baldysblog.co.uk

As is often the case, it is something someone else says or writes, which can help us change focus and gain perspective. I am a great fan of Boris Johnson the Mayor of London in part because he is humorous and lacks pretensions but mainly because he is highly intelligent.

He wrote an article the other day in which looking at the current economic crisis and how it impacts ordinary people gave the following advice: Those who are not in debt should spend money on those things they actually want because “closing the hatches” and spending nothing can only hurt people by destroying their jobs and in that, destroy our economy.

Essentially Boris is Totally Correct

First Out:

If we look at the “Banking Crisis”, it is only Governments that could deal with that and, pretty much every one Globally and at the same time. But having said that, we do not yet know that will work but, let us all hope and pray.

Second Out:

The second tier concerns the value of individual currencies and frankly, this should always be left to “market forces” because whilst people may detest the idea of “this type of City Trader or that”, they (the Trader), are participating in a real and live ‘democracy’ which is free of governments and politics generally.

Just why this is important is easily ‘explained’ by Gordon Brown as Chancellor who because for ‘political purposes’ moved what was ‘capital expenditure’ off the UK ‘balance sheet’ through PFI. Brown chose the most favourable measurements of cost of living and inflation to justify his policies and so on. Did the ‘market’ get fooled by this ?

Of course not, the view taken by “the market” of Sterling is valued by the ‘global comparatives’ based upon economic activity rather than Gordon Brown’s ‘froth & spin’.

Third Out:

There is the ‘local economy’ which is based upon people buying and selling ‘stuff’ and whilst in a sense, ‘divorced’ from the two above, is what drives both – First & Second Out.

My Responses to BoJo

“A jolly good and amusing article, unfortunately whereas as some people have a “teenage fan club”, you suffer from a following of some of the most blighted and moaning bunch of cretins alive.

You are of course in principle correct and it reminds of me of a story of an economic downturn during the time Eisenhower was the American President. An earnest reporter asked him: “What should do ?” The reply was to go out and buy something, “But what Mr President ?”

‘Anything’. came the reply.”

A Personal View of “Other Comments”.

Perhaps the most distressing thing about reading the “Comment Pages” of most web sites is the total lack of intelligence displayed or, the inability to read what is written in the first place so that most comments are irrelevant. Old BoJo is a ‘strong character’ who will get approval/disapproval by equal measures from people who do not or perhaps, cannot read the article:-

Some Sample Negatives:

“My savings are staying where they are. I’ve no intention of spending them to bolster that bunch of industrially treacherous, greedy morons in the City and the Treasury. “

“All right Boris ! You spend it and I`ll hang on to it I know it makes sense and most others do too.”

“Many people saw this coming… I did and have been earning and saving for years. Now there’s a downturn. I have lost my job but have more to spend than my average in work counterpart. I have been prudent, saving for a rainy day as the Tories like to say (I agree with that belated sentiment by the way).

What troubles me is that it seems the politicians want the likes of me to pay for others mistakes – the banks, the credit card junkies, while they get some kind of bailout. It doesn’t strike me as fair but according to Gordon Brown and now Boris Johnson I should do my bit to keep the UK afloat. Not a chance. I’ll be using my cash sensibly to plan for the next 10 years… not buying tat to prop up the high street or overpriced houses to pump up Johnson’s claim that he made sh*t loads on property. I fear that Boris has become part of the problem and always was.”

As Most Would Understand…

The ‘above’ are the best examples of the dumb-arsed faction of British Society, people who think that they are intelligent but in fact – happen to be both totally stupid and judgemental to boot , that think .

The Response is Simple

NEWS FLASH: Not one person is exempt, like it or not, we are all in this together and there is no choice. A £ bought $2 not so long ago, it now buys $1.55. A property or a pension fund worth £200k last year will be worth £140k next year in terms of the asking price or the purchasing power, a 30% drop – we have all lost the innocent and ‘guilty’ alike – how we Brits love to have someone to blame !

BoJo is right, THOSE WHO CAN AFFORD to spend should because it will generate jobs in the private sector. People who have ‘hoarded’ their savings and are moaning about it being difficult to find another job, no surprise there if there is less economic activity, there will be fewer jobs – won’t there ?

The point is that what has happened to the economy has all happened in the past and whilst you may wish to call people to account over it at the next election, it changes nothing now but people spending cash will.

As consumers we have a greater ability to pull the economy around than the Government has because most things that an idiot like Brown or Darling can think up, will only devalue the £ further. In fact all the Government can do now is cut the size of the State by redundancies, job sharing, tax cuts or any combination they like.