The £1.3 Trillion Black Hole

This post was first published in February 2009.

Here in the UK our kept politicians have well and truly lost control. The latest lunacy in trying to cope with the economic crisis is to pump yet more money into the rotten banking system, whilst what is left of our productive industry suffers from cash starvation.

£250 billion is to be handed over to each of Royal Bank of Scotland and Lloyds Banking Group. The latter, having survived comparatively unscathed from the crisis until as late as September 2008, were then daft enough to buy some of the more toxic "assets" of another banking casualty, HBOS.

The funny thing is that they did that after coming under pressure from our (then) Prime Minister, Gordon Brown, to do it, and it's he who now puts himself forward as being just the man to sort out the mess. Trouble is, he himself had a large part to play over the last 8 or 9 years in creating the credit bubble, the bursting of which has precipitated the present crisis.

The handover is expected today or tomorrow, ahead of the announcement of catastrophic losses by both banks, so as to cushion the effects on the foreign exchange markets.

Debt Slavery

This half a trillion pounds of additional government debt makes the total amount poured by the UK government into the banking system around £1.3 trillion - about the same in value as the UK's total annual output. So we in the UK would have to work for a full year and sell all our produce overseas in order to pay off all the money borrowed just to salvage the financial system.

Back in the real world, the retail sector is fighting to survive by offering deals of half-price or less on nearly all their stock. That effort has nearly run its course and the massive redundancies that are inevitable have now started in earnest. Local authorities, many of which have lost massive amounts in Icelandic banks, are grimly holding on until April and the start of the next financial year, when revenues traditionally start coming in again.

Where will it all end? Some group of people know, and it's a group of people who aren't concerned about your future or mine. In fact they are only concerned about themselves and their own hold on world power. A clue was given us in a news report this morning in which the Australian media magnate Rupert Murdoch, undoubtedly one of the 6,000 or so people who really run the world, was quoted as saying, "We are in the midst of a phase of history in which nations will be redefined and their futures fundamentally altered."

That sounds ominous indeed. It gives proof, if it were still needed, of the existence of the "Superclass" of David Rothkopf's book of the same name, and the truth of the conspiracy attested by Aaron Russo in a posting on YouTube.

What can we do to expose this evil? Read that book, watch the video, download "Promise To Pay" from this blog's Home Page, and . . .

Spread the word.

Philip Gegan