THE SMALL BUSINESS BLOG

Here is the staggering truths, how our Darling-Brown dream team – nightmare team – paid out $2.4 trillion of our tax-money on the UK bail-out, or should I say the UK bank bail out.

We all remember the Darling Brown spin:

Darling-Brown: “We are best placed in this global crisis! We will do what needs to be done”

… and so on. Well here are the facts:

1. UK spend 94% of its GDP on the bail-out,
2. in total just under four times as much as the US, based on GDP
3. equating to over £30,000 ($50,000) per person in the UK
4. five times more than the US ( $10,000 per person @ 25.8% of GDP)
5. UK is the biggest loser and worst placed in this economic down-turn.
6. World-wide – $ 10.8 trillion of which UK – $2.4 trillion, US – $3.6 trillion, $3.2 trillion all the other rich nations and $1.6 trillion by rest of the world.

These numbers show that the UK is the worst affected country world-wide by a almost 4:1 margin.

How some of the money was spend:

• £650 bn – government guarantees to banks against losses,
• £400 bn – “purchase” of assets and lending to banks,
• £200 bn – cash to stop banks from collapsing,
• £290 bn – recapitalization & nationalizing of banks, this is equal to £11,500 per household

TOTAL of over £1.5 trillion directly into banks – unbelievable, staggering – who has been made responsible for this mess?

The government has “borrowed” this money. National debt:

• 2008 – £526 billion
• 2009 – £609 billion
• by 2014 it is predicted to be a staggering £1.37 trillion, the interest alone on this will be £60 billion.

More than half of the spending on the NHS will be just interest payments to cover the national debt and equal to the education budget.

Between 2007 and 2008 our loss in personal wealth has been £31,000 per household. The effects of “quantitive easing” and the unprecedented loss in the value of the £, will increase the pressure on our personal wealth even further.

The effect on all of us, not only Jeremy Clarkson, will be felt for decades to come, our pensions, house prices, the ability to buy foreign goods, travel & holiday – will all be impacted by these follies of a few, including our current government.

How to move forward? What we need is more self-employed, small businesses, home businesses. We need people who understand what it mean to make money. People who understand and care enough to realize when we are being lied too and given the famous Labour spin.

The banks enjoy a special status in our society, they should not be allowed to abuse this status. If they do they need to be asked to repay the damage that they have caused. Not only the loans that they were given, but also all the damage they have caused us personally with their reckless behavior.

If you and I go out and cause reckless damage, we will be ordered by a court to pay for the damage. What is happening here? All the talk is about remuneration for bankers, profits in Q3 and so on. The banks should not make a profit until they paid for the damage they have caused us all.

As for this government, I have no words for the unbelievable spin and deceit of the British population. – ST.

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