Posted tagged ‘Brown’

We Need a Jubilee Year to Write off Debt

January 20, 2009

We need nothing short of a Jubilee year where debts are written off to solve this depression. Now is the time to wipe away the mountain of derivative debt that is about to avalanche and bury us.

Conventional methods for de-leveraging the bottomless pit of banker-created debt aren’t working. The Brown government isn’t making any promises of success either. Everyone else is up the same creek is the best they can say. The £37bn hoovering up of debt was declared a failure after a mere two months. The next in line £200bn cash bung will help push public debt up to an estimated 10% of national GDP by 2010. By this time the credit rating of the UK will be downgraded meaning that the government will have to up interest rates if it is to entice anyone to buy the bonds needed to finance the spending spree. Aside from the inflationary effect of all the money being created to stimulate the bankers, high interest rates will start set off an inflationary spiral.

Instead of saddling the tax payer with debt by spending billions on strategies with uncertain results, why not wipe the slate clean of derivative created debt? Who would it hurt aside from those banks are about to collapse anyway? After all, isn’t it generally seen as enlightened when we wipe out the debts of struggling Third World nations to give their people a chance of survival?

If money keeps disappearing down the every hungry mouths of bankers with little or no long term effect, the inevitable payback will come when the government has to start cutting social security, pensions, education and NHS budgets. Maybe ultimately the tens of billions for Trident will be lopped off the defence-offence budget. Perhaps.

Maybe, it’s inevitable that the government will end up going to the IMF with a begging bowl. IMF and World Bank aid comes at a price. Further infrastructure sell offs, more budget cutting and loss of national independence over economic affairs. Oh, and throw in a few riots as the disappearing middle classes say enough is enough. Look at Iceland, Argentina, Indonesia…

The same rich investors who are being supported by tax payer money are now short selling on bank stocks as that’s the only certain way of making money at the moment. Who would want to buy shares in a failing bank? The only mug is the tax payer.


1968 demonstrations – 40 years on

April 3, 2008

It’s 40 years since the worker and student demonstrations of 1968 and how much has changed? Then, after 13 years of conservative rule in Britain, there were high hopes that Wilson’s labour government would bring radical changes to society and politics. Yet, with his support for the American war in Vietnam and alignment with the nuclear deterrence strategy, supporters soon became disappointed. In May, 10,000 demonstrators fought with police outside the American Embassy in Grovesnor Square. In France street riots engulfed the left bank in May, with workers joining student protestors. Rubber bullets and tear gas fired from one side were met with paving stones hurled from the other.

Now these soixante huitard demonstrators are nearing retirement. The reform agenda continues apace in France and the UK. Reform, that is, as decided by the government. Creeping privatisation of health care and education. Wage settlements that do not keep up with inflation. Greater powers given to unaccountable pan-european bureaucrats. And more wars that the majority of the public wants out of. Hundreds of thousands march against them. More by a factor of ten than marched on the US embassy in ’68, yet their effects on policy seem diminished by the same factor. With perhaps a year to wait until the next British general election, frustration with government will only increase until the dead duck Brown government gives way. But to what? Middle ground, consensual politics with little to choose from. The same deadening choice between Coca Cola and Pepsi. Which brand do you prefer?