Month: September 2022

International banks have passed their comment via the tumbling value of sterling, The IMF have spoken out about the growth of inequality and the drop in productivity that results from this. Bond traders have shown their distrust of the governments economic policies by selling bonds forcing the interest rate up and nearly causing the collapse of pension funds. The Bank of England has had to bail the government out to the tune of £65billion (underwritten by the taxpayer). Interest rates will have to rise. House prices set to fall as mortgage offers are withdrawn.

Surely a matter of time? The crash in sterling is a result of the beneficiaries of tax cuts saying that they make no financial sense. The cuts are to. be financed by borrowing which is getting ever more expensive – to be paid back in the future by the taxpayer. Their latest ploy is to enable the rich to have fatter, tax free pensions

The odds on a growth in the economy to match the tax handout is getting more remote by the minute. It looks like the govt. borrowing costs are going to be in excess of 6%. So the economy will need to grow by (£50 billion plus the 6+% ) which I think equates to about £3billion per year before compound interest cuts in?

Meanwhile there will be increases in spending to allow for inflation, for hospitals, schools, public services generally. The intention is obviously for these to face further cuts, possible to be privatised and paid for by the user. Byebye NHS (regarded highly worldwide), and hello grubby US medical/insurance behemoths.

And Labour and whoever will inherit a mountain of debt, disfunctial public services and a fractured society. This last will be the result of the MSP blaming the poor, the unions, the teachers, the nurses and doctors, immigrants, the disabled, anyone but those in Tufton Street and their backers.

Oil and gas are priced in $ – therefore already a 10% increase in the last week or so. The MSP sites energy bills being halved (from a probable but still hypothetical level in Jan 23) rather than being doubled from last winter. Mortgage costs are going to rise quite steeply with no sign of them falling anytime soon.

Apologists for this avarice and cruelty will quote that other economies have inflation and rising energy costs. This true, although most seem to have less pain than us mainly die to the size of their economies (USA) or the size of their trade bloc (EU). China has lower growth than for decades, and some large economic hurdles looming. There is no “China” to ride into the economic wilderness and rescue capitalism as it did in the past.

Climate crises are worldwide, and the poorer nations are suffering more than most – so there will be no African miracle, no Brazilian miracle (unless they change their govt. pronto).

And growth is suffocating our Earth (yes OUR EARTH). Not the one where economics rules, where 1% own 64%. But the one real people live in. We do not need growth, just a sustainable fairer society. No one seems to have the guts to say this.

I think it is simple. It is not communism, but a just socialism. If you work harder or have special talents you earn more. if you are unemployed we will care for you, if ill we will care for you. etc.ect.

Top 1% of earners on track to own 64% of world’s wealth by 2030. UK Gini Index which measures inequality has risen from 25% to36.3% since 1977.

The capitalism practiced in this country has led to the mess we are now in. We did not chose to have the pandemic, or instigate the Ukraine War, but a minority did chose to leave the world’s largest trade organisation. Government policies have public services. Food banks in a country with average GDP $40000. It is fucking obscene. 172000 millionaires who this government have just a tax cut.

I am trying to work out the rationale for this. I assume that not all will spend the extra on more luxurious trinkets, or their children education; so they add it to their bank balance, where in turn it may allow the banks to increase lending to business. More likely they will buy more shares in FTSE100 companies like BP where their investment will make them more in dividends without creating a single job. Profits of these companies does get taxed so there could be some pay back for the government.

However this would not result in a surge in investment or jobs. The world currency market has shown what it thinks of this governments uncosted or scrutinised plans. The pound falls, FTSE falls, trade gap increases, debt increases, cost of debt increases, public services diminish, and the rich get richer. And still 30% of voters would vote for the nasty party like turkeys voting for Xmas! Fucking numbskulls.

At last a policy to believe in for our children and grandchildren. If Starmer can follow this up with more positive policies we could have a brighter future than the gloomy one Truss promotes.