BIll Quango - Man of the year

So the result of our quick poll is in, BQ wins as best writer here, with a super-majority of the votes, Nick drew trailed in with 4 and CU only one (and I voted for myself!).

BQ's great victory has won him the price of having to write 5 posts a week for the next 6 months?

Trust that's OK with you BQ?

Ferro vile mess

What a mess BAA is these days. This was a Government owned company once upon a time, privatised and sold to the Spanish at the height of the boom. The clever Spanish construction conglomerate, Ferrovial, borrowed fortunes (up to £10 billion) to take-out our national asset.

Now they are left with a declining asset, debts they can't pay, a Government who have promptly ordered the break-up of the company and general misery.

My heart bleeds for them. Careful what you wish for when buying trophy foreign national assets. The one downside for the UK is that our London Airports can be denuded investment, but we have a regulator to at least make sure something gets spent, let's hope it remains up to the task.

Not long now until Ferrovial gives up and the airports are back in British Private Equity hands I should imagine...

Deflation talk is a cover for the Government to rob you

In the final stages of a Ponzi scheme things get stressfull for those in charge. Money ceases to come in at a rate fast enough to cover the interest payments to those already on board. The system starts to unravel and it is time to flee or hand yourself into the Police.

In the UK, we face an economic disaster and the Labour Government are determined to make it worse. They will have the Socialist redistribution of wealth by making us all much, much poorer. They will end their Ponzi scheme by laying waste to everything.

The Labour Government spent too much money from 1997 -2009 and allowed the property bubble to go too far. We now have a bust, the likes of which have not been seen in a century.

The response to this is more Government spending and a fingers-in-the-ears approach to all criticism. Worse, there IS a new plan. The Government and the banks know that they cannot repay the debt they have saddled the future British taxpayers with. So the only solution is to ignite inflation which will quickly whittle away the value of the debt, and it will quickly whittle away the value of everything you own too.

No more holidays, no more restaurants, no more new cards, no more imports at all (think virtually everything you buy). It is quite possible, even likely, that the absolute level of devaluation will mean that UK living standards are reduced to the levels of Portugal or Greece in short order.

The Government know that no one would willingly want to inflate away all of their own wealth and so the deceptive cover they are using is the threat of deflation. As yesterday's and the previous months inflation data show; there is not going to be major deflation post the pound' rapid devalution; and yet still we have record low interest rates and quantitative easing. High inflation is the desired outcome of current policy.

As I happen to think Gordon Brown only cares about his precious party; there is also an upside for the Labour party too. Inflation will not start to spike until early next year, this will be spun as a sign of successinstead of abject failure and will allow Labour to lose the next UK election by a smallish margin. The incoming Government will then be faced with an utterly wrecked economy that will take hard, unpopular decisions to sort out. If you want to know how hard, read this on the fall of the Czech Government yesterday.

Labour will then be primed to return in 2015. All that is good for the Labour party is good for the country.

UPDATE: UK Gilts auction failed today, this has happened in the past decade by 1% or so. This time it was by 7%. Institutions are wary of the Government clearly falling out with the Bank of England, especially when the Bank is in the right and the Government the wrong.