Thursday, November 17, 2011

The March of the Technocrats

Oh no, not another new term to try to confuse us. OK, so it may have been around a while, but it's fairly new to me. 'Politician' or 'Eurocrat' or even 'Banker' doesn't seem to do it now. All of those have lost credibility. Step up to the plate Oh New Saviors of the World.

The Technocrat.

Impressed? Going to now lay down all those large sums of money you have been keeping safe in gold and US dollars and with joyous abandon invest in every risky thing you can buy?

Well, they are here. Be scared, very scared. Notice the pictures of  new Italian Prime Minister, Mario Monti, with of all his wise old men, looking experienced and trustworthy and serious. Ready to fix the Italian debt problems. Ready to calm the fears of eurozone frailty. The last throw of the dice, the March of the Technocrats.

The headlines further descibe Monti as a 'distinguished liberal economist, ex European Commissioner etc. A man for the occassion if ever there was one.

Europe is losing the plot. It is desperate days. The Germans are increasing their influence over the 'bad' boys of debt. Increasingly walking over their democratic rights. Greece tried to ask it's people about the bailout. No go sorry, you are in debt to us, you do what we say. European advisors are already crawling all over Greece controlling spending and looking at assets to grab.

Added to this, we see the ECB being increasingly pressured to monetise Italy's debt; that is to print money to buy Italy's bonds to bring down the interest rates from over 7% (death spiral material) to at least 5%. The ECB is under pressure to go the whole hog and blitz the debt of Europe with newly printed money. Half-hearted measures are not working. Moreover, the new EFSF fund turned out to be a complete joke. It couldn't even raise €3 Billion of it's €1.2 trillion. The ECB has to step in to help the first auction.

The new scheme isn't going to work. You can bring in Technocrats, Aristocrats, Eurocrats or Bereaucrats in, but none will be able to magically blast away the debt.

Remember the suffx "crat" means to "rule". So does this mean we now have technocracy instead of a democracy. Yes, correct. The old sayings are always true. "The debtor is slave to the master". Owe money, owe your very rights to existence. The technocrats, like the martians in 'The War of the Worlds' are coming to a country near you.

Gold in New Zealand dollars: $2303.90 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $44.08 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)

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