AS THE Tory and Labour Party crises deepen, the Bank of England yesterday announced that the outlook for UK financial stability is ‘challenging’.
Bank of England governor Carney was at a news conference following the release of the bank’s six-monthly Financial Stability Report which warned: ‘There is evidence that some risks have begun to crystallise. The current outlook for UK financial stability is challenging.’
It also said there were risks apparent in the commercial property market, with vital foreign inflows falling by 50% in the first three months of 2016.
Additionally, it has concerns over ‘the high level of UK household indebtedness and the vulnerability to higher unemployment and borrowing costs’ which could affect some households’ ability to pay their debts. House prices could also come under pressure, particularly if buy-to-let investors abandon the market, it said.
The bankers and the government are getting ready to dump the entire weight of the developing financial and industrial crisis onto the backs of the working class.
The Tory leadership is split, with the Brexit victors immediately falling out and cutting each other’s throats as the banditi seek to seize what they see as the spoils of the Brexit victory – the leadership of the Tory Party. Their war has allowed Home Secretary May, who opposed Brexit, to come forward. Aping Marie Antoinette, she says that she will refuse to have a general election, and has also refused to guarantee that all EU citizens living and working in the UK will be allowed to stay here.
The Tory line is that Corbyn is unelectable – yet, after the experience of the referendum and what happened to Cameron, they dare not call an election in case it returns Corbyn as PM and a Labour government!!! – especially with another financial collapse on the way.
The crisis of the Tory Party is explosive and will continue to detonate under its leaders.
Meanwhile, Labour deputy leader Tom Watson was holding emergency talks yesterday in ‘a last throw of the dice’ attempt to persuade Jeremy Corbyn to resign as Labour leader.
Behind Watson stands Unite leader McCluskey, who is one of the union leaders who wants to see a deal to keep the Labour Party united – at the price of Corbyn retiring with honour for the good of the party and socialism being thrown out of the window.
The Labour Party Blairite right wing want to get rid of Corbyn so that they can make a bloc with whoever wins the Tory leadership, to form a national government to save the nation from the working class and its drive to achieve socialism.
Watson said yesterday’s effort was ‘the last throw of the dice’, meaning that if Corbyn refuses to play ball the right wing will split the party. Corbyn posted a video message on Monday to ‘talk directly’ to Labour members. He said he had a ‘huge responsibility’ as leader, and added: ‘I am carrying out that responsibility and I am carrying on with that responsibility.’
Now he must take heart and draw courage from the decision of the junior doctors to reject Hunt’s new contract in their ballot and to resume their struggle.
With a massive economic crisis threatening he must act boldly. He must demand a general election now so that Labour, with a socialist programme, can defend the working class and the poor from the economic catastrophe that is being threatened. The demand for a general election NOW will be taken up by millions who will see to it that it happens.
He must also boldly allow his hundreds of thousands of Labour Party membership supporters to deselect the right wing cabal gangs that want to keep the Tories in office, and boldy set out a programme for action to defend the working class and the poor.
It must include the nationalisation of the banks and the major industries, the restoration of student grants and bursaries, and the nationalisation of the land and building industry so that millions of new jobs can be created by a socialist planned economy and millions of new council homes built to solve the housing problem.
This is the programme for the crisis to bring socialism to the UK and then to spread it throughout the EU to replace the EU with the Socialist United States of Europe!
