And did those feet in ancient time
Walk upon England’s mountains green:
And was the holy Lamb of God,
On England’s pleasant pastures seen!
And did the Countenance Divine,
Shine forth upon our clouded hills?
And was Jerusalem builded here,
Among these dark Satanic Mills?
Bring me my Bow of burning gold;
Bring me my Arrows of desire:
Bring me my Spear: O clouds unfold!
Bring me my Chariot of fire!
I will not cease from Mental Fight,
Nor shall my Sword sleep in my hand:
Till we have built Jerusalem,
In England’s green & pleasant Land
As I have explained previously, a new bench mark Bank of England interest rate of 3-4% is required to service democratised money in the western developed economies. The savings and investment market in Britain is being structured around this new reality.
What this means in political terms is the ongoing implementation of a two state solution similar to the one we can see being undertaken in Israel/Palestine.
Israel/Palestine is one territory but the Two State Solution envisions two administrations controlling two different populations in two strikingly different ways:
The first state is the Occupying state. The enabling state. This state enables settlers and those who take over territory. It protects occupiers and attacks their enemies on their behalf.
The second state is the Occupied state. The repressing state. It represses those it claims to represent. It strips them of historical rights and makes their enemies case against them.
Whichever state appears to have the upper hand at any given moment does not really matter, since both serve the interests of the occupiers, one directly and the other one indirectly.
We can see clearly with the latest budget from Chancellor George Osborne how the two state solution (Financial Peace Process), is being enacted in Britain.
First the enabling state: Chancellor of the Exchequer George Osborne presided over the unveiling of a series of ‘sweetners’ for his core constituency including:
The promise of Government bonds to be issued at a relatively generous yield.
A loosening of restrictions on pensions and the annuities that investors were previously forced to buy to justify the generous tax benefits they received
And a relaxation of the conditions surrounding ISA’s – which are a government sponsored tax free saving scheme.
If there ever was a time to tie your colours to the mast of your core constituency then surely the budget settlement one year before an election is just such a time. The financial emergency is supposed to be over, presaging a return to business is usual, so return of interest rates to the long term trend average of around 5% is what we would expect Osborne to trumpet.
But as Osborne made his offer he explicitly reiterated that the economy is permanently subject to new conditions. Interest rates won’t be going up to historic levels EVER, if the the Monetarist state has anything to say about it.
We will return to interest rates in a moment but for now let us look at the second state; the occupied/repressive/welfare state:
In the budget for this state we had the standard threats against benefit recipients and the ongoing plan to shrink/abolish the welfare state – branded as ‘austerity’. Nothing much particularly new there, then.
Then comes the revelation that the territory of the second state is to be permanently limited for the first time. This means is that a cap is to be placed on welfare spending no matter what. If one area expands another must be correspondingly shrunk to maintain the overall level of expenditure. This builds a ‘peace wall’, ( just like the Kosher Kurtain in the occupied territories), around the second/welfare state.
And then there is the news that a startling 96% of new mortgage buyers are fixing at somewhere around 3-4.5% – the new de facto interest rate. Here is the core of the Monetarist planned economy- planning through the allocation of credit. http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10721260/96pc-of-home-buyers-fix-mortgage-rate.html
The more people using credit, the more ‘planning’ is taking place. This is the consequence of Monetarist pressure for a move away from discretionary based spending to credit based spending- the end of the ‘consumer economy’; the end of freedom for citizens of the second state to spend not just on what you want, but when you want.
And it seems that 96% of new mortgage borrowers don’t need to be told to get in line, they are doing it already! Despite the fact that media outlets continually tout the Bank of England line that interest rates will not rise, borrowers are willing to pay a premium to avoid risk in the only way that has been left open to them, by Monetarist planning. Until relatively recently many British mortgage borrowers preferred to buy floating variable interest rate mortgages in preference to fixed rate mortgages. So this is evidence of a fundamental change in attitude
At the same time as a rise in fixed rate mortgages, we have the news that inflation has actually fallen below the governments target of 2%. A fall in the cost of energy is expressly cited as the main cause of this. What could have caused such a fall in the price of energy?
The USA recently made a surprise ‘test release’ of strategic oil reserves emphasising they will do anything they can to prevent sudden energy inflation, (caused by among other things the situation in Ukraine), getting out of hand.
In Crackernomics I specifically cited manipulation like this as a feature of the monetarist planned economy.
However, resource staples like food that are not subject to direct government control continue to rise, apparently due to a number of unforeseen ‘one off’ factors. For instance a rise in the price of pork due to porcine epidemic diarrhea in America is an example of this.
It is the fall in the price of manufactured commodities (deflation), that is offset against this resource inflation producing the overall fall in inflation. This deflation in manufactured commodities is further evidence of the end of the consumer society as I have argued before
So lets get back to those extra low interest rates and the effect that these have on the interests of Osbornes core constituency. Surely low interest hurt the occupiers (Conservative voting pensioners with savings to invest), so why go ahead with it? Well we can see things a little more clearly if we refer again to the two state solution in Israel/Palestine
The ‘handing back’ of occupied land as part of the peace process (areas in the West Bank and the Gaza Strip), may upset some individual settlers but it will continue because it is fundamental to the construction of the final overall ‘peace’ settlement.
The dirty secret behind the Two State Solution trick is that the occupiers don’t actually have the physical power to overwhelm their victims outright. If they did you can bet they would have done it a long time ago. Instead their purpose is to wear down the people of the occupied state gradually until they accept their inevitable demise.
So how will they (and we), know when the Monetarist/occupiers have achieved their final objective and won?
In Britain the big prize is the NHS.
In the territory of Israel/Palestine it is the al Aqsa Mosque on the Temple Mount.
Just as the most fanatical Jews goes to pray by the Wailing Wall so the most right wing Monetarists came to pray at the Temple of the NHS (safe in our hands).
Just as the Zionists claim they want to share the Mount, so the Monetarists say they want to share the healthcare market.
Just as the Israeli ‘defense’ force make it increasingly difficult for Muslims to pray at the Dome of the Rock so it is harder and harder to get treatment at your NHS hospital.
Reducing the NHS to rubble is for the Monetarists like reducing the al Aqsa mosque to rubble for the Zionist Jews.
Proof that they have reached the promised land.