Paper Promises by Philip Coggan
Doomsday merchants think something like a stratospheric asteroid will hit the planet and crumble us to dust. Real armageddon is likely to come in another form – the collapse of the current financial system. It’s not a case of if, but when. Coogan is a former FT journalist and is a columnist at The Economist and certainly no swivel-eyed prophet-of-doom. The book spells out what got us into this mess and the only ways out – and they are not good. There will be a financial realignment which could incluide currencies, hyperinflation or even a new system. The levels of debt can now never be repaid. The catastrophe could possibly be triggered by China calling in its U.S. debts. Current monetary policies championed by Bank of England buffoon Mark Carney are merely putting off the crisis till tomorrow. Zero interest rates and printing money means we are ultimately heading one way – and it ain’t up. Consider the FTSE 100 share index is virtually at an all time high – while productivity and growth are on the floor. This is the classic sign of an asset bubble not based on sound underlying growth. In the past two weeks I have liquidated all shares I owned – getting out while they are making a profit. Coggan warned a parliamentary select committee that pensions are in dire trouble – my children almost certaibnly will not have a State pension to look forward to. The politicians will put off what needs doing. That’s what they always do. s I don’t know where, I don’t know when but I know we’ll meet our end some sunny day.