• History repeating itself.


    Above, the “South Sea Bubble”, by Edward Matthew Ward that can be seen in the Tate Gallery.

    The latest report from Liberum Capital herwith: http://liberum.eu.bdvision.ipreo.com/NSightWeb_v2.00/Handlers/Document.ashx?i=e7f798d1a60646efb76a03a030054be9 puts into ghastly perspective the energy policy pursued by the crew of incompetent nincompoops that are masquerading as the government of this formerly sovereign land.

    It is a ludicrous notion that an advanced first world manufacturing economy that is the United Kindom in the early 21st Century can sustain a reliable electricity supply from the so called “renewables”. Such is infantile fantasy.

    It beggars belief how seemingly intelligent people – let us face it, Cameron, Clegg and Miliband are all graduates so they must have some capacity for logical reasoning and analytical thought – can be taken in by this nonsense.

    As the Reader is well aware, this organ has likened the present situation to that pertaining around the time of the South Sea Bubble in 1721. We are sure the Reader will agree as they recall their history that there are significant similarities:

    The full name of the South Sea Company whose Royal Charter was issued in 1711 was “The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing.” Created to exploit the prospects of trade with Spanish America under the Assiento Treaty, it soon became the first example of what three hundred years later would be called “a public-private partnership” with the aim of consolidating and reducing the cost of national debt!!!!!!!

    The treaty gave Britain a monopoly to trade with South America which was promptly transferred to the new company. There was of course no realistic prospect that trade would take place and the company never realised any significant profit from its monopoly!!!!

    This of course did not stop the Company’s stock from rising greatly in value as it expanded its operations dealing in government debt, peaking at the staggering figure of £1,000 a share in 1720 before collapsing to little above its original flotation price; this became known as the South Sea Bubble!!!!!

    The organisers of the scam were engaged in insider trading, using their advance knowledge of when national debt was to be consolidated to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the Acts of Parliament necessary for the scheme to continue. Company money was used to deal in its own shares, and selected individuals purchasing shares were given loans backed by those same shares to spend on purchasing more shares. The expectation of vast wealth from trade with South America (a notion as unrealistic as the notion that the country’s electricity can be supplied by wind turbines) was used to encourage the public to purchase shares, despite that this would never happen! The only significant trade which did take place was in slaves, but the company failed to manage this profitably.

    History sadly, has a nasty habit of repeating itself!

    Readers will recall from their study of history that there were calls in Parliament for the scoundrels who bankrupted the country to be sewn into sacks and tossed into the Thames off London Bridge! They found themselves removed to the Tower of London instead!

    Write a comment