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Back to Front - Industry, not the euro


In the global capitalist crisis we are instructed that the main threat to recovery is protectionism and nationalism. Running scared, the capitalist class and their spokesmen are keen to emphasise the global, fearing that a national line from the working class will overwhelm them.

Some have seized the opportunity to again advocate joining the euro. But Britain’s current position would have been far worse had we joined it. We would have been unable to adjust our currency to reflect our actual trading position with the rest of the world. The political and econo-mic consequences of euro emasculation are being felt in several states pegged to the Bundesbank bond yield. Their experience is being likened to a “prison of nations” with Greece, Ireland, Spain, Italy and the Baltic area all suffering.

The British working class, in keeping Britain out, have been absolutely clear, and it is this national resilience that has made our enemy so fearful of us. This does not suggest that we should be self congratulatory. Our opponents’ extreme policy of trying to destroy British workers during 30-plus years of de-industriali-sation has meant that we are restricted in our ability to trade away our deficit because we are not producing enough.

So to liken our condition to that of Japan’s ongoing deflationary experience since the early 1990s is wrong. Japan has had a balance of trade surplus throughout this time together with a high personal savings ratio – all features of having a significant manufacturing base.

Britain’s problems are unique to us and it is encouraging that the reactionary spirit of ’79 and the stupid faith in the workings of the market have all but disappeared. It is also apparent that the government is making up policy on the hoof.

We hear that this is “no time for a novice” – well, no kind of bank legislation can eliminate either the overproduction promoted by credit or the general inflation of prices that goes with it. Where the continuity of production rests solely on credit, Marx and Engels observed that “The entire artificial system of forced expansion of the reproduction process cannot, of course, be remedied by having some bank, like the Bank of England, give to all the swindlers the deficient capital by means of its paper and having it buy up all the depreciated commodities at their old nominal values” (Capital Vol. III, 1894).

Brown and his chums are not just proposing that our taxes are used to prop up a corrupt banking system that has £4.5 trillion of foreign liabilities. They will also be negotiating with prospective foreign governments and individuals who are prepared to buy British government debt during the series of Gilt auctions planned for the coming period.

What secret terms will Brown grant in return for the loans? What if prospective purchasers of UK Gilts withdraw or wait until the screw is tightened? For example, the Post Office is about to be hawked around the market as a prospective bargaining chip to any foreign company whose own government is prepared to offer a loan by purchasing UK Gilts.

The recent visit by the Chinese Prime Minister was not a social call – it was more an examination of the British menu and whether Brown does home delivery.

Normally around mid March the Budget would be announced but this year it has been put back until 22 April (the latest ever date for a budget) which is another sign of desperation.

It is industry that we want in our country but capitalism has become an obstacle to getting it. Understanding that is the key to getting out of this mess.