No Money, But Still on a Spending Spree

Nobody has any money, right? Well, nobody except the Federal Reserve and what they can print as fast as possible and what Ben Bernanke has stuffed in his pockets along the way perhaps for a job well done (!). The banks have the money and the banksters have made more money with the money that the Federal Reserve printed and that the government has condoned as a way to get us out of the predicament that they got us into in the first place. Complicated? Lost along the way? That was the idea of the state to pull the wool over everyone’s eyes. They got that right at least. It comes to something when the government gives money to the people that were the cause of the financial crisis in the first place. But, jobs for the boys, pats on the back and back-handers are the stuff that make up this wonderful world of fairytale land that we live in.

Spending

Christmas Spending Spree

Christmas Spending Spree

But, it’s true we hear day in and day out that we, the people, have no money left. But, the spending spree is still on and the people are spending like money was going to go out of fashion. Maybe it is, or has even, already been thrown to the wind.

Shoppers spent 4% less in the US over the Thanksgiving period and the shops were screaming that it was a sluggish start to the festive season. But that’s the first fall in money spent over that period since 2009 (which is revealing in itself, signaling that perhaps we have even less money than before).

  • In 2007/2008 the financial crisis hot, but we slowed down our spending for fear of losing out in the future, putting the money away.
  • Then we ate into our savings and carried on spending as if the economy were going to get better.
  • Now we are at rock bottom and the economy has just stayed the same. The only alternative is to spend and take the example from the state: spend on credit.

What did they expect? The economy is sluggish so the people are sluggish.

US-UK

Then, the hype started about how much Cyber Monday was going to bring in and then when it happened just by how much the British out-spent the Americans; as if it were some race to spend the most.

Consumerism is back, but the money still isn’t there.

  • But, the British just like the US have nothing to write home about this Christmas.
  • 21% of those that are working are still earning less than the living wage in the country according to experts.
  • Part-time jobs and unpaid or zero-hours contracts are the normality of this seasonal cheer.
  • 13 million British people are ranked as poor in the country.
  • Yet, 50% of those 13 million live in households where people actually have jobs.

Spending and yet nothing to back it up is a recipe for a fat pudding that will go bang with the crackers on Christmas Day and there won’t be any crackling on the meat. It will just be flesh and bones of a long-term economic decline. But rejoice all ye faithful while you shop. It brings a momentary fleeting moment of joy, comfort and joy.

Spending in the UK is estimated to rise by 3.5% year on year this December to £40.3 billion. Sales in the USA are predicted to increase over the same period to $602 billion, meaning a 3.9% increase.

But, we have no money; we, being the people. The stuff that governments are made of; government of the people by the people for the people. Great speeches are always tantamount to myth-creations and the Gettysburg Address was nothing else than that.

Right now, we perhaps have only ourselves to blame for allowing governments to take over the people rather than the other way round. Revolutions never happen unless the people are so down-trodden that they have nothing else to lose. Right now, the people still have everything to lose: they are holding on very tightly to the credit card(s) sticking out of their back pockets. When they realize that that too will go up in smoke, revolution might happen and the old order might be ousted (probably only to be replaced by another order that will drip-feed the people on what they fought their bloody revolutionary battle for only enough to keep the pigs at bay).

Until then, no money, but happy shopping for the festive season! Just about the only think for Christmas that most people will be getting is: DEBT.

About The Author

tothetick

Professional team of writers/analysts analyzing the financial markets.

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