| You may not think these two subjects are linked but | | | | Unemployment was low and the economy boomed. |
| they are and I'll show you how. | | | | We were still saddled with the parasitic debt based |
| All western countries, and many other industrialised | | | | economic system we have had since 1694, but |
| countries as well, are well and truly into a full blown | | | | nevertheless we could support that and still have a |
| recession, and this is blamed on the credit crunch, | | | | generally high standard of living with comparatively |
| which in turn is blamed on the activities of leading | | | | little poverty. Our balance of trade was favourable as |
| western banks in recklessly extending credit to | | | | we exported in value more than we imported, and |
| uncreditworthy borrowers who then defaulted. | | | | the pound (our currency) was strong and |
| The value of the houses and other assets taken as | | | | commanded a high level of purchasing power |
| security for these loans plummeted as the crisis took | | | | overseas. The country was generally regarded as still |
| hold and money dried up, thereby leaving the holders | | | | being a rich country. |
| of those securities effectively with nothing. | | | | It was easy for anyone to say that we were thriving |
| The holders of the securities had by then come to | | | | in a free trade environment. But that would not have |
| include investment and pension funds, hedge funds, | | | | been completely honest, because the environment |
| and many other kinds of investment vehicle, all of | | | | was still distorted from the effects of the Second |
| which had purchased these "assets" from the wily | | | | World War. Over the years the economies of other |
| bankers, and as a result the whole mess has | | | | countries grew stronger as they recovered from |
| affected nearly everyone throughout most of the | | | | wartime damage and invested heavily in modern |
| industrialised world. | | | | factories and production methods. |
| All this would have been bad enough, but the crisis | | | | In particular Germany and Japan recovered as they |
| has been made much worse by the policy of free | | | | finished rebuilding their infrastructure that had been |
| trade that has been pursued by most western | | | | ruined in 1939-45. Gradually, through free trade, more |
| countries over the last 60 years or so. | | | | and more UK industries came under pressure from |
| Free trade is one of the sacred pillars of economic | | | | imports that were priced below their own products. |
| liberalism that has held sway in all western countries | | | | The downward pressure on wages caused industrial |
| in that time. All the universities, all the media, all the | | | | strife as unions fought to keep wages high for their |
| policy making institutions believe unquestioningly in | | | | members. |
| free trade. Anyone raising concerns about it is | | | | Capital for investment in new technology dried up as |
| universally attacked and condemned as a parochial | | | | sales fell. More and more we saw foreign made cars |
| country bumpkin who wants to raise trade barriers, | | | | and motorbikes on our roads. Foreign made goods |
| impose unnecessary tariffs that will raise prices and | | | | came to dominate in our shops and showrooms. Our |
| penalise the less well off, and pull up the drawbridge | | | | factories became outmoded and struggled to survive |
| to cut ourselves off from the rest of the world. | | | | before eventually closing down, with all the |
| Thoughtless politicians and newspaper editors on the | | | | redundancies and human tragedies which that always |
| make quickly grasp which way the wind is blowing on | | | | brings. |
| this, and trumpet the usual claims of free trade | | | | Now we produce hardly anything. Our industrial |
| advocates. Free trade, they say, will bring disparate | | | | production is confined largely to specialised, capital |
| peoples closer together and make for international | | | | intensive manufacturing, such as aero engines and |
| understanding and co-operation, and thereby | | | | specialist heavy weaponry, that the rest of the world |
| international peace. | | | | has neglected in its pursuit of markets that return |
| In fact the opposite is true. Free trade benefits | | | | quick profits. Virtually all the consumer goods in our |
| nobody except the global elite who control the | | | | shops is imported from abroad. And the few car |
| international banks and the money power. Unless it is | | | | factories we still have are almost completely owned |
| challenged quickly it will lead to worldwide wage | | | | by foreigners, such as Toyota and Nissan. |
| slavery, whereby all workers have to compete with | | | | So what has all this to do with the credit crunch? |
| each other to work for the lowest wages. So | | | | Simply that the economic tsunami hitting us right now |
| workers in advanced industrial countries will have to | | | | is much worse than, for example, in the 1930s, when |
| work for the same wages as sweated labour in | | | | at least we had an industrial base from which we |
| south east Asian sweat shops, if they are to survive. | | | | could eventually launch a recovery to bring prosperity |
| The only people who stand to benefit are the global | | | | back to most of our people. Free trade has |
| elite who control international trade and who seek to | | | | destroyed our capacity to produce industrial goods. It |
| control the whole world. | | | | means there is nothing to help us find a way out of |
| Just think what free trade has brought us here in the | | | | the mess. |
| UK over the last 60 years (and this has been largely | | | | The solution is simple in theory, though in reality it |
| mirrored, even if not to such a large extent, in most | | | | won't be accepted without a revolution in thought. |
| other western countries). | | | | That is unlikely while the present political system |
| Back in the 1950s and 1960s, we were still benefiting | | | | favours establishment politicians who aren't |
| from the large scale destruction of much of our | | | | particularly bright and who are easily corrupted into |
| international competition in the wake of the Second | | | | compliance. |
| World War. We might not still have been the | | | | But nevertheless what we have to do, all of us in our |
| "Workshop of the World", as we had been | | | | respective countries, is to work for protection for |
| throughout the nineteenth century, but we made | | | | our own industries, so they can survive and help us |
| most of the manufactured goods we needed, and | | | | towards prosperity. This means imposing tariffs on |
| exported plenty more. Foreign cars were seldom | | | | imported goods that we could and should be making |
| seen on our roads. Televisions, radios, all electronic | | | | for ourselves. The money raised should then be |
| and consumer goods, white goods (washing | | | | invested in building our own industries once more so |
| machines, etc) and almost every other kind of | | | | they can provide for the needs of our own people, |
| manufactured consumer goods were made here in | | | | including jobs and security. |
| our own factories. | | | | |