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Monday, 22 June 2015

Do NOT do this.

Do NOT do this

A batshit idea

By

Alexander Gordon Jahans

Lets begin with why I was thinking about this because if anyone is stupid enough to do this I may end up in court:
People are dying. They are killing themselves because of Austerity. I'll explain what Austerity is in a moment but basically the government is cutting back on spending and raising taxes and there are disabled people who depend on benefits to survive. And bare in mind to be on benefits you have to be in a fairly desperate situation anyway so these are people on the raggedy edge just trying to survive and then they get hit with a benefit sanction, which basically means the government have decided they don't need benefits. So now these disabled and desperate people don't have money for food or rent. It's like they're paused at the edge of a cliff and the ground has just crumbled away beneath them. So a not insignificant number of these people attempt and sometimes succeed in committing suicide. And to make matters worse the government won't release the amount of people who have died as a result of benefit sanctions. Which means that if they are afraid of letting us know the truth an awful lot of people must have died.

So what is Austerity? Well if you believe the government, the previous Labour government spent far too much on welfare and now we are as a country in debt so we must pay off that debt by tightening our collective belts. That is the official definition of Austerity.

There are some problems with this definition of austerity.
The first is that if we're tightening our belt why are the MPs getting a 10% pay rise, why are millionaires getting tax cuts, why are bankers and mega corps making massive bonuses and profits and we are we spending billions on nuclear missiles we will never use and on maintaining an ancient parliament building that is falling apart and is not fit for purpose anymore?

The second is that Nobel prize winning economists agree that trickle down economics don't make sense, there is drastic income inequality and that in a time of depressed economy you need to stimulate economic growth then tax and pay down the debt when the economy is in roaring good health. You harvest where there are crops in the field, not when the fields are bare. And just like if you tried to harvest an empty field if you try to cut back on stimulating the economy and tax the barely surviving economy, all you do is waste energy and time and the good will of the people and destroy whatever green shoots that might be able to bloom eventually.

The third problem with this definition of austerity of course is that I was there in 2008 when the recession hit. There was no moment of Labour over reaching themselves. All that happened was an unregulated banking system did something incredibly stupid and a labour party that had survived Tony Blair going to war in Iraq and not getting punished, that had survived the expenses scandal, that had survived changing Prime Ministers without the say of the public, was left running the country when this timebomb exploded. And to make matters worse the unelected prime minister was the former chancellor of the exchequer, so the feeling is he should have seen it coming and done something about it but instead he bailed the banks out with tax payer money and this crucial flaw in the banking system was left unchanged.

So as you can imagine it is freaky for me to see this new government basically retconning with the support of labor and the mainstream media the reason we are in a recession. Suddenly the bankers didn't cause the problem, poor people on welfare did. This is some Orwellian shit right here. 

The new government by the way, when they first got in, did so because the Lib Dems did a deal with them during a hung parliament and when they did win with a majority only managed it because the First Past The Post system is broken as fuck and so the majority of the population did not vote for this party. I could go further but suffice to say I don't consider this government legitimate. I mean if I was reading about this in a scifi novel I would be expecting some kind of revolution. 

Sure enough there is one. 2 days ago, on my birthday there was a massive peaceful protest against austerity in London and the mainstream media basically ignored it. Then later that day the new government announced 12 billion pounds worth of new cuts to the welfare state. And this fuck you was basically the straw that broke the camels back. Especially as Nick Robinson a news presenter from the BBC, one of the biggest mainstream media providers in Britain, basically confirmed what we had all figured out the new Prime Minister was putting pressure on the BBC to follow his party line. Hence the Orwellian retconning of the past.

So now we get to my dangerous idea. The banking crisis that created all this happened because banks created loans on the basis that they will have the money to pay for the loans once the loans are paid back. This is basically printing money to give to someone on the understanding that you will destroy it when you are paid it back. You don't devalue the currency so long as you destroy the money once the loan is paid back. Except banks make their money on interest. They don't want people to take out loans if they can pay back the loans, they want to siphon money from people for the rest of their lives. It's just good business practice to have people only pay off the interest. Except some people can't even afford the interest because it's so much. These people can't pay back the money, so if you lend to them you won't get your money back and you have devalued the money you do have. But because these people are so desperate they will sign anything to just keep food in their bellies, so they will agree to higher and higher rates of interest. And here's where it gets scary, bankers would gather up a whole bunch of anonymous debts (So you can't tell which ones are doomed to not be able to pay back the interest, let alone all their debt) and they sell these to other bankers like "Hey how much for all these debts generating this much money in interest rates" and so the ticking time bomb, can't pay off the interest, debts are used to sweeten the deal.

The banking crisis happened because it was financially advantageous to trade debts that were doomed to default and cost whoever was left holding the debts money.  The labour party bailed them out with tax payers money and they started making massdive profits but no regulation has been put in place.

So think back to those desperate people on the raggedy edge when the cliff has crumbled away beneath them, they don't have money for food or rent but those unscrupulous banks are still trading debt. These are people that are going to die anyway so if they took out loans they couldn't pay back to pay for that food and rent then took it to the logical extreme where they end up in jail for fraud, they could make the banking crisis happen all over again except this time the illegitimate Orwellian welfare state destroying government will be faced with the problem. Would they again kick the can down the road and bail out the banks with tax payer money in which case they have no excuse left, or would they actually dare to arrest the bankers?

Well now I've said this they'd probably arrest me and brand me as a terrorist so don't nobody try it but it is interesting to think about.