The addiction of our Government to debt is understandable. It helps to win votes and court popularity for political parties to make promises underpinned by implied expenditure, and that is the history of the two party system we enjoy, that we endure, in the United Kingdom.
In returning power to the people, the protection of it’s money supply from unscrupulous politicians and bankers is a must. Currently, our money is not protected and the UK people are being defrauded continually by an Establishment elite. This structural reality can only be changed with political will and democratic authority, change that the Democrats & Veterans Party is determined to bring about.
The first graph presented shows the growth in our Government debt since 1945.
Inflation of the money supply, the creation of money out of thin air, is one way a Government can ‘steal’ saved wealth from an unsuspecting population. What follows is a potted history of UK Government debt, in real terms, since the end of 1945 on the commencement of reconstructing the UK after the devastating impact of the WWII. To give the reader a gauge as to the approximate devaluation of the pound since 1945, example intermittent costs of gold and the dollar are given.
1945 to 1972
The 28 years between 1945 saw a 78% increase in debt. In that period Labour held power for two periods of 6 years (1945-1951 and 1964-1970) with the Conservatives holding power for thirteen years (1951-1964). The Conservative Party under Edward Heath took power in 1970. His conservative Chancellor, Iain Macleod, died within weeks of taking office. The government, without recourse to the British people and in violation of our Law, enacted the 1972 European Communities Act which came into effect on 1st January 1973. Other notable factors: In 1945, the $/£ exchange rate was set at $4.07. One troy ounce of gold could be bought for $37.25 or £9.15. Before the end of Attlee’s Labour government, the weak UK economy resulted in a 30% devaluation to $2.80/£. Similarly during Wilson’s 1964 Government, another economic crisis resulted in a further devaluation of 14% to the dollar and an exchange rate of $2.40. When the gold standard was abandoned in 1971, one troy ouce of gold could be bought for $35, shortly afterwards rising to $38 – essentially the same price as in 1945. The results of Britain’s mismanaged economy had resulted in an 73% increase in price of one troy ounce of gold to £15.80.
1972 to 1979
A turbulent time in UK politics, fed by debt and false promises, the buying of votes. Wilson replaced Heath in 1974 with a minority government. In 1975 the people were asked to vote on whether the UK should stay in the EEC – the first Referendum and the people trusted the political elites and voted YES. In 1976 James Callaghan took the Labour helm. A trip to the IMF as a post war Britain, industrious and ingenious and 30 years of preceding peace, went cap in hand for a loan. Shameless, shameful. In the first six years of membership of the EEC or ‘common market’, Britons’ wealth had been been diluted by their Government’s actions. UK debt increased by 140% in just six years. The years before Thatcher.
1979 to 1992
The memories of the incompetence and disastrous consequences of the 1970’s Labour government lasted for many election cycles. The Conservative Party under Margaret Thatcher won three consecutive General elections, followed by an unexpected 4th consecutive win for them under the leadership of John Major in 1992. In 1979 one troy ounce would cost $489, £200. The pound suffered against the dollar bottoming out in 1985 at just over $1 to £1 and recovering to $1.50-$2.0/£ from 1986 to 1992. When the Maastricht Treaty was signed in February 1992, one troy ounce of gold would have cost you $333 or £181. The government had run surplusses at the end of the Thatcher premiership, but UK debt had reached £165 Billion by 1992. Twelve months later in 1993 the debt had risen to £202 Billion, ten times that of 1945.
1992 to 1997
The advent of the European Union in 1993 brought home to many the realities of Edward Heath’s actions twenty years previously. Internal fighting within the Conservative Party over the direction of the UK with respect to its entanglement with a foreign Law making body resulted in weakness. The Labour Party had found new purpose and a new message to sell. Coming after the untimely death of John Smith in New Labour and Tony Blair, with whom things could only get better. During the self destructive period for the Conservative Party under the Euro federalist John Major, more debt was racked up. The Conservative Party’s policies were not delivering what conservatives would regard as ‘conservative results’. The explosion in national debt following the signing of the Maastricht Treaty saw a 110% increase, akin to the increase following the previous significant European integration in 1973. In April 1997 as the people lost trust in the split Conservative Party, one troy ounce of gold cost $350 or £216.
1997 to 2007 and 2007 to 2010
Politics had ceased to be the realm of service, servitude and serious people. It had become the realm of celebrity, emotion and showbiz. The demoralisation of the public and the active influence of government in ever increasing aspect of people’s lives was building and spreading. Politics was dumbed down. The end to boom and bust was a new promise from a new Labour Party. Perception ruled. Until the crash of 2008.
Under the Blair/Brown governments of 1997 to 2010, the national debt increased to over £1000 Billion from £347 Billion in 1997, a 188% increase in thirteen years.
2010 to 2018
The Labour Party were rejected in 2010. A principle free Conservative Party led by the David Cameron, promised to eradicate the deficit within a term, reduce immigration to the tens of thousands and repair the damage of the Blair horror years. Not having a majority in the HoC, the Conservative Party entered into coalition with an opportunistic Liberal Democrat Party, ideologically wed to the EU project. A new bubble was created in the ‘education sector’. More debt taken off the books of the public finances. More promises to buy votes, promises undelivered and reneged upon. Immigration continued and increased with net immigration rates of 200,000 per year increasing to 300,000 per year by 2014. The debt at the time of the 2015 General Election was over £1500 Billion and the promise of a surplus been reworded into a promise of the opposite. The Conservative Party were elected on a majority in 2015, this time the promise was for a Referendum on EU membership.
The people in 2016 no longer showed trust in the political elites and voted on 23rd June to leave the EU. As yet, that instruction given to Government has not materialised as a reality. In 2018 the UK Government debt is approximately £1800 Billion, representing an increase of approximately 79% since 2010. One troy ounce of gold will cost £962, over 100 times more than it would have cost your great-grandfather in 1945.
Generations of pass the parcel politics between vote buying populist Labour and Conservative Parties has resulted in the managed decline and impoverishment of our nation. Since 2016 the incumbent political class has learned nothing and has drifted further from the people. Politics needs an overhaul, direction and common sense – the graphs tell us we are going the wrong way.