An analysis of budgets since 2001 in the context of public debts reveals the turning point that the crisis caused. See Budget 2010 and Budgets 2001 – 2010. All numbers refer to £bn, i.e. billions of pounds.
When adding this year’s budget, the trends become obvious, and the purpose becomes clearer, for those who are willing and able to see:
- the increased dependency of a national government on the international supply of capital – for the price of interest payments
- the built-in budget deficit guarantees the continued dependency on public debts
- Cash as a medium of exchange has been virtually replaced by Credit as a tool for control.
In the global context, this means:
- globalisation is the code word for centralisation of power into financial institutions, just as Michel Chossudovsky, professor of economics, says on his video The Global Financial Crisis
- power over nation states is wielded by controlling their currencies
- the erosion of the value of a currency happens because of the money supply being abused to control interest payments for the financial industry rather than used as a medium of exchange for the real economy.
The popularity of the Robin Hood Tax, feared by the banks, loved by the poor, may influence the minds of politicians, but central bankers don’t need to care about us as bank customers; they care about finance ministries.
And thus it remains to be seen whether the media continue to buy into the idea of a credit crisis, or whether analysts who blog may get their opinions heard.