After the election?As soon as the QE supply of dirt cheap money gets turned off?At the first sign of wage inflation?A further crisis in the markets due to [you name it]?Serious, escalating regional war in the ME? Oh no, wait, we're on the brink of that...A liquidity crisis in the $5.5Tn/day Forex markets as massive rate-fixing corruption by the banks comes to light? Oh, hang on, that started unravelling yesterday...Thing is, it will only take a small interest rate nudge to crash the London housing bubble that is the basis of the ersatz recovery, and wipe a ton of asset appreciation off banks' books. Clever George was at least smart enough to get the next taxpayer bailout in place beforehand, ready for Austerity 2.0.Savers? OAPs? Mere cannon fodder. Squeeze them til they squeak, they can't go anywhere.In the auld days even a shocking old nazi like Henry Ford understood that he should pay his workers as much as possible, because it enabled them to aspire to buy the products they made, to house themselves better, to be healthier and more productive. Capital had to invest in labour to sustain its own growth through expanding its markets, and prosperity was a virtuous circle. Well, we're a long way from Adam Smith's 'Wealth of Nations' now. It's take the money and run, winner take all. And if you can do it on someone else's money at near zero cost, then you have a global stock market boom built on casino economics rather than fundamentals. I can only agree that this fecklessness has to stop. But I think you're talking about low-rent idiots who run up debt on Wonga then default. They aren't going to crash the world economy, unlike the other lot.
Tony Sleep ● 4338d