Terrorism, Globalization and Conspiracy – Michael Parenti


Michael Parenti speaking in 2002 but he might as well be speaking now…. and he is well worth hearing now!  An hour of your life to understand the links between Capitalism, Poverty, the Trade Deals, Globalisation, Debt, the fall of the Soviet Union, the invasion of Iraq, Afghanistan and finally, Terrorism.


Terrorism, Globalization and Conspiracy – Michael Parenti

Redcar steelworkers pay UK tax. Chinese Steelworkers don’t.


Redcar steelworkers pay UK tax. Chinese Steelworkers don’t.

By Peter Martin Twitter: @petermartin52

An economic and political discussion usually and rather quickly gets around to a discussion on “the deficit”. Of course what everyone means is the Government’s deficit rather than the deficit neo-liberal politicians have created in our spending power in recent years. The other less mentioned deficit is the one the UK runs in its trade and financial dealings with the rest of the world. There are various terms used in connection with this such as current account deficit, balance of payments deficit. Then there is the capital account which includes the sale of gilts. To keep things simple I’ll just use the term external deficit for the net flow of ££ out of the economy. So we can think of this as the Surplus the Rest of the World has in its dealing with the UK in £ terms.

If we consider everything as a surplus we can say:

Government Surplus  + Private Domestic Sector Surplus(or PDS savings) + Rest of the World Surplus = 0

This is the well known sectoral balance equation. The Private Domestic Sector would essentially be the real economy and would include all publicly employed workers, local councils and their workers,  and even some Govt owned companies – though this might just depend on how the accounts are presented. This is just in £ terms. They don’t include any real assets like gold reserves or land holdings.

Going back to deficits this works out as:

Internal Deficit (Govt Budget Deficit) = PDS Savings + External Deficit (Trade)

It is common in discussions for someone to say something like ‘the trade deficit is not the fiscal Deficit.” Which is of course true, butthe two deficits are very closely related. If, as now, we are running a 5% of GDP trade deficit and the  Government is running a 4% deficit there is 1% more spending leaving the economy to pay our net import bill than is replenished by the Govt deficit. That money has to come out of everyone’s savings. So if the external deficit was zero the Government deficit would certainly be reduced substantially and may even be eliminated completely. Another way to look at it would be to say that money paid out for imports can’t be taxed but if it is paid out for local products it can be. Money generated from export sales, or import replacements can be taxed too. Redcar steelworkers pay UK tax. Chinese Steelworkers don’t.

Exporting more, to the value of 2.6% of GDP and importing 2.6% less will close the trade gap completely.  This may require a some initial discomfort to achieve but it will be nowhere near as bad as continually putting up with with tax rises and spending cuts, ignoring the external deficit and running the economy into ever deeper recession.This is a saleable message that our politicians (are you reading this John McDonnell? ) could well explain to a sceptical public.

There are those MMT supporters who will not be at all pleased with the thrust of this argument.They will be thinking that we should not be using MMT to explain how our deficits can be reduced but, rather, we should be explaining how they do not matter. They’ll argue that the deficits are just numbers on a spreadsheet, that ££ are just like runs on a scoreboard, that the government is monetarily sovereign and that it can never run out of pounds, it can never involuntarily default and it can never go broke in any debt denominated in ££. They will further argue that exports are a net real cost to the economy and that imports are a net real benefit. Therefore we should be exporting as little as possible and importing as much as possible. Of course, this is all absolutely true and intellectually incontrovertible. Except, I would just question the morality of deliberately taking more from the world than we are prepared to give in return.

It is also true is that we live in a democracy and we have to assess the chances of the voters ‘buying’ this argument in sufficient numbers for Labour to win in 2020. I am not a politician but I would say there is no chance at all. So, if this is a correct assessment, we have to look for the next best alternative. If we don’t offer that, which is an economy at relatively full employment with low internal and external deficits, stable but modest levels of growth, inflation and interest rates, we will end up with something very much worse.  An economy with high levels of unemployment and underemployment, high numbers of low paid and low productivity jobs, higher internal and external deficits, and with a government which is forever chasing its own tail with a succession of tax rises, spending cuts and the encouragement of excess private credit created asset bubbles.  In fact, just like the one we have now.

People are sick of all that. We just need sensible politicians to explain that there is a much better, if not a perfect, option

Economic Inequality explained


Animation from the US but can you spot the differences between the US and George Osborne’s economic ‘strategy’ in the UK?


An Animated Video Explains Economic Inequality.

It’s you, Conservative government. Please stop.


It’s you, Conservative government.  Please stop.

By julijuxtaposed – first posted 7.10.15

Please, Conservative Government, stop putting Britain’s people down.  It is fatuous, unpatriotic and downright rude.  You are our government; our leaders and representatives.  You are privileged to hold the highest offices of public service.  Why do you disrespect us so easily?  Don’t you like us?  Are we embarrassing you?  Why do you keep speaking at us and about us as though we were the ones who are letting you down?

Stop selectively comparing us to other countries and other people to bully us and mask your inadequacies.  This inferiority complex is yours.  It is insulting and becoming tiresome to hear you carping on with your political envy.  If their peoples work longer, earn less and have fewer rights, then that is not a competition I wish to enter.  In fact, I would prefer that you openly disapproved of such economies.  But stop, too, this flippantly pitting of our regions, counties and cities against each other.  Stop expediently pointing generalised and judgemental fingers at people.  And, please, stop expecting us to be grateful for your mean-spirited crumbs.  It is our bread that you are eating.

And stop peddling paranoia to the xenophobes and stop perpetuating scarcity myths over resources that you are squandering.  We do not lack the means but that you lack the political will.  We do not lack compassion but you lack integrity.   We do not lack aspiration; we do not lack gumption and we do not lack self-respect but that you would strip us of dignity and decent opportunity.  We do not lack social cohesion but that you keep fostering fear, division and discontent.

Who is in charge of our country’s finances?  Who is formulating our country’s policies?  Who is devising our country’s laws?  YOU.  Who has been in charge for the last five years?  YOU.  Who, in that time, didn’t build enough housing; didn’t train sufficient doctors, nurses, teachers…?  Who has denigrated and undermined public service?  YOU.  Who has introduced welfare reforms without first creating an economy in which this is justifiable?  YOU.  Who perpetuates a socio-economic system that requires the exploitation of your own citizens?  YOU.  Who makes blanket policies based on simplistic and insulting stereotypes?  YOU.  Who is blithely building on and recreating the same conditions that got us into such a fix in the first place?  YOU.  Who has bent over backwards to accommodate the hyperbole of bigots and Chicken Littles?  YOU.  Who governs by dubious moral whim?  YOU.  Who gambols greedily around on the world stage like an oversized and untrained puppy, begging to join in, no matter the recklessness and disingenuousness of the cause?  YOU.

Who is ignorantly and wickedly cutting away at the very heart and soul of Britain?  YOU.

Who is the biggest threat to the security of our isles, our economy and our families?  YOU.


You are the Government.  You are responsible for the tone, content and quality of your narrative and you are responsible for the consequences of your governance.  What we really lack is the practical wisdom, maturity and the competent service of an honourable leadership.  Change your attitude and behaviour.  Stop.  Turn around or get out of our way.