Monday, April 11, 2016

Neither Left or Right, but the Third Way Scam Instead.

Neither Left or Right, but the Third Way, said Tony Blair. But the Third Way turned out to be massive scam for bankers to line their pockets with tax payers money. 

Also, John Major's Conservative government privatised British Rail using the old Right Wing way and the British tax payer got fleeced then too. The new  private train companies were to bid for contracts that would last for 7 years, but if they were outbid on a contract afterwards what were they to do with the trains they owned? The solution was for the other private train companies to hire out the trains instead.

So the Conservatives set up two rival train hire companies who would own all the trains and hire them out to the newly privatised train companies. The two hire companies were owned by bankers and finance companies but neither of them would lower their prices for hiring the trains. They ran a cartel. Old rickety coaches that were donkey's years old were hired out at £100,000 per year, and newer trains were incredibly expensive.

The first thing that customers noticed about the new privatised train services that there were far less coaches (cars is the correct term for them in the UK), so many people found themselves having to stand on the trains which had become cattle trucks.

There was a BBC Radio 4 investigative program about it (made in the days when the BBC still had some independence) that showed how the tax payer was being ripped off by the train hire companies. It was costing the tax payer an absolute fortune. New Labour was in power at the time when the documentary was made, but I read nothing in the newspapers the next day about it, not even in my Guardia. So New Labour did nothing and the bankers were laughing all the way to the bank. I heard no more of the scandal. Some people made an absolute fortune.

The Public Private Initiative was another scam set up by bankers. It is easy peasy money, no real work required, just go in and help yourself to tax payers money, £billions of it. If only the public knew how much they have been conned? The over class get away with so much while preaching to ordinary people about the work ethic, which the newspapers they own are keep going on about.  Craig Murray describes their rip offs well:

All PFI Contracts Should Be Cancelled and the Assets Nationalised, by Craig Murray.

The closure of 19 schools in Edinburgh because of jerry-building under the Blue and Red Tories’ Private Finance Initiative, throws a stark light on the impact of the neo-con age on ordinary people.

The Private Finance Initiative was always a scam. It was yet another way to divert money from ordinary tax-payers to the super rich. Instead of schools and hospitals being built and paid for by the taxpayer, they were built and paid for by the bankers, hedge fund managers and other “financial services” sharks, giving state guaranteed returns averaging 7% from the taxpayer, when we now have negative interest rates. It is such a massive scam that every man, woman and child in the UK owes £3,000 to PFI financiers. Like so many far right Tory ideas, its most fervent practitioners were Gordon Brown and Tony Blair.

The “advantage” to government was the accounting trick of a reduction in state capital spending. The other “advantage” was that the private sector was supposed to have more “efficient” methods, due to the profit motive. So somebody in a local authority organising the building of a school from the desire to do the best for the children of their community, was less “efficient” than a hedge fund manager doing it to make the maximum cash. The result? Jerry-building.

I do not want to spend the rest of my life paying capitalist bloodsuckers through my savings. All PFI built infrastructure should be nationalised – without compensation. In doing so the taxpayer will be reclaiming assets to the value of only 10% of the money given to UK bankers in bailouts. Clawing back 10% of the cash we gave the bankers would be a damn good thing. If it caused the odd bank to crash, that is long overdue. Ordinary people’s deposits up to £75,000 are protected anyway. Those with more have it in Panama, the Caymans or the BVI, apparently.

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