Archive

Posts Tagged ‘Bailout’

We ALL need bills & interest put on hold and enough money to eat and be clean. Government bullshit about Subsidies, Loans and Grants helping us now or in the long term is simply f**ktarded

March 20, 2020 10 comments

It doesn’t matter if it’s electricity, gas, water, credit card, a loan, a lease, rent, a mortgage, phone, broadband, TV streaming, contract subscriptions of any other kind, or anything else. It is the ceaseless demands of the private, profit-making interests in this Country being allowed to continue sucking money from our pockets that is the real problem people are facing now and will continue to do so long after Coronavirus has been put in its place.

Subsidies, Loans and Grants from the Government make great headlines when politicians are obsessed with how things look. But these hollow actions are giving legitimacy to the continuance of profiteering and endless money making on the part of commercial interests and what we have come to know as ‘the few’. All at a time when there is no longer any excuse for the people we elected to provide opportunities for the usual suspects to carry on making money at our expense, whilst we cannot earn, and as if they are entitled to act, behave and continue doing so like gods.

By allowing the economy to unravel, pretending it can be propped up by giving people the means to pay bills that could otherwise be put on hold so that everyone is in the same position, whilst pushing many people and businesses into what will quickly become unserviceable debt, the Government is initiating a downward spiral for this Country and what should be a robust economy.

The outcomes of this political ineptitude will be far worse for real people and for businesses over the long term than the outcome from the temporary hit that the Government should be taking on our behalf right now.

The pathway that the Chancellor has taken so far indicates that the Johnson Government is either incompetent and doesn’t understand the reality that people like small business owners, Deliveroo riders, people on zero hours contracts and those simply laid off from jobs in cafes and bars face, or they are intentionally using a crisis to assist in shackling all of these people and many more into forms of debt and the emotional bondage that accompanies it, simply so the friends and supporters of the Government can look at the piles of cash that they already have and smile as they start making even more.

Whether deliberate or created by stupidity and ignorance on the part of politicians who should always know better, the situation that this Government is now facilitating for us all will quickly become little more than profiteering from the misery of the many, simply to line the pockets of the few.

No matter what anyone says – whether they are an MP, so-called ‘expert’ or specialist, journalist or anyone else who has fashioned themselves as part of the ‘celebrity cause’, the solutions that the Government are now offering up do not go far enough in just about every way.

The PM, the Chancellor he appointed, the Government and the Politicians around him have the power and therefore the means to do whatever is necessary to help all of us and keep the Country in the best position going forward as it is possible to do so. But that is not going to happen if politicians are misguided by the self-interests and biases of the people and influences around them, rather than the Public at large – which should always be any Governments one and only cause.

Extraordinary times require extraordinary measures on the part of the people that we have elected to lead us.

This means they must step up, read the situation for what it is in reality for everyone – rather than what they think it might be or what their advisers are telling them – and adopt a much bigger, realistic and worldly view.

Economic thinking is just another set of ideas that become real simply because it is the line that people choose to believe.

Current economic theory is one founded upon the idea that money must be kept flowing at all times, just as if it is a blood supply that cannot ever be stopped. It works and operates on the basis that money and the systems that support its generation and movement are the only important thing.

They are not.

What economists and the people who have been influenced into thinking this way are failing to consider, is there is something far more important than money. That is the people and the communities that we live in. Beyond the thinking and the ideas that the ‘money men’ and their supporters choose to accept, there is most definitely another and very clear way to approach this crisis which is an option.

As such our decision makers are currently making a choice. One that is all about profit or all about them.

It should be people first. Money only when its sensible to return to it thereafter.

To deal effectively with the Coronavirus Crisis and without long term fallout for the many, the economy as it stands can be and should be shut down and stopped from operating in its current form.

Interest accumulation should be halted, and a payment or repayment holiday imposed on everything – whether it is for domestic use or for business – so that EVERYONE is being treated fairly and just the same.

The Government should temporarily renationalise all essential utilities and services – that’s the ones that were sold off and should be in the hands of non-profit making management and ownership anyway – and simply take the steps necessary to underwrite supply to ensure that the essential services the public need are simply provided for the duration of the Crisis without the need for anyone to worry about how they continue to pay.

For the people who have been laid off, have had to stop trading, have had their hours zeroed out or have had their incomes stopped by the Coronavirus Crisis in any way, there should be a basic income provided to cover the costs of food and essential items so that everyone is able to function in their homes and remain clean and healthy in every other way.

To do so would ensure that the people who have been left completely vulnerable and at the mercy of circumstances that they had no part in creating, are able to standstill and most importantly survive at the very least, without anything changing. They will therefore placed in the best situation possible to pick up and return their own lives to normality alongside those of everyone when the Coronavirus Crisis is accepted as being over and what will then become life as usual is once again ready to begin.

