Mervyn King © fintag

News comments:
So where should I start?

As I pointed out yesterday, UK Economists are more likely to know the lotto results than predict the UK's economy GDP. The UK is Double Dipping and their are lots of deniers out there. Ed Balls, the Labour shadow chancellor is saying what we all know - when there is fear in the air, we all hide (cityam).

My key gripe is why nobody is admitting that the world's fundamentals are in a bad place. Markets are over valued (plunging gold is a big clue) but the main reason is China.

China is ready to go puff and the DDD gang will soon be sent to Coventry.

China has conveniently been the antidote to western red tape and high labor costs. It has hoovered up the worlds manufacturing and thanks to its fixed currency has boomed on the back of its exports. The ruling party in China is old school. As long as there is growth, for growth is the opium of the masses, then its people will not complain. Coupled with back door imperialism (e.g. buying African land for its commodities) and controlling the USA buy buying its debt, China is a happy white bunny.

But I am alarmed. The Chinese flag waves outside the Bank of China (property week) opposite the Bank of England. The Chinese banks own lots and lots of Chinese real estate, much which is empty and over valued. The Chinese banks don't really bother with Basel 3 or regulation so why should we be treating them as if they were ok?

You see China is about to burst. It may already have for we cannot verify its statistics. We will only know when China starts selling some of its US debt. Once that happens crash 2.0 will be with us. Be warned.

Apology

I have posted some rants about the Bank of England. Now I realise the MPC knew growth was negative and the thought of stagflation was so terrifying they just left rates at 0.5%. So I am sorry for calling the MPC useless. They are just cowards. I mean what would you do?

Unemployment Rising.
Inflation rising and above its competing countries.
Austerity cuts are not even cuts, just a slow in growth in public sector spends.
Falling disposable incomes.
Ageing population.
Obseity epidemic.
Health and Safety epidemic.
Bankers being taken to Tyburn.
Growth turning negative.

Answers on a postcard please to the Complaints Dept, Bank of England, London EC1 UK.

George Osbourne.

He seems like a nice guy but blaming some snow for a dip in growth is a bit pathetic. A quarter is 3 months and it snowed for a couple of weeks. And hardly at all in London. Does he know what he is doing? Is he getting advice from Alan Johnson's body guard?

Today's shorts:
Euro to be broken up by 2016 (bloomberg)

Sky leaking onto youtube to fire deadwood; UK government to do the same (telegraph)

Today's longs:
Mervyn King now runs the UK (bloomberg)

King defends the useless (google / ft.com)

Gossip:
George Obsourne's next excuses will involve the wrong types of leaves and engineering work over runs. And that flock wallpaper is now in fashion.