The Axis of Economic Evil (Ruin)
The economic news so far in June has seen further downward revisions to growth predictions in the UK, America, Europe and the emerging nations of China, Brazil and India; and, for some, “surprising and unexpected” announcements. Unemployment has risen in America and Europe. Manufacturing in the UK recorded its worst performance in three years with the value of sterling falling against the Euro and Dollar on the news. The British Chambers of Commerce slashed its forecast for economic growth for this year from 0.6% to 0.1%. The price of oil has fallen as demand shrinks. There has been a flight of capital to the USA, Germany and even the UK as holders of wealth seek safer havens for their funds with the yields on Government bonds falling. In Germany the yield has entered negative territory with depositors, concerned about protecting their capital, being prepared to pay a “reverse interest charge! As the economic crisis unravels and moves closer to a catastrophe politicians will continue to blame others for their woes. In the case of the UK, Cameron continues to point the finger at Europe whilst at the same bemoaning that over regulation in the UK and Europe is a cause of our economic problems. He will soon lament that his lack of inspiration, understanding, leadership and also integrity will, I suspect, see him destined in history to be the most ineffectual prime minister of modern times.
History is also likely to attest that an Axis of Economic Evil (ruin) was created by the coming together of Thatcher and Reagan in the 1980s. They offered up control over our economies to the altar of unfettered capitalism and globalisation. If history is kind to them they too may be called victims alongside the millions who are suffering today because of them. This axis of economic evil was spawned from the fractious climate created by the political scene dominated at the time by a dichotomy of extreme right wing and extreme left wing views.
Thatcher and Reagan may be said to be the victims of the imbecilic and moronic ideology espoused by sycophants amongst their own political class who had been trumpeting the cause of the wealth holders. These sycophants had been indoctrinated into believing that the world would be a better place if the wealth holders had a free rein over our economies and its peoples. Politicians would travel the world to meet them; lobbyists would grow rich representing them; banks would become bigger supporting them; and new breeds of speculators would join them.
30 years later the pernicious impact of this Axis of Economic Evil is being felt by millions of people. There is now an atmosphere of confusion amongst the ruling classes and conflicting advises from the economic “experts” advising them. The confusion will soon be replaced by horror as events unfold and their lack of understanding renders them powerless to deal with the unravelling of the economic catastrophe which is now engulfing us. The unfolding of events is gaining momentum as is evident from the news emerging each day. The crisis surfaced with the collapse of Lehman Brothers in 2008 and because of the indecisive actions of our politicians has now assumed catastrophic proportions.
On the 10th March this year I commented on the unravelling of events at that time under the title Greek Style Food Aid Queues in Britain? In my conclusion I wrote-
Capitalism needs to undergo a cathartic process so as to create an inclusive society and a fairer society, one where all can contribute and benefit without a dependency on state welfare. Existing political ideology should be pushed to one side so as to allow this cathartic process to happen. The sirens of doctrinaires should be silenced and the plethora of conflicting predictions given by economic “experts” should be ignored. The age of doubt has arrived. Banks throughout Europe are on life support. They are not fulfilling their primary role as the providers of capital for innovation and expansion. Trying to stick the present financial system back together and making use of computer models and pouring over statistics will not solve the problem. Those doing so will preside over an economy which will spiral into terminal decline with catastrophic consequences for us all. There are many economies faring much better than the UK. The time has come for the UK to accept that its’ economic model is failing. The successes and failures of other economic models should be understood. There needs to be a new and bold approach to find a new economic pathway which will ensure that the food aid queues in the UK do not get longer and longer as they are in Greece.
The need for a new approach is now urgently required if history is to record sooner rather than later that the devastating consequences of the Axis of Economic Evil have been erased.