Sunday, 26 October 2008


Why is it that so many people in both the government and the media are promoting the idea of a coming recession? We have had the govener of the Bank of England telling us for months that one is coming, the chancellor predicting that this is going to be the worse for years and all the economic pundits on tv and in the press rubbing their hands with glee at the prospect. Could it be that by telling everybody that they may lose their homes and jobs unless they curb their spending, though I think that even the the most stupid person in the street would realise that has nothing to do with the state of the economics of the world or the country. Its a really good distraction from the fact that capitalism is starting to implode. We are now seeing a state run banking system along the lines of a nationalist run mixed economy.
You see the big problem I have is that yes share prices are as low now as they were five years ago but no body mentioned a recession then in fact it was a state of elation. Now we have a state where in years first time buyers can afford to buy a house at a price they can afford. Isn't that what the government wanted a few years ago, so they were going to build affordable housing. Well now they don't need to.
The another problem I have is where has all the money gone? You just can't wake up one morning to find $60 billion gone and you don't know where it is. I understand that they have lent money as mortgages to people who can't pay it back but then don't they have the value of the house, that one presumes they own and then can't they rent it out to people who can pay a realistic rent so that some of the money can be recouped, if not perhaps instantly but certainly over a longer period.
The banks are still lending each other money at extreme interest rates. Surely there has to be a stop to this unless of course I am going to get my own investment through the government paid with a high rate of interest. Surely there has to be a unilateral ruling by governments to stop the same thing from happening again. While we are on interest rates why do credit cards have to be so high. Surely if the rate was lower then borrowers would be able to pay it off quicker so lessening the risk and then being able to use the card sooner to buy more things so helping the economy by keeping the shops alive.
I am concerned that the government can raise money to fund the banking system but have to rely on people selling poppies in the street to look after servicemen and women, who need to be treated with dignity and care. These men and women have put their lives in the hands of governments who for whatever reason have got themselves emersed in a war, and then when these brave people return they are treated like used consumer units. This attitude is so prevelent throughout the country. Soldiers sailors workers nurses teachers are all treated as units, not as living people. There has to be a shift in the mental picture of those in power and stop treating people, the citizens of this country as nothing more than statistics.
What do I mean by this, well the air ambulence service is kept in the air by charitable donations, yet we can spend millions on buying equiping and manning military helicopters? Its not just a single figure on a piece of paper its someones son, daughetr ,husband and wife that need to treated quickly and it is that person who may or maynot survive. Children are in danger from abuse yet the NSPCC is a charity. We are surrounded by sea and yet the lifeboatmen are volunteers.
I can understand why they probably want to stay out of the government hands as the first thing that would happen would be a whole set of rules enforced about what they can and cannot do, the costs would have to be looked at by a government inspector and they would have to have their own minister whose wages would buy a new boat for the RNLI. And then of course in a turn down in the economy there would have to be cut backs.
There has to be a radical shift in thinking. We cannot rely on the boom and bust of economics, or try to live by technology yet still maintain the victorian attitudes to workforce and employability. Workers now thanks to the last economic debacle are now serious stakeholders in the running of the banks and the country's economic affairs and if the chancellor and the banking giants think that the unions are content with being told thet there is no money to pay workers or expand the national areas of concern such as health and education, then they may just ask for their investment back. The government could always go and ask the ex chief of Lehmans. Poor thing after all he only has $310 million in the bank. I am assuming it wasn't his own bank.

1 comment:

plasfan said...

We are told that the need to bail out banks (private businesses) with government money (tax payers) is because we cannot afford to let the banking system collapse as it holds up the whole econimic fabric of the country. So why were the banks allowed to privatise?