For the businesses and the workers who are able to continue working throughout the Crisis, the payment holiday that they will then all inadvertently receive will itself be a bonus and for many of them thanks enough.

Yes, the Government could and should now be doing this.

MPs, Politicians, Government Officers and Advisors must start thinking outside of their very tunnelled and out-of-tune Westminster box.

Just to begin with, these are preventative steps the Government should now take:

  • Ditch the £Multi-Billion plan for Grants, Subsidies, and underwriting Loans
  • Stop Interest payments and accumulation of any kind
  • Stop Loan Repayments 
  • Stop Mortgage Repayments
  • Stop Rent Payments
  • Stop Leasing Payments
  • Stop Utility Bill Payments
  • Stop Phone Payments
  • Stop Broadband Payments
  • Stop TV Streaming Payments
  • Stop Insurance Payments without penalty for any function not in use whilst maintaining ongoing cover for capital value without charge
  • Stop any other form of contract subscription which is non-essential in any form

And a here are some proactive steps that the Government should also begin by taking:

  • Provide a Basic Income to cover the cost of food and essential items for everyone, their dependents, and the people they care for, who has lost their income as a result of the Crisis 
  • Provide a top-up for anyone, their dependents, and the people they care for who’s income has been reduced to a level below that which matches that above
  • Take all former public services that were privatised back into temporary Government control
  • Provide gas, electricity, and water to every household for the duration of the crisis without charge
  • Create legislation that outlaws profiteering or price gauging of any kind, with companies, their directors or the individuals fined heavily or jailed when charged
  • Create legislation that prevents any commercial or private interest seeking compensation or interest of any kind from anyone or any business who has not paid them for the duration of the crisis, in the future at any time.

Setting any of us up to fail in the long term as a result of implementing policies during a time of crisis that have not been through will not be in the best interests of anyone. Least of all the Politicians who are failing us by coming up with such stupidity or lack of foresight in the first place.

Fundamentally, the approach currently being taken is morally as well as practically wrong.

This National Crisis and the future of this Country of ours simply demands thinking from them that is new.

This Government’s retarded view of it’s responsibilities and how the economy works will inflict misery upon small business and generations to come whilst all the usual suspects get a bumper pay day

March 17, 2020 Leave a comment

The new chancellor had a massive opportunity to look the Coronavirus crisis in the eye and do the right thing in his announcement today.

He has failed.

Lending – or rather underwriting loans to the tune of £330 Billion sounds like a big thing. But all it will do is line the pockets of the same old lenders in the finance and banking sectors, whilst shackling businesses and the people who have been or will be laid off or lose their jobs as a result of the crisis to years of debt, simply to stay afloat because of a situation that is not anyones fault.

Nobody should be able, nor allowed to profit from the misery of this situation. We should all be in this together and the Government should be using the responsibility and power that was entrusted to it last December to think outside of the perimeters of what normality tells them they have option to do, and implement solutions that are equitable to EVERYONE and not just those who are able to legally print money whilst creating an even greater financial divide between the have’s and have not’s, where it is the same old usual suspects who will realise a very quick win.

Managing and taking this Country through the Corona Virus Crisis is not something that should simply be contracted out by the Government and placed with private profit making interests and into shareholder-driven hands.

To do so now is fundamentally irresponsible, a surrender of responsibility and a sell-out to the very same people who are using the debt burden placed upon people right across our society to create every greater levels of profit whilst inflicting misery and what is becoming the 21st Century version of enchained slavery where simply remaining financially solvent has replaced the ability to simply enjoy life for too many of us as our priority and cause.

This is little more than looking after your conservative friends Chancellor. Do the right thing and help us all by putting this insidious debt-driven economy on hold and use the legal power that your Government has to create the Standstill Legislation that would help all businesses and all the people being effected by this dreadful outbreak to survive whilst things are critical and then pick up where they left off when this crisis is over and life is no longer simply put on hold.

 

Government MUST NOT bailout airlines, banks or any privately owned business during the CV Crisis. It should provide standstill legislation that trickles down to support EVERYONE and not just those who believe they are too rich to fail

March 16, 2020 4 comments

Reading over the weekend that Virgin Airways boss Richard Branson is seeking a £7.5 Billion Government bailout for the Airline Industry because of the Corona virus crisis gave me quite a jolt. Not because of what it says about the exponential impact of the worldwide outbreak of this horrid virus on British based airlines. But because of the long term implications of another government writing out cheques to underwrite privately and shareholder-owned businesses as they did so in response to the 2008 Financial Crisis without any consideration for the long term impact that it still has for us all.

To be straight to the point; it is not the responsibility of any government, the Taxpayer, public purse or whatever you want to call it, to bail out private business and especially not in such profit-orientated times.

