Ukraine Fraudsters Again – A Message from the LRP

League for the Revolutionary party
April 2014

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Reports on the events in Ukraine in recent months have mentioned three activists whose names some readers may recall: Oleg (Oleh) Vernik and Zakhar Popovych in Ukraine and Ilya Budraitskis in Russia. In the early 2000s, while members of the Committee for a Workers International (CWI), they conspired to assume multiple fake personal identities as representatives of several fictitious socialist groups in Ukraine. Under these disguises they posed as supporters of a number of far-left groups in North America and Europe, from whom they stole funds, time and other resources. Their crimes further corrupted the reputation of a socialist movement already burdened by mistaken association with the heinous crimes of Stalinism.

We reported on this political and financial scam in CWI Group Guilty of Ukraine Fraud (Proletarian Revolution No. 69, Winter 2004), and we posted personal identifying information at Photos of the Perpetrators on this website. A list of many other articles on the affair at the time is at Statements from various sources on the Ukrainian fraud (wwww.bolshevik.org). A summary of the fraud, the CWI’s response and the current activities of these perpetrators was recently posted on the website of the Greek organization Communist Revolutionary Action. See Maidan and Ukranian Story of a Lasting Fraud.

The perpetrators of the fraud have not to our knowledge ever issued any explanation of, or apology for, their political, personal and financial dishonesty. Today Vernyk is chairman of the All-Ukrainian independent trade union “Zakhyst Pratsi” (Labor Defence). See tradeunion.org.ua. Budraitskis belongs to the Socialist Movement of Russia, which is affiliated with the organization long known as the United Secretariat of the Fourth International (USec). See for example his article Ukrainians fighting for a better society.

Popovych belongs to “Left Opposition” in Ukraine whose views are also disseminated by the Usec’s magazine International Viewpoint. See A mass revolt for democracy. He also made a widely reported visit to London where he spoke about the Ukrainian events. See for example Russian and Ukrainian socialists speak out. A video of Popovych speaking at a public meeting at the House of Commons is at Crisis in the Ukraine (House of Commons Meeting) – Videos. By comparing this video with the photos of Popovych in the original articles about the fraud, one can see that today’s activist is the same person as yesterday’s fraudster.

We warn the left in Ukraine and around the world: these people are not to be trusted in their political, organizational and financial adventures.

Where the World’s Unsold Cars Go To Die

Above is just a few of the thousands upon thousands of unsold cars at Sheerness, United Kingdom. Please do see this on Google Maps….type in Sheerness, United Kingdom. Look to the west coast, below River Thames next to River Medway. Left of A249, Brielle Way. Timestamp: Friday, May 16th, 2014. There are hundreds of places like this in the world today and they keep on piling up…

THE WORLDS UNSOLD CAR STOCKPILE
Houston…We have a problem!…Nobody is buying brand new cars anymore! Well they are, but not on the scale they once were. Millions of brand new unsold cars are just sitting redundant on runways and car parks around the world. There, they stay, slowly deteriorating without being maintained.

Below is an image of a massive car park at Swindon, United Kingdom, with thousands upon thousands of unsold cars just sitting there with not a buyer in sight. The car manufacturers have to buy more and more land just to park their cars as they perpetually roll off the production line.

There is proof that the worlds recession is still biting and wont let go. All around the world there are huge stockpiles of unsold cars and they are being added to every day. They have run out of space to park all of these brand new unsold cars and are having to buy acres and acres of land to store them.

NOTE:
The images on this webpage showing all of these unsold cars are just a very small portion of those around the world. There are literally thousands of these “car parks” rammed full of unsold cars in practically every country on the planet. Just in case you were wondering, these images have not been Photoshopped, they are the real deal! Its hard to believe that there are so many unsold cars in the world but its true. The worse part is that the amount of unsold cars keeps on getting bigger every day.

It would be fair to say that it is becoming a mechanical epidemic of epic proportions. If anybody from outer space is reading this webpage, we here on Earth have too many cars, why not come and buy a few hundred thousand of them for your own planet! (sorry but this is all I can think of) Below is shown just a few of the 57,000 cars (and growing) that await delivery from their home in the Port of Baltimore, Maryland, U.S.A. With Google Maps look South of Broening Hwy in Dundalk for the massive expanse of space where all these cars are parked up.

