This is a story about the pecking order...

Respect my authority. I did well in school and I've risen up the chain of command. I have stripes on my epaulettes and letters after my name. I've got a fancy job title and I'm very well paid. Don't-you-know-who-I-am and I'm oh-so-superior to the likes of you. Back in your place, underling. Get back in line.

Our systems of population control breed subservience. Why don't the workers rise up and seize the means of production?

"I'm not good with numbers"

"I've got no interest in politics"

"I just keep my head down and do what I'm told"

Could there be anything more degrading than having your fellow human beings sitting in judgement over you? Who are they to say "yay" or "nay" on the question of your utility? How dare they decide your fate!

Job insecurity keeps wages down, because workers develop a misplaced sense of gratitude for their income. In hard economic terms, workers get a terrible deal: they do all the work and they only see a tiny fraction of the profit. Why on earth would they do that?

"You're easily replaced"

Yes. While I dislike people who attempt to make themselves into key-man dependencies and build little fiefdoms of complexity to make themselves indispensable, I also think that the commodification of human beings is one of the most awful things that's happening in the modern world.

What happened to the artisan; the craftsman?

Small is beautiful, in a way. Think back to a time when each village had a butcher, a baker and a candlestick maker. There was the blacksmith, the miller, the cobbler, the tailor, the farrier, the thatcher. There were apprentices aplenty and sons followed in their father's footsteps.

Of course, it's easy to bring up infant mortality and the large number of women who died during childbirth. Infections and treatable diseases used to be fatal. In the past, manual labour, poor diet and poor healthcare, meant that life expectancy was much lower. People were superstitious and afraid of death and disease. Nobody went skydiving.

Now, nobody has any place. We live with terrible insecurity. We could lose our jobs and have our homes repossessed at any moment. If your job becomes redundant due to ever-advancing technological changes and globalisation, you're unlikely to be able to afford to retrain. Besides, how would you ever even compete with all the people who are already trained and vying for the few available jobs?

What's the purpose of anything? What meaning is there to anything?

It was pretty clear why you got up at the crack of dawn to light the fire in the ovens: because if you didn't, people wouldn't have any bread and they'd be pissed off about that. In the village, everybody would be like "no fucking bread" and "yeah, I know. Shit isn't it!"

Now, why did you work hard at school, go to university, battle through those job interviews and kiss arses as you squirmed your way up the greasy pole; the career ladder? So you can punch numbers into a spreadsheet and give powerpoint presentations? So you can go to meetings and sit on cramped commuter trains? So you can eat pre-packaged sandwiches at your desk, getting crumbs all over the keyboard? Why the fuck are you even alive? What's the point of your existence?

If you're trying to get a fancier car so you can impress your friends and neighbours, or if you're trying to get a pay rise and a promotion, so you can 'win' and brag about how rich and successful you are, then perhaps you've found your purpose. Perhaps status symbols and meaningless job titles are the answer to the big question: why are we here?

What happens when it all goes bang and the whole fucking mess comes tumbling down? What happens when you realise you wasted your whole fucking life? You can't eat university diplomas or bonds or banknotes. You can't keep a house warm with supply chain statistics or flow diagrams. You can't live in an insurance certificate or legal contract. You can't clothe yourself with tax returns, essays, dissertations or theses.

Our world has divided into two camps: the celebrities and the nobodies; the powerful and the powerless; the rich and the poor; the smart and the stupid; the valuable and the valueless.

Did you ever notice how anybody who's anybody is rich, famous, powerful, smart and incredibly valuable to humanity, and everybody else is a worthless nobody who can go to hell? "Everybody else" accounts for 99% of the world's population, by the way.

Who wants to read the autobiography of Ahmad who sits behind the counter at my local dry cleaner? He must be pretty stupid if he's not powerful or rich. He's not famous so he can't have any value. He knows his place, which is about the only good thing we can say about him, right?

Modern society has led to city living because of economies of scale. It makes sense to have a multi-billion dollar mass transit system in a city, to make it easy for everybody to get to work efficiently. It makes sense to build all the high-rise head offices that can hold thousands of people, in one place. The net result is urban solitude and anonymity. Nobody knows who their neighbours are. Nobody knows who the local shopkeepers are. Nobody knows anybody, except the rich famous people who are the only ones with any value: they're indispensable.

One face is the same as another. Two workers who've held the same job title are interchangeable. Hire and fire. Who gives a fuck... human lives are cheap. Make the balloon go higher by chucking more bodies onto the fire.

We are running our economy by the numbers: we're wedded to our spreadsheets and all we care about is that this month's numbers are bigger than last month's numbers. Growth! Growth! Growth! More! More! More!

The top tier - our rulers, our managers, our executives - look at the graphs: are they going up? Who gives a fuck what's going on at the bottom. The tip of the iceberg is in charge of the rest.

You're drowning and freezing cold in the icy depths. You're part of that huge mass of ice beneath the surface, but you'd better not try and climb out of the water or else you'll topple the whole system and plunge the tiny tip into the depths... and nobody wants that, do they?

Chances are that you could do a better job than those in charge, because the country couldn't get much worse: inequality is a disgrace, poverty is rife, depression and suicide rates are skyrocketing, life is miserable and there are few prospects.

We're supposed to be ruled over by a house of commons: ordinary people from all walks of life. In fact, career politicians and massive political parties supported by wealthy donors & commercial interests, completely dominate the political landscape. We live in a plutocracy, as evidenced by the fact that the rich are getting richer and the poor are getting poorer.

I count the middle class in the 'poor' bracket.

Of course, it seems ridiculous to suggest that well paid educated professional people in the middle class are poor - they have the best jobs, high quality housing and disposable income - but within a generation or two, the middle class are going to be utterly fucked. Skyrocketing house prices just don't work: they will erode your wealth, because you want somewhere for your kids and grandkids to live, don't you? Unless you live in a castle big enough for all future generations of your family, you're going to need some affordable housing at some point.

University tuition fees and the cost of student accommodation, comes on top of the private school fees you paid in order to get your little darlings the straight-A grades they needed to get onto the few degree courses that might lead to an actual job. A job doing fucking what exactly?

OK, so your silver-spooned little shits got themselves a degree and a professional qualification in law or accountancy or something, but you're going to have to fork out £100k+ to get them onto the housing ladder. Your terribly bright and brilliant kids now need a place to live near their job - London and the South-East - which means top dollar house prices.

Wealth has been hoarded by the baby-boomers who were gifted it by good luck and the inflation that eroded their debts relative to their incomes. The baby-boomers are now having to fork out all that filthy lucre in order to support their children and grandkids. There just aren't any well paid jobs that allow our special snowflake millennials to support themselves financially, no matter how hard they work.

So, the only group who have a place are the ones at the top of the pile: the ones who already control more wealth than they could ever spend in a hundred lifetimes, and who can easily generate some more because they already have the money, the fame and the power to make a success out of whatever the fuck they want to do. I mean, Paris Hilton is a DJ now, for fuck's sake: she presses the play button on a CD player and people pay to see that fucking shit.

All in all, why bother? Why the struggle? Why the stress? Why the anxiety and and the insecurity and the hideousness of battling over the crumbs from the cake?

We're all fighting with each other at the bottom, like crabs in a bucket, pulling down anybody who tries to escape.

Just stay in your place though. Don't complain. I'm sure those in charge know best.

Tags: #politics #capitalism #economics

This is a story about parasites...

Everybody has to work, right? There's a social contract that we implicitly signed up for when our parents had sex on our behalf. In return for our parents' selfless act of having unprotected sex, we agreed - before we were born - to a life of wage slavery and paying bills.

The other way of looking at things is to ask what would happen if you didn't work.

A big hole in the ground was dug to make the foundations of your house, where you live. You dug that hole, right? What about the concrete that was used to fill the foundations? I presume you slaked the lime to make the mortar and you dug the aggregates to make the mix that was poured into the hole you dug. I mean, that's only logical.

Bricks were laid to make the walls of your house. I presume you collected the clay, shaped it into bricks and baked them in a kiln that you made. That's only logical.

Joists and beams were needed to make the floors you walk on and the roof that keeps you dry. I presume you chopped down those trees and milled them into the straight timbers that were needed. That's only logical.

Slates were hung to make your roof able to divert rain into your guttering. I presume you quarried those slates. That's only logical.

Nails were forged to join the wood. I presume you collected the iron ore and blacksmithed the nails. That's only logical.

Sand was melted in a furnace at incredibly hot temperatures to make the glass that glazes your windows. I presume you gathered that sand and kept the fires burning in order to make those panes of glass that adorn your house. I mean, that's only logical.

Meat, vegetables, kernels, pulses, herbs, salt, oils and other condiments were combined to make delicious meals to keep you going while you were doing all that hard work. I presume you farmed the edible things to make those meals. You harvested the corn, milled the flour and baked the bread. That's only logical.

Water was raised from the underground aquifers. I presume you dug the wells and winched up the buckets of water. That's only logical.

