Posted By The Editor On September 15, 2008 @ 8:27 am In Mike Robinson
The house of cards that is the global financial system is now in terminal collapse. Mr Darling’s recent suggestion that no-one could see this coming was typical of the reasoning that has got us to this point, and was either a simple lie, or demonstrates his complete incompetence.
So, how did we get here? The answer is simple. We the people allowed bankers and politicians to implement policies which could only ever end one way, and, in fact, demonstrated a complete lack of understanding of economy.
Economy is physical – it comes from the ability of a nation to generate wealth through human productivity.
The deliberate winding down of our skilled manufacturing base, the deliberate lack of investment in basic economic infrastructure such as power stations, transport systems, water systems etc., the deliberate asset stripping of what little infrastructure we have left, to place so-called “value” in the hands of shareholders, and the insane fiscal policies which have allowed for the blowing of bubbles to sucker the mass of the population into believing that something could be got for nothing, could only ever end one way.
It is a year since the collapse of Northern Rock, the first major sign of what was to come. What did you do? Nothing.
You did nothing when major UK banks announced they needed to raise additional capital through share issue.
You did nothing when the greatest bailout of all time – that of Fanny and Freddie – signaled the immediate collapse of the global financial system.
You do nothing as the mountain of personal debt the people of this nation carry approaches twice our GDP.
And you will do nothing, no doubt, now that Lehman Brothers is in bankruptcy, and Merryl Lynch has been bailed out by Bank of America.
When will you admit that the collapse of this house of cards is accelerating? When will you admit that globalisation is, and always was, insane? When will you admit that free trade is by no means free? When will you admit that international action is required to save our lives?
Because, make no mistake, unless you act, and act now, tens of thousands of lives will be lost in the UK, as a result of collapsing government finances bringing in even less money for social security and the health system.
I am writing, therefore, to tell you what you must do.
You must begin work, today, now, to cause the meeting, round a table, of the governments of the UK, USA, France, Germany, Russia, China, and India, and you must place the global financial system in administration. You must tell the bankers to go to hell. You must freeze all speculative debt, including mortgage debt, and you must make sure that nations have the time they need to sort out the mess. This can only be done through international treaty.
One mess that needs to be sorted out, for example, is agriculture, specifically food production. Food production needs to be doubled in order to feed the world. Transport systems need to be built to get the food to where its needed efficiently. Power systems need to be built now in order to guarantee our needs for the next few generations.
It’s time to act. It’s time to recognise that money does not make the world go round. The productive and creative power of the human being does that.
I am calling on you to be productive, creative, and demonstrate you have the guts required to be a leader. Any government is only as effective as its individual MPs. If you are effective, the government will be too.
So, act. Act now.
Article printed from The UK Column: http://www.ukcolumn.org
URL to article: http://www.ukcolumn.org/2008/09/15/collapsing-house-of-cards/