Thursday 13: What actually causes a recession? We didn´t have a `credit crunch´ last time. The causes seem to differ with each one: boom and bust; high inflation, deflation, strength of sterling etc. And, unlike now, I am not sure if the rest of the world, back then, also caught an economic cold.
It´s almost as if there is an invisible limit to the flow of economic growth and when we, as a world, reach it, it then starts ebbing or backtracking in some way.
On the plus side, we (as a world) then build up the impetus for increased flow. So it has never been a permanent condition. Indeed, I am hopeful that this one will be short, although it is likely to be painful. Not that 12-18 months is `short´ when you are on the sharp end.
And I also feel sorry for whoever will form our next government. They will have an almighty financial mess to clear up as all that borrowing will have to be paid back. But darling-gordie do not care to be reminded. I cannot believe that they think the Good Fairy will suddenly bless us with magical money to clear the debts.
There are ways through though, but none will be popular. Like streamlining benefits (ie cutting them). Especially to those who have been living off them for years. Like using some of the public sector pension pot - after all, it did build up courtesy of the taxpayer. Force financial institutions to not keep putting up charges: we are hardly going to spend if any spare cash loops round just servicing debts, are we? And we do need to keep the money flowing, just not manically as in the Blair years. Although a 0% interest rate sounds a bit unsound…
Instead, our bright leaders opt for more borrowing which invariably comes with a long-running and hefty price.
Some doomsayers think there will be a Depression …which would be a pretty awful way to get people off the benefits´ culture! If the government goes bankrupt, social services will not be funding anyone. Perhaps that´s why darling-gordie want to borrow so much. They obviously know what our accounts look like.
In googling stuff on the recession, I found Paul Grignon´s Money As Debt.
It puts an interesting perspective on debt. And, spiritually, touches on the concept of maya (illusion).
In the current modus operandi, debt is necessary, it seems. Indeed, everything seems to be bought and based on a `promise´. No wonder our government panicked and bailed out those banks.
If there was a `run on the banks´ - meaning we all took out our tuppence halfpenny in `real´ money, there would not be enough to pay out to everyone what they deposited. See? Maya!
Gold and silver are not solutions, says Grignon, who does suggest solutions to completely revamp the system.
But….
Everything does pass. The good times do return. The good times are returning. (Repeat several times, three times a day for 30 days. Pause for a week. Re-affirm for a further 30 days. And so on.)
I can´t say I blame some NandDs for wanting to stay abroad - moving to the USA this time. I have already promised to re-programme my mind to visit them. That is a BIG step for me!
Perhaps I should also start applying for a visa now? Get the biometrics and inside leg measured and tone down my dry sense of humour so I don´t get kicked out once I actually do arrive.
Some good news: I wondered why my spam levels had gone down. It appears the demise of one gang has reduced levels by 70%. Mark you I still cannot understand why sometimes the processor maxes out at 100% usage. Shouting at the laptop takes me into Twilight Zone territory on a regular basis. More practically, I have to close down the browser and clear out cookies and browsing history.
PS A teensy flicker of what might have passed for envy threatened yesterday, when I saw Anne Kirkbride´s `art´.
Always being a trusting soul in the first instance, I really did think she was enormously talented. Misleading journalism rather than the gallery lying: they are photographs with a Photoshop oil or watercolour filter.