How are you doing so far? You can say that everything you've benefitted from has been a product of your own hard labour, right? You can show directly how your contribution to society means that you deserve your slice of the pie, of course. That's only logical.

"Actually, I'm much more important than that."

Right, let's test that hypothesis.

What do you actually do?

"I go to meetings in a big fancy office."

Alright. Let's go.

Coffee beans were picked, dried and roasted. The coffee was ground and infused in boling water. I presume you were there in South America, harvesting the crop. I presume you roasted your beans and ground them yourself. That's only logical.

Spreadsheet software was crafted from binary ones and zeros. Microsoft Excel was created from nothing, using computer programming. I presume you wrote Excel. That's only logical.

Companies were incorporated with memorandums and articles of association. Laws were made. Everything was written down on paper. Paper was made from wood pulp. Ink is made from pigments and dyes. I presume you made the paper and the ink, and you wrote down all the laws that govern your company. That's only logical.

Cotton was picked. Thread was made. Thread was woven into garments. Fancy shirts and suits of clothes were made so that the people in the offices could look powerful and important at their meetings, sipping coffee and putting made-up numbers into spreadsheets. You made all those things. That's only logical.

How are you doing now? Are you with me so far?

"You just don't understand. I paid for all those things."

Oh you PAID did you? Let's see how that stands up to cross-examination.

Gold was panned or mined out of the ground. Gold was melted down into bars and coins that were assay marked to vouch for purity and weight. I presume you were down in the mines with your pickaxe, or in the river bed with your panning bowl, plucking gold nuggets out of the ground. I mean, that's only logical.

Banknotes were printed and coins were minted. Banks held ledgers and reserves. Payments were recorded. I presume you made the currency that was hard to counterfeit. I presume you created the payment systems that were hard to defraud. That's only logical.

How about now? Keeping up?

"For fuck's sake. You just don't get it. I did my job and I got my salary. That's how I paid for my house and my food."

Oh, right. I get it now. What exactly did you do for your job? What exactly was your contribution?

Tags: #capitalism #economics #career

This is a story about fantasy worlds...

It should come as no surprise that a geek like me played Dungeons & Dragons a couple of times when I was a kid. Actually, I played the Marvel Super Heroes role-playing game far more. I think I even got to be 'dungeon master' one time, setting an adventure in the Marvel world.

Really, I've had little desire to retreat into the fantasy world. When I was a kid I used to spend a lot of time day-dreaming, but that was as much borne of frustration with age-related restrictions. In the UK you can't drive a car until you're 17 years old. You can't get a credit card and it's generally assumed that you're going to be stuck in school until you're 18. You can't get a decent job that pays decent money until you're 21+ and even then you're probably going to be too poor to afford any of the things that you really want. However, I took a few short-cuts and I was able to start doing some cool stuff soon after leaving college.

Writing a work of fiction - a novel - was not something that came from plot lines and characters I'd been imagining for a long time. I hadn't been inhabiting some inner fantasy world; waiting for the right time to put it down on paper.

What seems clear to me is that so many of us are keen to escape from day-to-day reality. You've realised you're never going to be a professional footballer or pop singer, so now what's the best you can hope for? That you don't die penniless and in a great deal of pain and discomfort? Yeah, the problem is that you're definitely going to get sick and old, and you're definitely not going to be be rich & famous.

To ditch your responsibilities and run away is a widely held fantasy. You've got your career, your reputation, your spotless curriculum vitæ, your mortgage and loans, your life insurance, your pension. You've got to think about your credit rating and what 'box' you fit in. If you quit the rat race, do you even exist?

I often wonder why people stay in lame underpaid boring jobs, doing shit that's doing nothing to benefit anybody - at best - and at worst is downright destructive. Everyone must be a damnsight more locked into the system than we dare to talk about. The number of households who would go into mortgage or rent arrears if they missed just one or two paycheques is astounding. We don't dare to dream because we can't afford to.

I'm a sensation seeker, so I must admit that I'm totally comfortable flirting with disaster. There's no such thing as "rock bottom" in my world. Even in some diabolically awful situations, I've been thinking "I really need to tell people what this is like". Everything that I've experienced is an asset not a curse. Writing about some things that I've been through has been the payoff for the short-term pain and discomfort I felt.

It's alarming to see a world that revels in fantasy. It suggests that we are so downtrodden that we no longer have realistic aspirations. People have given up on the idea of wealth and status, and instead they immerse themselves in the lives of cartoonish fantasy figures: celebrities who live lives of unimaginable riches and fame.

There used to be a time when the fantasy was to get married, buy a house, have kids, a job for life, a trade or a profession. Now we fantasise about being people we're not; people we could never be. In a pyramid scheme, there's not enough room at the top for everybody. We all lose out in a pyramid scheme world. I really don't give a fuck about the land of opportunity because the opportunity doesn't really exist. On the balance of probability, you're just one of the luckless fools who's helping the rich get richer. Every time the pyramid gets a little taller, you get pushed a little lower, down into the dirt.

A truly remarkable discovery for me was that most people are doing a lot worse than you think. Even though we put a brave face on everything, the free market has evolved to separate fools from their cash very efficiently. You might earn double or quadruple what the average person does, but you shop in a more expensive supermarket, buy more luxurious things and have more expensive tastes. You have pigeon-holed yourself into the income bracket that means that you have more-or-less the same amount of disposable income as somebody in a completely different socio-economic group.

The fun part of my 'research' during the past years, has been to take that journey: from the homeless people in the park, living off London's unsold sandwiches, to the fakers living a life of pseudo-glamour and trying to present an image of wealth and success. Scratch beneath the surface and you see that the people at the bottom have given up, while those in the middle are hopelessly trying to claw their way to the top, totally unable to see that they're being pushed ever downwards.

One final thing: when you do give up, it's just as fun and liberating as you'd think it would be.

Tags: #writing #homeless #capitalism

This is a story about real life, far from the Internet...

Are you familiar with the acronym "IRL"? By some definitions, it stands for: In Real Life. Many people believe IRL is a synonym for any human interaction that occurs face-to-face. Did you also notice that I always capitalise the word Internet? Ever wonder why I do that?

If I speak to somebody on the phone, is that real life? If I send them a handwritten letter, is that real life?

The distinction between 'real' life, and the life we live with technology mediating our interactions with each other, has become rather pointless. I'm no great fan of video chat, but it's certainly an advancement on the telephone. All telephone calls are routed through digital exchanges, and the same infrastructure that carries your voice also carries the data of your Internet connection. There's nothing much more real about having a face to face conversation, shouting through a wall at your neighbour, making a Skype call (who does that anymore anyway?) or phoning somebody on their mobile.

The Internet is a real place, hence the noun. People can meet there, trade goods, gossip. "But you can't physically interact" I hear you wail. "What about touch, smell, taste?" Yeah yeah yeah. Are you saying that the phone-calls you used to make on that old rotary-dial telephone weren't real life?

This is the beginning of a piece I've been wanting to write for ages. I made a note on my smartphone of the title, but I'd already been mulling the topic since a friend - who I've seen in real life only twice since childhood - made the very good point about the Internet being a real place. I was thinking about writing this well before a different friend - who I hadn't seen in real life for nearly 20 years - posted an article on this topic on Facebook. The timing is too perfect.

I've lived 'online' since I saved up my money from my job washing up in a hotel kitchen in order to buy a modem. When I bought my modem, the Internet wasn't yet a big thing. Instead, I used to get magazines that had loads of phone numbers in them of dial-up bulletin boards. Using technology that predated the Internet in the guise we know it today, I used to be text-chatting online, electronically mailing people and playing online computer games, via bulletin board systems (BBSs).

Then, I took to Internet newsgroups which were a popular fore-runner to the forums and social media pages we have today. I even met a rock climbing partner on a newsgroup. If you don't think that putting your life in the hands of a random stranger off the Internet is real life then I don't know what is.

I spent thousands of hours reading and contributing to three kitesurfing forums. People who I first met online had countless evenings spent drinking, weekends away and holidays to exotic locations together. All of which occurred away from keyboard but it was very much real life. It was real when we were all talking to each other on the Internet all week long, during our dull office hours, waiting for the next time we could go to the ocean together.

This is where things get super blurry. I have so many friends I've made through social media (newsgroups, forums) and a lot of old friends I'm able to still remain in some kind of contact with because we are connected via Facebook. Would I have been able to pick up an old friendship with school/college friends who I hadn't seen for circa 20 years, if there hadn't been some real and somehow tangible tie together, even if it was mediated by binary ones and zeros in the ether of the 'cloud'?

The dust has been gathering on my keyboard since I completed the first draft of my novel. I haven't been blogging regularly for a while. I miss writing and I miss having an open dialogue with everybody and anybody on the Internet. The Internet has brought me friends and fortune. I've never regretted the investment of time I've made in channelling my creative energies into a public space that creates nothing tangible per se. What is software? What does it mean to publish a blog or a book online? If you can't hold it, sniff it, lick it... if it doesn't gather dust, does it really exist?

