The Next Crash

Why should I lie awake in the middle of the night thinking about the next financial crash, when we’ll again see failing banks and governments frantically trying to stabilise ‘confidence ‘?

Of course there will be another financial crash. There always is. It’s built into the system.

Maybe next time we should apply some common sense, says my feverish nighttime reverie.

  • Put failing banks into special administration, keeping current contracts going where possible.
  • Remove and investigate bank directors, recovering mis-spent money where possible.
  • Break up big banks rapidly into saleable and social banks eg regional banks.
  • Crucially, the money it costs should be created by central banks as ‘sovereign money’, not taken from the people and public services by increasing public debt and resulting ‘austerity ‘.
  • Of course this will slightly devalue the currency, but then that is simply a recognition of its true value in this situation.

If only…

Featured image of bank run 1933, via Wikimedia Commons

What did you expect?

What did you expect when you elected a PR man to be head of the UK government? Government by PR.

David_Cameron_huskyMeaningless slogans that are contradicted by real actions in the opposite direction, for example:

  • “Greenest government ever” – anti-green ministers appointed, moves investment from renewables to fossils and nuclear, green investment bank diluted.
  • “Compassionate conservatism” – reduces benefits to the disabled, more people sleeping rough.
  • “We’re all in it together” – takes from the worst off and gives to the better off, increases inequality, builds insufficient lower-priced housing.
  • “No top down reorganisation of the NHS” – the Lansley top down reorganisation.
  • “The NHS is safe in our hands” – now battling with NHS staff.
  • “7-day NHS” – somehow going to happen without increasing investment.
  • And so on…

Untrue narratives or half-truths propagated to ensure advantage in the polls. Just a couple of examples:

  • “Labour caused the financial crash” – it didn’t; it was bankers and virtually none were punished in any way.
  • “We will save £12 billion (but we won’t yet tell you how)” – now we know – it was by taking money from the weakest in society.

Real problems, such as the care crisis, lack of affordable housing, global warming, gross inequality, the inadequacy of current banking – shunted into the long grass.

That’s not to say the Cameron governments have not done some good things, but put a PR man at the top, and nothing is ever quite what it seems. Of course, he watched Blair closely, and learned…