Tuesday 14 October 2008

Foggy Bottom

The world is saved. The bank (HSBC) in England pays all and any charges, recurring or unexpected, like clockwork, accurately, and refers back if in doubt. The bank here ditto plus invites to soirees, openings of newly refurbished palaces with restored artworks to die for, and shindigs in general to encourage the clientele. Here too, if I want to buy gold the streets are paved with the stuff, or at least the local banks are tooled up to provide it on demand.

And yet, and yet what sense of unease has driven the withdrawal of enough cash to meet wage bills and expected outgoings up to Christmas?

It's all so nebulous. The sums being bandied about are certainly very large, but apart from not seeming anywhere near large enough for what they are ostensibly buying, they are also so arbitrary. Public announcements, statements to the press are dripping with conditionals and intent. And so little is backed up by having been agreed by parliaments and democratic bodies empowered to agree such deals. The conceptual and legal foundations of our society have become ill-defined, outlined in fuzz - property, contract, debt; and the second rank - honesty, probity, reliability, redress. All are going in and out of focus, flickering on and off.

On the whole, it feels better to be sure no-one who has given their labour will be denied their wages because of events beyond control. The only worry now is remembering where the cash is stashed.

3 comments:

Sackerson said...

Suddenly there's no end of money to throw into the system. When we lose touch with reality like that... Whome the Gods would destroy, they first make mad.

hatfield girl said...

This is a panicked, though rational reaction to unexpected and unfathomable events. It might work by virtue of its sheer novelty - co-ordinated, global response has never been attempted before.

The cost could be anywhere between zero and infinity. All the figures mentioned are just pulled out of the air - contingent liabilities are unknown. Yet only Mr Tremonti has refused to give a figure, merely stating that he will spend what is necessary.

Indeed only Berlusconi, Tremonti and Draghi are acting in the real world. The Italian Prime Minister has stated the political goal - nothing to be lost directly by Italian citizens, certainly no nose-dive for the Italian economy - an agenda which he will sell. The banker and the minister of finance are to do their job, discreetly and and efficiently. Unpleasant tax implications may follow but that's another day.
In Germany they are embroiled in a federal political row over who is in charge, and in containing the powers of the state. In America they have taken the Paulson money and are using it as and how they choose, but not for what it was voted for. In the UK? Who knows?

Elby the Beserk said...

Good Lord! Someone in the MSM has fingered Brown.

Tip of the hat to Mr. Finkelstein

http://www.timesonline.co.uk/tol/comment/columnists/daniel_finkelstein/article4944288.ece

for telling it like it is.

Excerpt. You really could not make this up ...

On Saturday the results of an encounter between the journalist Allison Pearson and Gordon Brown were published. After a load of the usual stuff about eating cold lamb chops with his children and so forth, they finally get down to business. Pearson asks if the Prime Minister “if he has any regrets about his boast: ‘No more boom and bust'”.

And here is his priceless reply: “I actually said: ‘No more Tory boom and bust'.” Yes, that really was what he told her.

God help us all.