There was one slightly embarrassing moment in my recent adventures Away From Keyboard.

I was out for dinner with another friend. You could say I know him in real life because the first time I met him was face to face... or you could say I know him through the Internet, because he was introduced to me by somebody I know from an Internet discussion forum. Either way, it's immaterial to the embarrassing story.

Over dinner, my friend expressed his incredulity at the fact that the value of all the coal bought and sold is a tiny fraction of the total value of all the financial contracts (securities) that are created off the back of the physical commodity. So many more coal futures and options contracts are bought and sold by speculators, hoping to profit from a movement in the price of the commodity, versus anybody who actually wants the real coal. The dirty black lumps of carbon are almost unimportant... the 'value' in the financial markets dwarfs the heavy industry that mines coal out of the ground and ships it to power stations and for people to heat their homes.

The embarrassing thing was that I went to speak and then I realised that I had nothing to add. I was left speechless. I've written at length on my blog about the staggering 'value' of the derivatives contracts versus the real economy. Is it me who's splitting hairs, expecting us to care about food and housing and water and healthcare and transport? Is it me who's the luddite, saying that the global financial markets are utter horse shit because it's all just digital money in the Fintech 'cloud'?

Maybe the real embarrassment is that I'd had that conversation before, with a hedge fund manager and a director of an investment bank. We were on our way home from the airport, having been kitesurfing in real life with 20 people from an Internet discussion forum. I was just about to start work for JPMorgan, dealing with Credit Default Swaps. We thought that the financial markets were overleveraged and that there was going to be a crash. That was 2005.

Did I put my money where my mouth was? Yes. I bought dollars at nearly $2 for every £1 I paid, and bought gold at $550/oz. One ounce of gold cost £225 back then. One ounce of gold is worth £920 today.

The point is not to be a doom-monger or gloat in a "told you so" kind of way, but to try and express how tired I am by everything. Being Cassandra is shit. Churning out my thoughts into the ether has allowed me to say everything that needed to be said, but it left me kind of breathlessly shocked to encounter anybody who'd arrived at the same rational and reasonable analysis of a ridiculous situation. That's one thing you don't get when you're lecturing the Internet: any kind of feedback that anybody agrees with you.

So, what's my closing conclusion? I'm back blogging, because I love writing, but aside from setting out my position clearly for posterity, some time away from keyboard is pretty handy to remind oneself that there are a lot of people out there in the real world who share my values and concerns.

Tags: #socialmedia #writing #computing #banking #capitalism

This is a story about a fictitious bear and an imaginary bull...

To explain how a speculative bubble bursts is very easy indeed. Investors are like a herd of cattle. They are not rational actors. When a critical mass of investors become spooked and start selling off their investments, this creates a market with more sellers than buyers, which means the asking price for financial instruments has to be lower to attract more buyers. Pretty soon, there is a stampede, as all the investors try to 'cash in' their investments and take their profits or minimise their losses. The asking price drops lower and lower, and buyers simply wait, knowing that the ever growing crowd of panicked sellers will underbid each other in a desperate attempt to offload their devaluing assets.

Anyway, that's so simple and obvious that it doesn't warrant further discussion. What I want to write about is what causes a speculative bubble in the first place.

We could look at historical examples, like the tulip mania during the Dutch Golden Age, with tulip bulb prices peaking in 1637, before crashing spectacularly. The Madness of Crowds explains the crash, but not the initial price bubble, in any satisfactory way for the modern financial markets.

To understand your average investor in publicly listed companies on the major stock exchanges, you only need to understand two human characteristics: greed and laziness.

The greed part is simple. Any of your friends who have reached a point of economic prosperity where they have disposable income are likely to have 'invested' some of their wealth. It's highly unlikely that they made angel investments in small startup companies where they knew the founders, the business model and understood the domain in which the embryonic enterprise operated. Instead, they thought they could make a quick buck by buying shares in a major corporation.

The laziness part is slightly more complex. The lazy divide into two groups. The speculative private investor looking to make a quick buck isn't interested in doing any actual work in order to earn their extra wealth. One phonecall to your stockbroker, having read a stock tip in your preferred newspaper does not count as an investment of labour, and so it is clear that these investors are lazy.

The second group are institutional investment managers: the people who look after pension funds. Now, you can ignore profit:equity (PE) ratios, yields, earnings per share (EPS), turnover and EBITDAs (Earnings Before Interest, Tax, Depreciation and Amortisation). You can ignore the philosophy of Warren Buffet, who is an active shareholder. The pension fund manager is passive and invests for one reason and one reason alone: the market capitalisation of the public company has reached a certain threshold. That is to say, the market values a public company above a certain amount of money.

To understand market cap, let's take Apple Inc. as an example. We take the number of Apple shares that are issued (5.4 billion at time of writing) and multiply that by the share price ($118 at time of writing) and we arrive at a market capitalisation of $637 billion. That is to say, if you had a spare $637 billion in your bank account, you could buy Apple outright^*: every single share. You would be the sole shareholder of Apple, which is the biggest company in the world, by market capitalisation.

Now, Apple might have absolutely dog shit products lined up for the next 10 years. The CEO, Tim Cook could be an absolute moron who's going to run the company into the ground. The institutional investment manager doesn't give two hoots. They're going to buy Apple stock simply because it's highly valued. In fact, they're going to buy ALL the highly valued companies, above a certain market capitalisation.

In the UK, we have a kind of football league, with the premier league being the FTSE100 and then the league below being the FTSE250. As the market caps change, companies drop in and out of these 'leagues'. Consequently, investment managers will buy the new entrants and sell the ones that drop out. Easy as pie, right?

The laziness that drives all this is retirement. People saving for retirement are too lazy to make their own investments that ensure the value of their pension is not eroded by inflation, so they get an investment manager to 'track' the value of an index like the FTSE100, which generally outperforms inflation, over a long period of time. That makes sense, right? Money invested in the 'best' companies, should outperform money that's just sitting in the bank earning interest.

Furthermore, when people come to retire, they want their pension pot to be managed for income not for growth, but they're still too lazy to shop around to make sure that the yield or dividends that they are receiving on their pot of money give them the best possible income, while also protecting their capital.

In essence, the biggest part of our economy is driven by greedy lazy people. Instead of the industrious and ingenious entrepreneurs finding it easy to borrow money or sell a share of their company in order to raise the capital they need to grow, the sad reality is that almost all of the wealth in the developed world is ploughed into corporate behemoths that have already extracted all their value from the public, in order to keep people who have nearly reached the end of their lives in the manner to which they have become accustomed to.

Yes, that's right. By the time a company comes to the point where it floats on a stock exchange, it has peaked. It's time for the original founders, angel investors, venture capitalists, private equity and other shareholders to now cash in and fleece the public by offering their shares in an Initial Public Offering (IPO). Because the company has reached a certain 'valuation' (as decided by market sentiment and the bullshit written by the underwriting investment bank in the prospectus) then it has to be bought by the institutional investors, because it is highly likely to have a market cap that will put it straight into the FTSE100 or FTSE250. The companies with the smallest market cap in the FTSE250 are around £400m; for comparison Twitter floated with a market cap of $30,000m, which is 75 times more.

Let's take a hypothetical example. If I was to build a company with a turnover of approximately £20m per month, or £240m per year, then one might say that it could be valued using a rough multiplier of 2x turnover at £500m. That would easily be enough to make for an attractive IPO, because the market cap is going to attract all the institutional investors who have to buy FTSE250 companies. In effect, the IPO is underwritten by the pension tracker funds.

Therefore, greedy lazy people buy dog shit stock, it appreciates in value because of market sentiment - "ooh the price is going up, let's buy more" - and the fact that public companies can use their shares to acquire other companies (growth through acquisition) until they have a dominant market position (some may say monopoly, ahem!).

Growth through acquisition is not really growth. If I have 100% of the shares in company A, and 0% of the shares in company B, and then I use 49% of my shares and a bit of cash to acquire company B, such that I now own 51% of company A and 51% of company B, no new value has been created. There may be cost savings, there may be benefits from anticompetitive practices, but really all I'm doing is increasing the market cap of the parent company, hoping to move from the FTSE250 to the FTSE100, where a whole load more pension funds will have to buy shares for their index trackers.

The same deal goes on in the US, where companies are trying to IPO at a certain valuation in order to get into the Dow Jones or the NASDAQ, such that the US tracker funds will have to invest. The public - mostly pensioners - get fleeced.

So, in conclusion, the cause of a speculative bubble is actually institutional. Because the pension funds are so massive and they are passive investors, using index tracker funds, there is an immense amount of fake value created by mergers and acquisitions, as growth by acquisition carries such huge rewards. This starves the companies - who are truly growing and innovating - of much needed investment capital, stifling the economy and instead creating corporate giants who are too big to fail.

