Ronald Reagan JANUARY 20, 1981 "Government is not the solution to our problem, government is the problem"
Please excuse me for not posting regularly. The
basic explanation is that I do try improve the service and I’m delayed by the
server admin. Me believes come with the actual improvement which in reality
become just small step forward.
What Ronald Reagan refer to apply upon real GDP. In other words, on average each country supposed to have 4%-6% of the real GDP to cover planed budget of a country. In UK for the first quarter of the 2024 we have just 0.6%-real GDP then; and according to Ronald Reagan whenever the Gov does not have sufficient revenue on taxes, it will be required to run the country on deficit what basically means that 4% of the GDP minus the UK 0.6% GDP actually achieved … will require 3.4% of the GDP to be finance on deficit to fulfil the budget finances adopted by UK Parliament.
Now, the country or UK will require to
have national DEBT below 100% of the UK GDP to go with the budget as expenses and to have a headroom for the mentioned deficit in 3.4% of the UK GDP. However, UK in 2023 did not had had the headroom required to finance
its budget on deficit as the Gov books were needed to refinance on its DEBT to run the
country. As such was required to refinance UK
books for that purpose.
So, the facts are the facts … If the
UK gov does not have the DEBT headroom then cannot borrow on market any fund as deficit by selling
UK Gilts as BOND necessary to fund UK Budget.
What the Gov then can
do?
Government for that instance can restore the growth machine that will bring back the mentioned 4% GDP, but since and mostly 90% of UK Parliament are made out of educated fools described by Moliere as well as Bank of England administration who do not have basic knowledge as how the monetary or fiscal policy/system works we have two-bunco-artists as Rishi Sunak and Jeremy Hunt followed by BoE governor Andrew Bailey who claim that they do bring down inflation. As it is shown above Government just use inflation as a tool for UK DEBT headroom upon refinancing the UK DEBT for no other reason then to sell on market gilts and BOND. Government raise and create one way or the other inflation and never bring it down or under control. It is the Market whu absorb inflation upon its reduction.
Well, Primary Dealers simply being afraid of default will not participate in gilts-bond auction, IMF can provide financial assistance for UK but it will be Gov humiliated. So, it is exactly as what Ronald Reagan describe. Government has no choice but to inflate its currency and create the UK National DEBT headroom then balance the Gov books on the required refinancing issue.
Debt Refinancing … In debt refinancing, a borrower applies for a new loan or debt instrument that has better terms than a previous contract and can be used to pay down the previous obligation. An example of a refinancing would be applying for a new, cheaper loan and using the proceeds from that loan to pay off the liabilities from an existing loan. This unique factor has been explained by Michael Howell is the founder and CEO of Crossborder Capital, (click on the J Hunt image to the left for details) a London-based FCA registered, independent research and investment company with over $1 billion assets under management. In government circumstances to refinance its debt having no real money operation it will require to inflate its currency.
So, and now we have Mohamed A.
El-Erian on “X” @elerianm
The UK is no longer in a technical recession. GDP grew by 0.6% in the first
quarter, exiting the mild July-December contraction. Having said that, the
economy’s growth dynamics remain too timid — this after what already has been
too long a period of growth that is insufficiently robust and insufficiently
inclusive/sustainable. Off course Mr. Mohamed A. El-Erian not just is aware as how the system works but is not
able to speak about as will lose his position on Lamestream Media. In stead we
have two-bunco-artists as Rishi Sunak and Jeremy Hunt out of the Downing Street
followed by Andrew Bailey at BoE who claim that “London’s stock market collapse
is ‘massively overstated”
But Albert Einstein said; the law of
mathematic refer to reality but is uncertain. So, if you want to be certain you
must admit that, Jeremy Hunt is
wrong:
Based on the above I can ensure all
of you that if UK of GB want to get out of this quagmire, we have to get rid of
these two-bunco-artists as Rishi Sunak and Jeremy Hunt out of the Downing
Street.
We
can afford 18% pay raise for trade Unions no question about it, we also can
afford to provide for the UK Defense department more than £50bn this year,
either some of you come out with strong believe that we can’t afford
it. The question
rather be for how long we can afford it. In that case you have to consider all
world as debt crisis, and do not forget that.
The
seldom solution is very simple as convert the current debt to liquidity. Let the
liquidity to boost the market upon growth restoration in GDP, with elimination
of the bust part in the boost and bust circle. So, get Ben Wallace in the PM
office we sit-down and talk.
By Peter von
Roggenhausen May 11 2024
Ps. I’m very
sorry for the slow action on posting the news; The reason as usually if the
fund. We so far did not receive any single penny or red cents in donation. This
means that our expenses are covered from the fund we have and loan we have
obtain. I have heard some rumors about the donation you have made to US but I
can ensure you that such never get to US. So, since we do not accept rumors if
you have made any donation ask your band as where it get to? Because we have not
received it. Or you can send to US a copy of the donation and we will trace it
on your behalf.
Oh. Well, as the
people saying “Money talks” … so if we had had the necessary fund, you will have
the right information at the right time.
