British Default: As things go, a British Default is becoming more likely by the day

A British default is becoming more likely by the day. A country that owes trillions of US Dollars, pays billions on a monthly basis and has little to show for a real economy looks increasingly as a ship heading towards the rocks.

John Healey, former Secretary for Defense and now Chancellor of the Exchequer, has very little to be happy about and so do millons of Britons whose lives are turning into a nightmare. Prices that used to be relatively stable are now rising monthly or weekly.

By the time you finish doing your budget, you have to start all over again. If the Chancellor of the Exchequer has even less money to distribute then the risks of job losses and welfare cuts are all too obvious. If this comes together with loss of trust regarding the Pound then the ugly face of Devaluation is all too visible. It is also obvious that is the economy goes drastically downhill then investors trust will evaporate. Investors are already asking for higher and higher returns for public debt.

Reserves? What reserves? When Prime Minister Gordon Brown, former Chancellor of the Exchequer, was in charge then Britain had reserves to deal with the consecuences of an American financial upheaval. He could keep the banking system afloat, but there were many casualties. This time there are no reserves. The ship is going down and there are no lifeboats.

 

China: Britain´s reaction was expected

 

Britain´s reaction was expected

It is not personal. It is just business.

In a New World Order, then each operator is free to choose who to do business with. As EU celebrates a new agreement with India, UK celebrates an agreement with China.

Today, more than ever before, countries are seeking reassurance. With regards to threats of takeover and financial threats, players have decided to go their own way and do business with whoever they can do business with.

In the meantime, the value of the US Dollar keeps falling and investors are running for cover investing in precious metals and in whatever assets they can get hold of that offer them security. In the US, despite disagreements, Democrats and Republicans are doing deals to prevent yet another Federal Budget crisis, but this means surrendering control over an ever rising US debt.

Whatever resources the US can get hold of by invading or threatening other countries, the enormity of the US debt is pushing the value of the US currency lower and lower.

European Energy Rationing and strikes: Sanctions against Russian Federation benefit Russian Federation

 

Europe is shooting itself in the foot: sanctions against Russian Federation benefit Russian Federation

In the midst of a hot summer and talk about environmental crisis caused by rising temperatures leading to fires and meltdown snow caps, people can easily forget that winter will come and that when winter comes energy prices will not only hit the roof because of lack of energy sources. Winter will come with rationing and this will bring with it all kinds of unsavoury situations, conflict and most probably social and political unrest across Europe.

Before there was any talk about rationing, prices were rising steadily and utility bills were hitting consumers that are now going to be told that they not only will have to pay more more the energy they use. They will also have to face the certain possiblity of blackouts.

In Germany, head of industry, trade unions and politicians including the Deputy President of the European Commission are alerting about what is to come. Industries that have to pay higher energy costs and/or industries that are told that they will not have the energy they need to be able to function will face extremely harsh choices. If they decide to reduce operations or if they cannot obtain the energy they need to continue operating, the unavoidable consequence will be mass unemployment.

In Britain, the struggle has already begun. Strikes involving transport will be reinforced by strikes of public sector workers that demand salary rises to cope with galloping inflation. Any salary rises will drain even more an already exhausted treasury. Any loss economic activity will lead to economic losses and will threaten the stability of the British Pound. If the currency collapses, then there will be a double wammy. Britain will pay more for the energy it uses not just because of higher market prices, but because the parity with the US Dollar used to buy oil and gas will be less favourable.

The British government is aware that it will come the time when Britain will be paralized by strikes and this is why legislation is being put through Parliament to counter trade unions to allow agency workers to replace ordinary workers. The problem is that alienating ordinary workers is a leading cause to political and civil unrest and there might not be enough manpower to prevent street battles and widespread violence. By passing such legislation the authorities might be unwittingly creating two sides at war in the United Kingdom.

In the meantime, the witchhunt is already underway. British citizens that utterly disagree with UK policies regarding the Russian Federation are being hunted down and their assets are being frozen and there is even the threat of trials for crimes against humanity. Britain has been encouraging British mercenaries to get involved in the war to attack the Russian Federation, but does not like the fact that British citizens of their own volition actually support the Russian Federation.

Britain is at war with the Russian Federation and sooner than later Britain will pay a very high price for it and the same applies to most countries of the European Union. The idea that Europe and/or Britain can target the Russian Federation without any consequences for Britain and Europe is as naive as the words of Hermann Goering when he promised Adolf Hitler that German cities would never be bombed.

Europe and Britain will have to face the consequences, consequences that could be worse than anything conceivable or predictable. Europe and Britain are moving around with the same self-assurance the inhabitants of Hiroshima and Nagasaki had on the eve of the launching of two atomic bombs.

Just yesterday, both Conservative party contenders for the leadership of the Conservative Party were asked very simplistic questions about Britain involvement in Ukraine. Not even the journalists of the BBC have the brainpower to ask proper questions. The issue was not about sending or not sending the Royal Navy to the Black Sea. The issue is what will happen if Britain is formally involved in the war because sending the Royal Navy would be an act of war. The time for intimidation is gone because any additional actions will actually trigger a European conflict.