It is Obvious

Chris Rick has got altogether too much to say

Film night

Posted by chrisrick13 on October 25, 2011

It is obvious: pilots have a vested interest in flying planes well

I am reminded of a Sam Peckinpah movie.  Just at the point where hugely significant events take place, usually bloody, at high speed, he cuts to very slow motion and drags it all out thus heightening the tension.

The heads of the EU nations will meet on Wednesday…but not their finance ministers.  This means that any meaningful announcement will not be made until some days after the heads of state have met.  Do not forget this is at a time that prompt decisive action was called for by…everyone.  And don’t tell me that they have to work out the details.  They should have/could have done that a long time ago.

Why is there a delay?  Because they can’t come to an agreement.  Any agreement that they do come to will be an inadequate compromise.  The whole world waits for the announcement.  Why?

Mervyn King for whom I had not got one good word to say dropped a bombshell to the commons committee today and it went almost without comment.  He said that the EU leaders might be gaining a little breathing space but they were not fixing the underlying problems.  Like all of us he is waiting for the solution to come along.

So he astounds us all, surely not just me.  He has spotted that the emperor has no clothes on.  The much heralded, and fictional, package of measures is not going to save us.  All it will do is to buy a little time.

It is 2 years since the last crisis and what has been done?  Nothing.  So why should we possibly expect something to be done in another 2 years?

There is a difference between debt and deficit that has to be grasped.  Now we have to distinguish between the plan to buy time and the plan that fixes the problem.  So far there is no sign of the latter.

Greece is a good example.  Owing £350bn that it can’t repay or pay the interest on, it is in the process of being lent another £200bn…that it can’t repay of pay the interest on.  There is talk of reducing the value of the loans – I assume the original ones only and not the new ones.  It started at 21% and is now going to be at least 50%.  In the meantime austerity measures are being imposed on Greece such that it will take some while for the country to recover economically to the point where it can service its loans.  Lets hope that it can recover to robust good health in two years because at that time it will owe…£350bn.  In two years everything will be just as it is now.  It reminds me of Jurassic Park where they painfully crawl out of the Jeep which is up a tree for some reason.  As they descend the Jeep also starts breaking branches and descends.  At the end there is a mad rush for the ground where the Jeep falls on them leaving them sitting in the Jeep just as they were at the top of the tree.

It is obvious: pilots have a vested interest in flying planes well – national leaders have no such interest in economies and much less competence

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