The continuing economic crisis, is a crisis of global capitalism and is not a European problem on its own. It is a corrupt and rigged system that many of us simply survive in. It brings with it uncertainty about inflation, prices, our lifestyle and our entire future. It often tolerates the abuse of children, the continuing exploitation of young people and the most vulnerable in our society, as well as promoting Police and Government corruption. And we now know which side the worldwide security services are on. And if you complain about any of the statutory bodies and it is overlooked, another complaint is likely to mean you are labelled as a habitual complainant. They wonder why there is a major backlash against the establishment and it’s allies!
We still have, zero hour contracts, human trafficking, slave labour- quite literally, many part employed, attacks on the most vulnerable, further austerity and many of the richest simply get richer. We now know the cuts by the Government are for right wing ideological reasons and offer no solution to this ongoing crisis. They care only for their own interests. And how many of us are, or indeed feel better off? Against this there is a tidal wave of opposition to the establishment, which threatens the very existence of the current economic and political system. This opposition needs to develop its own community orientated policies and promote a more united opposition to the toxic policies of the right; the taxdoders and those promoting racism, further bombings, wars and division.
In all this time, the economic problems have eaten more than £12 trillion in public funds. They have been at the root of practically every major political argument in this country, and it affects every aspect of the way we live our lives. Our system needs to be radically changed and much more than that, we need to search for and demand alternatives. Campaigns must become more creative to ensure that those that are disenchanted do not move to support the reactionary and often extreme right, with their miserable blame it all on migration policies. Refugees need to be supported. Who would not flee from a war torn country being bombed and pillaged? Bombing is terror!
The same financial problems that have been tracked from bank to bank, from company to company for nearly a decade, have now found there way into the very heart of our financial system, which continues in disarray, together with the Bank of England. The European Union is only part of the problem.
The next phase in this crisis could threaten our very personal way of life. We know that printing mountains of money so often ends in disaster. And unlike most of the presenters on TV and in the mainstream press, some analysts understand what’s really going on, but it is in there interests to deceive us. Together with tiny interest rates having being reduced in the UK and fictitious capital still not being spent on the infrastructure and our communities, it could well again end in another disaster and economic slump. The real bosses of our corrupt system, know all this has to change and desperately search for solutions that will enable them to hold onto their own wealth.
Economics has never been a science and the Bank of England continues to try to guess it’s way to a future strategy. So much is therefore guesswork and the guesswork of casino style economics can never be accurate. The Interest rate adjustments are based on a guess as to how to tame a system out of control. This system sows the very seeds for its own destruction, which is perhaps the only certainty.
If our precious NHS is sold off and benefits are either scrapped or reduced further, the confusion will turn into rage and even more huge campaigns.
It’s clear, our public finances are in an enormous mess. And to some extent, some politicians will admit it. But add in our financial, personal and private debt and an even darker picture emerges.
Compared to the size of our economy, Britain is now one of the most heavily indebted countries in the Western world. That’s official. Our total debts stand at more than six times of what our entire economy is worth.
Proportionally, that’s more debt than Italy, Portugal, Spain and almost twice as much debt as Greece. Those are four countries already in the throes of a financial crisis. We’re the odd one out because we haven’t collapsed as yet. But things can’t stay that way for long.
The time now is not for empathy and cosy chats, but real action, including direct action.
It’s essential we all prepare for these events. We can’t rely on mainstream commentators to help us. We need to start real debates around the country to prepare for a new and non speculative system, that is possible and in the interests of us all. The left in the Labour Party are beginning to see the necessity of having new and radical economics and the changes sweeping through the Party should be welcomed. There economic policies are similar to those that I have advocated in past blogs and are progressing. Our economics must draw upon the mistakes of the past and be based on genuine democracy and our communities.
Finally, this is not a scaremongering blog. It is simply written to enable us all to see that there are real problems and we need to find real alternatives; which we can all work towards to create a more fair and equitable society.
November 2016
Ivor Timson MSc (Economics)
Ivor Timson 