Labour Leadership candidate Jeremy Corbyn, Speaking at Tolpuddle

Jeremy Corbyn Speaks at Tolpuddle, 19th July 2015

The significance of six men from Tolpuddle in Dorset and their families made to the lives of working people, leading to trade unions, and to democracy is unbeknown to many, who learn of kings and queens and rich people’s wars.

“My lord, if we had violated any law it was not done intentionally. We were uniting together to save ourselves, our wives and families from starvation.”
George Loveless
Tolpuddle farmer

But their battle was just to feed their families. They worked the land because rich people forcefully claimed they owned it. It is to commemorate these six men that there is an annual rally in Tolpuddle.

This year, The MP for North Islington, Jeremy Corbyn speaks of the Martyrs, and their contribution. As a candidate for the leadership of the Labour Party, he also puts forward his vision for a fairer society, where everyone is cared for everyone, and everyone cares for each other.

 Labour has had its ups and downs, but our contribution has been amazing.

  • We formed the NHS in 1948, Health Care free at point of use.
  • Passed planning legislation and built large numbers of council houses.
  • Building on Beverage, we founded the welfare state in 1948    
  • In Government we passed Equalities Legislation
  • The Human Rights Act
  • Argued and Changed Lives for LGBT

We have won great debates and made a massive contribution . Now there is unanimous support for free healthcare as a human right, but the idea of a welfare state as an insurance system to protect everybody from destitution has gone off the rails. There is talk in the Houses of Parliament of welfare scroungers, and people are watching Benefit Street. They are condemning people with disabilities (often work related), who are claiming legitimately – by the nastiest possible media imaginable.

“We need to say something different as a Labour Movement. We want to live in a society where nobody is homeless, where nobody is destitute. Is it right in the fourth richest country we allow one million people to rely on food banks, and sleep on streets?

Let’s defend the principle of a society which cares for everyone and where everyone cares for everyone else.”

We had our downs, supporting Private Finance Initiatives – and the Appalling decision to go to war in Iraq in 2003.

“It was a long time ago, but it does matter because the descendants of war are the next war , and the war after that. The growth of irrational forces like ISIL is not far from where we exported arms, which is now fuelling these conflicts. We have to think carefully about the human consequences of war. The refugee crisis around the world is now the biggest in recorded history.

Specific targets for the future Labour Party is the vote in 2016 for Trident replacement which is to cost 100 Billion pounds. Labour should oppose this. We want a world of peace, not war.

The other question facing the Labour Party is the Banking Crisis. We lost in 2010 because of a banking crisis created by unregulated banks and a sub-prime mortgage crisis in the US which led to a tsunami of economic problems all around the world. It was not caused by too many nurses and paramedics in the health service, cleaners in schools, educational assistants or any other public worker.

It was right for the Labour Party to bring banks into public ownership. The problem is that shares were given to a holding company, now under direction of George Osborne, selling them off at a loss.

Now spivs and the city, and fat cats all around the world  are buying up those banks. Since we paid so dearly as the public for those banks we should retain public ownership so that we can direct them to invest in manufacturing industry and everything else.

But we adopted an austerity budget, and an incoming  Labour supporting government would have made cuts as we have seen the ConDem government cuts. You can’t cut your way to prosperity. You only get change if you challenge the austerity agenda.

Reality is rebranding our economy leading to a greater inequality, reducing the size of the state in what it does for ordinary people.”

Labour need to offer something different. A future with hope.

“Now we have a chance to debate and offer an alternative through this Labour leadership campaign.

Now we can mobilise people, we can unite people, we can excite people. We can encourage those 53%  young people who were registered but didn’t vote. We can win people back.  

.. By being proud of what we are, where we came from: proud of our unions. 

I do know that mobilisation of such large numbers people invert town and city in this country, talking about something different, wanting something different has changed politics. Let it continue!” 

Is Time up for “The Big Lie”?

Is Time up for ‘The Big Lie’?