Eventually, the central banks and the rest of the money multiplying machine reaches the limit of how much the value of dinosaur institutions can be artificially inflated. These dinosaurs move at glacial pace and stifle change and competition. The lack of efficiency of markets to deliver capital to those companies who have true growth potential, undermines the economy for years, until finally things reach breaking point.

Overvalued companies, market disruption by venture-capital backed challengers, the faltering of capital gain and the end of effortless profits, are the things that spook the lazy, greedy investors. So, then begins the market crash.

The dying behemoths are dangerous animals. For example, the 'too big to fail' banks were able to hold the world's largest economies to ransom, with the threat of unimaginable disruption to our systems of payment and borrowing that underpin so many mortgages, overdrafts, credit cards, car loans and how we get and spend our wages each month.

For now, the status quo persists, because the idea of smoothly transitioning to truly free and competitive markets is beyond comprehension, such is the web of complexity that has been created by supranational organisations that have swallowed so many competitors around the globe.

Until we move to active investment rather than passive investment, we will always have the cycles of boom & bust.

Tags: #economics #capitalism

* - You couldn't actually buy all Apple's shares for $118 each, because the very process of buying up all the available stock for sale would drive up the price. I merely offer a simplified example.

This is a story about liberal arrogance...

Ah, caps lock, my old friend. Also, exclamation marks: you can never use too many. Do you think if there was more caps lock typing and sentences ended with multiple exclamation marks, we could wake the sheeple from their coma? The sheeple are clearly sleepwalking [or is it shleepwalking?] towards disaster.

While this is self-deprecating humour, it's also mockery of the same old liberal lines that are trotted out instead of any kind of nuanced counter-argument.

During Brexit, I noticed that people on both sides would say "I can see you're far too intellectually inferior to be able to have a debate, therefore this argument is over and I won". I lament the loss of anybody who can actually be bothered to have a proper debate, without being so childish.

Your white-trash, redneck, poorly educated person is now incredibly bored with the tried and trusted liberal short-cuts that supposedly immediately discredit an opponent in a debate. "Bigot" is a particularly charged word, and guarantees instant disengagement by the disenfranchised members of the public, being browbeaten by a group of elites who consider themselves morally superior.

I'm as guilty of it as anybody.

But, I've also noticed a kind of pathetic infighting amongst the intelligentsia.

Firstly, one must overcome the snobbery of the grammar Nazis. For your argument to even be considered it must be deemed to have attained certain standards. The most innocent spelling mistake will become the focus of commentary, rather than the points raised by the original author, no matter how eloquently the central argument is presented.

Having established oneself as 'a cut above the rest' there is one kind of ad hominem attack that succeeds where all others might fail. All one has to do to win the argument is write "WAKE UP SHEEPLE!!!" in mockery of your opponent's attempt to make a reasoned argument and reach a sensible conclusion. Essentially, you're accusing somebody of being a nutjob; a raving madman. Case closed. End of debate.

Our asylums are stuffed full of 'visionary' people, and those seized by absolute conviction that the end of the world is nigh. However, do we not also laud that tiny handful of individuals who successfully predict recessions, stock market crashes, credit crunches, housing crises and other cataclysmic man-made events?

Why is it that a stock market trader or hedge fund manager, who might make a good living from short selling - betting against the market - is considered a highly intelligent person - cloaked in the mystery of mathematical models - while others who also forecast negative events, are dismissed as lunatics?

Humans always err on the positive side. There is a psychological test where participants bet money and win precisely as much as they lose. In this randomised gambling experiment, most test subjects will report that they think they're making a profit, even though they're breaking even. Even when the experiment is adjusted so that the participants are losing money, most will still think that the course of events is in their favour.

It's undeniable that we do see a herd mentality amongst groups of humans. The accusation of sheep-like behaviour is entirely valid and well supported by evidence. Stock market crashes are created by market sentiment not by external events. When investors collectively lose confidence, there's a rush for the door. The sheep line up for slaughter, even though by selling their stock, they're going to lose money.

Bank runs are another great example. The FCA underwrites deposits - your savings are safe - but we still saw long lines of people queuing up to withdraw cash from Northern Rock, during the credit crunch. That's a bank run, and it's driven by sheeplike behaviour. The panic is not rational. It's animalistic behaviour, not calculated and logical.

The well-educated middle classes have turned on one another, in this zero-growth second Great Depression. Research grants are at stake. Well paid middle-management jobs are at stake. The baby boomers are trying to collect excessively generous pensions. For God's sake don't even breathe, for the whole house of cards may come tumbling down at any moment. We are so highly leveraged - indebted - that one hiccup and we're all screwed. 

We should remember that the working-class are more numerous than the middle-class. While the working-class wail inarticulately about their poverty and lack of opportunities, the middle-class lock themselves into an echo-chamber of Facebragging and snobbery. Whenever somebody is critical of the status quo, we quickly shut them down by typing "WAKE UP SHEEPLE!!!" to bully them into submission.

Personally, having safely circumnavigated the City of London - and profited - during the dot com crash, 9/11, the commodity price boom (and bust), the credit crunch and Bitcoin's ups & downs, I feel rather like Cassandra.

Dismiss and ignore me at your peril.

Tags: #politics #capitalism #economy

This is a story about slavery...

Do you have to run just to stand still? Does it seem like no matter how hard you try, you just can't get ahead? Why is it that the only time you're going to get to enjoy any leisure time, is when you're sick and old?

Even if I owned my own home outright, I would still need to pay council tax, gas, water, electric and sewerage. Even if I grew all the vegetables I needed and never left my plot of land, I would still need to raise a significant sum of money every single month.

Let's assume that I had solar panels, wind turbines and I heated my own water using firewood from my own trees. Let's assume I got water from my own well, and I operated my own miniature sewerage plant, so I could release my processed effluent back into the water table, without breaking environmental protection laws. I would still have to pay council tax.

I don't object to council tax. Council tax pays for the police, who will protect my self-sustaining home from being burgled. Council tax pays for the fire service, who will come and douse my house with water, in the event that it should catch alight.

If I never leave the house, I grow everything I eat and compost everything I waste, then I have no use for dustbin collection, and I have no use for street lighting or roads. I have no use for car parks. I have no use for regular parks and recreation grounds.

Furthermore, I have no use for schools or libraries. I certainly have no use for councillors, council officers and other civil servants.

Let's assume I surround my land with a 15-foot electrified fence, topped with razor wire. Let's assume that I install a sprinkler system, and have my own high-pressure hoses and firefighting training. I would still have no exemption from paying council tax. Paying council tax is my civic duty, because of the air that I breathe in a particular county.

This isn't a rant about how "taxation is theft". I'm just pointing out that there's no such thing as a free man in the United Kingdom. Somebody will always want something from you, even if you're minding your own business, being totally self-sufficient and working in harmony with nature and the land.

Very few people would be able to buy a sufficiently large plot of land to be able to grow enough trees to give them a lifetime's supply of firewood. Also, you're going to need somewhere to grow all those vegetables you're going to eat. You're probably going to need greenhouses and polytunnels to grow more frost-sensitive fruit & veg.

There's capital expenditure necessary to buy a wind turbine and a lifetime of spares for any repairs. Solar panels don't come cheap, and they have a finite lifespan. You're going to need a shittonne of batteries, so that you can store energy for when it's not windy or sunny.

You're going to need a well insulated house with a wood-fired boiler to heat hot water as well as to keep you warm in winter. Your home is going to have to be super energy efficient, because you don't have much electricity, so you'll use LED lighting and cook on a wood-fired stove. You won't be able to use a washing machine, dishwasher, tumble dryer, electric oven, microwave, electric hob, hairdryer, electric heater or other electricity consuming units.

Then, to keep your smallholding running, you're going to need tons of tools and machinery. Doing it all on your own means you'll want a petrol-powered rotivator, strimmer, lawnmower and a bunch of chainsaws to chop up all that firewood. You'll need lots of gardening equipment to make sure you're growing enough food to keep yourself nourished the whole time. You'll need lots of building equipment, to make sure you keep your house repaired and maintained.

If you don't have a well on your plot of land, you're going to have to dig a borehole and install a pump. Building a sewerage processing plant is no small investment of time, labour and materials, and probably not something you would do yourself, although you would be responsible for ongoing maintenance: a lovely job.

Remember, you're also going to need a lifetime's supply of petrol, engine oil and other consumables such as soap, toothpaste, spare lightbulbs etc.

So, after all this, your miniature self-sustaining estate has probably set you back the best part of £1 million, and you still have to work full-time to tend to your fruit and vegetables, and maintain all the equipment that generates power, pumps water, pumps sewage etc. etc.

Worst of all, you're going to have to sell some of the fruit & veg that you produce to pay your council tax, so really, you're not very free at all.

You may end up busting your balls in all weather, just so some council bureaucrat can take paid sick days and generally not work very hard at all.

