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Brexit economics part 2- The people versus the banks

go to part 1

Because not only does the EU stifle our industry, it also actively works to steal jobs. The EU is encouraging British companies to move their manufacturing facilities abroad, and in some cases even paying for this.

In the past 7 years Ford has closed 2 of its UK manufacturing facilities. It has magically opened 2 new ones in Romania- where the average monthly salary is 1/4th of the UK one and also one in Turkey.

The Turkey facility was paid for with an EU grant. Contrary to the Remain argument that the grant was not given for the purpose of moving Ford’s Ford Transit factory from Southampton to Turkey, the truth is very simple- the EU paid, Ford moved their factory. British jobs were lost.

The Remain argument about this is that the loan doesn’t matter since the EIB- funded with YOUR taxes, also gives loans to manufacturers for other projects. This is dishonest at best since it does not in any way excuse the simple reality- that our taxes were used to export British jobs to Turkey.

But why, you will ask.

Whose interest is it to have Brits lose their jobs?

And now we land in the middle of the biggest economic debate of the past 100 years. Because while the trade and manufacturing sectors would flourish after Brexit, the banking/financial sector wouldn’t, and it is them who are paying and pushing for either crippling Brexit or just overturning the will of the people.

For the past century or so, we have seen a discussion regarding the merits of a “service” economy over a manufacturing economy. The service economy, whose main proponent is the banking sector, is aimed at short term profit over long term planning, and since it is not burdened with the need to create jobs and manufacture things, its costs are significantly lower than those of the manufacturing/trade field.

The banking/financial sector is such a field. Its costs are low and it makes a profit providing services people do not actually need per se, but you can’t live without. In the past 100 years we have seen the banking sector taking control of the world, and reshaping it in a way that best suits their needs, at the cost of everyone else.

Ask yourself- why do you need a bank account? Why can we not have our pay in cash like our parents did? Because the banks have manipulated society in such a manner that cash economy has become all but obsolete. The average citizen’s control over his own income and possessions has been transferred to the banks, who make profit out of allowing us to use our own money.

You are allowing the bank to use YOUR money for their business- and in many cases you pay them for the privilege in terms of account fees etc. Your money disappears into the bank’s system where it will be used to bring the bank profit-  for loans, mortgages etc. You are allowing the bank to make profit from your own money and get nothing in return.

Furthermore, the bank will manipulate your cash flow so as to ensure you incur the highest costs. Back when I was working in the banking system, we were asked to create an piece of software that ensured your payments were taken out of your account before your wages etc were put in, thus putting you in some cases in a state of being overdrawn for a few minutes- then charging you a fee for it.

The financial sector doesn’t actually benefit anyone but itself. It steals money from you at every turn to lend it back to you at absurd prices and it controls your life because you’re allowing them to control your money.

This is the thing about the service economy. Its purpose is to strip the workers of any assets and possessions and keep them in a state of economic subservience- why sell to someone a product once when you can give it to them as a service they can pay a monthly fee for? It’s more money and on a larger scale, and those who would’ve been discouraged by the prohibitive price of X will be easier to convince to pay a monthly affordable fee for it even if that means they’ll pay more and what’s more important, never stop paying.

Your mortgaged house is not yours- the bank lends you the money to buy it but you pay them for the privilege, and if you can’t pay anymore the bank will keep both the house and what you have so far paid for it. Furthermore, by keeping you shackled by a mortgage, it means you can no longer move after a better job or even afford to strike or protest- because you’d lose your home. So you become quiet, a slave in fact to the financial system and you pay them for enslaving you.

And this is just the consumer side. It’s a lot worse for the commercial side of banking.

Due to various financial engineering of dubious ethics and legality, the financial sector does in fact control much of the manufacturing/trade sector. Because of this, it is in a position to force said sectors to reduce their jobs by outsourcing work, and who cares about workers losing their livelihood if the bankers get paid?

Let’s say there is a company X that makes widgets. The company needs money to start building itself up and most people do not have that type of money laying around.

So the bank lends company X some money to build themselves us. The company builds a factory, creates jobs and makes profit, and pays the bank back. So the bank makes them borrow more for expansion (because a manufacturing company has increased costs with the increased volume of sales), then starts squeezing them to reduce costs. Company X will have to move its factory to Eastern Europe or India or Turkey.

The jobs will be gone. Company X will be able to keep on paying the onerous bank charges – and it’s hard to get out of the bank trap- but the jobs are gone. Even if the company does sell its products cheaper now, it’s not much use to the people who have lost their jobs when the company outsourced.

The financial sector of London aka The City is a huge economic force that controls our lives, and it would lose a lot if the UK left the EU. Because its whole purpose is to provide “financial services” to the EU, using your money to make a profit.

They NEED to be in Europe because otherwise they will lose access to the European financial market. This is why Gina Miller, a hedge fund manager, which is a nice way of saying a parasite who makes a living from financial transactions, fought so hard to maintain the UK in the EU. Not because she cares about democracy but because her interests and those of the people behind her are more important to them than the good of Britain as a whole.

The financial sector of the UK is only 9% of our economy, but it exists as a parasite that slows down the rest of our economy. By lobbying etc they have managed to create a bubble around London and have forced the various governments to focus the investment on the area inside the M25, at the cost of everything else in the UK.

The purpose of the service economy is to strip people of assets and make them pay for the privilege of using what is already theirs. Also to prevent them from accumulating any real wealth that would actually free them from the banks’ shackles.

Because the bank needs you poor, indebted and obedient. The bank needs to be in the EU and if that comes at a cost to average Joe, sucks to be him because the bank wins anyway- either Joe gets a new job and keeps on paying his mortgage or he loses it and the bank has just gotten a free house.

This is what Brexit is about, and what lays beneath the absurd fight of the Remain side against the will of the people- it is the century old struggle between the economy that produces things and the economy that makes money by stealing it from the first.

This struggle has been going on for centuries- every time the manufacturing real world economy is starting to get people a bit too prosperous the banks cut it down to size by creating some form of crisis to bring the assets’ value down.

The manufacturing/trade economy makes things. It contributes to society and increases people’s standard of living.

The banking sector makes money by fleecing everyone around it. It’s a parasite.

This is the actual Brexit debacle. Because in truth most Europeans even in Germany etc live under the yoke of the financial system. It just so happens that for some the chain on their neck is slightly lighter.

If Brexit succeeds not only would the banks lose their deadly grip on the British economy, but it would also create a precedent for other countries to follow suit. Independent countries are harder to control than one big federalized state and harder to lobby.

Which is bad for the banks.  So yes they will spend a lot of money to keep you shackled to the EU because that’s how they can make the best profit.

It’s not Britain against the EU. It’s progress against slavery.

The real fight is the people against the banks.

go to part 1

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