IMF Contemplating Mass Expropriation in €-Zone

IMF-exproriation

Christine Lagarde the French chief of the IMF narrowly escaped being charged recently. Her candidacy’s main cheerleader for the IMF was George Osborne, Guido had his doubts at the time. The IMF is searching for a solution for debt laden European states to stop the €uro collapsing. Stop spending more than you tax is considered naive – how will the ruling elites get re-elected if they stop bribing the electorate with their own children’s money? Option 6 in the IMF’s discussion paper on the subject is brutally straight-forward. The final act of financial repression is to steal from everyone who has savings with a 10% wealth tax.

You have been warned now – just like Cypriot political insiders were – don’t keep any capital in €urozone banks. The IMF argues that the element of surprise is essential for the success of a capital levy…

Brown’s Favourite Economist David Blanchflower Wrong Again Economist Who Advised Brown To Privatise, Ronald Coase R.I.P.

Yet another installment in the series of David Blanchflower’s Terrible Tips. The former Prime Mentalist’s favourite former appointee to the Bank of England’s Monetary Policy Committee got his faulty crystal ball out again at the end of March, predicting growth for the year of 0.2%. In April he said that a triple dip remains a real prospect. In May he nearly fell over laughing at the suggestion a recovery was in sight. He regularly predicted rising unemployment, when it fell. So did he fare any better this time round?

Well this week the OECD doubled its outlook for UK growth to 1.5%, now the OECD expects Britain to even outstrip Germany and France over 2013. What’s more, in the last quarter, the UK grew at an annualised healthy 4.5%, with growth across all sectors. The fastest for decades. Even Ed Balls now admits we are on the road to recovery…

Ronald Coase Obituary

David Blanchflower is a poor excuse for an economist, compared to Ronald Coase, who sadly died on September 2nd aged 102. The Nobel prize winner enjoys nowhere near as much fame as media-savvy left-wing economists like Blanchflower. Coase should be more famous because it was his idea originally to sell off radio spectrum rights, a policy idea which led to Gordon Brown raising £22.5 billion from the privatisation of the 3G spectrum. The greatest one-day privatisation ever seen in Britain, carried out by a socialist. That was genius… 

AP Changes Password

One hacked tweet yesterday and the DOW plunges 100 points, only to regain it all in a matter of minutes. The AP twitter account has been restored this afternoon, the offending tweet deleted, and normality returns to the markets…

Talking Balls

It was less than fifteen minutes after the GDP news was announced before Balls’ people started calling for more borrowing and spending on the back of the news:

Two hours later they have has managed to scramble together a line:

“A one-off boost from the Olympics is welcome. But it is no substitute for a plan to secure and sustain the strong recovery that Britain desperately needs if we are to create jobs, get the deficit down and make people better off.”

Balls chooses to simply ignore the ONS stating that it only 0.2 of the 1% change was down to the Olympics.

Funny how abnormalities are only considered when the growth is positive.

+++ GDP UP 1% +++ Above Expectations, GDP Flat Year-on-Year

David Blanchflower’s Terrible Tips

Whenever Gordon Brown’s favourite former appointee to the Bank of England’s Monetary Policy Committee, David Blanchflower, makes a prediction, it’s probably a safe bet to expect the exact opposite to come true. Back in 2009 the out-of-luck economist looked into his evidently faulty crystal ball and predicted that unemployment would top 5 million if the Tories came into power. As of yesterday it stands at 2.53 million and falling. David is very nearly 100% wrong – quite a wide margin of error.

He forecast that unemployment would surge past 3 million to 3.4 million in 2010. It peaked at 2.5 million in 2010.

