Thursday, 6 November 2008

Lotta Continua

Peston talks lucidly about why the Government's levers on the market aren't working. &, make no mistake, it might be the so called independent Bank of England which has just implemented the 1.5% interest rate cut but it is the Government which leant on them to do so. Paul Mason and Richard Murphy agree on this point, whilst Will Hutton restricts himself to telling us markets are stupid.

Whatever. The fact is this is an unprecedentedly large interest cut and we now have the lowest base rate since 1954. & still the banks aren't lending at rates the rest of us can afford. Peston puts this in polite 'economist-talking-to-the-masses' language,

"Lenders have - understandably - concluded that the risk of lending has risen very sharply, and are therefore demanding much greater rewards for providing credit."

But there is another way of describing this: straightforward, unadulterated class struggle on behalf of finance capital.

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