'Elizabeth the Great': A Final Farewell – SPECIAL EDITION – In Liz We Truss-Ted – Mini Budget Disaster – WEF ESG Agenda – The Fed's Dilemma – "We'll be Skint this Winter!" - Letter from Great Britain
"If I don't know - I can't act" – Knowledge of The Word is Spiritual Power
HISTORIC EVENT OF THE WEEK: Our late Queen Elizabeth II rested in state last week on display for the people to mourn her passing. A digital “queue tracker” used by the government indicated that the length of the queue to pay respects to Queen Elizabeth II was at one point longer than 16km. At its longest, the wait time was more than 24 hours.
People across the country and the world prepared to pay their final respects to Queen Elizabeth II as she was laid to rest in her state funeral on September 19. The monarch had been lying in state at Westminster Hall since Wednesday, with mourners queuing across London to pay their respects.
The funeral saw our late Queen laid to rest alongside her late husband, the Duke of Edinburgh, following the ceremony at Westminster Abbey. A procession carrying her coffin was a short distance from Westminster Hall, around Parliament Square to the Abbey shortly before 11am. As many as 2,000 guests attended the funeral service at the site of the Queen's coronation in 1953.
The coffin was then conveyed by hearse to Windsor Castle from whence it entered St George's Chapel for a committal service. Later in the evening, at a private family service, the Queen was buried beside the Duke of Edinburgh, at the King George VI memorial chapel, located inside St George's Chapel.
I add here my own prayers and grateful thanks for the most exceptional monarch in history. It has been my privilege to have been born in time for me to witness and enjoy our Queen's coronation at the age of 9, when only one house in our street had a 9" TV. We all squeezed into the tiny living room with children having a priority front seat. I remember it as if it were yesterday.
Our dear Queen Elizabeth II has cared for and nurtured all her subjects with a love and kindness that is an inspiration for all us Brits, and indeed for the Commonwealth and the world in general. I hope and pray that the passing of 'Elizabeth the Great', with an unmatched display of true British, ancient pomp and ceremony over the last two weeks, encourages all our global leaders to look deep into their hearts for guidance, inspiration and courage to do the right thing in the coming years; forsaking conflict, war and genocide.
Under our gracious King Charles III perhaps a new era of humanitarian reconciliation, peace and harmony will emerge offering relief where there is deprivation, comfort where there is pain, and spiritual succour where there is a loss of faith in our Almighty Creator; blessings to everyone.
OT – FYI - THOUGHT FOR THE WEEK: Is Errol Musk (Elon Musk's controversial father) as bad as Elon makes out? Here is an in-depth history of Errol's colourful life with his tumultuous sexual adventures: https://www.insidehook.com/article/history/errol-musk-elon-father-myths I knew Errol well at the False Bay Yacht Club, Simons Town, in the mid-2000s when he bought my lovely world-cruiser yacht, 'Do-It-Now', and as always there is a story behind the name. It was a loss to me as great as losing a cherished friend which will always mark my heart much as the passing of our beloved Queen has this week.
BREAKING NEWS: Liz Truss was at the UN this week and achieved precisely nothing. But yesterday we saw an even greater non-event – 'THE MINI BUDGET'. Having waited in trepidation for two weeks of ceremony to end, we have had delivered a 'budget' that wasn't for Joe Public to say the least. We should not have been surprised that the rich will get richer whilst the poor bloody workers will pay, as has ever been the case for centuries. This is a first impression: https://www.theguardian.com/uk-news/2022/sep/23/kwarteng-accused-of-reckless-mini-budget-for-the-rich-as-pound-crashes
The Tory Budget delivered bonuses for the Banksters, tax cuts for those who had no reason or justification to bank even more money than they have already, and miniscule cuts to NI contributions which had already been raised by Sunak (with the plan to 'fund the NHS) but this too has gone out of the window. So I guess the NHS and the care homes will have to 'march on as to war':
I haven't yet had time to look deeply into our new Chancellor's motivations, but I suspect a loose connection with WEF. I think the Guardian, on September 6, had a good forecast of what Kwarteng would do with his first budget (mini?) on Friday, and it looks like they got it bang on target. https://www.theguardian.com/politics/2022/sep/06/kwasi-kwarteng-free-marketeer-and-truss-ideological-soulmate-becomes-chancellor
"Kwarteng last year called a “libertarian in rhetoric but social-democratic in delivery” by the free market 'Institute for Economic Affairs', over his interventionist stance as business secretary. However, his promotion to the most powerful government role behind the PM – and with a hand-in-glove relationship with his Downing Street ally – could give Kwarteng more scope to put his credentials as an advocate for liberal economics into practice.
