[Stagflation = no growth, high unemployment, rising prices. ]
I love the way economists and newspaper pundits ‘predict’ what is already happening, producing a time-lagged reality for the general population, who for the most part don’t have a fucking clue about economics, because the rich don’t want us to. Meanwhile wages and benefits are being cut, prices are rising, even if the official statistics deny the fact, and now, post-Cyprus, and not content with robbing people’s pensions, it turns out no depositors money is safe in the bank. A perfect recipe for social unrest, you might think, but as long as the Central Banks around the world keep on digitally printing more money and keeping interest rates at zero or just above, they can maintain the illusion that all is well and that the global economy is all fine and dandy, except that this strategy cannot last forever, the banks, as we’ve seen with Cyprus are all but insolvent, bankrupt, and there is a limit to how much paper-shuffling and thieving from ordinary people’s accounts they can manage, without the game being up. See this from the US-
‘So the Main Street economy is failing while Washington is piling a soaring debt burden on our descendants, unable to rein in either the warfare state or the welfare state or raise the taxes needed to pay the nation’s bills. By default, the Fed has resorted to a radical, uncharted spree of money printing. But the flood of liquidity, instead of spurring banks to lend and corporations to spend, has stayed trapped in the canyons of Wall Street, where it is inflating yet another unsustainable bubble…. When the latest bubble pops, there will be nothing to stop the collapse. If this sounds like advice to get out of the markets and hide out in cash, it is.’
The financial system is now trembling on the brink of a economic apocalypse daily, courtesy of the central banks propping up a $1 quadrillion house of derivatives cards. Coutts, the elite investment bank ( ‘By Appointment to HM the Queen’) is warning its clients against exposure to a potential collapse in the bond markets as a new global debt bubble strains against reality. The Japanese government is on the verge of pumping trillions of Yen into their economy to stave off a deflationary nose-dive.
There will come a point where it will be obvious to all but the most politically and economically unknowledgeable that the game of capitalism is up…
Should the bubble not actually burst, then we are set for a long, long period of stagflation with grinding poverty, unemployment, draconian welfare cuts and rules (see how some councils will force their tenants to work for nothing in order to keep their homes) and no hope for any kind of future prosperity or material happiness, and at some point, things will start to unravel in a very big way:- As Major General Sir Frank Kitson, the military-political theorist, wrote during the economic crisis in the 70s-
‘If a significant and serious grievance arose such as might result from a significant drop in the standard of living, all those who now dissipate their protest over a wide variety of causes might concentrate their efforts and produce a situation which was beyond the control of the power of the Police to handle. Should this happen, the Army would be required to restore peace rapidly. Fumbling at this juncture might have grave consequences, even to the extent of undermining confidence in the whole system of government.’
(Low-Intensity Operations, 1971)
Should the UK government begin to really lose the confidence of the majority of the people, we are likely to see the emergence of forces that will act to protect their own class interests, either working with the state, or outside it, or a grey zone in-between. This was seen during the crises in the 20s and 30s in the UK and across europe, with the rise of ‘defence forces’, private armies and a range of fascist groups willing to use force against those of the majority who would rightfully protest their rights in the face of gross injustices perpetuated against them. They aim to divert social discontent into racism and nearly always claim to be for ‘peace and order’, but are more than happy to employ force against strikers and protesters (see Golden Dawn in Greece and Casa Pound in Italy). These forces have already made an appearance in the UK during the 2011 riots, and would doubtless make for happy allies with other reactionary groups such as the EDL that also came onto the streets during that summer of rage, with the aim of ‘restoring order’ to a situation initially made chaotic by the banks and police rather than ordinary, skint, working class people…
The recent benefit cuts , the Bedroom tax and the obscenely generous tax breaks given to the boss class, by the boss class, is only the beginning of an offensive against our class, the crisis is far from over, its merely in suspension, and when the next wave hits the middle classes will be targeted for asset stripping by the rich (meanwhile witness the miserable, pathetic, sop of cutting 1p off the price of a pint). The political and financial elites in the EU and IMF have openly talked about using the Cyprus model as a template for future bank bailouts. This raises the prospect of raids on bank accounts, pension funds, and any investments governments can get their hands on. No one’s money is safe in any bank in Europe. Bank runs are now a certainty in future crises, as the middle classes realize that they do not really own the money in their accounts.
They will see their wealth and status under direct attack, perhaps some of them will be won over to a working class perspective, but the bulk of them will feel disenfranchised and angry, these are the sort of people who will turn to more extreme political solutions to maintain their social position and would in the event be supported in their efforts by elements of the upper classes- Fascism is merely the middle class armed, funded by the rich ( armed, politically, not necessarily with weapons of violence, but also symbolically, as the Broom Army was armed with a simple domestic tool- one that represents the sweeping out of ‘filth’).
With growing impoverishment, and a complete lack of representation for those pushed into misery, it seems the capitalist class has set itself on a collision course with both the working and middle classes, there will be no concessions to former, while the latter will be encouraged to vent their anger on the class beneath them for being ‘undeserving and ungrateful’ and will reach a compromise with authority to scrape together what remains of their former status.
Make no mistake, there will be more eruptions of class anger in the coming years, and the middle class will, like the slimey scum they are and as they always do, ensure their own safety and survival, even if it means swinging to the right and abandoning their previously held liberal, ‘tolerant’, and ‘cultured’ convictions.
THE RICH ARE OUR MISFORTUNE.