Very good critical analysis of the current economic crisis we're in

The financial crisis contributed to a downturn in tax revenues but prior to 2008 the finance sector led the boom both through lending and through tax contributions. We should have been running a fat surplus if Brown had stuck to his promised 'Golden Rule', not a deficit at all

But whatever happened or didn't happen in 2008, the bald truth is that there is a lot less money coming into the system. Tax rises and public spending cuts were on the cards whoever was at the helm. I don't think invoking socialism is the answer. Look at Spain's socialist worker government struggling to appease the people and balance the books at the same time - and failing on both counts.

Butler.

Oh dear....zzzzzz another case of class war! As he says 'the answer is socialism' I thought these old dinosaurs were as dead as the dodo. When I and others see he's from Socialist Worker,we switch off and demand my butler bring me another g&t!

I think 'the cuts' and 'the banking crisis' are two separate issues. It keeps getting dumbed-down to the populus that everything would be peachy if only the banks were better managed, paying more back into society or giving up bonuses... but it ain't that simple. The cuts aren't being implemented to pay for the banking crisis, past or future. They are being implemented, together with tax-rises, to balance the national books better and reduce the deficit - the ongoing difference between tax revenues and government spending. They don't eliminate the deficit, not even close. And they don't do anything to reduce the national debt whatsoever.

Reorganising the banks so that they are more stable makes sense. Setting up self-financing funds so that they don't expect bail-outs in future makes sense. However, depositors' money has to be protected. People the world over are campaigning not to have capitalism abolished and all work for the collective.... quite the reverse.

Ttocsa - what makes you think that it is possible to engineer economic crisis out of the system?

Now I am completely insane.
He believes that that is why the cuts are happening. He doesn't understand why they are really happening. He needs to question why, not just accept that Lehman went bankrupt because of the sub-prime mortgage crisis and accept that cuts are being made because of teh next imminent crisis.

So this movement on the left, does it not include the massive Labour party? How will he achieve success without them?

He is not serious. he says we have to build a movement "on the left" to "break open the machine". If he was serious he would back Ed Miliband and make sure that Ed miliband was on board to change the system. He is accepting the rationale for the cuts, it's not ideological he says, and without cuts it will happen again he says, and he says teh only thing that can be done is to 'break open the machine'. He's whistling in the wind and has got no chance of 'breaking open teh machine' without the support of people like Ed Miliband, and when he wakes up, he will realise that Ed miliband won't join him either.

Yes, you told me I was once before. I haven't changed, I still am.

buyer. am tipsy. sorry

But more importantly, will property prices come down???

[eager beaver future byer emoticon]

'He's saying that the public are being told the cuts'

Yes but he says that it is true and he says that it is because of the systemic financial system that it is true.

Yes he says we must change the system. We all know that. But he says that Ed won't be able to help. So who is going to change it? Him.

A lot of what he says is right too, and it is interesting. But I think he misses the big picture.

Yes he swallows teh official line. He believes that Lehman went bankrupt due to the poor people of Atlanta not being able to pay back their sub-prime mortgages. He's probably been reading the Guardian. He believes what Eddie George says that we have to endure cuts or there will be another banking crisis. The Guardian probably quoted that as well. It's the boy who cried wolf syndrome. When is he going to stop believing that, because otherwise we will have to keep enduring cuts and cuts in case the mythical next crash appears. He says it's not ideological and Ed Miliband can't make a difference. If Ed can't make a difference, then who can? Who is going to wave the magic wand and fix teh "systemic" problem? He doesn't understand the real politics behind it. He reads too much of teh Guardian.

He says the cuts are not ideological. He agrees with Eddie George that we have to have the cuts in case there is another banking crisis around the corner.