Alongside the soothing message for City investors in the FT, Kwarteng issued a warning shot that redistributing the proceeds of economic growth – helping rich and poor benefit from rising prosperity – would take a distinct backseat under a Truss government.
“We will get a super-state to fire a competitive market economy. [That’s] not particularly Conservative,” says Ryan Shorthouse, the chief executive of Bright Blue, a liberal Tory thinktank. “But, with major tax cuts for high earners and large companies, [it’s] not especially socially democratic either.”
And so it has proved to be in yesterday's announced "minimum-budget". The problem of course is that their fiscal strategy relies entirely on 'economic growth' to deliver 'trickle-down prosperity'. But those who know the truth, know that this can't happen, because economic growth ceased in 2000! We all know that politicians are several decades behind the curve and "Trussian Thatcherite Economics™" (TTE) can never work, they haven't worked in the past and they certainly won't in the coming years remaining to this Parliament.
But that's all OK, because the "rich get richer and the poor get stuffed" is all you need to know and the Bankster-robber-barons win again – as always. But this time, I predict a winter of such severe discontent that Truss & Co will be seeing their arses in the gutter before the end of 2023. I know, as do many observers, that a Great Depression II is on the way for the western world and I don't believe there is anything the 'Masters of the Financial Universe' will be able to mask it this time like they did in 2008/9. Tory backbenchers despair at toxic mini-budget
I believe that the days of pronouncing a glittering future relying on 'growth' have already long passed, but it appears that nobody has told our politicians and there are those who disagree. The markets know the truth of course which is reflected in Friday's market moves: The GBP has fallen to an historic low of 1.90/US$ with FTSE Futures being desperate at: 7,018.6 – we can only await next week's market response when these initial shocks have dispersed and the Spectre of market 'rational' thinking gains the upper hand.
BUT ON THE OTHER HAND– Let's think again and maybe give Liz & Co the benefit of the doubt? Is it possible that this new Tory economic strategy, as some pundits say (the rich ones) could actually work? In the interests of providing my readers with both sides of the argument; spend just 5 minutes viewing this video for an optimistic view of 'capitalism':
I will leave it in the hands of the Gods (as you understand them) to see how our future unfolds as global chaos reigns supreme.
Of course, the presenter doesn't understand, or fails to admit, that the price we have paid for all these material benefits (which cannot be denied, at least in the West) is the complete loss of our spiritual well-being. You only have to look around to see the results of the tremendous advances in technology and its misuse to such extremes that the very fabric of our civilisation is tearing itself to pieces one bit at a time.
IN THIS RESPECT; THE WEF IS PROMOTING THEIR 'ESG' AGENDA as one of its many octopus-tentacles seeking anything that smells like money ably supported by the likes of Goldman Sachs who were the original targets of that monicker. ESG stands for Environmental, Social, and Governance. Investors are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities. ESG is fully described here.
But now, under the new 'Woke Industrial Complex' it seems that the original profit incentive of an entrepreneurial enterprise is to be expanded to include just about everybody-and-his-dog to satisfy the parasitic non-producers like Klaus Schwab's mafia rent-seeking billionaires in the World Economic Forum (WEF).
In 1970, economist Milton Friedman wrote an famous article with the headline “Responsibility of 'Business' is to increase its Profits”. Friedman’s view was challenged then, but now is dismissed by most, replaced by the UN Agenda 2030 of which ESG is part.
'The Business Roundtable', a leading organisation of CEOs in America endorsed 'stakeholder capitalism' as far back as 2019, putting the interests of employees, customers, suppliers and communities on a par with shareholders. The board at the time included the chairs of Walmart, General Motors, Apple and Cisco.
