The deal with Greece gives me cause for hope. Don’t get me wrong, this is still a sticking plaster that will need much more thought before a more sustainable worldwide economic model emerges. Importantly, what has happened, is that there has been a collective acknowledgement that just imposing more austerity on Greece can only make the situation worse. This means, that at some level at least, there is a recognition of the need for systemic change not just something to fix the issue now and then back to business as usual. There will be more problems to come, but this is a good start on tackling them.
Meanwhile across the bond, Vince Cable has it right, bunch of nutters. If they don’t raise the debt ceiling and the US defaults who knows what chaos will ensue and needless to say it will go global.
And back at home, I caught a glimpse of an article in the Times that tells me George is promising tax cuts to be announced in the autumn. No not for you silly – for the rich, so he can get the economy moving. You know, that thing that replaces you with a machine, or third world slave labour. Or if you’re lucky maybe the austerity has driven wages low enough here now so you might get employed. The rich boys can then fill their pockets and find ways to get you borrowing to spend more on their, designed to fail and be replaced, crap. You can then get thoroughly indebted until you can’t cope and default. When enough of your friends have defaulted as well, a big bank may have a big wobble, needing – you guessed it – a big bail out – which the government will give and then take the money from your public services. Well they’re all a bureacratic waste of time anyway aren’t they. Not like they do anything important, like looking after your health, education, safety, sanitation or anything.
Nice plan B George – anyone got C?
Trends to watch
- Growing divides around the country. In particular London and the South East compared to Cornwall, Wales, Scotland, Northern Ireland, and the North East.
- Debt that was on central government books transfering elsewhere – to local government or to you, for instance.
- Changes to the way figures particularly those relating to the deficit are calculated
- Servicing debt by accumulating more debt. On a long enough time line, everywhere is Greece.
- The financial sector getting more money out of us. Businesses being forced into credit card loans rather than business loans. Using any changes as an excuse to change the terms of agreements, so fixed periods become shorter, loan periods become shorter and rates increase.