“I use some metaphors occasionally….To me, I would equate this to interest rate apartheid, where if you’re an insider in the city, you can borrow money at a half a percent and speculate all day long, creating housing that in turn becomes the property of greedy landlords. But if you’re on the other side of the coin, if you’re out there, actually working for a living and you’re short a few bob at the end of the month, you go to Wonga, and you pay 5000% annualised rates of return.
“The poor in this country are told to pick themselves up by their bootstraps and work harder but they’re being asked to do so in an environment where they have these financial predators circling in the interest rate apartheid ghetto. At what point does rhetoric become outright scapegoating, because I notice in this country now, the poor are being increasingly scapegoated as the reason for all of the country’s ills economically, going forward, that it’s the poor’s fault. And we’ve seen this movie before back in the 1930’s, over in Europe, where one group of people is scapegoated for the reason for all these troubles, and then we know where it goes from there.
….Speaking of scroungers, like George Osborne, you have a situation, where the housing market crashed essentially in 2008, 2009 as part of the credit crunch. The scroungers in this case would be the big banks in this country and the housing developers who were sitting on bonds that were collateralised by mortgages. They were sold. Hundreds of billions of pounds of these mortgage-backed securities are sitting on their balance sheets. If these mortgages were allowed to trade at the fair market price, based on true supply and demand, then all four of the big banks would have been insolvent.…They went scrounging to the government and said ‘we need you to take all of our crap mortgages and to put it on the balance sheet of the Bank of England, in exchange for fresh pounds that we’ll put on our balance sheets and we’ll say we’re solvent’. So in other words, the option of this aristocratic class is to simply take all this bad debt, wherever they make a mistake, swap it for good stuff at the Bank of England and declare themselves solvent. So, if the same option were available to council estates around Britain, using the same technique, they would be able to take all of their Wonga debt and they would go to George Osbourne, they would go to Mark Carney, the Bank of England and say ‘you take my Wonga debt….I want a fresh treasury bill in pounds’. Why is this, again, this is interest rate apartheid, why do the scroungers in the city of London get to have this option of money at a half a percent, whereas everybody else is paying these extortionary rates and they don’t have that relationship. Why is the Bank of England only serving a few people, why isn’t it serving the country as a whole?”