owing €10,000,000,000 where does this come from? Who should get it? Why should they get it?

Simple math shows that we are at the point in money creation where the plot on the graph of exponential debt owed and interest payable goes vertical, and there is no way back bar a collapse causing a massive debt jubilee.

All this mess of money will eventually result in the rearrangement(loss of) of the banking and money system we know today. It's become an insatiable monster and must be slain. I'm not sure what the new system will be but the death of the existing one will be a world inspiring event and a massive relief for all world-wide too, probably including those running and temporarily benefiting from it if they would be honest enough to admit it.

Now is the chance (and I believe IT IS NOW) to globally take the money-fall, stand up again, dust ourselves down, and look a new new world straight in the eye.

(C) Timbo-rambles 2012 :)

Electro-Kevin said...

"...and there is no way back bar a collapse causing a massive debt jubilee."

And if it happens this year we will already have the bunting to go with it !

That should save us a couple of quid at least.

Excellent post, BQ.

Budgie said...

Excellent BQ. Our propensity to prop up something like the euro that is inimical to our interests is a wonder to behold.

I doubt if we could find 1000 people in the entire eurozone that even know the UK has supported the euro with cash, let alone are grateful for it.

It is the English (cultural) disease: we think we are making a concession that will be received with gratitude; whereas we are really seen as bluffers who have belatedly given up our (widely perceived to be) weak and nonsensical position.