Although yesterday was only the last day in July a cold shiver must have gone down many a back when people opened their daily paper and read that British Gas were raising their prices by 35% and they had made close to 1bn profit. Although the political implications of this lie outside the remit of this blog I would just point to the words of one of the BBC economic commentators who said on TV yesterday that the job of the privatised utilities are to make profits for their sareholders who include many of the pension funds that many people depend on. In that way they are no different to the banks or other businesses. People either accept that situation or organise politically to change it.
The main issue for us here is how do we respond as a community over the coming winter when the vunerable may well be put in a situation where they have to choose between buying food or spending money on heating. Obviously, as individuals when the colder weather arrives, we should all be looking out for our vunerable neighbours as best we can. We should all be on the look out for signs that they may be suffering from the cold or not eating enough and be prepared to intervene if necessary. As a community perhaps the churches or similar institutions should be considering whether it may be necessary to reopen the sort of day care facility that used to exist at the Methodist chapel. Perhaps also the parish council should also be considering how, in partnership with relevant bodies they can ensure that elderly and vunerable people can get the best advice possible on how to cut heating costs and to keep themselves fed and healthy. Maybe its time to look at the possibility that something along the lines of the food co-ops that exist elsewhere in Britain might be needed here.
If we are to continue to see rises in fuel and food prices significant challenges of a kind not seen in countries like Britain for nearly a century could well face communities even as seemingly comfortably off as Silverton. It may now seem an extreme scenario but it is one in current circumstances I fear we may have to be prepared for.
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A very interesting and thought provoking article. The end sentence may seem to the uninitiated to be a tad apocalyptic but not so, I fear.
When it was announced a couple of days ago that the governments borrowing deficit would reach £60 BILLION in the current financial year I was asked by a friend, "Who, exactly, does the government borrow this money from?" The explanation is as follows.
The government finances the deficit by selling interest bearing bonds(eg “gilts”), they are bought by UK investors, mostly pension funds and insurance companies. In recent years there has been an increasing take up by foreign investors - eg foreign central banks, particularly China and the Middle Eastern oil rich countries and Sovereign Wealth Funds(BTW, whatever happened to our SWF, the one we should have built up with the proceeds of North Sea Oil as the Norwegians have done?). There are signs now that foreign investors are getting wary of gilts.
The Treasury don’t,of course,bandy it about that Brown’s policy has been, and still is, intentionally to keep borrowing off the books by PFI and other schemes.”
There is £1 trillion of unfunded public sector pension and PFI liabilities. When one also takes into account the £330 billions net external debt(which has been rising very rapidly) and the £1.4 trillions of personal debt, you know, credit cards and mortgages outstanding(increased by 65% in 7 years) it is perfectly obvious that the economy is going to go over the cliff, and a financial debacle is inevitable. Then, politically, we shall see what we shall see.
I wonder how long it will be before the IMF summon Mr Darling to tell him Britain in bankrupt?”
The country IS bankrupt, bankrupt on a scale you associate with countries like Zimbabwe or Cuba. When the full extent of it becomes apparent, as it will over the next couple of years, we will ALL be shivering in the dark and the cold. If you possibly can, take all measures to become energy and food sufficient whilst you still have time.
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