Friday, March 23, 2012

Big Cameron Society OFSTEC Report latest - Budget Special: Grannies at risk

The Office for Standards in Economic Competence (OFSTEC) has visited the Big Cameron Society recently and issued a report. 
The inspectors, having read the Budget report of March 2012, and being aware of horrific reports of extreme Austerity measures, decided that an immediate visit was warranted. It has found that Austerity is indeed the watchword, and although we did not find evidence of hair shirt deliveries we are being alert. We found that small but meaningful benefits due to Grannies, Grandpas and even Uncle Tom Cobley (who is also over 65) are to be snatched away. Despite the press coverage, as yet there seems to be no actual flogging of Grannies but we are being vigilant here too. Another Austerity measure is child benefits to some middle income families which are to be gradually sliced away. We hear that these people are already being squeezed hard, so any slicing at the same time will be very painful. It is harsh (is it necessary?) that along with seniors, juniors too are being given Austerity Awards in place of real cash for their carers.

The Inspectors found some other really scary reports around. This one from the New Economics Foundation (see the 'G10 Debt Distribution' chart) shows how the stability of the UK economy is massively in danger through private financial sector debt which dwarfs the public sector debt that seems to worry Chancellor George Osborne (GGOO) so much. A scary scattergraph (chart 1.9) in his own Budget report page 28  confirms this and (para 1.67) says that: 'It is in the IMF's view that the UK's economic and financial policies have a systemic impact on the global economy'.

What has scandalised the OFSTEC Inspectors is that the measures from GGOO to grow the economy are so puny. He has taken a view about prudence with public finances but he seems to have learnt nothing about the use of credit creation for infrastructure that will enable businesses to thrive and bring sustainable growth and recovery. He need not borrow from banks for this and only has to look at Professor Richard Werner's statements on this on the YouTube interview series to understand what could be done:
Credit creation without debt
Credit creation without interest and
Credit creation without inflation.
The OFSTEC Inspectors have given the Big Cameron Society a Grade 4 Inadequate rating. Special Measures will certainly be needed to address these failings, but these remedies are there for the taking and we hope that GGOO can learn, if the banking fraternity don't blind him. Many people expect money creation to be directed at infrastructure and not any more at banks, who are not recycling it to where it is needed. The IMF warning implies that the banking sector has to shrink massively in the UK up ahead. Where will the credit come from meanwhile?

How many more years are going to be wasted by handwringing Chancellors who seem unable to think beyond bank loans for public works and Austerity For All?
posted by Charles Bazlinton. Author The Free Lunch - Fairness with Freedom  SEE AMAZON     

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