Jim Grundy
Big Lie
The ‘Big Lie’ theory is best summed up by the well-known phrase that if you’re going to tell a lie, tell a big one, repeat it often enough and you’ll be believed. It works and, ironically, it relies upon the basic honesty of most people to make it work.
Everybody lies. Of course we do but those lies are the small things that make life easier. You do like the meal that’s been cooked for you; yes, that new shirt, suit looks great, etc., etc. Lying is normally a harmless social lubricant, with no malice involved. And so most people think others operate on basically the same level.
But they don’t.

Over the past five years the Tories and their Lib Dem supporters have lied on an epic scale. Orwellian double-think and newspeak has nothing on them. They damn Labour for borrowing, whilst borrowing more than Labour has done, not only during the previous Labour administration but in history; boast of growth whilst overseeing the slowest economic recovery since the South Sea Bubble 300 years ago; and a rate of growth that still doesn’t match the one they inherited – and let no-one mention that the national debt Labour was bequeathed in 1997 (as a % of GDP) was larger than was passed on to the Tories in 2010.

The Tories know this perfectly well. But the credit crunch was a Tory wet dream, offering undreamed-of opportunities to implement a huge shift of wealth away from the public to a tiny ruling elite. It is no coincidence that the U.K. now has the largest number of billionaires per head of population than any other country. When the Tories ask where the money has gone – referencing ‘that’ note – the answer is clear.

From the privatisation of the Royal Mail for £1bn less than its market value – at a conservative estimate – to the handing out of NHS contracts to the private sector, the evidence of how this asset-stripping is playing out is there for all to see.

But what is in plain sight is not always what is most visible.

I give you, for your distraction, the ever-changing galaxy of scapegoats presented by our friends in the media and their Tory chums: foreigners; gay men and women; black people; asylum-seekers; refugees; gypsies; benefit scroungers; and, the current favourite – Muslims. There are many, many more, of course.

The crowding around the political centre ground left many working class people feeling abandoned, disenfranchised, bemused by what has happened and angry at the impact the undermining of their lives, homes and jobs has had upon them. UKIP, the ultra-Tories, have simply taken the next step, exploiting those fears to argue, for example, that raising the Minimum Wage would attract more lazy foreigners to the country, to take our jobs whilst living on benefits – let’s not dwell on that contradiction too long. The lie remains, only it’s even larger and even more dangerous.

Yes, only an idiot would argue that strategy hasn’t worked to an extent. A bigger idiot, though, would argue that everyone attracted by UKIP’s rhetoric is, therefore, racist, a hopeless, mindless bigot to be dismissed. Of course they’re not.

In their private lives when people go through the ups and downs of life they often grasp at small, almost insignificant issues and obsess about them. An argument about a partner not remembering to do the shopping, to put the bin out, to sort the gas bill, all these become mountainous problems because they feel themselves to still have an element of control over them – the ‘small stuff’. The underlying problems are too big, too difficult to face and are put to one side but forgetting to hang out the washing, now that sums up what’s wrong with your life…..

As in private, so it follows that the big public issues of the day can seem unfathomable, so far beyond their control that they don’t bear thinking about, let alone understanding, because there is no point. An earnest discussion of globalisation, the free movement of capital but not labour or the operation of City trading houses will leave many people completely cold. So, back to the ‘small stuff’: now, that bloke at no. 26 who’s never done a day’s work in his life, who claims benefits…., he’s the one. He is what is wrong with society. And those they read about in the press, now if we sort them….

And, returning to the theme, why would anyone tell such blatant lies about Romanians, Muslims, etc.? There must be some truth in it because they wouldn’t print such stuff if it wasn’t basically true, give or take the odd exaggeration…. Surely. Surely, people don’t tell such outrageous lies….

The last General Election saw an unpopular Labour Government, dealing with the biggest financial crisis in modern times, still suffering from the hangover of ‘New Labour’ – just how toxic that had become – and it hit rock bottom. But the Tories didn’t win. Despite everything, they had to be propped up by the Lib Dems (when ‘propping up’ was fine – it’s a crime now, it seems.). Was this the first sign of the weakening of the ‘Big Lie’? People were clearly fed up with Labour but not enough bought into the Tory message.

