Thursday, 20 September 2007

Between a Rock and a Hard Place

The collapse of the Northern Rock bank and the devastating fall in its share prices over the last few days, including a withdrawal of customers deposits worth over 2 billion pounds, has revealed a hidden crisis in our country that links immigration, British workers and a government so desperate to keep in power that it would rather millions of homeowners go bankrupt than they lose power.

First time buyers in Britain today are having to borrow 3.37 times their income just to get a mortgage. This means we have a created a society which forces young families into levels of debt that are crippling if they want to own their own home. In 1977 the average mortgage was £8,376 with an average salary of £4,451 with the ratio of salary to mortgage of 1.85 % with their mortgage payments representing 13.3 % of their total yearly income. Today the average mortgage is £117,000 with an average salary of £35,000 with a salary to mortgage ratio of 3.37 % representing 19.1 % of their total income.

The price of home ownership for the average British family is now predicated on thbem being in perpetual debt. Low paid workers can now only rent property instead of buying it, and rental prices are rising as Eastern Europeans uproot and come to Britain thereby driving up rental property prices as well as house prices.

Many British families are now forced to borrow up to five times or six times their salaries in order to buy a home, and this strata of low paid families has created the pool of people who inflated and sustained the Sub-Prime lending bubble. The current crisis is based on liabilities incurred as a byproduct of the sub-prime system being sold off and bought by other baks elsewhere in the world. The UK banks as well as speculating on debt from the sub-prime industry in the US have also exported their UK liabilities elsewhere in the world. Even though this type of sub-prime industry did not even exist a few years ago, it is now a multi-trillion dollar industry that has infected the entire global banking system. Just as greed governed its growth, the nexus between the banks based on debt transfers means they have all now infected each other with the illness. The real crisis has not even arrived yet, as the true extent of the crisis will only become apparent over the next year or so as the banks auditors investigate the banks libailities and then discover just how much debt the banks have accrued. The current share price rise in banks is nothing more than media spin by the economists attempting to deceive the customers of those banks whilst they shift their own shares elsewhere. Whilst the bankers talk in public about how this is not a crisis in banking, even though this is the first run on a British Bank (Northern Rock ) in over 140 years, they are busy swopping their shares for others.

This is a crisis inherent in global capitalism and is evidence of the utter folly of the modern globalist system. In order for UK workers to be ‘productive’ in the Global economy, in other words be able to compete with Chinese and Indian workers as per wages, then British workers need to be paid wages that do not even cover the necessities of life in our society.

Every family needs a home, but due to the rise in house prices over recent years this has meant that British workers are unable to afford to own their own homes. Whilst the directors of globalised British companies that outsource their work to countries such as China are seeing record profits, at the same time British workers are being forced into massive debt in order to just to own a home.

This current crisis is all the fault of Gordon Brown, though the drive for a globalised free market was itself a product of Thatcherite fundamentalist economics. Gordon Brown has merely accelerated the Thatcherite revolution to such an extent that she even visits her economic acolyte in Downing Street.

The bail out of the failing banks whose greed led them to create the sub-prime mortgages industry is proof that the banks were acting with the support and assistance of the Labour government. The release of credit to the banks by the Bank Of England is de facto Nationalisation of those banks. The Bank of England is rewarding the greed and stupidity of those banks hit by the crisis with free money and an extension of credit. Instead of engineering the British economy away from dependence on banking, and a return to manufacturing and indutry, the Bank of England are in effect rewarding greed with tax payers money. Whilst they take benefit overpayments back from single mothers, the Labour government are more than willing to subsidise the bankers that fund the Labour Party itself.

Immigration into the UK has driven up house prices and sustained rising house prices. Whilst millions of our people have fled the country as part of the ‘white flight‘ crisis, and whilst the birth rate of the indigenous British people has fallen below replacement levels, the rise in house prices has continued to accelerate due to demand for housing from new immigrants flooding into the country.

The decision of banks like Northern Rock to allow British workers to borrow money to buy houses that they could not afford to pay back was a political decision supported by the government. The Labour government needed banks like Northern Rock to lend low paid British workers money for mortgages they could never pay back in order to avoid the crisis in low wages for workers and rising houses prices due immigration becoming painfully apparent. As long as the banks were willing to lend money to families who could not pay back the money then the crisis would remain hidden and the government would retain the votes of the Working Class and the Middle Class.

The decision to bail out the banks with British tax payers money is the governments way of paying the banks back for keeping them in power. The entire Sub-Prime mortgage industry that is in crisis has been nothing more than a political life support system for the Labour government, as it has allowed the crisis in low wages and rising house prices to be hidden behind a wall of insane mortgage lending.

As long as the immigration invasion into the UK continues and as long as British workers are forced to compete in the global market with nations such as China and live on low wages then the real crisis behind the crisis will continue.

The collapse of the Sub-Prime mortgage industry will now reveal to British workers just how much they have been betrayed by the Labour government. They will not be able to afford to get mortgages in the future as the banks that were willing to lend them insane levels of debt will now no longer be able to do so. The collapse of the banks will lead to a collapse in support of the government as British families find in the future that the banks will no longer loan them the insane amounts of money they require just so they can buy their own house. The decision by Mervyn King to release credit to the banks is a way to try and ensure the Labour government remain in power by sustaining the debt bubble that and the sea of credit that people have borrowed over recent years. When the ability to get credit ends then the British economy will collapse.

The only solution to the crisis is an immediate end to mass immigration into the country that sustains rising house prices and the creation of a Nationalist economic system that places the interests of British workers before the profits of the directors of globalised British companies and that prohibits British banks from indulging in the economics of greed. This country deserves a government that puts the British people first and not themselves or their paymasters. There is only one party that has forseen this crisis and warned the British public of it and only one party that can solve the crisis, and that is the British National Party.

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