So the Tory government refuses to support the steel industry in the UK. So what? This is globalisation at its finest. Where pauper economies out perform developed nations on the basis of poverty wages and substandard working practices. But no matter. This is the nature of Oligarchy Capitalism.
Bailing out banks is an inevitability. That’s where the oligarchs hoard their money. Not in the idiot banks that we save our meagre earnings in, but in protected banks in tax havens such as Switzerland. The true capital of the world. But, and it’s a major but, without the pretence of retail banks and their deception of value to currency, the billionaires stash would devalue to zero at the click of a mouse.
Commodities are collapsing the world over yet the banks are still protected. If you do the maths it explains that the entire world economy has been hijacked for the gratification of greedy megalomaniacs. Once commodities collapse, instinct should tell you that productivity and genuine wealth creation has collapsed. In almost all ‘developed economies’ deflationary pressure is at the brink of breaking point. We are not creating, building or manufacturing a better future. We are systematically being robbed of ours and our children’s future. No worries though. Property prices are still rising counter to wages and living standards.
These same banks are taking our tax money and creaming it off to their offshore accounts. The only growth in lending is through mortgages. This is very dangerous. Simply put: If business isn’t borrowing it isn’t investing in the future, it isn’t adding value to the economy through the creation of well paid jobs and a better infrastructure. Conversely, mortgage growth retracts genuine growth, as the gap between earnings and the expense of property grows wider. The housing boom eventually creates its own collapse, as entry to the market becomes more and more punitive. There is either a need for wage inflation or a decrease in house inflation to counteract this issue. Sadly the latter increases the chances of another banking system failure. Which in turn creates a new recession or depression depending on how hard it hits you and your family.
This is the path that the Tory government as placed us on. Austerity is the means by which this government tries to delay the inevitable. By cutting government expenditure through the privatisation of its assets it attempts to fix the books. Using fire sales of massively undervalued assets it gives the impression that it is creating wealth. In truth, all it is actually doing is delaying a greater debt burden onto the populace as the privatised assets demand greater and greater value for their criminally gained civic portfolios.