Crashing the Economy

Our wonderful, and very much overworked first class economist has taken time out of her very busy schedule, to try and help blow the smoke away from the mirrors that Reform, tories and Labour have all been trying to convince you that the economy is crashing and it's all (insert political parties name here) fault.

Spoiler alert - it's bankers, and a lack of poltical will to reign them in!

As has been widely reported over the last few days, the cost of UK government borrowing has increased to a point where it is now over 5%

The government is in deficit, we all know it, its no state secret after all! We've had a deficit for hundreds of years - it's NOT news!

So what's happening to interest rates? They are higher than Labour want because that keeps the government's cost of borrowing up, and if the government's cost of borrowing is kept up, there is less for Labour to spend on other stuff we need.

This then makes it a problem to balance the books. We know they don't need to do that, but both Labour and tories before them, claim it is necessary.

 

The consequence, of this (Bank of England not Labour) policy is what then? 

Absolutely huge pressure for the Labour Chancellor to impose more crushing austerity on us.

Thanks to the conservatives, we all know what happens when we have a policy of austerity. We have crushing and harmful cuts in government spending.

What the bankers at the Bank of England are doing is deliberately putting the UK economy into a downward spiral as a consequence of its quantitative tightening programme. 

So the first thing that Labour needs to do, if they want to end the crisis, is to very simply tell the Bank of England, stop selling bonds. It is really simple and they have the power to do it.

Bankers at The Bank of England are crashing the UK economy, and just like the conservatives, the labour politicians now in power seemingly are not wanting to do anything about it.

Leaving you, me and everybody else living with what is in reality an economy that is out of control.

If you have a spare 10 minutes, in her research for this article, our own economist discovered that Professor Richard Murphy has made a video on the same topic, a little more in depth, but with a very similar message, so we'll include a link to his video in the comments below too. If you won't believe us, who else better than a professor to present the facts for you, definately not an armchair economist from right wing populist group masquerading as a political party.

Crashing the Economy