26.8.10

Surviving the perfect storm, Britain is bankrupt




Mike Robinson

Britain is bankrupt. There's no getting around that fact. We have a national debt of over £900 billion and rising. We have a massive black hole in the public pension pot of £1.2 trillion. We have personal debt of £1.5 trillion.

That is a total shortfall, today, of £3.6 trillion.
£6 Trillion - £188,000 Each

If we add corporate debt onto this figure, then the nation, its people and its employers owe somewhere in the region of £6 trillion to bankers in one form or another, complete with its burden of interest. And we are told we can solve this debt problem by creating more debt.

2.7 million people are presently unemployed - a rise of about 1 million people since the government bailed out the banks. And as a result of the already announced government cuts of between 25% and 40%, a further 1.5 million - 3 million people are going to lose their jobs.

Even if every man and woman capable of work were working and paying tax - around 32 million taxpayers - each of us would be working like slaves to service an average of £188,000 in debt. How does it feel to have a second mortgage hanging round your neck?

To add a final nail to the coffin, much of this debt is denominated in one foreign currency or another, leaving us at the mercy of exchange rates. Welcome to the third world.

The cuts announced in Osborne's recent budget are designed, he would say, to deal with the government deficit. Even if that were true, they will do nothing for the national debt, for personal debt, nor for corporate debt.

In fact, based on Osborne's plans, we won't even be able to cover the interest on the national debt. By the end of Cameron's first Parliament, the interest replayments on

Government debt will be in the region of £70 billion per year, which is more than 10% of today's annual tax revenue. To put that in perspective, that's equivilent to approximately 70% of the entire NHS budget.

Let's make no bones about it, we are in a deep, deep hole. Once further Quantitative Easing (money printing) is brought into the equation (as it already has been in the USA), and the imminent European banking collapse, one has to wonder how we will ever get ourselves out of this mess? I think it is no exaggeration to say upfront that people are going to die as the effects of the strategy of austerity and debt upon debt begin to bite.

I could wax lyrical about the specifics of how this has happened. But what can I say that has not been said already? So instead, let's put it in these terms: we are in this mess because of the corrupt thinking of all but a few in this country and the world. The corruption has been led by our so-called qualified economists, politicians and bankers, and has been followed by the rest of us who have ignored the very basic economic schooling we received when we were children.
The God Of Money



Ladies and gentlemen, it's time to waken up and remember that economy has nothing to do with money. The Satanic thinking of economists which has turned money into a commodity, which, they claim, has a value which can be traded on markets, has brought us to a place where money is worshipped as an alternative to God. It's fair to say that the saying "the love of money is the root of all evil" really is a truism, is it not?
Basic Infrastructure & Production, Not Money

The reality is that the only thing that creates value is the work we do. But not any old work - productive work. We only create value when we create something physical that people need. This rule of thumb does not include the printing of money, of course. Taking that route destroys value.

In order to support productiion of real physical goods, we need real physical infrastructure. Electricty, gas, water supplies, and equally importantly, transport infrastructure are absolutely fundamental requirements to any kind of real economy. These things are the foundation of any economy.



The worshippers of the great god money have quite deliberately and intentionally destroyed our basic economic infrastructure, just as they have destroyed our productive capacity. They have sold our infrastructure off to private corporations who have used it as a cash cow; sending us massive bills to use it, while spending the minimum to keep it running, sort of.

The chronic state of our roads network, our rail network, billions of gallons of water lost each year to leaking pipes and end of life nuclear and conventional power stations, is no more than organised criminal asset stripping of the nation. Very soon now, these companies will announce that they don't have enough money to build the new infrastructure needed to continue their ponzi scheme. Where will they come to bail them out, do you think?

Less than 20% of Britain's working population is involved in actually producing something. The rest of us are economic protitutes, doing no more than circulating money around the "economy" by servicing each other.

Since we don't produce anything which can be sold, how can the economy grow? Where does all the extra money come from?



Most people are aware by now that it appears out of thin air, or rather, at the punch of a key on a computer keyboard. In fact, since 1997 when Tony Blair became Prime MInister, the Bank of England has allowed the amount of Sterling in circulation to rise by 400%. But the "economy" has only "grown" by 30% in that time. Is that growth?

Or is that fraud?

While we have all been servicing each other and feeling drunk on rising house prices and staggeringly obtuse mortgages, we have systematically destroyed any capability we might have had to pay the piper when he came a-calling. We continue to destroy that capability quite deliberately and systematically, don't we Mr Cameron? Just ask Sheffield Forgemasters.
What Is The Solution?

