Defence secretary, Philip Hammond, blames us for the financial crisis

Defence secretary, Philip Hammond, blames us for the financial crisis.

How do these people get positions of responsibility?

According to Hammond, we are responsible for the Banks lending us too much money, because we borrowed it.

There’s a sort of logic in there.   If we didn’t borrow, they couldn’t lend.

Except it’s not entirely true, of course.

The collapse came because Banks in America loaned money to people to buy houses that they had no chance of ever being able to pay for.

Then our banks, driven by the bonus culture, bought these poisoned loans (euphemistically called sub-prime) and then leveraged them until, as with all unregulated financial dealings, the bubble burst.

And it wasn’t just the banks.

Governments were borrowing money to pay for political power and for politicians to strut around on the world stage.

The G8 , G20 etc. summits, The Climate change summits, white elephants such as the Dome and of course foreign adventures to achieve regime changes and fight “The War on Terrorism, European Union. All these needed financing and could be paid for, through selling “bonds” I.e. borrowing money from those who had more than they knew what to do with. E.g. the Oil Sheiks and the two new World Powers of China and India.

It wasn’t my mortgage (now fully paid), which caused the Economic collapse.

Nor was it the mortgages of those ordinary working Brits, who didn’t qualify for a Council House but still needed somewhere to live, even although the ever depreciating pound meant that their spending power lagged further and further behind, the cost of affordable housing.

Housing, which wasn’t being built, because there was more profit in building Executive estates and Office blocks.

At all times it has been Tory politicians and banks, which have encouraged (verging on coercion) ordinary people to borrow beyond their means.

The principle being that if you are in debt you need to keep your job and will put up with worsening conditions and lower pay. (Alt:  Debt creates wage slaves. )

Mine owners did it with the company store, Harold McMillan did it with Hire Purchase and Maggie did it with credit cards. (part of the deal with Pres. Reagan for our banks bailing out S.American Economies (fighting off Communism) was that maggie would de-regulate the banks).

By making the loans available, people were forced to use them. Nowadays, you are not allowed exist without a credit card and if you trip up, the high interest rates make sure that you never get on your feet again.

We are even forced into debt by legislation.

Because of the introduction of P.F.I’s by politicians, ordinary people have been committed to the equivalent of a Hire Purchase agreement for Council and N.H.S services.

My own Local Council has not only bought new schools and “Health” Centres, through P.F.I., it has built itself a new Council Empire of buildings in the Town Centre.

We will be paying the interest on these loans, through our Council Taxes, long after present Councillors and Council Officers have shuffled off to sunnier climes.

Mr. Hammond is so twisted in his rationalisation of his own Class’s culpability for the present austerity that he has persuaded himself that it’s possible to declare to us that it is our active fault that has created our predicament.

The truth is that is actually the passive and phlegmatic nature of the populace, who still haven’t been pushed far enough to revolt just yet.

The Occupy movement is the beginning of that revolt but it may be another generation before we are stirred to the blood heat of those in North Africa.

Meantime pratt’s like Hammond will do their best to provoke that situation.

 

 

 

 

 

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