Credit Lies

I’ve got a problem with everything UK today.
It follows yesterday with hearing about the UK’s supposedly greatness and how once again they are leading the world out of the global funk it’s been in for so long.

The housing /rental market, GDP, national debt, and homelessness is always my main guide on how any economy is doing. Simple really, what is the country earning, how much does it owe, who’s buying, and at what cost?

housesoldReportedly, everyone is buying houses in the UK and prices are booming. Yet there is a growing homelessness problem among the poor, full-time jobs aren’t readily available, and yes there is the migrant worker PROBLEM!

Why is that a problem? Cheaper labor equals more profit for big business yet less for the average John and Jane Doe.

In the UK the con of the government B.S. has seen an explosion in house prices and a huge nuke type BOOM in the availability of mortgages. The problem is the fools that are buying on 30-40-50 year term mortgages who have bought into the headlong drive to buy something, anything, as long as it’s bricks and mortar. So what we have here is a boom and boom scenario for no more reason than the UK has gone credit mad once again. Courtesy of the UK government.

Looking at mainland Europe there is another view.
House prices in the main are dropping as Europe adjusts things to suit the faltering economic situation. That seems reasonable to me that house prices are falling i.e. why buy in uncertain times? There again they aren’t exactly credit mad in Europe.

Lets talk debt.
At 08h GMT the world debt clock read:-
“Sixty Trillion, Five Hundred and Seventy Six Billion, Six Hundred and Thirty Two Million, Three Hundred and Eighty Two Thousand Seven Hundred and Seventy US Dollars”. So what! it’s a mythical number as everyone else owes too.

Now I look at the players in my world.
How much are they in DEBT and the percentage of National debt. (Source)
US € 22,16 trillion € 103.80%
FR € 2,177 trillion € 93.46%
UK € 2,068 trillion € 90.17%
DE € 2,427 trillion € 80.53%

Typically the UK “adjusted” their figures so actually you can’t say precisely what they do owe.

It would appear we are slightly behind Germany but way in front of France and the US. Our nation’s “WEALTH” built on lies and credit. That and the US is probably going to go “pop” relatively soon. When it does, what a global mess it’s going to be. Probably why some are talking about WW3 being a necessity (Dubbed by some as a Global readjustment of the status quo.)

So what’s to be done?
Yet again I’m watching for the telltale signs of the UK BUST first then the US dive into the mire. Or visa versa, it doesn’t matter who dives first, BUST always follows BOOM.

Once again my thoughts turn to a statement I made to my lovely wife a while ago. “I can starve anywhere, but I would prefer it to be in a warm country.” I could be wrong but I’m sensing a slight difference in the tone of her adamant “NO” statement.

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One Response to Credit Lies

  1. SWMBO’s statement was actually a factor when we moved to San Diego. If you are going to be broke and struggling, might as well be warm.

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