Cameron and Osborne have perfected their straight faces whilst telling the biggest lies possible but still not enough people have fallen for them. And as the election has approached, the lies have gotten larger and, abandoning all pretence of reporting news, their allies in the traditional media have joined in making a huge noise about how a man eats a bacon sarnie. There can never have been a worse, more negative, down-right vicious campaign in modern British political history.

But the louder they shout, the clearer it is becoming that not enough people are listening to them. Today’s headlines [6th May 2015] go beyond hysterical. The plebs, it seems, aren’t paying enough attention.

Younger people have tended to vote differently to the older sections in society but is that gap widening? Some of the polls suggest there is a growing and significant difference between the levels of support for UKIP by age-group. Society has changed and UKIP focuses upon older people, relying on a twisted version of nostalgia to spread its appeal, so that’s understandable. But what else is going on? At the same time the amount of time spent by people reading print news media is seemingly in terminal decline, likewise the time spent watching network TV news is suffering too. By contrast, the numbers accessing their information from the internet, and social media, has grown and grown. And internet polls are now beginning to highlight different outcomes to those carried out by telephone. (But that’s all Russell Brand’s fault, isn’t it?)

There is always the issue of causation against correlation but is the increasing use of the internet with the access it provides to a bewildering array of information (yes, not all good), information that is not controlled by peddlers of the ‘Big Lie’ changing how people think? If the messages given to people by the Tories can’t rely upon their massive reinforcement by the Murdochs and Mails of this world, is it the beginning of the end for the very tool that has been so useful to them up to now?

Well, probably not. Not yet. But, to paraphrase Winston Churchill – a man who knew the power of words if nothing else – whilst this isn’t the end; it isn’t even the beginning of the end; but it is, perhaps, the end of the beginning for the growing challenge to the ‘Big Lie’.

And aren’t they terrified of that?

On the Road to Recovery..

On The Road To Recovery

 by Trevor Bacon

I nearly stood there holding the paper up high to proclaim my utter contempt at the headline. My habit when entering a supermarket is to first, after getting the obligatory metal basket or trolley,  to stop at the square news-stand, reading the headlines as I proceed around. About two weeks ago I glanced the headline in the Murdoch  Sun that  said “Gazza is dying as we watch”; my god they are finally printing some real news for once, then I realised that they were not talking about the plight of the Palestinians in the occupied territories but the last chance saloon  for the legendary blubbering alcoholic Newcastle footballer. So much for real news!

Anyway, it is not the rights and wrongs of the Palestinian conflict that exercised me that particular day, no, it was the headline in the Daily Express. As I said, in my opening line, the headline was so egregious that just for a moment I got ‘that feeling’, that feeling where your almost hanging on the edge of doing something.  As if  balancing on a high wire  where even the thought of making an utter fool of myself or possibly being taken to the nearest mental health unit by the police was not a deterrent.  The headline that incensed me was something to the tune of  “Property Prices To Rise By 4.4%.”

express headline

House prices will rise by 4.4 per cent next year, according to an influential City organisation

In fact it wasn’t even headline that really got to me, other than the clear leading implication that this was a good thing. No, it was  the sub heading that went on to say that the value of houses was rising and leading the economy out of the great recession.  So there I was in the entrance to Tesco and about to say what I will say here instead.  No, it is not house values that are increasing it is the price that you the punter is expected to pay. House prices are increasing, that is true, at least in the South-east, but not the value. Value and price, particularly  with regard to property are clean different things. You may say with honesty that more banks are once again willing to lend but you can’t say that in such an economy that these properties  are actually worth any more than they were worth last week or last month or that it is a good thing.  No, again, strange as it may seem for a government  so ideologically opposed to Keynesian Stimulus and market manipulation, that they are doing exactly that; using the governments ‘Funding For Lending Scheme and quantitative easing to pour money into cheap loans for unaffordable properties.