On Tuesday Blanchflower was at it again, wagering that the new set of unemployment figures would bring bad news:

Lo and behold once again the opposite happened, with unemployment dropping by 50,000 to below 8%. Keep trying David, you might get one right eventually…

Mugabenomics: Inflation in UK Higher than in Zimbabwe

Remember when Vince Cable warned that Quantitative Easing (QE) was “Mugabenomics”? Vince flip-flopped on that even before he joined the coalition. Guido remembers when George Osborne said “Printing money is the last resort of desperate governments when all other policies have failed.” In government Osborne has overseen the printing of more money than any other Chancellor in British history. A quarter of the national debt – all this government’s overspending – has been bought by the Bank of England via QE. Guido warned against this madness in 2008…

So it is not a shock that inflation in Zimbabwe (3.63%) is now lower than inflation in the UK (3.66%, August 2011-July 2012). Gold is good.

He's Still Jonah Brown

As we predicted beforehand, the Jonah effect wiped over 100 points off the value of the Dow and saw the NASDAQ experience its worst day since June. If you watch the video closely you’ll see that he even screwed up “ringing the bell” to open Wall Street.

He’s still the accursed one-eyed son of the manse…

Chuka Takes Cash From Casino Capitalist Tycoons to Party

Two-faced Chuka Umunna is forever banging on about the need for “responsible capitalism”. Chuka might be keen to bash the bankers in public, yet the latest update to the Register of Members’ Interests shows that the Streatham MP pocketed a generous donation of £6,030 from a financial services company to sponsor his summer party in July:

Realtime Analysis and News are better known to day traders and other running dogs of casino capitalism as RANsquawk, an extremely profitable online service set-up by City whizz-kids providing tips and rumours to traders.[…]

+ READ MORE +

ECB President Draghi Goes Comical Ali

Mario Draghi, president of the European Central Bank, told a press conference following the meeting of the ECB Governing Council in Frankfurt this afternoon that “the euro is irreversible”. Asked by the media what he meant by that he exclaimed to much laughter “It stays, it stays, it stays.[…]

+ READ MORE +

Debt Bomb: Deficits and Dancing Girls [VIDEO]

Keynesian economics stripped bare…
[…]

+ READ MORE +

Simon Jenkins is uneasy about Quantitative Easing…

“The Bank of England quarterly bulletin is full of QE theology. Its report on a recent conference on the subject is pure angels on pinheads.”[…]

+ READ MORE +

Bank of England Still Artificially Lowballing Interest Rates

This morning the Bank of England’s Monetary Policy Committee will meet and in all likelihood order another £50 billion of Quantitative Easing, or money printing. This will again be used to buy government bonds, artifically holding down long term interest rates.[…]

+ READ MORE +

The Shriti Hiti the Fan

Downing Street are drawing attention to this email in Barclay’s evidence to tomorrow’s Treasury Select Committee:

Click to Enlarge

“Mr Tucker stated the levels of calls he was receiving from Whitehall were ‘senior’ and that while he was certain we did not need advice, that it did not always need to be the case that we appeared as high as we have recently.”

As Guido said this morning, you have to distinguish between the nickle and dime LIBOR fixing scandal of traders trying to massage their end of day mark-to-market and the Treasury / FSA / Bank of England policy of fixing LIBOR. […]

+ READ MORE +

LIBORgate: Diamond v Tucker at Treasury Select Committee

After resigning as CEO of Barclays this morning, Bob Diamond may yet exact some revenge on the government when he testifies tomorrow in front of the Treasury Select Committee.

There are two LIBOR fixing scandals – the first involves traders massaging the settling of LIBOR rates a few basis points, mere hundreths of a percent, off market reality to flatter their trading books.[…]

+ READ MORE +

Diamond Is Not Forever

Don’t buy a newspaper this morning – it’s already out of date with the musical chairs:

“Barclays today announces the resignation of Bob Diamond as Chief Executive and a Director of Barclays with immediate effect. Marcus Agius will become full-time Chairman and will lead the search for a new Chief Executive.

[…]

+ READ MORE +



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Quote of the Day

Owen Smith backs one hour contracts but wants to abolish zero hours contracts:

“You need to give people a contract to say, ‘here’s what you will be working’. It could be one, but I’m saying it shouldn’t be zero, we should invert that emphasis.”

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