It simply doesn’t matter matter how bad the consequences might seem for staff, shareholders or anyone else involved. These businesses are not run as a public service. They exist to enrich the people who own them, not to prioritise the wellbeing of the people they serve.

It is certainly not legitimate for any politician, elected or otherwise to underwrite the rescue of any privately or shareholder owned business so that it can again become profitable whilst the public is saddled with a debt for doing so that has not or never will be repaid.

Whilst we might all be at least concerned if not genuinely worried about what the coming days and weeks will bring, there are remarkably few businesses or organisations that will not be affected in some way. Within these, staff will have to change where they work or be laid off if they have not already done so, and in a large proportion of cases they will find themselves with a reduced income, whether that be from losing work completely or finding their hours lowered or indirect income reduced from a reduction in expenses or some other specific way that they would normally accumulate what they count as being pay.

Small businesses are going to fail. Especially those that are owner led and may have none or very few employees, where margins literally pay a living wage to the owner and nothing more. Other businesses, if not all of them, will have to lay off many staff.

Without clever thinking on the part of Government and politicians which really starts to join up all the dots and goes way beyond the brainstorming of Dominic Cummings current weirdos and misfits team, businesses that were not only viable a few weeks ago, but also very profitable will overnight become a permanently lost cause.

It is genuinely the case that like birth and death being the great levelers that they are, Corona virus does not see wealth, status or any other factor as being a mitigating factor against its dark and malevolent cause.

Nobody has the right to be treated better or differently to any other in this Country. If this Government is to succeed in leading us all through a crisis of what could very well become an indeterminate length, it is essential that Politicians on all sides put equitable thinking and the consequences and knock-on effects of all this and how it is going to effect people and businesses alike at the heart of their decision making and at the centre of what should now be a purely non-partisan cause.

Whilst we have many experts who are putting forward their opinions and trying to pressure the government to change policy and go in different ways, the reality is that whether these ‘experts’ are economists, mathematicians, scientists or doctors, none of them are experts on the full and comprehensive complexity of the snowballing issues that this crisis is building. Even the political leaders themselves have never dealt with a situation like this one and none of them have a specific historical example to look back on which could be shoehorned into use as a blueprint for managing this 2020 pandemic.

The time to question the ability, decision-making and motivation of any politician is at election time. Not when a crisis of this magnitude comes to call.

For better or for worse, right now, we have the politicians that the electorate gave us and we MUST give them the support necessary to get something done that for some if not all of us is never going to feel right.

The question should therefore be not whether our Politicians are suitable for the jobs that they had in December – because public opinion has already concluded that for us.

The question must now be whether our Politicians can now adapt and think differently to the way that they historically appear to have always done so – without foresight, empathy or any reasoned ability to look beyond the situation that appears to be right in front of their faces and then think through the implications of everything that their decisions and responsibility will now touch and lead to not just one, but potentially many steps beyond.

When big names like Branson come calling and are given an immediate public spotlight because of the fickle world of media and celebrity we have been living in until now, we must all look to see and consider the realities that roll out beneath, in front of and beyond the self interest that drives these people and see the impact of every single decision government and influential people now make as being part of the same very big cause which is actually theirs, mine and yours.

Why does anyone want a bailout?

Right now, there are lots of businesses and whole industries asking themselves and looking to our Political Leaders to answer the question ‘who will keep the lights on’?

But it is not the responsibility of the Government and therefore the Taxpayer (that’s you and I…) to keep any business functioning when it cannot trade – no matter what the circumstances or cause.

To do so – with the way that our economy currently works – will help them now, whilst causing long-term pain for us all.

Sounds harsh I know. But if a business stops trading and isn’t doing anything, so needs to be ‘mothballed’ even temporarily – what are the costs and how can or rather how should those costs be met in order to keep that business viable for when ‘normality’ can return?

Contrary to common parlance, no business is too big to fail and no individual is too financially rich to fail – that is if politicians are genuinely doing their job. It is only fear and lack of ability to take responsibility on the part of the people we have elected to lead us that drives decision making otherwise.

So no, in 2008, the Banks should never have been bailed out. And certainly not in a way that they could resume paying bonuses to staff almost immediately and then return to profitability whilst we the public will continue paying for what was a commercially created – and therefore avoidable mistake, now and for potentially many years to come.

The difference between the banking crisis and the Corona Virus crisis is that in 2008, the implications of a financial meltdown were assumed because of the ideas we all have about money, what happens without it and how we all perceive it to be the controlling force within our lives. In 2020, the implications of the Corona virus are all about how the spread and presence of a real disease WILL genuinely affect us all – not just about how we feel and respond emotionally – and in some cases irrationally – to it in our thoughts.

Income, what we ALL face and the trickle-down solutions that we ALL now need

Today, businesses are worried about trade and therefore income.

