Tremors and truths

When a system of society shakes, the mighty billionaires who tread, like great dinosaurs, across the world find difficulty keeping things in their proper place. Cracks and gaps emerge. Loyal servants of the system go off message. Little truths begin to appear as the ferocious class-solidarity of the super rich against the rest of us trembles.

A visiting research 'Fellow' at the National institute for Economic and Social Research ticks off Joan Collins for saying that it is the middle class who are affected by 50p tax rate for incomes over £150k. She points out that half of the those in full time employment in the UK earn below £29k. £150k goes to the top 0.6% of 'earners.' That 0.6 have an enormous voice though. 5 (and counting) national newspapers call for their taxes to be brought down. Joan Collins appeal on their behalf is a tiny voice added to the great blast of their protest.

This small example of special pleading is all the more risible in light of the nervousness of the weekend press - regarding the future of capitalism! In case you were not sure in whose interests the euro works, a joint statement has been issued by the BDI (the German federation of industry) Medef (the French employers organisation) and Confidustria (Italy's equivalent). It declared that they all had
"The greatest interest in preserving the euro, as well as in supporting continued progress towards further political end economic integration."  Read Europe's banks and multi-nationals are frightened that their political front and its consensus is falling apart.

But worse is to come! There is a normally chirpy column in the weekend FT called 'Economy Watch' (that might in other circumstances be known as 'It will be all over by Xmas!' as they churn out streams of encouraging, even patriotic economic data.) The headline this week is
'What's worrying is what the Bank knows that we don't.'

These poor souls are really scared. Mervyn King (Bank of England chief and normally a model of ruling class discretion) they quote as saying that the nation might be facing
"Its most serious financial crisis ever."

The column writers go on (an it is worth quoting at some length)
'Economy Watch was lost for words. After all most of us have grown up believing that policymakers had learnt enough lessons from the Great Depression to know that, as bad as things get, we will never see those days again. But there is little doubt the the governor means what he says:" Later the writers add "But it's safe to assume the Bank knows something we may not. Indeed it later emerged that there were fears in Whitehall the the European bank woes were undermining confidence in our own banks - RBS may need another bail out..." and ..."the recession was even deeper than we - and the Bank - believed. In fact the drop in output (last year) was not far off that seen in the 1930s."

What (you might ask) did the Labour Party leaders do about the impending storm at their recent conference? In case you had not heard, Ed Milliband combined benefit 'scroungers' with the billionaires and bank bonus hunters who cheat on their carefully managed tax bills as both are part of the 'get rich quick' society. It would be funny if it was not so pitiful.

What should be done?

RBS, Lloyds/TSB and Northern Rock should be fully nationalised, now, before the storm and the next round of bail-outs, and made into the British peoples' Bank. BPB should be run by employed experts, accountable to an elected board of employees, public representatives and economic advisors. Its main priority should be to finance development of our infrastructure and energy resources. In time it would take its place beside such institutions as the NHS as one of the key social building blocks of a society run in the common interest.

What do you think?