bibble house

In Tesco 200 Grams of mushrooms have increased in price by nearly 100% since about 2008 but do we see headlines in the conservative ass licking Daily Express extolling the virtues of what is nothing more than fungal inflation? NO! No we don’t.  If I were to go around the shop and do a straw poll of people on what they thought about the rising price of mushrooms would they unanimously say that it was an indication as to the positive health of the economy? No!  No they would not.  They would say it were either a case of profiteering or inflationary forces but I bet a pound to a penny that they would not be cheering in the aisles shouting “Hurrah for good news, the great recession is finally at an end.   I’m paying double for mushrooms.”  

The difference between mushrooms and houses is that most people have little financial interest in the world of mushrooms whereas most people do have an interest in the world of mortgagees and houses. If you are a home owner, or more often, a mortgaged owner then at the moment you may feel reasonably pleased. Interest payments are at an all time low and, if the Daily Express is to be believed, the value of your home is rising.  This gives you a warm and comfortable feeling, maybe I ‘can’ draw out some equity, and maybe I ‘can’ afford those two weeks in the sun or ‘that’ new car. If you’re a saver, you may feel just be a little different, your interest has been at an all time low and even long term investments are hardly keeping up with inflation. Ditto with young people.  If you’re saving for your first property, things have not been a bag of laughs for you either.

During the first phase of the housing crash, it was almost impossible to get a mortgage without a large deposit.  This situation has got somewhat better as of late and I suspect that this is the real reason why house prices are moving upwards again.  The only problem is that in some respects we are back to the situation ‘pre crash’ where banks were lending on very small deposits for houses that were way beyond traditional price ratios compared with the general  economy.

Shelter, a national housing charity recently stated that if a chicken had risen in price at the same rate as houses since the nineteen eighties the cost of one would be about £55.

chicken-white

Given that Chickens are still within the range of about £5 to £15 suggests that any retraction we have in house prices so far is negligible and that in real terms houses are still in a huge bubble.

So what has caused this new-found faith in the house buying public that could not be found in the intervening years since the crash? The answer is ‘Quantitative Easing’ and funding for lending .  Quantitative Easing  is a fancy name for an economic strategy that pre WWII Germany found so unsuccessful and probably led to the rise of nationalism’s all over Europe and WWII itself.  Of course, you will hear from its advocates that this is nothing like the money printing of Viamar Germany and that we are not about to see old ladies with barrows full of Deutsch Mark trundling down the high street to buy a loaf of bread.  And those supporters would be right, for one thing most money is no longer printed.  Since the introduction of banking computers’ systems, most money is simply tapped from a keyboard into existence as strange and disquieting as that seems. No, they are right in as much as we haven’t seen anything like the hyper inflationary activity associated with such events but then, neither did Germany, until of course it happened. When it did, it happened with such speed that there was nothing to stop it but that’s another story.  No, the grand plan is this; money is being quantitatively eased into existence. This quantitatively eased money is then used to buy back government bonds (government debt) back from the banks. This leaves the banks with cash to invest and the government with debt that it has been bought back through the use of money that it invented. So far so good….. I think??? (Think Left, Quantitative Easing)

So, to sum things up we have banks heavily backstopped  by the government, lending  to allow first-time-customers to buy overpriced properties and mortgage payers to release equity on these very same over priced properties in order spend into the economy.  This apparently, is the secret to ending the great recession even though it  all sounds like an ever increasingly complex spirals of debt. They, the LibCons and their cheer leading media whores may like to think that this kind of behaviour is, like a vigorously agitated toilet brush, going clear the blockage, but in reality I fail to see how it helps in the longer term.  The simple fact is that as much as we Brits like to kick the crap out of the lazy, feckless Greeks and others it may come as some surprise to this audience that Great Britain has just about the same public debt and exponentially more private debt to deal with.

