When you are serious about writing the choice of subject for your first new blog is extremely important. It has to set a style from the outset, it has to have a subject impact to attract readership and should ideally be timeless. So I have spent some time contemplating a suitable subject matter and have decided that I want, no less, than to solve the global financial crisis. An acknowledged ambitious challenge for a new blog with initial limited readership but rivers can be formed one dig at a time and water will not flow until the first spade is swung.
First a quick economics lesson. The world is in a bit of a fiscal state at the moment. Few understand why but it is generally thought that it is the fault of greedy bankers holding onto their cash and not giving it out to one and all. Due to this selfish action by these pin-striped ogres the economy has stalled, no one has had a pay rise for a couple of years and so nobody goes to the shops to buy any luxury goods. However as we still need to eat and drink and heat our homes the price of some commodities is increasing.
It was all well and good in the fifties. Back then nobody owned anything so bought themselves a fridge, a record player and a motorbike with sidecar. By the time we entered the allegedly swinging sixties the family decided that they needed a whole kitchen, a stereo system, a television and then upgraded their motorbike for a small car. The seventies crowd went for exotic holidays on the edge of the mediterranean, enhanced their TV with video players and upgraded their small car to a mid-sized saloon. In brown. Then they bought the house as well. In the eighties monied, Italian suited men were hailed as heroes as they invented ways to make money fall out of the sky so we all swapped our flats for apartments, videos for disc players and the Rover for a BMW. By the nineties though we had most things we needed so could only really swap some of the old stuff for new. We spent cash on better computers and DVD players and a second home.
But during the past decade we ran out of ideas for things to want. So just idly spent a few quid on making our TVs flatter and stomachs fatter. We generally lost the will to spend.
Furthermore we became reliant on the rest of the world trying to catch us up but then worried they might use all the ingredients in this planet in doing so. We became green, mean then selfishly obscene by hoarding what we had. The aforementioned bankers played their part and the whole system stuttered to a halt. And no one seems to know what to do.
You will have heard of quantative easing, even if you don’t know what it really means. In essence it’s the process of giving bankers money to get back in the system. In theory they should filter it down to you and I via cheaper loans and business assistance. The reality has been ever inflating banks and cash4mepocket.com. They are not giving it out to the right sort. Now some of you may say “Yes. I agree. Don’t give the bankers money. Give it to me. I could well do with that 50 billion to pay off the loan on my Ford Cortina and beer-fuelled credit card.” But that would not help. You would only pay off your debts and then sit on a sofa you had formed from all the rest of the cash. You are as likely to spend the wonga as the bankers are to pass it to Joe Small Motor Dealers for a bit of well needed collateral.
No the money needs to go to those that will spend it because they have no choice. Let’s quantatively ease the poorest people on earth. Let’s see how sub-Saharan Africa deals with just one of those 50 billion. I guarantee it won’t be wasted on opening Hardlyfax accounts. No, providing it misses the warlords and gets to the good folk it will be spent on food and pots to put it in. And the person who makes and sells this food and those that make the pots will upgrade to a bicycle to enable their new multi-drop delivery services to operate. And the bicycle sellers will be able to buy new tin roofs, from the tin roofs men who will be selling so many they’ll buy fridges in celebration. And the fridges will be made in Korea and shipped using Japanese built ships whose owners will buy new German cars whilst holidaying in London, meaning several people in several countries will have work to do and be able to feel confident enough to book an exotic holiday. In Africa.
The circle of wealth.