Alistair Darling has said that injecting more taxpayers money into the banking sector “is not your first port of call”.
Well thank fuck for that because printing a few billion extra pound notes just isn’t an option. Darling has already handed over £50bn to the biggest banks and £200bn to the Bank of England for short-term loans – we didn’t have enough money to pay for the bail-out in the first place, we certainly can’t afford another one.
El Gordo is quite happy with the outcome of the bail-out even though the banks still won’t lend money and the subsequent devaluation of the pound is causing a double blow to the taxpayer. In fact, he’s so confident that everything is going swimmingly, he’s planning a Keynesian-style public works programme that he claims will create 100,000 jobs including 20,000 in the construction industry repairing schools. He doesn’t give any indication as to where he’s going to find the money to pay for the work that’s going to support 100,000 people but then he really hasn’t got a fucking clue what he’s doing anyway so I wouldn’t expect him to have any idea where the money was coming from.
The BBC reporter, Robert Peston, has made another one of his groundbreaking predictions. He reckons that the British government are going to start guaranteeing bank loans in an attempt to get the banks lending again.
My strong sense is that the Treasury is moving towards a plan that looks awfully like the Tories’ proposal for taxpayers’ to guarantee a proportion of lending to business
How inciteful of Lord Peston of Threadneedle Street. Was his prediction based on his in-depth knowledge of business and finance? Was he tipped off by a Treasury insider? Or could it be the fact that Alistair Darling announced that the Treasury would be setting up a loan guarantee company with £250bn of taxpayers money back in October? Still, I’m sure the BBC will make the most of Peston’s “prediction” when the loan company is set up (if it isn’t already).
We’ve seen what happens when a nominally socialist government tries to run a capitalist economy, now we’re going to find out what happens when a nominally socialist government tries to run a Keynesian public works programme. God help us.