Through economies of scale, farmers can harvest the crop in huge fields in a single day, when previously it would have taken men and women all summer to do it with sickles and scythes. Something as basic as a masonry nail is incredibly hard for a blacksmith to make, but in factories, vast quantities of goods like nails can be produced much more cheaply, in terms of labour effort.

"The good life" and nostalgia for a time of peasantry is nothing more than stupidity. Only a tiny handful of people blessed with inherited wealth can be idle in the countryside, doing the occasional spot of gardening, and otherwise spending their trust fund income in Waitrose and charging around the countryside in a gas-guzzling Range Rover.

Thus, I don't believe in communism, with its emblem of the sickle and hammer. Growing your own vegetables, or making ornate ironwork is a nice hobby, but we don't want to return to the era of blacksmithing and working in the fields. The combine harvester is a thing of great progress, as is the ability to mass-produce metal goods in factories.

The communes that sprang up in California in the 1960s and 1970s all failed, because they were set up by lazy bums who just wanted to sit around smoking dope. When they ran out of money, they found that they had been subsidising their stupid middle-class fantasies all along. Eventually power struggles tore the little hippy communities apart, but they were doomed to failure from the start.

In climates where the need for heating is less pronounced and the crop yields can be much higher, there are already population problems. For sure, you can go and buy a plantation in the developing world relatively cheaply, but aren't you then headed down the colonial path? When you employ local labour to till the fields, because it's too hot to do it yourself, you've then economically enslaved your workforce.

The division of labour is a hard problem to solve, but there is also dignity in labour, if you're doing something that you feel is productive and useful. Perhaps the high sickness rates in local government are due to the fact that their staff know that all they're doing is pushing paper around their desks and looking busy. It doesn't feel morally right, to tithe the estates of the hard-working men and women who are working the land, only to spend it on fancy offices, coffee machines and watercoolers.

Eventually, I decide that we must move to a model of state-owned enterprise for everything that's in the public interest: transport, education, healthcare. But where do you stop? What about housing, food and clothing?

Clearly the technocrats of the Soviet Union completely failed in their attempts at central planning, but can we be sure that there's less wasteful use of resources in private enterprise? My experiences certainly don't bear this out. Every company I've ever worked for has been full of idle incompetent fucktards. That's not supposed to happen in capitalism. Capitalism is supposed to lead to efficiency.

If we look at the vast amounts of food and energy that are wasted by the United States and Britain, we can be certain that capitalism is a failed model for the efficient use of labour and scarce resources, and the fair distribution of wealth. Capitalism has failed every single test, including its ability to weed out the 'bad apples'. One only has to look at the 2008 financial crisis to see that the idea of market efficiency has been replaced by monstrous monopolies: enterprises that are too big to fail, but are bleeding our economy dry.

The banks need to be nationalised. The railways need to be re-nationalised. No more council houses can be sold off. Any private parts of the National Health Service need to be re-nationalised, and a huge cull of middle-management dead wood needs to happen. Executive pay needs to be capped, and those who wish to work in public services should be proud to be performing their civic duty for their fellow citizens.

Of course, wealth will flee offshore. Investors will panic. Let them.

The assets are here. The workforce is here. We don't need the paper money created by the plutocrats. We can rebase our currency back to a sensible gold standard, forgive all loans and start over. Clean slate.

One only has to study the German economic miracle to see that these reforms can work, do work, and will transform a country into one of happiness and productivity.

The strategy of trying to print money to get out of economic trouble, and enforce bad policy with a police state and martial law, is always doomed to failure. We are at the tipping point. Things could boil over at any moment.

So, the Western world finds itself at a crossroads: to continue with the folly, down a path that has always led to ruin for past civilisations, or to learn from the lessons of history, and take the alternative route.

Tags: #politics #economics #capitalism

This is a story about warfare...

What you're looking at is a 3D printed gun. The gun can only be fired once, but it only takes one bullet to kill another human being. I could decide that my life is more important than yours, and murder you.

We often forget that decisive weapons are the reason we sit in idle luxury, while another half of the world don't have enough to eat or clean drinking water. We have essentially already built the walls that protect the wealth that we have plundered. The world has been divided into 'haves' and 'have-nots'. Lucky you for being born into the group of 'haves'.

Try to remember that: what you have is down to pure blind luck, not divine right, not the glory of your ancestors, not hard work and not personal sacrifice.

Anybody who glorifies war is an idiot.

Wars are not won.

There are no winners in war. There is no such thing as 'victory'. The only thing that comes close to a 'victory' of sorts, is when both sides willingly lay down their weapons and stop fighting. The only heroes are those who bravely disobey orders, and those who resist the urge to kill, maim, torture, rape, pillage and otherwise exercise dominion over their fellow humans.

There are painfully obvious psychological tricks that are being used by power-hungry megalomaniacs, who are intoxicated - drunk - with a kind of nostalgia for national glory, victory on the battlefield, defeat of an 'evil invader'.

As an animal, I wish for people who share little of my genetic material, to perish so that more of my genes will be propagated. My 'selfish' genes quite literally code for murderous intent towards people who don't look like me.

Race is an obvious way to divide into tribes of genetic similarity. White Europeans, and all those black-skinned Africans. White Europeans, and all those bearded Arabs. White Europeans and those dusky-toned Indians. White Europeans, and all those slanty-eyed Asians. White Europeans and those plains-dwelling Red Indians. White Europeans and those rainforest-dwelling tribespeople.

Now, because we're living in a post-slavery, post-apartheid, post-colonial, post-imperial age - supposedly - we are now indoctrinated into the belief that we have a national identity. We salute flags. We stand for national anthems. We dress up in uniform. Our heads of state are rammed down our throat around the clock: their faces are on every coin, every banknote, every postage stamp. Our schools teach no history except "victory" against some imagined enemy. Our media tell no story, except how badly the human rights are violated in countries that do not follow the doctrine of 'democracy' and capitalism.

"I'm not a racist, but Britain is full" say the racists. "We're just a small island and our infrastructure can't cope" say the racists. "I'm not a racist. I just want to protect the British way of life" say the racists.

What do you think would happen if a migrant ate fish & chips or a roast dinner? Do you think a migrant couldn't be kept warm and dry in a thatched cottage? Do you think that a migrant couldn't enjoy a game of cricket? Do you think migrants can't drink cups of tea, or eat a scone with cream and jam on it?

All the things that you think of as British are actually just things that can be enjoyed by any human being. We all have the same needs. Just how British are you, anyway?

I don't even know who my biological grandparents on my mum's side were. For all I know, I might be genetically descended from immigrants. In fact, the Brits are a mongrel race anyway: Romans, Vikings, Normans, Saxons, Celts.

So, borders, flags, passports, nationalities... these are just bullshit made-up things.

"Defence" is a synonym for "guarding the wealth that we have plundered". If you are guarding your wealth, you are refusing to share. As Ghandi said:

"The world has enough for everyone's need, but not enough for anyone's greed"

The panic over the migrant crisis is easy to explain: the ruling elites didn't share enough of their wealth domestically. Even though a "poor" person in the UK is not poor by global standards, they still feel very poor indeed. Asking the poor to share, when they're already hard-pressed and feeling insecure, is not fair and it doesn't seem possible. We already have a housing crisis, a pensions crisis, a financial crisis. We already have problems with underemployment, unemployment and feel like our wages barely stretch to meet our cost of living.

Ostensibly though, there is a racism problem.

Having well-educated French, German, Italian and Spanish people coming to the UK to make your coffee and wait your tables, was not a problem for you, because it was white faces with cute accents.

However, seeing groups of young Arab men does trigger a whole host of fears that have been created by jingoistic faux-nostalgic nationalistic scaremongers, who want you to buy their right-wing newspapers, or vote for their right-wing political party.

The whole "war on terror" has done a remarkably efficient job of convincing people that their 'way of life' is under attack. People who are fleeing persecution, or migrating for economic reasons, are seen as a comparable enemy to Nazi Germany, with the same kind of "we will fight them on the beaches" kind of nationalistic bullshit being peddled.

In actual fact, what is happening is that the inequality is simply too great, in a world that's hyperconnected by the Internet. I mean, damn, if you lived in a mud hut with a straw roof, and you saw an episode of MTV's Cribs, wouldn't you be convinced that every man in the West lives like a prince in a palace?

Whose way of life are you actually defending, anyway?

Do you live in a palace? Do you have a basement full of gold bullion and vintage wine? Do you have priceless artworks hanging on your walls? Do you have supercars? Do you have superyachts? Do you have private jets?

No, of course you don't.

You're being used you fucking dumbasses. You're being told that your way of life is under threat, but really you're just being used as a human shield to allow the plutocrats to defend the vast wealth that they could never even spend in a million lifetimes.

There's a choice: you can arm yourself to the teeth, and try to hold onto the vast riches that are far more than you need, or you can move to a model of equality; sharing. If we have a culture of sharing and equality, then there isn't going to be a horde of migrants at the gates clamouring for a few bones from the dinner table, a few crumbs from the cake.

