Why we urgently need more from the Left economically than the low hanging fruit of middle class identity politics


I fear that we are not ready for this jelly…

$13 trillion wiped off markets in worst six months on record

The global market rout has wiped $13 trillion off world stocks in the worst start to any year on record as business and consumer confidence collapses amid surging inflation.

The MSCI World Equity Index has shed more than 20pc so far this year in the steepest first-half decline since its creation, led by a plunge in loss-making tech companies as investors panic over the end of ultra-low interest rates.

In the UK, the FTSE 100 fell 1.96pc on Thursday to close out its worst month since the early days of the Covid pandemic.

…since 2008, Central Banks, in a desperate move to gloss over the obscene greed and malfeasance of Corporate Banks, printed $25Trillion which kicked the can of reckoning down the road for a decade.

We’ve run out of road and US Federal Reserve chairman Jerome Powell is being very clear that shit is about to hit the fan…

Powell: ‘No guarantee’ US Fed can tame inflation, spare jobs

United States Federal Reserve chairman Jerome Powell said there’s “no guarantee” the central bank can tame runaway inflation without hurting the job market.

Speaking on Wednesday (US time) at a European Central Bank forum in Sintra, Portugal, Powell repeated his hope that the Fed can achieve a so-called soft landing – raising interest rates just enough to slow the economy and rein in surging consumer prices without causing a recession and sharply raising the unemployment rate.

“We believe we can do that. That is our aim,” he said.

But the Russian invasion of Ukraine, he said, had made the job more difficult by disrupting commerce and driving up the price of food, energy and chemicals.

…the quantitive easing has artificially created the lowest interest rate in 5000 years.

Inflation never raised its hideous hegemony upturning head since 2008 because global supply chains reaching into the deepest darkest part of non unionised labour camps in China, India, Bangladesh, etc etc etc, kept labour costs suppressed in the West as domestic working classes were sacrificed for $700 iPhones.

That sacrifice came at the political cost of Trump in America and Brexit in the UK.

The pandemic however has destroyed those supply chains and geopolitical fiction is forcing Western Transnationals to pull their supply chains, with all the increased labour and environmental costs that entails, into friendly ally territory.

Supply side stresses can’t be solved by macro inflation adjustment without enormous implosions as the true gravity of all that debt collapses in upon itself in an event horizon of a steep and deep economic depression

There is ample reason to believe that the next recession will be marked by a severe stagflationary debt crisis. As a share of global GDP, private and public debt levels are much higher today than in the past, having risen from 200% in 1999 to 350% today (with a particularly sharp increase since the start of the pandemic). Under these conditions, rapid normalisation of monetary policy and rising interest rates will drive highly leveraged zombie households, companies, financial institutions, and governments into bankruptcy and default.

The next crisis will not be like its predecessors. In the 1970s, we had stagflation but no massive debt crises because debt levels were low. After 2008, we had a debt crisis followed by low inflation or deflation because the credit crunch had generated a negative demand shock. Today, we face supply shocks in a context of much higher debt levels, implying that we are heading for a combination of 1970s-style stagflation and 2008-style debt crises – that is, a stagflationary debt crisis.

…my point is that an economic depression generated by geopolitical friction beyond our control is going to hit us with enormous social damage and political carnage.

The Left must be ready for this moment.

Unfortunately our focus is on alienating woke dogma virtue signals like hate speech, booze prohibition, or painting out the Lion King in Te Reo as the greatest cultural achievement since Shakespeare.

We need less alienating pronoun policing on the Left and more focus on universal services that provide material well being to people who are hurting right now and will be suffering in 6 months.

We need solutions to economic turmoil that isn’t going to dissipate.

We need to lift the yoke of taxation off working people, the middle classes and beneficiaries and put it onto the 1% richest, the corporations, the banks and the speculators!

Look at the banks laughing all the way to themselves thanks to the rigged capitalism they manipulate for their Australian masters…

Banks post record profits and close in on $5 billion in interest income as mortgage costs spiral

The total interest hoovered up by the banks from households and businesses is on track to top $5 billion​ a quarter as home loan interest rates rise, KPMG says.

…we need a financial traction tax, GST off food, sugar tax, first $20 000 tax free.

We need vastly more money poured directly into our welfare infrastructure, paying for essential worker education and training like Nurses, Teachers, Drs while bonding them here for service.

We need to stop underfunding our services while allowing corporations to plunder us for monopoly rentals!

The danger of woke middle class identity politics replacing class left analysis is that the politics devolve into a micro aggression deplatforming campaign that alienates rather than builds solidarity against free market capitalism.

The true demarcation of power in a democratic capitalist state is the 1% richest + their 9% enablers Vs the 90% rest of us.

Identity Politics simply cements into place a caste system of intersectionism alongside a terminal tribal affiliation to your skin colour, gender or identity.

There needs to be far more common ground and shared values.

We need to remove the yoke of taxation from the 90% and reset it to the 10% richest.

The minefield of social justice and it’s never ending pure temple deplatforming of everything that triggers it will only drive people further from the Left in an intense economic downturn because you can’t eat virtue signalling aesthetics.

Between January and March this year a record 363,888 food grants were handed out on top of a 500% spike in food bank demand. Between 2020 and 2021:
  • $608 million in housing equity was made by landlords
  • 9.6% increase in rent for tenants
  • 18.4% of children live in households earning less than half the median income after housing costs
  • $5.5 billion in profit made by ANZ, BNZ, ASB and Westpac

and the Top 1% own 25% of wealth while the Bottom 50% owns 2% of wealth

If you think the worst inflation in 30 years is bad now, wait until the impact of the Ukrainian war and broken supply chains in China hit.

This debate is how the Class Left rip the talking stick away from the Wellington Twitteratti and the alienating woke activists.

Broad Church over Pure Temple every day!

Look at how far polarisation has been allowed to overtake America with a quarter of Americans open to taking up arms against government.

We need to be kinder to individuals and crueller to Corporations.

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