People and employees are worried about jobs and being able to work and therefore income too.

But why is income so important?

Income is important because we all have to live – which other than for food pretty much means to keep paying bills.

But who takes money from us when we pay the bills?

If we remove basic food and essential items from the equation, its commercial interests, whether it be for phones, TV, utilities (such as water, electricity, gas etc), services, loans, leases, rents or anything else.

So when we are all facing a situation that has the ability to leave none of us untouched, why should any of those private interests be able to continue to profit from what is essentially a genuine crisis, public emergency and therefore public cause, when any one of them in isolation will be able to resume their profit making activities without anything standing in their way once the Corona Virus crisis is over and life in the UK returns to something like what we agree to be the norm?

The answer is that they shouldn’t.

And it is now that Boris and all of the wannabe politicians and advisors who surround him and inhabit our political system need to stand up to these interests that are indirectly responsible for so many of the ills that we face, simply because money and profit are their one an only motivation and cause.

The Government has the power to grant a moratorium on all non essential payments and financial activities such as the accumulation of interest in every sense possible.

The Government can also underwrite the actual cost of providing essential utilities and services during this crisis period without any profit being payable to any of the private interests or shareholders who are involved in providing the ‘public’ services that we will all continue to need.

Standstill Legislation: extraordinary measures for extraordinary times

No individual can survive on around £90 per week in what we would now call ‘normal times’ and for any politician to say otherwise is to tell a disproportionate lie.

However, if the Country comes to a standstill – as it is quite reasonable for us to now expect it will do so, the suggested £90 per week, per individual or thereabouts that the DWP would pay through ‘Universal Credit’ or whatever the benefit paid to those laid off from work as a result of the crisis would be, would certainly be enough just for food and essentials per person. That is if ‘Standstill Legislation’ halted the requirement for all other bills to be paid and Government takes control of essential services so that everyone can function within their homes with no travel or any other form of expenditure required.

Done in blanket form, without exception for any company, industry or anyone else involved, Standstill Legislation would not only be a fair, but very practical solution to effectively shut down the wider, profit-based nonessential goods economy and put it on hold until we are all ready and able to move forward with life in this Country as one.

Legislation could include but not be restricted to:

  • The temporary halt of all loan, mortgage, lease and credit card payments for all people and businesses, with payment plans resuming for full schedule beyond
  • The temporary halt to all interest accumulation on credit for all people and businesses with interest only becoming applicable once again once we move forward as one
  • The temporary halt to all council tax and business rate payments for all people and businesses with Central Government picking up the tab for revenue income flow for local authorities in-between
  • The implementation of anti-profiteering legislation for all businesses able and continuing to function throughout the shutdown period requiring margins to either reflect pre-crisis trading or those of the specific industry in the period before
  • Employers being able to lay-off staff until the crisis ends, with permanent staff being able to resume their positions as soon as the crisis ends unless the business can demonstrate that normal trading cannot be immediately resumed
  • Universal Credit or rather a ‘basic income’ payable to all those out of work because of the crisis purely for food and essential items
  • Government control of all essential and previously publicly owned services (Gas, Electricity, Water, Transport etc)
  • A temporary extension of VAT payment windows to at least 6 months from 3 for any business continuing to trade during the Shutdown Period
  • Staggered Taxation support for businesses that have been able to remain trading, applied relative to drop in trading
  • Suspension of all EU derived working hour legislation – including removal of the restrictions on driver hours, driver cpc training etc.
  • All tickets for holidays and events to be honored within 12 months of normal activates being resumed or repaid – with the choice being that of the customer, or refunded by default if the event or holiday cannot be honored for ANY reason which is identified at that specific point
  • Supermarkets being required to focus on essential foods and items only with rationing in place for items that are in genuine short supply

If there is one very good thing that can come from the Corona Virus outbreak and the crisis that has created, it will be the opportunity for politicians and big business to recognise how none of their actions or decisions take effect in isolation or in the targeted way that they might think. Echo chambers are only something that exists on the internet, not in real life.

The reality is that Corona Virus is not only exposing us all to a potentially life-threatening illness. It is also demonstrating how the lives of all of us are already exceptionally vulnerable, and that Government already has the ability to address the weaknesses of an unrestricted economic system where private interest and profit making at one end of the spectrum are indirectly or otherwise making life misery for many others in a wide ranging and incalculable number of different ways.

Yes, the suggestions that I am making would be only on a temporary basis and that is how it would have to be once normality returns. But until politicians actually start doing their jobs properly, taking responsibility and making life better and more equitable for everyone in many different and far-reaching ways, the chaos and hardship that the Corona Virus is now revealing will continue to be an example of the daily struggles than many British people face until we all start thinking and behaving like we are one.

 

%d bloggers like this: