Posted by seumasach on April 12, 2015
12th April, 2015
Every man, woman and child in Britain is more than £3,400 in debt – without knowing it and without borrowing a single penny – thanks to the proliferation of controversial deals used to pay for infrastructure such as schools and hospitals.
Posted in Financial crisis, UK economy | Tagged: bankrupt Britain, private finance initiative | Leave a Comment »
Posted by seumasach on March 2, 2015
as he invites Queen to visit Beijing
The meeting, by far the most heavyweight diplomatic mission the Duke has ever attempted, not only heralded a new beginning for relations between China and the Royal family, but also symbolised the extent to which Britain is desperate to court what will soon be the world’s biggest economy.
2nd March, 2015
His father the Prince of Wales famously referred to China’s leaders as “appalling old waxworks”, and has never been back to the country since.
But his son the Duke of Cambridge pulled off something of a diplomatic coup, and a major thawing of relations between Beijing and the Royal family, by gaining an unexpected audience with President Xi Jinping.
Posted in Uncategorized | Tagged: bankrupt Britain, Chinese soft power, End of empire, retreat from empire | Leave a Comment »
Posted by seumasach on February 26, 2015
“The performance was better than expected, comparing to a £9bn loss in 2013, in a boost to the Treasury’s hope of selling off part of its stake at some point.”
26th February, 2015
Royal Bank of Scotland lost £3.5bn last year, its seventh-consecutive year without a profit, meaning the bank has lost around £50bn in total since 2008, when it was bailed out.
Posted in UK economy | Tagged: bankrupt Britain, failing banks | Leave a Comment »
Posted by seumasach on December 16, 2014
15th December, 2014
The tumbling oil price has led to a trebling of insolvencies among UK oil and gas services companies so far this year, while £55bn of further oil projects reportedly under threat.
Posted in UK economy | Tagged: bankrupt Britain, oil bubble | Leave a Comment »
Posted by seumasach on December 8, 2014
“We’re sitting on a PFI debt time bomb, and the sheer scale of the burden paints a seriously grim picture for the future of our public services.”
5th July, 2012
The cost of Britain’s controversial private finance initiative will continue to soar for another five years and end up costing taxpayers more than £300bn, according to a Guardian analysis of contracts that were sanctioned by the Treasury.
Posted in UK economy | Tagged: bankrupt Britain, private finance initiative(PFI) | Leave a Comment »
Posted by seumasach on November 22, 2014
This is a tendency that can only intensify as Britain devolves control of finance. This effectively means we’re giving up our credit card since no regional or devolved administration is sovereign and will not be able to issue sovereign bonds as before. Nor will the UK government itself since it no longer controls its tax base. The SNP has already pointed out that Scottish government borrowing will be within a context of a balanced budget rather than the traditional rolling over of debt and coverage of interest charges only. This end of Keynesianism is accompanied, logically, by the demise of the Labour Party and the left.The UK is and has been for years totally dependent on capital inflows. However, the form these take is changing: rather than going into government bonds they are going into direct investment and purchase of assets.
Revealed: How the world gets rich – from privatising British public services
20th November, 2014
Foreign governments are making hundreds of millions of pounds a year running British public services, according to an Independent investigation highlighting how privatisation is benefiting overseas – rather than UK – taxpayers.
Posted in UK economy | Tagged: bankrupt Britain, End of empire, The Great British Sell-Off | Leave a Comment »
Posted by seumasach on September 28, 2014
28th September, 2014
When Nicola Sturgeon spoke back in January of the inevitability of change whatever the outcome of the referendum and appealed to the “No” campaign to come forward with their proposals for further devolution to Scotland she must have known that a response would be forthcoming. All political parties had been focused for some time on the issue of the decentralization of the British state and the referendum was to be the cue for these ideas to come to the fore. However, from the point of views of both campaigns this issue was to become the elephant in the room that no one wanted to see. The “Yes” campaign , notwithstanding Sturgeon’s remarks, continued to insist that it was all or nothing for Scotland, that not only was further devolution not on the agenda but that a “No” vote would see the rollback of devolution already conceded. The “No” campaign evoked the enduring stability of the union and an era of innocence in which good old Great Britain was not about to be eviscerated. As a result, it was only when “panicked” representatives of the leading UK parties came to Scotland late in the campaign, following polls suggestive of a “Yes” vote, that it became evident to all that further devolution was indeed on the agenda. The “panicked” UK leaders, far from making up policy on the hoof, were, however, merely putting forward what they had always intended in an opportune manner which would give themselves credit post-referendum. They were also shoring up the position of Alex Salmond and the SNP post-referendum who could claim that their campaign and a surge in support had forced the hand of the Westminster establishment.
That major constitutional change was on the cards was made clear in a speech in April by Labour leader, Ed Milliband, a speech which was studiously ignored by everyone. In it he blamed overcentralisation for all Britain’s ills and promised to devolve power and spending to English cities and regions. He also revealed the real point behind this “bringing of power to the people” as the Tories like to call it:
“With power of this sort comes responsibility.
These changes will only bring new jobs, greater prosperity, if the towns and cities are willing to put the private sector at the heart of decision making.”
Welsh Conservative leader Stephen Crabb was to pick up on the same theme as he launched the pre-panic, Tory devolution response in July,:
“I am very comfortable with the way devolution is developing. It is quite an exciting landscape that is emerging for devolution. So fiscal devolution I see as particularly important because of strengthening accountability for devolved government.”
This, he thought, would help to “challenge socialist orthodoxy” citing the influence of leading Thatcherite ideologue,Lord Brian Griffiths, in his conversion to devolution.
Any doubts about major constitutional change were dispelled in Cameron’s speech following the announcement of the referendum result. He called for English votes on English issues, effectively a call for English devolution. It also launched the 2015 election campaign with a shot across the bows of the Labour as Cameron sensed blood and seized the moment when the Labour/Tory duopoly gives way to a Tory/SNP axis which could dominate Britain for a long time to come. Labour’s hesitancy regarding English devolution doesn’t mean they won’t support it: they have no choice, but they wish to delay it beyond the next election. If Milliband has written their suicide note in the above mentioned speech they can be forgiven for pacing the room in a state of high agitation before finally putting the bullet through their head.
The British ruling class have embarked upon a major transformation of Britain. Milliband’s speech gives an indication of what they have in mind. The essence of this change is more easily grasped within the context of US politics and the politics of the Republican right. The goal is the end of Big Government. As Britain heads towards another crisis resembling that of 2008 it will face similar dilemmas to those they faced then. In 2008 they bailed out the banks without taking control of them. This time overwhelming popular pressure could force their hand and result in nationalization. Similar pressures could lead to renationalization of the utilities and even land and the housing stock. These measures are unacceptable and dangerous to the post-Thatcherite oligarchy. By devolving spending and tax raising powers to the regions they are vetoing that particularly noxious, in their view, outcome. Admittedly, the state is bankrupt anyway but they will not be presiding over the bankruptcy of Britain with the tax-payer as the priority creditor, the state taking on our assets and our debt to our international partners being resolved through intergovernmental negotiation as I have been proposing for some time. Instead, they will proceed through “the market”.
It could be objected that there is little left to privatize. But Britain’s privatization programme is really just a corporate welfare scheme whereby public funds are transferred to private companies. The companies would not otherwise be making money. This process is inordinately expensive to the British state and is not sustainable. The British state will then withdraw its largesse and as it does so foreign states or their agencies will take its place. This process is already well underway as James Meek has documented and is about to accelerate dramatically. The British oligarchy instead of going down for a very, very long time have opted to be bought out by the Chinese and retired to the Cayman Islands.
It is a great irony that the “yes” campaign regard further devolution as a well earned consolation prize and continue to shout betrayal in the form of its non-implimentation. They have been joining in the fun too, dancing on the the grave of the Labour Party but it is also the grave containing the corpse of their neo-Keynesian spending strategies. The active component of the “yes” campaign is basically on the left, contemptuous of Scotland’s national status except when referring to it, hilariously, as “one of the richest nations on earth”, and these heady days have been like the last faint echo of Blair’s, 1997 “Things can only get better” surge, before we finally sink into the abyss. So they’re celebrating their own demise too: it’s just one internal contradiction too far.
That the coming crisis of Western imperialism will have a neo-liberal solution is at first sight dismaying but it has its logic. I was a struck by the insistence of a Chinese academic, speaking at at Glasgow University’s Confucius Institute, on the resolution of Britain’s debt and current account deficit with China via the market. What, I thought, did we have to sell back to them. Not much, but we can let them relocate factories which produce for our market to Britain. That way, they don’t have to accept sterling fiat money in payment and we can start to correct our trade deficit. That is definitely win-win. They can also facilitate this by taking control of our utilities and building other essential infrastructure. Finally, they can take over our banking system, after its major shareholders and creditors have taken the hit,opening up control of a significant portion of Britain’s land and real estate for re-industrialization. The British government has already taken us some way down this path and we have signed a formal strategic partnership with China and are now proud issuers of Renminbi-denominated UK government bonds. Other sovereign wealth funds will, of course, participate. Just as free-market ideology furnished us with a cover for imperialism in the 18th and 19th century, so it now provides a cover for a policy for end of empire. This is anxiously sought by the Chinese and the Global South and their investments will not be just about profit but drawing the sting out of Anglo-American imperialism. In exchange for life-saving inward investment Britain will de facto renounce its imperial or hegemonic project and become a neutral, demilitarized state. Perhaps Scotland could become a Chinese concession just as we once had concessions in China. That would be poetic justice and leave us staring survival in the face.
The constitutional transformation will go through and it will also be as many have pointed out a dog’s dinner. But the goal is purely negative from the point of view of the British oligarchy: to veto Big Government. However, it contains other potentialities as Gerry Adams, leader of Sinn Fein was quick to grasp when he pointed out that, despite the “no” vote, “the British state is not static”. Britain is not suitable for federalisation and the regionalization of England is a completely synthetic agenda which is being foisted on a reluctant people. Hence another irony: the “No” vote may be the real “break up of Britain” agenda. The constitutional agenda compromises Britain’s sovereignty and at a certain point when all the wars and tumult of empire are a fading memory that issue of sovereignty will return and, in all likelihood, resolve itself as four sovereign nations in these islands.
Posted in Constitutional change in Britain, Uncategorized | Tagged: bankrupt Britain, BRICS(Brazil-Russia-India-China-South Africa), Chinese soft power, End of empire | Leave a Comment »
Posted by seumasach on June 13, 2014
The idea of bailing out the banks in perpetuity is totally devoid of realism. Neither the pound sterling nor the British people would survive such a policy. The only answer is to allow the banks to fail, to put them through bankruptcy.
Britain’s financial sector remains vulnerable to further global shocks and the Bank of England must be ready to rescue banks that run short of funds, Threadneedle Street warned on Thursday.
Posted in UK economy | Tagged: bankrupt Britain, failing banks, no more bailouts-put banks into receivership, no more bombing!-no more bailouts! | Leave a Comment »
Posted by seumasach on February 18, 2014
The terrible truth about educational levels is another aspect of contemporary Britain which we refuse to confront along with the real state of our banks, our infrastructure, our industrial base, our public health and so on.
17th february, 2014
British schoolchildren are lagging so far behind their peers in the Far East that even pupils from wealthy backgrounds are now performing worse in exams than the poorest students in China, an international study shows.
Posted in UK economy | Tagged: bankrupt Britain, End of empire | Leave a Comment »
Posted by seumasach on October 13, 2013
America’s biggest banks are now in a position to go bust without state intervention, the Bank of England’s deputy governor declares
12th October, 2013
The deputy governor of the Bank of England has declared an end to the era of taxpayer bail-outs for the world’s giant lenders.
Posted in Financial crisis | Tagged: bankrupt Britain, End of empire, failing banks, no more bailouts-put banks into receivership, no more bombing!-no more bailouts! | Leave a Comment »
Posted by seumasach on September 15, 2013
14th September, 2013
Lehman Brothers filed for bankruptcy on September 15 2008. The resulting financial meltdown led to the first global recession in living memory, so causing countless job losses and widespread human misery.
Posted in UK economy | Tagged: bankrupt Britain, QE3 | Leave a Comment »