From the Summit of the Moral High Ground

What is really going on and when did it happen? Do you want to know? I'm going to try to bring together all the economics posts of the last month and try to paint the picture of what is actually happening. Before you read on I remind you that ignorance is bliss. On the 27th October I postulated that the collapse of Dexia bank was just the first in a series of dominoes which would fall, well we now see the systemic collapse continuing throughout western governments and banks. The death of the monetary system has its main motive in the refusal of governments either to manage finances responsibly or to repay debt in the usual manner. Debt grows faster than the economies. The plan is to swindle via the hidden  inflation  tax in return. Greece and now Italy have tumbled because they are locked in a single currency and cannot unilaterally devalue. The creditors (the people who own the bonds) are not involved in the important decisions to debase the currency. Those decisions ...

Central banks have been attempting to drive down interest rates by purchasing long-term treasury debt and selling short-term debt. This is just the latest instance of a central bank desperately flailing around doing something, merely for the sake of doing something. Central Banks still do not understand-- or admit-- that the central banks themselves caused the financial crisis by driving interest rates too low and relentlessly expanding the money supply. Any action on their part will just exacerbate the problem. A one hundred trillion Zimbabwe dollar note how long until we see the same in US dollars? The decision by the ECB to print more Euros under pressure from France is just the latest in a long list of examples. Markets, however, understand that the central banks have failed and have no clue what they are doing. This is why markets are in a tailspin. Stock, bonds, and commodities drop in price while the financial press wondered whether this worldwide sell-off mea...

Philip Ozouf offered a mea culpa for his recent behaviour.  He promised to be a good boy if  the States let him stay on. CTV said he was just 'misunderstood' provoking a reaction in the Chamber. "The high contacting parties undertake to hold free elections at reasonable intervals, under conditions which will ensure the free expression of the opinion of the people in the choice of legislature ." Extract from the European Convention on Human Rights. Freedom of expression of the opinion of the people is inconceivable without  the assistance of a plurality of parties (Yumak & Sadak v Turkey). Clearly the elections gave the public no clear choice in the composition of the legislature, there was no attempt to ask the public who should be in charge of each department, we get what we are given and we have to just lump it. If anyone ever takes a case under Article 3 of Protocol 1 of the Convention to the Court then it is impossible to tell what they will do with our ...

Gigabit Jersey  launched a limited trial to residents of Castle Quay early in 2011. It is absurd for Airtel and Sure to suggest that we should not have a fibre optic cable network. Just so they can eliminate competing technologies? Philip Ozouf and Freddie Cohen were sold on  the idea  during a recent visit to Mumbai, India and both were committed to utilising public money to support its introduction to Jersey. It has become one of the flagship programmes of the Jersey government but I am not convinced that it is a wise use of public money. Jersey Telecom is a private company which is owned by its shareholders, is run by directors for the exclusive benefit of those shareholders. Now 51% of the shares happen to be owned by the States of Jersey but that does not mean it is a public body by any means, nor that it should be given any special favours by the government. Jersey Telecom should be run by the directors, without the interference of government, with the sol...