GOING POSTAL 20/8/18 [Part 1 of “This time it will be different” appeared as Going Postal last week.] PART 2 THE SCOURGE OF CREDIT EXPANSION – THE SYSTEM’S DEMISE COULD BE SOONER THAN YOU THINK The monetary conjuring trick employed after the last crisis, described in Part 1, required central banks to purchase government bonds […]

1 – THIS TIME IT WILL BE DIFFERENT – Yes, far worse! [ECONOMIC PERSPECTIVES – 35] The last crash 2007/2008 Before the last financial crisis in 2007/2008 sub-prime mortgages were all the rage. The idea was that if mortgage lenders put a pot-pourri of mortgages in a parcel, the risks attaching to mortgages at the […]

Having seen the nature and causes of unsound money, what can we say about sound money? It is money that can be trusted, by anyone and everyone who uses it. Trusted to do what? Trusted to retain its purchasing power. what matters is what money can buy After all, what matters is what money can […]

Let’s look more closely at the role of interest rates Money is one of many forms in which wealth may be held, but money and wealth are not synonymous. Wealth is the accumulation of savings. Savings, in a business, are what is left after meeting all its direct and indirect costs, depreciation, distributions to the […]

“ACCOUNTANCY” – FEBRUARY 2018 PENAL SANCTIONS REGIME THAT DOES NOT RAISE STANDARDS The main objectives of the Financial Reporting Council’s sanctions policy are to improve audit performance, protect the public from sub-standard work, maintain market confidence and uphold proper auditing standards. The policy emphasizes, however, that its purpose is not to punish, but to protect […]

Customer Review 5.0 out of 5 stars A salutary insight into the fallibility of economic thinking at every level. By Emile Woolf  on 4 September 2017   Format: Paperback Godfrey Bloom delivers an apocalyptic message on the consequences of misguided economics in an age of unreason. It carries little ‘good’ news, and its explanation of the ‘bad’ […]

“ACCOUNTANCY” – JUNE 2017 Banks, criminality and accounting: end of the road?  All those banks and other financial institutions that have gone bust, or been bailed out, over the past 20 years demonstrate that the sector’s corporate conduct has been wayward, to put it mildly. That these dodgy outfits are located in the UK, USA, […]

ECONOMIC PERSPECTIVES 20 – August 2017   BUFFERS FOR DUFFERS! Mark Carney, Governor of the Bank of England, tells us that “this time it’s different” because the capital “buffers” (amounts that lending banks must retain in their free reserves) now imposed by central banks will prevent a banking crisis similar to the sub-prime implosion that […]

SEPTEMBER 2012 King Canute was neither vain nor foolish. He ordered the tide to recede only to demonstrate to his court that even his awesome powers had limits. Vain and foolish politicians, however, aspire to preserve the myth of Euroland and still believe that, by hook or (especially) by crook, they might actually make it […]

It’s not as if each successive banking scandal throws up new insights. The proverbial “innocent bystander” might reasonably suppose that, by now, something would have been learnt from the cyclical repetition of egregious behaviour and the crises it generates. Much of this behaviour is just plain foolish: unbridled credit expansion; lending practices landing banks with […]