Max Keiser, or one of his guests described the British economy and this particular policy strategy as follows, it’s like a terminally ill cancer patient given morphine.  While the effects of the drug are still obvious the doctor declares that the patient is on the road to recovery. Finally, property forms great chunks of the British banks balance sheet. That.is to say that the loan is backed by the house that it bought. The house is the tangible asset.  When house prices fall so does value of collateral that the bank can hope to recover should the debtor default. When house prices fall less people are willing to borrow on the perceived value of their houses.  Since the economic crash began the UK and most other affected governments have done everything within their power to stem the house price collapse and promote yet more lending. To do this the government have not only sacrificed savers, by instituting the lowest interest rates possible (negative in real terms) but also Nationalised banks and provided vast sums of liquidity. The banks in turn used this money to build up capital reserves  and not  to lend. So through the Bank of England the government hit back by providing what can only be described as stimulus to  get the economic ball rolling.  This of course is something that they said would not do given their unfaltering belief  in Neo Liberal economics. The simple fact is that the banks were not lending into the economy because in their view the problem had been caused by such lending in the first place and that a good economic argument for doing so did not exist and in that argument the banks were not wrong.

(See Think Left, Max Keiser and the Carry Trade)

The simple and unpalatable argument is that it is a fallacy to think that a healthy economy is dependent on house price inflation. Again, if the price of potatoes were to double, would that induce economic activity? No, it may prompt farmers to turn over land to grow more potatoes and force the population into substituting another staple such as rice or pasta but it would not benefit the overall economy, it would merely distort it.

This reminds me of an observation of Stacy Hurbert about a tribe of South Sea Islanders who, during the war, came into contact with American military that set up base. When the military  left after the war the Islanders invented what was known as a Cargo Cult that manifested itself in Islanders playing the parts of airfield staff. They cleared parts of the island to make a crude runway and make a tower for one of the tribe to sit  with a pair of half coconuts positioned on each ear. Others ran around with bat shaped paddles as they had seen the servicemen do. They thought that if they did this that  the cargo planes would return. In some ways this is what our governments are doing by artificially trying to maintain house prices without attending to the rest of the economy. Distorting the economics of house prices is just as flawed thinking as that of the islanders.

Our governments are using vast resources to maintain what is in reality a superficial economic effect. This is an effect of what I consider to have been an already a very flawed system at the best of times.  It will provide nothing but a cosmetic makeover that sooner or later will be seen for what it is, a way to fool a few people for a few more years. Stimulating growth through stimulating lending is a disaster, even by their own warped and antisocial economic  perspectives.  God Help Us All!

Bankers + Tax Havens = Lower wages, benefits and pensions

Quote

This video clip of the ‘looting of America’ exposes the same type of looting that is occurring in the UK.  In fact, it is generally accepted that the City of London is an even more criminogenic environment than Wall Street.  Banks that are too big to fail and bankers that are too big to jail.

In spite of being only 12 minutes long, it romps through the major ruses with an impressive list of commentators which include New Economic Perspective‘s Professor Bill Black and Professor Stephanie Kelton; Naked Capitalism‘s Yves Smith, James Henry, author of ‘The price of OffShore Revisited’ and Citicorps’ 2005 plutonomy document on the inconvenience of the franchise.

There is even a clip of Goldmans Sach’s Lloyd Blankfein explaining that the 99% of Americans have to lower their expectations of wages, benefits, pensions and sell off the remaining public assets.  We don’t need the chief vampire squid.  We have George Osborne turning the UK into a third world country.

The Truthseeker: Looting Of America (E12)

Published on Apr 5, 2013

The man who jailed a thousand bankers tells us how to do it; Twice the size of the US economy exposed offshore; and Wall Street circles the nation’s last assets. Seek truth from facts with former senior financial regulator Bill Black, The Price of Offshore Revisited author James Henry, former Wall Street executive Richard Eskow, Econned author Yves Smith, economists Stephanie Kelton and Dean Baker, and chief vampire squid Lloyd Blankfein.