Tuesday, June 10, 2008

There is no such thing as a joke #147

17 comments:

Merkin said...

Aaah, but the Fed Reserve is a private company, no?

Stef said...

si

Stef said...

of course, unlike the Fed, the Bank of England is publicly owned and publicly controlled

Stef said...

thank you, thank you

I'll be here all week

Stef said...

the 'joke' in the clip does actually get things the wrong way round as the US government borrows money from the Fed and the banks that co-own the Fed, rather than the other way round, and that money is made up out of thin air and charged with interest

something similar happens virtually everywhere else

presumably the scriptwriters didn't like hospital food

Merkin said...

Oh well, maybe my humour glands were not in working order at the time.

I had just returned after a beer and the football.
Was sitting in a local place which is home to all political colours. Very interesting in that all concerned were starting to consider the possibility of Martial law at some point.

Having been in hospital a coupla times in recent history, I can definitely say that hospital food is far better than that which can be scavenged from the bins outside Kentucky Fried and Pizda Hut.

Stef said...

I was at Guys Hospital yesterday and they've got a McDonalds on site

but they do salads so that's OK

Anonymous said...

IIRC, The Fed (and other central banks I think) does in a way 'borrow' public debt by 'buying' govt bonds, which it uses as collateral to generate 'money' it lends back to the govt, which then gets finally printed for purchasing things (I think?).
The initial borrowing/buying/money is sleight of hand..(I think??). Oh well, can't blame the script-writers for at least having a stab, even if they got it wrong essentially.

ziz said...

The joke is surely that the folks think that those bits of paper they call Balance Sheets that the banks produce fromm time to time are not failed entrants to the Booker Prize for Fiction.

Take for example only one bank - Lehman Bros...Q 1 they declare a "profit" of US489 Million.

Q2 - ooooops there is some assets in the cupboard that 3 months ago were worth US$6 Billion MORE than at the end of Q2 (and that is 33% of their Market Value aas a company) which means they actually made a loss this Q of US $2.8 billion, or US $5.14 a share - which is bad news if you are a sharehiolder because they are sliding today and are worth approx US$25 a share.

So that's six thousand million fucking dollars they declared on their Balance sheet for the last day in February which has migically disappeared , like snow in the spring.

Of course it didn't...at some time it had appeared just as fucking magically - just like the oil reserves that Shell Oil's main board kept declaring ... and Northern Rock, and B&B and HBOS and Barclays and .....

Stef said...

@ziz

I'll have you know that I once earned a living verifying such fables and I can assure you that it all exists, every last penny and drop of it

Stef said...

thank you, thank you

I'll be here all week

Stef said...

and I'll let you in on a secret you're almost certainly already aware of - it's not the rubbish that's currently included in balance sheets that's going to bring everything down - it's the stuff that's been kept off the balance sheets

Anonymous said...

Of course if the Bank of England was really owned by the government(ie us) we wouldn't be paying £30+ billion in interest payments back to ourselves every year. Because that would be daft.

Stef said...

lol

ziz said...

Anon @ 19.15

Regettably you don't understand the very very precise and very very complex practice of accounting.

It requires remarkable skill in the use of the Monbiot Calculus. briefly this states . Think of a number make it bigger.

In the Current climate Change it is perhaps better top use the reverse Polish Notation of Monbiot's Calculus...Think of a number ... make it smaller.

Very, very useful tool your plain vanilla Monbiot Calculus or MC. Can be applied to MP's expenses, Jonathan Woss's salary, fat female TV star's waistlines, prices in Tesco, price of petrol anywhere, number of polar bears dying every day, goals scored by Ronaldo .. in fact Einstein used it as a combined variable in his magic formula E=mc 2

Which easily rounds to 42 which is as we know the number of days you need to stay in prison before you can discover the secret of the Universe - but which by applying MC will shortly be 90 days and probably very shortly after , the rest of your life.

Stef said...

Douglas Adams was asked many times during his career why he chose the number 42. Many theories were proposed, but he rejected them all. On November 3, 1993, he gave an answer on alt.fan.douglas-adams:

The answer to this is very simple. It was a joke. It had to be a number, an ordinary, smallish number, and I chose that one. Binary representations, base thirteen, Tibetan monks are all complete nonsense. I sat at my desk, stared into the garden and thought '42 will do.' I typed it out. End of story.


I heard David Millitwunt advancing exactly the same argument on tele only a few days ago

Anonymous said...

Boris made exactly the same analogy when he was sat between Doctor Who and a Dalek whilst berating Jackie Smith on the Andrew Marr show the other day. Actually I think I may have dreamt that.