Today we face a bigger threat to our nation and way of life than we did when war was declared in 1939, and none of that threat comes from immigration! In fact, if we are to get out of this mess, we will need everyone living here to get their hands to the pumps. It is no exaggeration to say that we need to mobilise as a people in a way that hasn't been seen since 1939.

If we continue to allow the Banks to behave as they have been, and more importantly, if we allow them to pull the puppet strings attached to our politicians and businessmen, we have no hope. They are effectively trading while insolvent, which is illegal, as it should be.
Banking In Administration

When any business gets into financial difficulty, it is absolutely standard practice put it into "administration". This is a very powerful process for control, where a company is insolvent and facing serious threats from creditors. The Court may appoint a licensed insolvency practitioner as Administrator, which places a moratorium around the company and stops all legal actions. This gives the company time to restructure itself and make rational decisions about the rescue of the company.

Why did this not happen with the banks?

We are staring a second, more serious, "credit crunch" in the face, as the banks struggle to store up enough capital to cope with an imminent market "event." We should not be waiting for this event to happen - let's get control of the banking system right now by bringing in Glass Steagall style banking regulation (e.g. separating retail and investment banking), writing off all illegitimate debt (anything which does not meet the standards of the new banking regulations), and protecting those functions of the retail banks that we find useful, e.g. savings and pensions. This still leaves a fairly big mess to sort out, but at least we would not be putting massive profits in the hands of the criminals who got us into this mess in the process.
Replace The Bank Of England



It really is time to replace the Central Bank - owned by the taxpayer, but run independently from government by commercial bankers. The Chairman of the Court of Directors, Sir David Lees, received the Officer's Cross of the Order of Merit of the German Federal Republic in July 1996. What for? This is a German state decoration, and although they seem to give them out like they're sweets, it begs the question, where do the loyalties of Sir David Lees lie?

The Bank of England holds assets in a wholly owned nominee company, Bank of England Nominees Limited. According to Hansard, these assets are owned by heads of state, including the Queen, but also foreign royalty and foreign governments. The Bank considers these people to be their customers. And yet, we the taxpayer, owners of the Bank. have no right to know what assets are held and for whom. Where does the loyalty of the Bank lie? Is it with the British nation, or is it with its foreign private corporate customers?

The opacity of the Bank of England is such that it cannot be relied upon to operate in the interests of the nation. It is simply acting as a broker between the government and the City of London. Its role then to to maximise profit from the debt owed by the nation, for the benefit of the commercial banks. It should be shut down and replaced with a national bank, whose functions would include real regulation of the financial system and its participants, and mangement of our sovereign currency, issued as public credit through Act of Parliament. This national bank would serve no commerical interests outside those of the nation, and would be required to be completly transparent and accountable.

Even once the work of financial regulation and debt restructuring is done, we still have a long way to go to get out of the mess. The pension black hole is a particular problem, and the only way we will be able to sort it out is by producing our way out if it.
Massive Infrastructure Rebuilding

A productive economy cannot be built, however, without infrastructure. Inexpensive electricity, gas, water and transportation are all required before restarting our manufacturing in any meaningful way.

We should be organising a massive publicly funded building programme to refresh our power stations, reservoirs and water pipes, railways and roads using the latest technology possible. That means using nuclear power and maglev trains. It also means taking back ownership of what's left of our current infrastructure. As mentioned above, this programme would be run on a scale not seen since 1939. It would be used as the driver to kick start industry and the real productive economy. In parallel, our schools, technical colleges and universities would be retasked to focus on real high tech engineering, machine tool design, and so on.
How Would We Pay For It All?

It should be obvious that if we can find trillions of pounds to bail out bankers, we can find it for good purpose as well. All money issued is debt, and we shouldn't be getting excited about that fact. The question is, should this debt be to a bank which will charge interest, or to ourselves, the people of this nation? We're not, after all, going to charge ourselves interest, and where our new shiny national bank is lending money to private corporations to fund the above projects, it can do so at small, simple interest of say 1-2%. So there would be the opportunity for British companies (globalist empire builders need not apply) to tender for exciting high tech projects which will provide productive employment, training and, in the end, infrastructure to support a real growing economy.
The International Angle

The British people should have been ashamed, the day Gordon Brown attended the G20 as the "Global Chancellor Of The Exchequer" pushing his globalist debt upon debt bailout solution on the rest of the world. Isn't it time we packed our current Prime Minister off to the G20 to propose international agreements among soveraign nation states, based on the economic principles discussed here? I would strongly suggest such an initiative is the only hope for civilisation.

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