Cyprus – A Warning To British Workers

One of the major problems facing Cyprus is the dominance of the banking sector in its economy. A key measure of this relationship is the size of the bank assets of a country compared to its Gross Domestic Product (GDP). Cyprus has bank assets 7.8 times larger than its GDP. This proportion is equaled by Ireland and exceeded by Malta which has a multiple of 8, which was also the multiple which Iceland had in 2008, when its banking system collapsed. The Icelandic people decided not to try and save it, but to let it collapse and start again, with a healthier banking sector which would serve their economy rather than dominate it.

The next highest multiple in the EU is the UK’s, at 5.4. To put this into context the EU average for 27 counties is 3.5, with Germany, Austria, Sweden and Belgium on 3.0 and Greece on 2.2.

During the Thatcher period of manufacturing closures, her economists and ideologues spread the idea that manufacturing was characteristic of less developed economies and the UK could thrive on the service sector, particularly finance and best of all the speculative part. The ‘Big Bang’ deregulation of finance was lauded as a great success, as was the destruction of much of manufacturing.

Blairites continued that philosophy which still holds sway in the current Tory-LibDem coalition. Despite their talk of ‘re-balancing the economy’, a serious plan to re-build Britain’s manufacturing does not exist. Instead there is blind faith in ‘the market’ and the hope that the finance sector will recover. The warning for British workers is clear; don’t trust the government, the banks or the EU. The plan must come from us.

The Workers’ Party Twitter Feed

Amid a spike in covid infections the US Biden regime, are set to end the moratorium on evictions; 3.6 million face homelessness, while a further 11.4 million live in fear because their families are in rent arrears.
Decent housing should be a right for all
https://www.aljazeera.com/news/2021/7/31/millions-across-us-at-risk-of-eviction-as-covid-surges

Mexico sends ships with medical supplies, food & fuel to Cuba; ignoring the embargo dictated by the regional bullyboys of the USA. President Lopez Obrador suggested Cuba be declared a world heritage site because of their resistance to US imperialism.
https://mexiconewsdaily.com/news/3-mexican-navy-ships-ships-en-route-to-cuba-to-deliver-humanitarian-aid/

If Cuba proves that socialism doesn’t work, does Haiti prove that capitalism doesn’t work? (And remember, Cuba is under a 60-yr US blockade while Haiti gets billions in US aid.)

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