The UK's highest paid CEO is paid 2,500 times more than the average salary.

It's a pyramid scheme, and the ordinary people of the UK are upset about having to share the crumbs, because the crumbs are all we get at the bottom of the pyramid. What we're saying, when we say "Britain is full" is that we can't share any of our crumbs from the cake, because all we have to eat are a few crumbs anyway.

It's easy to point at how wealthy Britain appears to be in global terms, but an average salary is not the same as a typical salary. In a normal distribution, most people would earn the average salary. However, most people earn less than the average salary. The average is skewed by the high earners. The reality is that even an average salary can't afford to pay for an average price house, but a typical salary can't buy a house and barely meets the cost of living.

Looking at the typical example is a lot more important than looking at the average.

It's because the typical person is experiencing very real hardship, that we have arrived at the point of multiple crises hitting all at once: the day has finally come where the plutocrats will have to convince us to fight to defend their wealth, because the world's poor are becoming more informed via the Internet, and are quite rightly demanding that they have a more fair share of the common wealth, that we are all equally entitled to.

So, don't get all sentimental and caught up in the propaganda: the flag-waving and the talk of 'heroes' and attempts to stoke up nostalgia for wartime. War is awful. War is unnecessary.

The fight we need to have is with the plutocrats, to smash open their bank vaults and share out their wealth.

The needs of the many outweigh the needs of the few. Period.

Tags: #politics #capitalism

This is a story about conformity...

Why would you ever consent to being graded? Isn't that extremely degrading to have somebody sit in judgement over you and decide where you fit in the pecking order?

We don't have an education system. We are not educating our children.

Instead, we have a system that's designed to give us the best grades we can possibly afford, so that we will have better employment opportunities. Schools are businesses, and they need pupils to get funding, so they can pay all those lovely salaries. Teachers are judged on their students' exam results. Schools are chosen based on their exam results. Universities will offer places to those students with the best exam grades, but universities are money making machines, taking at least £27,000 for an undergraduate degree, from every student. Finally, employers will select prospective employees who have the best grades.

Imagine you gave up your childhood and a few of the prime years of your young adulthood, in order to get "A" grades and a first class degree from a top university. You worked your little socks off from the age of 5 to the age of 21. That's 16 years of hard labour. It wasn't an education. It was an exercise in grading. Your teachers didn't teach you. Instead, you were trained how to pass exams. The whole balance of incentives is such that only the grades matter. You just want the piece of paper at the end of it, so you don't have to take a shitty minimum wage zero hours contract McJob.

So, what happens when you graduate, take a graduate job, and then find what you're doing is utterly pointless bullshit?

What happens when those 16 lost years of your life mean that you're saddled with debt and working some drastically underpaid job that won't even buy you a house anyway?

In the US, every man woman and child has a debt of $60,000, even if they don't even have a bank account and never personally borrowed any money. In the UK the figure is circa £30,000. This is money the government borrowed on your behalf. Even if you're financially prudent, and you don't spend money until you've earned it, that's certainly not what your government is doing.

In order to stand a chance of getting a half decent job, you reckon you need to go to college/university. In the US the average student loan debt is $35,000. In the UK you have to spend £27,000 on tuition alone, for a 3 year degree course. Of course, the UK figure doesn't include the money you need to live on. You can borrow a further £32,000 in order to pay your rent, food, transport and other costs of living at university. Basically, you're going to spunk the best part of £60,000 getting your degree.

So, you've spent 16 years of your life, having no life - your nose has been stuck in those books and you've been doing all your homework - and you're £90,000 in debt. Imagine you met the love of your life at university, you both graduated and you'd like to have a couple of kids. That means your household is going to be £240,000 in debt, before you even take out a mortgage. That's £60,000 of government debt for your two kids, £60,000 of government debt for you and your other half, and £120,000 for your two university degrees. God damn! You'd better get a job and start paying that debt off, because you haven't worked a day in your life at this point, even though you're now 22 years old.

Because you worked so damn hard to pass your 11+ exam, your grammar school entrance exam, or private school entrance exam, your GCSEs, your A-levels, your university entrance exam, your final year exams, your dissertation... you're pretty heavily invested now, aren't you? You gave up playing outside in the sunshine with your friends so you could do extra Latin and calculus. You gave up swigging cider in the park and shagging in a bush, so that you could be at home poring over your books. You gave up being debt free, so you could now have a £60,000 student loan like a millstone around your neck.

Guess what? Even having a good degree from a good university isn't enough. You probably need to become a lawyer or an accountant to set yourself apart from the McJob fodder. Lawyers in the US run up student debts in excess of $100,000. Here in the UK, you're going to have to pay an extra 2 years of tuition and living expenses, before you can even get a job in a law firm. You're going to pay the the law school £21,000 in tuition fees, plus you'll need another £20,000 for rent and living expenses, while you study. So, your student debt is now £100,000 before you even enter one of the professions.

Even a graduate with first-class honours from Oxford or Cambridge is not a professional. Having read classics does not seem immediately useful, given the lack of living people who speak Latin or Ancient Greek. While you have clearly marked yourself out as 'clever' in a rather abstract sense, you're not obviously employable because of your education. It is merely your grades that make you attractive to prospective employers.

Is it even very clever, to spend so much of your parents money on a private or public school education, squander your childhood on homework and piano recitals, saddle yourself with the best part of £100k of student debt, and then have the prospect of doing legal or accountancy work to help billionaires avoid paying tax.

The more you invest the more exposed you are. You're not going to take some lowly entry-level job, because you've got a goddam degree dontcha know? You're not going to question how absolutely dreadful the work is that you're doing, and how appalling the salary is, because it's a graduate job apparently. The job spec said "must have 2:1 degree from respected institution" so therefore it must be a good job, right?

Yeah, at least you're not flipping burgers for a living.

But, can you buy a house?

Nope.

You were conned. You studied hard for 16 long years. You stressed yourself to bits over every exam. Writing your dissertation was pure agony. You were so worried that you were going to fail. You could have failed at any moment. You could have failed to get into a good secondary school. You could have screwed up your GCSEs. You could have screwed up your A-levels. You could have screwed up your finals. You could have screwed up your dissertation.

You were so damn relieved on graduation day. Sure, it felt good to have your picture taken holding a scroll of parchment tied up with a red ribbon, wearing a black gown and a mortar board. Your mum has that picture of you up on the wall in the downstairs toilet. Every houseguest sees that photo of you, a fresh-faced 21 year old graduate, proudly clutching the bit of paper you worked hard for 16 years to get. They imagine that you must be terribly clever but little do they know that you're now working some dreadful office job, copying and pasting numbers in spreadsheets, like some kind of factory worker.

Maybe you were a bit smarter and you realised that everybody's got a damn degree these days. Perhaps you did a masters, a PGCE, went to law school, studied accountancy. Now you have a profession. You're a teacher, a lawyer, an accountant.

You studied the extra years. You did the training. You took the shitty entry-level salary. Now you're a qualified professional. You're a member of The Law Society, you're a chartered accountant, you've got Qualified Teacher Status (QTS). Guess what? You still can't buy a fucking house.

My suggestion is this: if your parents have money, don't fucking work your bollocks off and study hard. Get your parents to buy you a house and give you some money. You don't need to work. The world does not need any more corporate lawyers.

If you don't come from a wealthy family, for God's sake don't waste the prime years of your life following the same path as all the other drones. There's no pot of gold at the end of the rainbow. School, university, graduate jobs... it's all just a miserable path that leads to debt and misplaced gratitude for a 'better' quality job, which is actually nothing of the sort.

I'm financially incentivised to stay doing what I'm doing, because I can buy a house and afford to have my family live in considerable comfort. My earning potential is a function of how able I am to say "fuck your shit" and go and get a better contract elsewhere, because I'm not driven by fear: fear that I have invested 16+ years of my life in a pointless piece of paper; fear that I have £60k to £100k of student debt that needs to be paid back; fear that I've been measured, graded, and that I know my place.

I don't know my place, because I never allowed myself to be graded. If somebody is turning me into a commodity, then I change my role. I'm very hard to pigeon hole. I'm very hard to label. I'll brand myself up as whatever I need to be in order to get the job, instead of harking back to my most recent academic or professional qualification. I have no qualms at saying "this bullshit job just ain't worth the pittance you pay" because I don't have this fetish for "graduate" or "professional" work.

In some narrow niche, you'll find that there's somebody who wants it worse than you. You'll find that somebody is prepared to study harder, longer, put more effort in. If you enter into the arms race, you'll find yourself competing in a completely unnecessary battle for something that's been created with artificial scarcity. Grades are not a precious rare metal dug out of the ground. There's a finite amount of gold on the planet, but there is no shortage of "A" grades or bullshit jobs.

The professional bodies are there to limit the numbers of people becoming lawyers, accountants, doctors, teachers and a whole host of other jobs that are better paid than flipping burgers. The only reason why those professions pay more than minimum wage is because artificial scarcity is created, by limiting the number of people who can qualify and practice those trades.