But what exactly was Friedman arguing when he wrote: “What does it mean to say that the corporate executive has a “social responsibility” in his capacity as businessman? If this statement is not pure rhetoric, it must mean that he is to act in some way that is not in the interest of his employers.”
Friedman suggested a simulacrum of a 'tax', suggesting that if executives were acting in the furtherance of a social good, they were effectively imposing a tax on shareholders by producing fewer profits or on consumers, by producing more expensive products. How are managers supposed to decide upon which social interest group to expend this 'tax'? Friedman argued for a government to make these allocations and not business executives.
In response to the 'Business Roundtable' statement, there has been plenty of criticism following this line of thought: “Focusing on shareholder value is the social cause because it leads to the greatest amount of wealth creation. As corporations and their shareholders maximize wealth, resources flow into the economy in ways that necessarily increase overall social welfare,” argued George Mason University professor Donald Kochan only last year.
I suspect this view is not now mainstream; almost all corporations at least nominally support the notion of corporate social responsibility, and that idea is now more explicitly expounded in the idea of ESG – [environmental, social, and governance]. This change happened possibly for these main reasons:
· First, there has been a new realisation about the extent of “externalities”, particularly as part of climate change. Externalities are the consequence of the production of goods that result in costs to unrelated third parties. This is obvious with the climate crisis where climate change is the external consequence of, for example, oil companies' narrow pursuit of profit.
· Second for the change is the increased scepticism over the ability of governments to adequately deal with all the multiple challenges of modern society, which was Friedman's solution.
· Third, the 'democratisation' of the investment sector, and particularly the increase in retail investors, has resulted in incentivising companies to act in ways proportionate with citizens' interests beyond just profits.
· Fourth, the investment industry has an interest in projecting longer term returns than those of corporate executives. It's no accident that some of the most ardent supporters of ESG are investment houses, especially the likes of Blackrock.
But the mainstream support of ESG doesn’t solve all the problems, and in fact it does somewhat highlight Friedman’s objections. The famous recent tweet by Elon Musk, on the occasion of Tesla being dropped from the S&P 500 ESG Index, was "certifiably bonkers" because Tesla's objective, and indeed its fundamental goal, is to reduce 'greenhouse gasses'. Well that is what Musk claims but I suspect that the generous US subsidies had a lot to do with it, regardless of the apparent 'environmental' benefits.
Musk says: “ESG is a scam. It has been weaponized by phoney social justice warriors,” he wrote, pointing to the inclusion of six oil companies on the index, and claiming that a good “ESG score” amounts to a business' compliance with the leftist agenda. Observers say: “If we don't have social justice, everything we are trying to build will not be sustainable,” It's impossible to live in a western country and ignore these issues because they are rammed down our throats by the likes of the WEF cabal.
What I question is whether the E-S- and G are compatible measures in themselves. It is far from easy to build the aspired objectives with such a broad measure to expect everything. even vaguely related to corporate ethics. to fit into a single box? Is it practical, or even feasible, to compare in the same index a massive and global environmental compliance scheme with something much more specific to a particular national and corporate context like even an individual company? Certainly Elon Musk thinks so which rather endorses his conclusion that ESG is some kind of yet another fraudulent magic pill to extend the failing health of a collapsing global financial system initiated as a result of the 2008 GFC.
A further criticism returns to Friedman's original issue: ESG should offer a way of reducing the accountability of government for its part in the system. And is thus an acknowledgement of failed government policies which have been so visibly exposed in Britain over the last 12 years of crass Tory mismanagement.
Regardless whether ESG is the scam that Musk perceives or not, you can be sure the 'Masters of the Global Financial Universe' will be promoting it with all the considerable force and propaganda at their disposal. And thus it will be at the forefront of the multi-facetted Great Reset, with yet another frontier of the 4th Industrial Revolution.
THE KEY GLOBAL ISSUE THIS WEEK, discounting our dear Queen's laying to rest, was the Fed's rate hike on Wednesday. Dr. Thomas Hoenig was the longest-serving Federal Reserve president ever. Perhaps it's worth listening to what he says about the dilemma facing central bankers today. He suggests that the Fed is running the risk of tightening the economy into a deep recession or otherwise allowing high inflation to become so ingrained that even a Volker-style magic pill will fail this time around.
