Poster 1: Is Debt Inherently Bad?
This poster asks if debt is inherently bad. It discusses the politics of default in terms of escape and bankruptcy and says we should talk about rent-seeking and unearned passive income and the shame attached with default. It then looks at the class politics (or lack thereof) and asks why people have problems with debt and what kinds of debt are unproblematic? The poster states that we are in the kind of society where debt is necessary for survival and we need free education, health service, broadband and cheap utilities, housing and some level of citizens income.
The poster then looks at altermatives to the normalising of indebtedness and asks; should we accept debt as investment? Should I be debt in order to eat? and are we be blaming others (govenment, lenders, energy companies) for normalising the indebted life. The poster states that we require a new macroeconomic settlement as growth has now become so dependent on debt. Finally, the poster looks at debtor publics and how to stimulate them and where are they already. The poster states that we should be unpacking the power relations constituting debt and that family debts occur as children experience debt collection, divorce/family breakdown. Finally the poster asks if credit/debt is needed at all? and is it possible to seriously challenge indebtedness in a capitalist economy.
Poster 2: How do we defuse public sector debt bombs before they explode
This poster looks first at local government. It states that borrowing has shifted from the Treasury PWLB to ‘LOBO’ private bank loans and from RBS Barclays at punitive interest rates. The poster than asks why are public sector finances not policed by financial regulators, FCA, PRA and BOE? The poster then goes on to ask how do we challenge the neoliberal treasury view? Next the poster looks at the NHS and states that ¾ of trusts in financial crisis are Private FInance Initiatives (PFI) hospitals. The solution is to close services, and/or sack workers with major public health/cost impacts especially on poor. FInally the poster looks at the media framing which states that public sector is bad at financial management and the private sector is more efficient.
Poster 3: Debt Slavery
This poster looks first at the country level and discusses debt slavery resulting from tax avoidance, corruption, extraction of natural resources, bail-outs, bad terms of trade and dodgy lending. The poster then looks at people and says debt slavery has resulted from contraction of real wages/wage regulations, contraction of public service, health education, contraction of the welfare system, debt servicing and borrowing to repay and concentration of business services where larger amounts of wealth in fewer hands. The poster then asks what is at stake in comparing this to slavery? How/why is this a useful term or analogy?
Poster 4: Politics of who borrows from whom
This poster first looks at the UK government departments i.e. (Department of Communities and Local Government). It states that local councils historically borrow from HM Treasury at an average interest rate of 4.5%. it states that PWLB made £2.8 billion in annual income from council borrowing. The poster then looks at PFI finance. It states that pre 2008 premium for private (bank) PFI finance over government borrowing was 50 basis points of 0.5%. Post 2008 interest premium is 2.6%. The poster then goes on to explain that councils have same credit risk as UK government (AA+) however RBS has a A-/B+ rating and yet can borrow from BoE at 0.5% via FLS scheme even despite it missing SME targets.
Politics 5: Green Economy and Sustainability
This poster asks can you have a sustainable debt economy at a global scale? It looks at speculitve debt including the housing market (debt backed asset investment for profit) and interest payments (non-productive credit). The poster then looks at productive debt and the availability of cheap credit drivers including consumption of consumer goods. It states that some solutions might include relocating credit, free credit to low income communities and investments in small business/co-ops.
First published may 2014
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