ASPIRANT CLASS – DEBT FOR THE MASSES

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Enter the low failure world of cheap debt, in which borrowing at low interest rates gives the illusion of prosperity to the so called ‘aspirant class’. It is nothing more than an exercise in keeping corpses afloat, and will eventually end in tragedy.

We live in a world of economic slump, whatever the lies told by ‘politicians as illusionists’. The recent ‘good news’ of UK ‘growth’ figures is nothing more than people spending a bit more of their borrowings, and savings from lower petrol prices, to buy more goods and services – beefburgers and hair cuts – that is, it is consumer-led spending growth, taking place as manufacturing output falls.

The entire economic system is tied to low interest rates as a means to increase indebtedness. When the ‘aspirant voter’ buys a mortgage, they immediately become shackled to an asset which is only worth a third of the debt associated with it. A rise in interest rates to a realistic 5% would immediately put 50% of all new (government backed) mortgages in peril. Government policy has, in effect, allowed people to survive, or to become ‘aspirants’ wherehas, in a world of reality, they would be in the ranks of the non-achievers.

So tied is the ruling political class to sustaining its creation – the ‘aspirant class’ – that it is considering setting interest rates at less than zero – you will pay for the privilege of holding cash in a bank – called (euphemistically) a “utilization fee” by JP Morgan Chase.

The next stages in this process is to tax cash holdings, then making cash illegal. Plans for this are well advanced. In France, it is illegal to pay bills of more than 1,000 euros with cash. Bank counter assistants are told to complete “suspicious activity reports” on anyone who tries to deposit ‘suspiciously’ large sums of cash.

Its central aim is to control you – who could survive if someone did not electronically credit their account? Its second major aim is enabling many lame-duck mortgagees, re-labelled as ‘aspirants’, to survive and multiply. Thus, they are bought by politicians. They naively believe that the government will bail them out, as they did the bankers, when the economic waters get choppy. Dream on, sucker.

This short-term bribery is doomed. On a national level, the theory of cutting interest rates to avert an economic crisis and boost growth is a failure. It has not forced banks or corporations to seek better returns elsewhere, by investing in industry and large scale building projects, as examples, thus helping drive up growth. Euro-area investment remains in a state of contraction. Banks and companies are sitting on cash – they can not identify any major project in the EU where they can get a return greater that zero. They are sending their money to Switzerland.

The real economy is failing. The UK Labour Party only planned to borrow as the European Central Bank encouraged – to drive up growth – but were up against a powerful, neocon propaganda machine. Those aspiring to be the next labour Party Leader will do nothing more than place themselves in the very middle of this propaganda machine, repeating its every mantra as holy writ – a writing or utterance having unquestionable authority. They will undertake a Journey to the Centre of the (political) Earth. They will praise those who take on unsustainable debt. They will seek to out bribe the bribers, out fear the fear mongers.

For now, bask in the sunlight of cheap home loans, car loans, and student loans. Your government will try all tricks to keep interest rates at a level you can afford. But they are not  going to be able to do it forever. To double the rate of interest on a mortgage payment is to increase it by 50 percent. To triple the rate of interest is to double the mortgage payment. The world that waits.

Low interest rates mean banks are making it more affordable to buy a house, which in turn is driving up household debt. Low interest rates make it too easy for people to borrow money. A debt for the masses policy.

As Jason Dornstauder, owner of Focus Mortgage Solutions, once said: “It’s very plastic. It’s almost like going to Las Vegas. Everything is real. It’s there, but we know it’s not. It’s completely an illusion”.

A bloody big illusion.

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About leninnightingale

A nurse who for decades challenged the nursing establishment, echoing the voices of the silent many- the downtrodden nurses, students, care assistants, patients, and relatives that the 'system' overlooks. This site will present issues that many fear to engage in, prefering to believe what they are told by the Government's 'Ministry of Truth' (i.e. 'Lies').
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One Response to ASPIRANT CLASS – DEBT FOR THE MASSES

  1. Carol Dimon says:

    In simple terms – The health system for example, is a way of “in – debting people”- 8 million in the USA are in debt, despite health insurance, due to a co- payment that must be made to meet costs. This is a means of control of people by they in power.

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