Everyone knows history is written by the victors, but this is something else: bullshit recounted by the bullshitters. Even the banks are back to bragging how many billions they generously chip in to Her Majesty’s Exchequer, presumably hoping no one will point out that they took £1.3tn from taxpayers in just a few months in 2008.
The £1.3 trillion was liquidity support, something the central bank is supposed to provide. And it was all paid back, at a profit to the taxpayer, too.
RBS and Lloyds, don’t think they are at a profit. But then they weren’t liquidity support either.
Here’s the stuff of historical bad dreams: at the height of the banking crisis in 2008, every man, woman and child in Britain handed over £19,721 each to bankers.
Err, no, they didn’t. The liquidity support was new money, QE if you like. And much of that sum was guarantees, which were charged or to boot. Guarantees which weren’t called upon and thus the fees were a profit to the taxpayer. Aditya actually points to his source document which doesn’t say anything like he says it does.
Debt racked up through the greed of financiers being dumped on the poor, the young and people with disabilities in what must rank as the biggest bait and switch in postwar Britain. I say that, but we have only had seven years of austerity. If Philip Hammond stays in No 11 and sticks to plan (one must hope he does neither), the cuts will continue until the middle of the next decade. After 2025, who knows what will remain of our councils, our welfare state and our public realm.
The blow out in public debt wasn’t spent on the bankers. And the plan is at least that the “austerity” will take public spending back to about the percentage of GDP that it was when G. Brown was still in power. After that significant rise as a result of the recession.
Just what is Chakrabortty blathering about?