Danger for the People of the UK

We, the people of GB now need to be very careful.

The advice our govenment is having pressed upon them, and which they seems very eager to implement is as disasterously wrong as the advice the same financial experts, gave two years ago to our previous governemtn. Both times the advice was given as what we needed to do for OUR benefit, when it was in fact what needed to be done for the benefit of those giving the advice – the BANKS and financial class. It was almost entirely self serving and lead directly to the ‘new’ stage of the same crisis we are in today.

Two years ago the banks advised that their debts should not be exposed and written down. Instead they had to be supported by massive government bail-outs. Some of us at the time said this would merely transfer a killer slice of those debts (killer but not even the whole amount!) to the public debt and this would result in the explosion of Sovereign indebtedness and a crushing of Sovereign currencies and borrowing ability. This is exactly what has happened.

Now the same financial class is giving us another tranche of advice to deal with the ‘new’ crisis which their last lot of advice caused.

Now they are saying to any nation that will listen – you must cut YOUR level of debts by cutting your spending. This WILL mean salaries, welfare, health, education and PENSIONS bewing amputated not cut. Pensions, as we have been saying for nearly two years are going to get incinerated.

The advice we were given two years ago was NOT for our benefit but the benefit of the bankers and the broader financial class. The advice we are being given today is the same.

The one thing it was and still is imperative we do, to get any sort of recovery at all, is to lower the over-hang of debts. We should have done this by making those who had made bad loans, take their losses. But the financial class would not hear of it, since the losses would have been theirs.

But now many of those debts have been moved onto the public purse and WE now have vast debts. Our debts, the financial class is quite keen to lower. But again not by withdrawing support from the banks and their continuing losses, but by cuttig everything else.

Basically it boils down to this. The system of finance, gloablly, must lower its level of indebtedness. The obvious place is bank bad debts. That has been ruled out by the financial class via our oh so compliant politcians. The other way to lose indebtedness is to use a country or countries as a conduit for debt reduction – a sphincter through which to shit out as much debt pressure as possible. Ireland is already in that ignominious position. Greece is on its way. The UK, if it could be forced to, would be a major outlet.

If the UK could lower debts, its currency would strengthen and its banks would be strengthened as well. The entire system would feel an easing of systemic pressure WITHOUT the banks themselves having to have taken any losses on their debts.

The pain and the cuts would all be taken by the tax payers and poor of the countries involved.

Apart from the raw injustice of this way of doing it, there is one other problem. This way of excreting debt is incompatible with growth in the real eocnomy. Neither Ireland nor Greece, nor Spain will grow at all. They will either stagnate, with massive unemployment and huge cuts to all services, or they will get much worse and much poorer. Unmeployment will be =[come systemically high.

The advice we are being given is to benefit the financial system by letting it lose debt pressure in the system. It is not advice about how to have a recovery for you and for me. They may say it is, but it is a lie.

We must be carefull. The financial system needs a fall guy. It could be us