I never let my schooling interfere with my education. I taught myself how to program a computer, with the help of a couple of schoolfriends. I don't advise becoming a programmer today, because it's a crowded market, but there'll be something better that your kids can be doing instead of their damn homework. There's something you can be doing better than saving up money to help get your kids through university: buy them a damn car and a house, because they're never going to be able to afford things on their own, with the way things are going.

The education system was there to break our will and our sense of individuality, and prepare us for the workhouses. The education system is used for societal control. Your government wants obedient debt-laden citizens, who are grateful for a shitty made-up job. The plutocrats who rule your life want cheap labour, even though you think you've got a prestigious well-paid job. In actual fact, you know your place, and you have no social mobility at all.

We're moving beyond the era of the CV with your exam grades and other qualifications on there. The idea of sifting and sorting everybody, like grains of sand, ending up with the very finest particles graded right up to the grittier stuff... this is a flawed model.

Take your average super indebted grad today. Could they rewire a house? Could they fix the plumbing? Can they cook a fine meal? Could they organise an event? Can they lead people? Can they mend a car? Can they dress a wound? What are they like on a mountain? What are they like out at sea? What are they like in a crisis?

We're churning out people who are only good for one thing: regurgitating established facts and ideas. Parroting answers they've learned but don't understand. Passing exams.

Our kids these days don't pass exams because they've reasoned the answers from their knowledge and experience. Our kids these days don't make theoretical deductions. We have an exam passing machine that teaches our children how to pass tests, as opposed to educating them.

Everything's going to hell in a handcart because original ideas and critical thinking have no place in our education system or the world of bullshit jobs. We spend at least 16 years brainwashing our 'best and brightest' to be exam passers, box tickers, compliant little drones who all think and act the same way. The homogeny of bland corporate wage-slaves, churned out by the cookie-cutter 'education' system is frightening.

When sufficient numbers of people realise that they've been conned into giving away their youth, in return for a soul-destroying desk job that's mind-numbingly boring, but yet they can't buy a house, there's going to be rioting that far exceeds the disruption we saw in 2011, when it was the disadvantaged youths who took to the streets to protest their lack of opportunities and general contempt that is held for the underclass.

Debt will not prop things up forever. Without a wirtschaftswunder - debt forgiveness - the capitalists will destroy everything by demanding their pound of flesh. Empires always fall when debts are not forgiven and the proletariat are crushed by the weight of the idle elites who live in decadent luxury, while ordinary people struggle.

Teach your kids practical things. Let them play. Don't make them do their homework. Don't force them to practice an instrument "because it will look good on their university application". A new world is coming, and moulding kids in the shape of every other underpaid, underemployed corporate drone is not going to do them any favours.

Tags: #childhood #education #capitalism #politics

This is a story about escape velocity...

A happy healthy life is a fairly simple prescription. It's not hard to look for slightly happier people and imitate their magic formula.

In essence, what I have distilled things down to is this:

• Home - so you can be warm and dry and your stuff isn't stolen
• Job - so you can pay your rent/mortgage, bills and buy food & clothes (yes, clothes wear out)
• Family - not blood relatives, but anybody who loves and cares about you
• Friends - social media doesn't count; you have to see friends face to face
• Disposible income - get deeper and deeper into debt and you'll lose your home
• Goal or passion - this can be work, this can be your kids, this can be a hobby; you need something.
• Girlfriend/boyfriend - everybody's gotta get laid, and it's important to have intimacy and companionship

At the moment I have 3 out of 7. Assuming that you need 50% or more to be OK, it's no wonder that I'm depressed as hell and have a lot of suicidal thoughts.

Yes, I have friends who I see less than once a week, so I do have friends. Yes, my sister and I do occasionally exchange text messages, even though we haven't seen each other for the best part of a year. Yes, my goal has been to get myself into a position of financial security, and I've been making great progress, but it's not really my goal... it's just a necessity because of needing to not be homeless and destitute.

So, all I really have is a home, a job, and I'm making more money than I'm spending, which is digging me out of debt.

I love my friends dearly, and it does help that people are in contact via social media, email, text message. I have the offer of speaking to a few friends on the telephone, which I'm grateful for. I also make the effort to travel as much as I feel able to, in order to see people face to face, and I'm glad when I do it, even though it's expensive, exhausting and time consuming to zoom all over the country, if not the world.

I just don't have a group of buddies you know? People to go to the pub with. People to go out for a meal with. People to play frisbee with in the park. I'm lacking a social group.

I'm also lacking that significant other. Somebody to just hang out with. Have sex with. Make food with. Watch movies with. Play games with. Go sightseeing with.

I've stitched together a patchwork quilt of whatever I can get, in order to just about cling to life with my fingernails, but it's inadequate. That's not to say I'm not ungrateful for those occasional invites to hang out and do stuff. It's just not enough. I thrive on face to face social contact, and I'm not getting enough.

To further compound problems, the team I've been managing at work are all in the Far East, so I don't even get proper face-to-face social contact at work. I sit at my desk, lonely and bored. I've helped to create a great culture in my team, but I don't really benefit from it, because they are quite literally 6,666 miles away (I just looked that up - I love that fact!).

In desperation, I made compromises that are just not acceptable, sustainable. I took a job that pays well and is very easy, but doesn't provide anything other than the money that I need. I made other choices because of the desperate need for something rather than nothing. There's an opportunity cost. If I'm in a job that I hate and drains my energy, then I don't have the time and the motivation to get something better.

In a way, it's good that a couple of things are coming to an end, because it's prompting me to go after the things I want rather than the things that I took through desperation. Of course, I'm grateful to have the money, and the support that I've received, but you make different choices when you're in deep shit.

So, on Thursday 22nd September, 2016, I will have completed a year of blogging, 6 months 'clean' and my 6 month employment contract will be over.

On Thursday 22nd September, 2016, I will have 1 out of 7 of the things that I need, with the threat that I will quickly lose even that one single thing.

Without a job, I'll have more expenditure than income. I need to pay rent, bills, service debts. I need to replace worn out clothes and things that break. I need to buy food and toiletries. Life is not sustainable in Western society without income.

I don't have savings, but I do have creditworthiness. Yet again, I will have to borrow money in order to keep my head above water. I have no financial safety net. What I have instead are commercial lenders who are prepared to extract their pound of flesh so that I can avoid homelessness and destitution.

If you think I could have saved more money than I have done these past months, you are mistaken. Without a short holiday, I would never have lasted the extra months. Without alcohol, I would never have coped with the stress and anxiety. I could have penny pinched on my accommodation, but can you imagine how awful it is living in a hostel when you're working full time? I worked, slept and ate. How far has it got me? Well. Probably about 50% of the way towards financial security.

I need to take a break, because my nerves are frazzled and I'm exhausted.

I doubt any contract could be as bad as the job I'm about to finish on Wednesday. For my next contract, I'm going to look for something where I'll be working with a team in London. I need a much more interesting workload. Being bored to death is no way to die.

With money comes the opportunity to travel, socialise, make the investment in a new hobby. With a more tolerable day job comes energy and enthusiasm for each day. With a more liveable life comes the freedom from drink, drugs and medication, in order to simply get through the day.

It's a fucking nutty strategy, to go for the big win. What you just don't understand is just how close to irreparably broken my life is. You just don't understand what it's like to not have so many of the elements that prop up your life. Look again at the bullet pointed list above, and score yourself. How many of the things you need do you have?

Look back at the last 4 weeks of your life and ask yourself this:

• How many nights were you homeless? - zero, I presume
• How many days did you work? - I'm guessing somewhere around 12, on average
• How many times were you in contact with your family? - I'm guessing at least 4
• How many days did you see friends face to face? - I'm guessing at least 8
• Did you make more money than you spent? - I'm guessing at least breakeven
• How many times did you do something 'fun'? - I'm guessing at least 4
• How many times did you have sex or snuggles? - I'm guessing at least 8

Those would seem like adequate answers to me. If you're hitting those numbers, your life is probably just about OK. Less than that in one area, maybe you can make up for it in another. For example, you might have been out of work and losing money, but at least you were surrounded by your loving family a lot more of the time, because maybe you were staying at home looking after the kids.

I'm certainly not saying it's easy being a stay at home mom or a househusband, but suicidal depression can come about through death by a thousand cuts. All the little things that are wrong in your life add up to an unbearably horrible situation.

In some ways I'm relishing next Thursday, because I can sleep and recharge my batteries. With spare time that's completely free from artificial structure, such as having to be in a certain office at certain times of the day, then I can start to relax and decide what I want to do next.

The obvious thing to do is to get another lucrative contract, and work for at least another 4 months, so that I can get a cushion of savings to support me in pursuing a passion. Without being able to underwrite my own risk, I have zero faith in my family or government to support me if I fall on hard times. I have a friend who's offered me some financial support, but I think it's unethical to accept it because then I'm borrowing from their safety net.

