Tuesday, 12 March 2013



Delivering a head prefect’s put-down to his colleague Vince Cable, an experienced and skilled economist, who was arguing last week for more investment by government (Keynesian economics) into UK jobs – Trust Fund babe, posh public schoolboy and Prime Minister, David Cameron said “Some people seem to think there is a magic money tree. Well, let me tell you – there isn’t

Thus he demonstrated yet again that head prefects may be the richest but are not always the brightest kids on the block.

He fails to understand that money does indeed, and only, grows on trees – or on similar God given growing plants. He fails to understand that “The Mountains of Debt” that give him nightmares, are owed to the savers in his own country. We borrow back our own money – mostly from our Pension Funds. Government is hired to keep it all in balance and in healthy circulation.


Money is simply and only bookkeeping – whether the money is made of paper or gold or diamonds; or cowry shells or knots on a string. It is ONLY a means of keeping count of assets – of good things that we want and value. Money is a sophisticated step up from swapping things, such as bushels of wheat, braces of pheasants, roofing tiles, carts, cars, houses, cattle and wives and daughters. Instead of paying a restaurant bill with a BMW front wheel complete with locking nuts, we hand over $250 printed on paper; because it is more convenient and more rapidly greases the wheels of commerce.

The value behind money, underwriting money, and the reasons for trusting the value of money – are that 80% of the real-economy value comes from God – it does grow on trees, or sits in the ground. If it is edible – it almost certainly grew to be edible by absorbing sunlight and rain – on a tree, bush, shrub or stalk. If it is useful for making cars or pocket computers – it almost certainly came out of the ground as metals or rare earths; where God or the Universe left them for our convenience. God provides 80% of the real value.

The other 20% of the real value in the real-economy is human ingenuity, human sweat, human toil and human relationships, cooperation and integrity. Some lowly humble person, maybe Vince Cable, picks the crops or digs the metal – invents new and enticing things; renders them cleverly into shiny cell-phones or irresistible restaurant platters – or yummy chocolates – and offers them to his fellow humans.

From the contributions of sunlight, the planet Earth, some unimaginably complex weather systems – and Vince Cable’s ceaseless toil – we get nice things; God is in His (or Her) Heaven and all is right with the World. Our wealth does indeed grow on trees.

Then we get the plagues of bent bookkeepers. These are the people who prey on and pervert the processes of us converting the real-economy, with all its nice but unwieldy things that are difficult to swap without the intervention of “money”.  Now we get the bankers, the politicians, the gangs of Party loyalists, the lawyers, the bent accountants and auditors, the bribed bookkeepers – and hordes of their neophytes, familiars, vampires and leeches. They sit in the money circulation major arteries and suck the real-economy host dry – almost to the point of death. In some cases they do kill the host – and crawl away to infest another. 

These bean counters are vital and valuable if they are honest and reliable. When they become dishonest and unreliable and incredible – the money they offer as an intermediary swap for real things becomes valueless. At that stage the paper-money people, the crooks, have to be culled and eliminated. All their warped records of our real-transactions become null and void. They all have to be disposed of – and the real-economy starts again. New money is created and new ethical rules are introduced – and the World is peaceful, busy and wealthy for a new era – until the bookkeepers become corrupt again. The Information Society may be bringing these tedious fifty year cycles of petty crime and fiddling the books, stretching back over 5,000 years, to an end; then we can get on and become a consistently wealthy world.

Money is printed by governments to account for and represent the real things in the real economy. We hire the governors and bookkeepers to do this honestly and accurately. They become corrupt. We dispose of them – and start afresh.

The Sun continues to pour infinite energy on an almost limitless Earth and the majority of people happily add to the common-wealth and consume only a fair share. But, when society has too many takers and hoarders and not enough makers and sharers – we get bloody and destructive revolutions. Don’t get Even – get Mad!

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