According to Dr. Hoenig, it’s a double-edged sword brought on by the excess of the QE era and I agree as I have persistently written over the years. He compares our present economic circumstances with the 1970s, while identifying mistakes the Fed must avoid repeating.
· “The current Chairman says that he is going to follow Paul Volcker's example, and the FOMC is going to stamp out inflation. And that is its only priority. Now, the real test is follow-through.”
· According to Dr. Hoenig, the politicisation of the Fed complicates policy decisions and calls the committee’s credibility into question.
· Do you remember 1971, when Nixon was forced to finally abandon the remaining elements of the gold standard? Any rule-based method of controlling the expansion of money leaves it in the hands of a committee which will inevitably become politicalised such as to produce the proverbial camel when a horse was the first objective.
· “All central banks globally have a political element to them now, because it’s all driven by fiat currency and committee decisions. There's no external system of rules, and that means the test of actually following through is going to be a serious test.”
INFLATION WATCH: Joe Public is being led to believe that the Russian SMO in February is the consummate reason for the rise in inflation and thus the cause of our cost-of-living crisis. Whilst it certainly hasn't helped, inflation was rising long before Mr Putin's actions to secure his borders.
Have a look at the graph is this short article linked below and you will see inflation suddenly escalating from April 2021 – now what do you think caused this? Suggestions on a post card – answer given next week https://www.theguardian.com/business/2022/sep/14/uk-inflation-falls-amid-cost-of-living-crisis (Hint, it's not what the mainstream will tell you but then, they're not Austrian Economists)
COLLAPSE MONITOR: Our 12 million British Pensioners are at the sharp end of this ongoing economic collapse https://www.theguardian.com/society/2022/sep/14/ive-always-thrown-myself-into-work-now-it-keeps-me-alive-the-over-65s-forced-to-join-the-great-unretirement
"We will be skint this winter" – read here one family’s struggle to manage in a cost-of-living crisis which the Truss Mini-Budget has patently failed to not only address, but will put the very structure of our fragile society at risk to such an extent that, like the last riots against Maggie's Poll Tax, saw her gone within months, I predict Truss will be gone before the next election. https://www.theguardian.com/business/2022/sep/14/we-will-be-skint-this-winter-one-family-struggle-to-manage-in-cost-of-living-crisis
THE NARRATIVE BATTLE: More than 350,000 Communist teachers are working hard to "debunk" our "Digital Army" of Truthers. Here's a great analysis, starring Climate Change™, Fact Checkers™, the new Checkology™ curriculum, Wikipedia, and the LGBTQP gang, as well as the usual suspects: https://www.realhistorychan.com/anyt-09132022.html
COVID NEWS DAILY UPDATE AT: Covid aggregator website:
https://cmnnews.org/
UNTIL NEXT WEEK: Links to my books: “The Financial Jigsaw”: Scroll at: https://www.researchgate.net/publication/358117070_THE_FINANCIAL_JIGSAW_-_PART_1_-_4th_Edition_2020 including regular updates. Archive & Finance articles are HERE For free PDF copy e-Books, Parts 1 & 2, email; peter@underco.co.uk
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ESG has forced a number of bad business decisions to satisfy demands of Blackrock. But it seems even Exxon has overcome the placement of green board members because they have returned to their business of exploiting energy. It seems that ESG notions and climate change dominate discussion until we discover green isn't quite ready. The wheels were set in motion `~ 5 years ago and investments not made over that time will harm us now. Provides a bit of time to regret and learn. Then perhaps the next big thing.
On finances we all have borrowed beyond our means yet can spend beyond belief on causes and adverts. Likely a real waste of resources better used to actually improve life. We need greater investment in production and creation of useful products to improve life and the environment. Our politicians it seems are now owned and appear to be of the third generation which squanders the wealth created by the first. That then results in another first to rebuild for the next 100 years or so it might seem. There were once books that discussed these rather broad cycles of development.