Monday 30 March 2015

Above all else, profit rules

The government has decreed that pension annuities can be cashed in. With stagnation in shares, next to nothing in interest rates where is this money released to go? Why, to buy houses to rent of course. It just so happens the developers have been given more or less carte blanche to build on any green belt, common, SSSI reserve, public open space or good agricultural field they choose. Just happens that first time buyers can no longer afford to buy the houses for sale. So the retired generation, using their pension  funds are snapping up, at highly preferential government incentives, any house for sale to rent out, to these first time home couples. UKplc economic 'recovery' is founded on building more houses. More houses means more furnishing, more white goods selling more means everyone feels better and jobs are generated to build the houses in the first place then all the goods needed to fill them. So simple! All boxes ticked, no one can possibly complain and everyone is happy. UKplc is all fired up.

Except it is not that simple. Another super container ship leaves China to restock all those emptying shelves. What we do not have is a resurgence in UKplc manufacturing for a world wide market. Worse still, to raise the money to buy the houses for rent requires new 'private' loans to be taken out, increasing our national indebtedness. Interest on those loans requires even more spending on stuff to pay the interest to keep the wheels turning. This then is the economic miracle that UKplc recovery is based on. Increase loans taken out so you can spend more. Developers are only in it for profit, profits come from quick turn round on easy green sites, take objectors out of the sequence and they can are performing miracles. House are shooting up all around the wealthier parts of UKplc. Towns are expanding at unprecedented rates just not necessarily houses to suit the homes needed nor necessarily in the right places.

Once apon a time UKplc used to have a vision, a view for a future and how to reorganise and arrange itself. How best to look after all its people and how to foster communities and encourage production. All swept aside. Now the only deciding factor is profit. Where can you make most profit and more quickly? These are the new ground rules that determine the future that we will pass on to our next generations. Scant else to pass on to them as all the inherited wealth we were given custodianship off has or will be sold off. National Park for sale, Stately Home for sale, Crown Estates for sale, national collections for sale. Any takers? You can name your own terms! This is not some Orwellian nightmare. This is reality, here and now.

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