Abandon All Fear

What nobody else seems to be saying…

[Economic Meltdown] Flash… Aah Aah He’ll Screw Everyone Of Us

Posted by Lex Fear on February 4, 2009

Overheard at a desk in a major investment bank today:

“This MP basically said that they’re creating an inflationary environment… 15% interest rates, not this year, but over the next 3 years”

Make of it what you will, personally it tells me that everyone in the know is aware of what is coming next and what is needed, but for some reason Flash Gordon and Alistair Darling are out of the loop or didn’t get the memo. It’s also becoming clear that Flash is intending to pull a Zimbabwe and start printing money (he calls this “quantitative easing” – which is another fancy financial bullshit term for printing money).

You see there is only two ways out of a recession, inflation or raising interest rates. You should know what happens when the government uses inflation, it’s been done before by the Weimar Republic and more recently Zanu-PF.

But what about the other tool, interest rates? Well, you see, this would cause millions of feckless, leveraged, mewing borrowers to realise the difference between debt and wealth – can’t have that, or can we?

The fact is we’re dangerously close to the edge of falling into hyperinflation and while its difficult to predict how disastrous this would be we do know that fixed loans would be eroded away, but so would the value of GBP, the value of any savings and investments too (you know, the things used to fund borrowing) – basically our ecomony would become worthless and most likely we’d all end up informally adopting the Euro.

So why does Flash want to print money? There can only be one of three conclusions, either he…

  • Has lost all sense of reality, delusional, thinking he is the saviour of the world
  • Is incompetent. He has no clue what he is doing, no clue how to manage an economy and has sat on top of the biggest economic bubble in the history of the world, taking credit for something he had no part in. Or…
  • Has engineered this, in part, on purpose. The most far reaching conclusion however I can’t help but wonder if he was hoping for a bust sooner, so that it would damage Bliar (and oust him out of office), or even, guessing (or feeling) he will lose an election soon, hoping to pass the bubble on to the Tories just before it burst (securing a short term for them, allowing him to be elected back into power at the next election). Far reaching but not inconceivable – considering all the warnings he has ignored over the 10 years he was Chancellor.

Whatever the reasons for his contempt of savers, the UK economy and the poor, all his actions are delaying the inevitable (and making it worse)… depression and potentially more civil unrest.

5 Responses to “[Economic Meltdown] Flash… Aah Aah He’ll Screw Everyone Of Us”

  1. Editor said

    Recently we are seeing the first indications that European politicians are starting to comment on the exploding national debts in public. But Mr. Obama is not there yet. It is time for our political leaders to start explaining us where they see the exit.
    Or, as the FT puts it: “To calm investors’ nerves, finance ministers must make plain how they intend to keep paying creditors without resorting to debasing their currencies. Those who have not already credibly done so are living on borrowed time.”
    I’ve read some interesting related articles on Crunchreport.com.

  2. Cecilieaux said

    Re adopting the euro: I thought the frogs and krauts were not keen on countries in free fall. (See Italy.)

  3. Lex Fear said


    Come the time, we may not have a choice, what other options are there, the dollar? Note, I did say informally adopt, just as Zimbabweans trade in US Dollars creating the black economy.

    Currently I’m researching if it’s worth putting our meager savings into another currency and which one would be best long term, however if interest rates reach 15% then £ is going to be the currency of choice for everyone. Let’s pray it happens.

  4. mattghg said

    I’d add to your bullet point #1 …and is incapable of admitting he has ever made a mistake. Raising interest rates would mean not only “caus[ing] millions of feckless, leveraged, mewing borrowers to realise the difference between debt and wealth”, but also doing a U-turn on his current scheme. Flash reminds me of a confused driver who has no idea where he is but won’t ask for directions.

  5. Lex Fear said



    ONE MORE THING ABOUT INTEREST RATES… which I regrettably forgot to include in the main post, and poignant since another rate cut was today.

    If you sign up for a tracker mortgage or fixed rate deal today at 1% or 2% interest, what happens when the rates go back up a point? That’s a 100% increase!

    In fact rates will be heading up to at least 5% over the course of this year, possibly by summer. A 500% increase!

    So Flash Gordon is setting up anyone who takes out a mortgage right now for a major financial burden and pitfall- he MUST know he is doing this?!

    Warning to First Time Buyers! Don’t take out a mortgage now, don’t do it!

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