Tag Archives: trends

The growth of interest payments in austerity budget

It is quite extraordinary to watch what is happening publicly and to “see” what is really taking place. I have added today’s budget figures to the analysis of the last 10 years and produced the three graphs below. The June 2010 figures are labelled “2011”.

Government Budgets since 2001What matters in the development of these budgets is:

1. the trend set in motion in 2008, when the “crisis” hit

2. the continuation of this trend by the current government

3. the framing of this budget as an “austerity budget” when the truth is rather one of “the Bank is in charge” budget;

Government Expenditure June 2010for on the expenditure side, the only item that increased are the interest payments.

Government Income June 2010Interest payments are the essence of the national debt. And the national debt is the big lie according to this American article.

On the receipt side,  “Other” is the item that changed dramatically. We’ll have to inquire how this came about. The Treasury publication says: capital taxes, stamp duties, vehicle excise duties and some other tax and non-tax receipts.

Coincidentally, I was sent a comment by William Shepherd who publishes a blog on the Bank of England as well as the History of Usury.

He quotes Ellen Brown, the author of the Web of Debt and many, many articles:

–snip —

Bankers are in the debt business, and if governments are allowed to create enough money to keep themselves and their constituents out of debt, lenders will be out of business.  The central banks charged with maintaining the banking business therefore insist on a “stable currency” at all costs, even if it means slashing services, laying off workers, and soaring debt and interest burdens.  For the financial business to continue to boom, governments must not be allowed to create money themselves, either by printing it outright or by borrowing it into existence from their own government-owned banks.

–snip —

The financial sector, which controls the money supply and can easily capture the media, cajoles the populace into compliance by selling its agenda as a “balanced budget,” “fiscal responsibility,” and saving future generations from a massive debt burden by suffering austerity measures now.  Bill Mitchell, Professor of Economics at the University of New Castle in Australia, calls this “deficit terrorism.”  Bank-created debt becomes more important than schools, medical care or infrastructure.  Rather than “providing for the general welfare,” the purpose of government becomes to maintain the value of the investments of the government’s creditors.

–snip —

England’s new coalition government has just bought into this agenda, imposing on itself the sort of fiscal austerity that the International Monetary Fund (IMF) has long imposed on Third World countries, and has more recently imposed on European countries, including Latvia, Iceland, Ireland and Greece.   Where those countries were forced into compliance by their creditors, however, England has tightened the screws voluntarily, having succumbed to the argument that it must pay down its debts to maintain the market for its bonds.

–snip —

Looking forward to your comments!