By Michael Smith (Veshengro)
Hello!!! Anyone home? Apparently not.
Are we in trouble? Hell, are we ever.
On Friday, August 5, 2011 S&P downgraded the USA's triple-A credit rating but sort of half a point to a AA+ but the markets have been in a nigh free fall ever since the US government could not – properly – agree on how to handle the debt crisis and the Euro Zone going from bad to worse.
They next person who tells me that the recession is over and there is no chance of anything bad happening, such as a double-dip or a full-blown depression, I am, I think, going to give a lesson in reality, and this might be by means of a pickaxe handle.
Now we have had a full blown riot – though nothing to do with the money woes – in Tottenham, North London, with looting and burning and Tottenham, the scene of the now infamous Broadwater Farm slaying of PC Blakelock, resembling a war zone on Sunday, August 7, 2011.
And where are our country's glorious and fearless leaders (and yes, I am being sarcastic as to their titles)? They are and remain on holiday with the Prime Minister being in Italy, the Chancellor of the Exchequer in the USA and the rest of the cabinet in this or that country, including, it would appear, our Minister of the Interior, the Home Secretary.
The riots in Tottenham – and we will be looking at those in another article – could have been dealt with much better and differently if the police and government had the willpower to let looters know that it is a no, no.
The financial situation, however, with the Euro also headed, as it would seem, for a bit of a meltdown, is something that will affect us long-term and for many, many years to come.
As the Governor of the Bank of England not so long ago stated the living standard of the people of Britain may never, ever, return to the pre-crunch level. And especially for people in the public sector, and here very much the lowest paid though the most important ones when it comes to service delivery, are looking at a rather bleak future with all the costs rising and their pay having being frozen for two or more years. In some instances they have had to accept new contracts that even reduced their pay. The unions are rather quiet on that level, though.
But everyone will be feeling the squeeze bar those, obviously, who are the ones who caused the problems in the very first place, the bankers, whose bonuses still are in the multi-million pound range, and that even at banks which are now, basically, owned by the taxpayer. We are in trouble indeed.
Anyone in government who is still saying that we are not is not living in the real world. Then again, they don't.
Prices for everything are on the rise and as an example I just want to list the fact that the price of butter, of Sainsury's Basics butter, went up in two weeks by 40pence. The price of 6 Basics mini-jumbo toilet rolls by 40pence and and Basics full flavor cheddar cheese went up by over 50pence.
On top of that energy prices, that is to say cooking and heating gas and electricity, are on the up and that by several times the rate of inflation, with the companies quoting rising wholesale prices. It is just amazing that when those very same prices go down they very rarely pass the savings on to their customers.
We are in trouble and our leaders remain on holiday. Great one guys. I hope the electorate won't forget that. I certainly won't.
© 2011
