ECONOMIC FAKERY
 


The Economy should be neutral instead of behaving like Eve. It should be more like the sea. It should have daily highs and lows but be incapable of favouritism.

Instead The Economy seems emotional, with big mood swings and easily affected by the tiniest of details. However, in the end everyone is working for Her; She is the boss. At times she doesn't feel so well, so she just puts some make-up on and everyone praises her healthy and vibrant shape. However, when the storm comes, the make-up fades away and the imperfections come to the surface.

That is exactly what happened to The Economy: a seemingly dynamic infallible financial sector and booming housing market were supporting strong spending. Then the storm came, washing out all the sand castles and exposing the non-existent 'foundation' on which The Economy had been constructed: castles in the sky without infra-foundation support, held aloft by debt. Especially in the USA where land is treated as limitless and homes constructed from materials which in Europe would be supplied flat-packed by IKEA (returnable if still in original packaging which many US "underwater home owners" wish they could do).
I enjoy building sand castles by the seashore even though I know that when the tide rises they are going to collapse; that is because I don't live in them. Now imagine that Boris Johnson declared that it had been discovered that at least 50% of the houses in London are made out of sand; the only way to find out which houses are 'fake' is to wait and see them collapse when the next rain comes. All house owners would panic not knowing if they are living in a sand castle and potential buyers just wait to see which houses stand still after the rain. We know that cement is partly made out of sand, but if there is excessive sand and excessive rain there is a risk of the house collapsing; this happened to Lehmann Brothers, Bear Stearns and almost happened to RBS and HBOS in the UK.
Traditionally at Christmas time Santa rewards, with a cash Bonus, all the good people who have performed at their best and allowed the economy to move forward. In the past years these would be mainly people working in the financial sector, but now that GDP (see GDP) is expected to shrink in the UK by around 4% [1] the rewards are going to... banks!? RBS, a bank which survived as a result of government intervention, says it needs to reward its employees with around £ 2bn [2] in order to maintain competitiveness; as if nothing ever happened. It is clear that part of the previous economic boom, for which bankers got high rewards and bought nice houses, was based on expectations and speculation that never materialized; it was fake!

Amnesia is a dangerous illness! There has to be a clear symbolic move from the financial sector towards understanding that being rescued by the taxpayer does not bear down on us.
Let oldies suffer the tax strain
.
Some polls suggest that 70% of women admit to have faked orgasm with their current partner [3]. At least they admit it!
Let's give them the same £ 2bn bonus for making men feel like masters of the universe
.