In this individualistic society, nobody parachuted in to rescue me when I was homeless, destitute. Nobody came to rescue me. Nobody came to my aid. Help was not forthcoming. Even when I had letters from my doctor, my psychiatrist, my social worker... all begging for the government to support me as a vulnerable person with mental health problems, the people I dealt with were unhelpful, obstructive and ultimately just wasted my time and effort even asking for the support that I was entitled to, because of their legal and moral obligations. Those public servants' salaries are paid for with my goddamn taxes. I've paid a lot in, and when I needed it, I could get nothing out.  It's down to me to support myself. I might as well be living in some developing world country, where at least the cost of surviving is lower.

People who warn me to stay within easy reach of the National Health Service for mental health reasons, are just naïve. I've been round and round the system many times since becoming clinically depressed in 2008. The system is bullshit. There is no safety net if you're a single man.

And so, I must play russian roulette with my life in order to support myself. The upside is OK: I might become wealthy and comfortable again, in a relatively short timescale of just a few years. The downside is horrible though. Can you imagine how much time I've spent thinking about how I'm going to kill myself? Can you imagine what it's like to spend a significant proportion of your waking hours feeling so awful that you pretty much want to die?

I swear if one more person tells me to go to my doctor and get some magic beans I'm going to scream. STOP MEDICALISING NON-MEDICAL PROBLEMS. The problem is clearly outlined above. I don't have broken brain chemistry. My brain has correctly identified the problems in my life. There are no short cuts. There's no way to cheat the sytem.

Of course, there is a short cut.

Drugs will tell your brain you feel loved. Drugs will make you feel relaxed. Drugs will make you feel happy. Drugs will make you feel contented. Drugs will tell you that you don't need friends. Drugs will tell you that you don't even need to eat or drink. Drugs will tell you that everything is fine.

Everything is not fine, so I don't want drugs - and by that I mean medication too - to tell me that things are fine. Things are not fine. I almost need these awful feelings to prompt me to get a better job, find some new friends, get a girlfriend, get a hobby. It's just that financial circumstances have constrained me more than you can possibly imagine.

Imagine if I'd declared bankruptcy at the start of the year. That would have been a stupendously dumb decision, in hindsight, wouldn't it? I'm presently not bankrupt. Presently, I have enough money to clear my credit cards, my overdraft.

Of course, my position can't last. You have to run just to stand still. I'm losing my job, and that means I will quickly go into debt again.

"Get another job then"

Guess what, Einstein... that's what I'm going to do. Even though I'm suicidally depressed, overcome with anxiety, I'm going to go and get another motherfucking job you c**t. Even though I'm technically entitled to disability benefits and a council house because my mental health is so debilitating, I am able to do these crazy raiding missions to go and gather nuts before my brain explodes and it all comes crashing down again. I'm locked into this boom & bust cycle. No wonder my bipolar disorder is so exacerbated.

And so, round and round I go. Up & down. Boom & bust. Highs & lows. It's not a medical problem. Its the motherfucking dance I'm forced to do by this farcical society. This is what you get when you don't support people. This is what you get when you isolate people. This is what you get when you only look out for number one.

"The pills will help you stabilise"

No, they won't. Have you looked at the long term studies? Have you studied the data, the clinical outcomes? Have you done the research? No. Of course you haven't. You just have this bullshit belief in the power of medical science. If I had an infection, I'd go to my doctor for antibiotics to treat it. I don't have a fucking infection. I have an allergy to shitty unbearable unliveable life.

I've tried all the meds under the sun. I know what life on medication is like. I've had tons of doctors and psychiatrists. I've tried tons of therapies. It's all a crock of shit. The fundamental problem is the fucking shitty world. Look around you; do you like what you see?

I'm not going to change the world begging on the street with a cardboard sign. I'm not going to change the world by impoverishing myself. I'm not going to change the world by trying the same things that people have tried for hundreds of years, without success. Only an idiot tries the same things expecting different results.

So, I'm on this crazy journey. I'm hoping that by next Wednesday I might have managed to write 365 blog posts, and probably around 450,000 words. That might not make a difference to you, but it's surely making a difference to me. It's probably making a difference to somebody, somewhere. I have visitors from around the world, reading what I write. Even if it's absolute garbage, it's better than just being a helpless spectator. Even if you think I'm an irrelevant bleeding heart lefty liberal who doesn't amount to a hill of beans, at least I'm composing my thoughts. At least I have a belief system. At least I have values and things that I passionately believe in.

It's very hard for me to come up with a reason why I'm struggling along at the moment. Why am I putting myself through this awful shit? Why don't I just kill myself, and then the pain will be over? Why don't I just give up, and relapse back into drug addiction?

Actually the second one is fairly easy to answer: somebody who dies of drug addiction is easy to discredit as a 'dirty' junkie. Somebody who's 'clean' and has just completed an important project for a major corporation, in a valuable role, and has set their financial affairs in good order, is a rather more inconvenient and difficult problem to find a soundbite to toss them into the gutter.

I want to be a thorn in the side of every selfish c**t out there who wishes their fellow humans dead. I want to shame people into action, from their comfortable existence where they don't even lose sleep over every homeless, hungry struggling person in pain and suffering out there.

Where the fuck are people when those around them are in distress? Who the fuck do you think is going to sort problems out, if it's not you?

Even though I could have put my tax money to far better use supporting myself, rather than paying the salaries of people who tell me they're not going to help me, I'm still glad to give away a substantial proportion of my income. However, I'm not buying a clean conscience. It's not like I pay my taxes so I can watch my friends become homeless and mentally ill, and assume that the council and some doctors are going to wave their magic wands and make it all better.

What the fuck happened to the empathy? I think I would offer to let somebody sleep on my couch, lend somebody money or go and visit somebody in distress, before I even experienced horrible things first hand myself. I had quite a comfortable existence up to the age of 32 or thereabouts, but I didn't think it was big OR clever to sit on my fucking arse not doing anything when people were suffering.

Those who have been kindest are those who have suffered the most, which makes me detest the comfortably off for their lack of empathy, their lack of humanity.

If humanity is destined for a situation where we let even our own family members and friends flail and drown, then I'm pleased that climate change is going to wipe you miserable c**ts out of existence. You don't deserve to survive, if your "I'm alright Jack" attitude is the prevailing one. I hope you and your kids and grandkids die slowly and painfully if you spawned more mouths to feed with not a single concern for anybody else.

Believe me, I do observe how happy and fulfilled my friends who are parents are, even if they complain how hard it is being a parent. Did you forget that we live in the age of birth control and abortion? You chose to have kids, and no matter what you say, you do get immeasurable benefit from having them. You have happiness and security, knowing you procreated. You have a flood of oxytocin when your cute kids throw their arms gleefully around you.

Believe me, I do observe how happy my friends are to own a dog, even if they complain about having to pick up the poop and hoover up the hair and other mess. You chose to have another carnivore on the planet, eating meat that meant that food for livestock was grown, rather than having more food for those who are starving, and depriving the planet of those extra trees that remove carbon dioxide from the atmosphere. Having a pet dog is selfish as fuck, but I do see how nice it is to have your dog playfully jumping with joy to see you, and throwing sticks in the park for them to fetch.

I can see that there are choices that benefit me as an individual hugely, but I choose not to take them, because I'm responsible for more than just myself. I don't believe that collective responsibility is something that naturally follows from individual responsibility. In fact, I see that the two things are naturally opposing.

Can't you see the fucking trends? Of course you do, but you just don't want to believe it.

You don't want to give up eating meat. You don't want to adopt instead of having your own biological children. You don't want to stop driving your precious little darlings around in a gas-guzzling 4x4 "because it's safer for our family". You don't want to plant trees instead of having a pet dog. You don't want to do anything different at all, in fact, even though you're fucking everything up for your kids and your grandkids.

That's why I'm depressed. That's why I'm suicidal. That's why I'm stuck in a hole I can't get out of. That's why I'm desperate and driven crazy by all this bullshit. That's why I'm doing things that are atypical... because the typical is what got us into this fucked up mess in the first place.

I don't care whether you're religious or not, but imagine some future judgement day, when it's obvious that the planet and the future survival of the human race is clearly doomed: will you say that you went along with things, supported the status quo, or did you try and change things? Did you at least act differently? Did you at least try and help in a way that's less pathetic than recycling your bottles? Did you help anybody other than the fucking clones you spawned to replace yourself?

Note: I'm not anti-parents. I don't hate my friends. I'm not some "wake up sheeple" fucktard. Dismiss me if you like using some convenient label that you were taught to use by those who wish to perpetuate the status quo.

If you're not acting with your conscience, or at least kept awake at night worrying about this shit, that's unconscionable.

You probably should worry about me. No doctor in a white fucking coat is going to make everything OK. It's not a medical problem. It's not a government problem. It's everybody's problem, including mine, but it's more than I can handle on my own.

Tags: #suicide #depression #mentalhealth #climate #politics #capitalism #homeless