The car industry would never sell these cars at massive reductions in their prices to get rid of them, no they still want every buck. If they were to price these cars for a couple of thousand they would sell them. However, nobody would then buy any expensive cars and then they would end up being unsold. Its quite a pickle we have gotten ourselves into.

Below is shown an image of the Nissan test track in Sunderland United Kingdom. Only it is no longer being used, reason…there are too many unsold cars parked up on it! The amount of cars keeps on piling up on it until its overflowing. Nissan then acquires more land to park up the cars, as they continue to come off the production line.

UPDATE: Currently May 16th, 2014, all of these cars at the Nissan Sunderland test track have disappeared? Now I don’t believe they have all suddenly been sold. I would guess they may have been taken away and recycled to make room for the next vast production run.

Indeed next to that test track and adjacent to the Nissan factory, they are collating again as shown on the Google Maps image below. So where did the last lot go? This is not an employees car park by the way.

None of the images on this webpage are of ordinary car parks at shopping malls, football matches etc. Trust me, they are just mountains and mountains of brand spanking new unsold cars. There is no real reason why you should be driving an old clunker now is there?

The car industry cannot stop making new cars because they would have to close their factories and lay off tens of thousands of employees. This would further add to the recession. Also the domino effect would be catastrophic as steel manufactures would not sell their steel. All the tens of thousands of places where car components are made would also be effected, indeed the world could come to a grinding halt.

Below is shown just a small area of a gigantic car park in Spain where tens of thousands of cars just sit and sunbathe all day.

They are also piling up at the port of Valencia in Spain as seen below. They are either waiting to be exported to…nowhere or have been imported…to go nowhere.

Tens of thousands of cars are still being made every week but hardly any of them are being sold. Nearly every household in developed countries already has a car or even two or three cars parked up on their driveway as it is.

Below is an image of thousands upon thousands of unsold cars parked up on a runway near St Petersburg in Russia. They are all imported from Europe, they are all then parked up and they are all then left to rot. Consequently, the airport is now unusable for its original purpose.

The cycle of buying, using, buying using has been broken, it is now just a case of “using” with no buying. Below is an image of thousands of unsold cars parked up on an disused runway at Upper Heyford, Bicester, Oxfordshire. They are seriously running out of space to store these cars.

It is a sorry state of affairs and there is no answer to it, solutions don’t exist. So the cars just keep on being manufactured and keep on adding to the millions of unsold cars already sitting redundant around the world.

Below are parked tens of thousands of cars at Royal Portbury Docks, Avonmouth, near Bristol in the United Kingdom. If you look on Google Maps and scan around the area at say 200ft you will see nothing but parked up unsold cars. They are absolutley everywhere in that area practically every open space has unsold cars parked up on it.

Below is that same area in Avonmouth, UK, but zoomed out. Every gray space that you see is filled with unsold cars. Anyone want to hazard a guess at how many are there…

As it is, there are more cars than there are people on the planet with an estimated 10 billion roadworthy cars in the world today.

We literally cannot make enough of them. Below are seen just a few of the thousands of Citroen’s parked up at Corby, Northamptonshire in England. They are being added to daily, imported from France but with nowhere else to go once they arrive.

So there they sit, brand spanking new cars, all with a couple of miles on the clock that was consummate with them being driven to their car parks. Below is the latest May 2014 Google Maps image of unsold cars in Corby, Northamptonshire.

Manufacturing more cars than can be sold is against all logic, logistics and economics but it continues day after day, week after week, month after month, year in year out.

Below is shown a recent (April 2014) screen grab from Google Maps of the Italian port of Civitavecchia. All those little specks are a few thousand brand new unsold Peugeots. Just collecting dust and maybe a bit of salty sea spray!

Below, all nice and shiny but with nowhere to go. Red and white and black and silver, purple, pink and blue, all the colors of the rainbow and be they all brand new. Indeed all the colors of the rainbow are down there on those cars, making pretty mosaics, montages of color and still life. Maybe that is all they will now ever be, surreal urban art of the techno production age. Magnificent metal boxes, wasting space and saving grace, all sitting still, because its business at mill.
All around the world these cars just keep on piling up, there is no end in sight. The economy shouts out quite loud that nobody has the money anymore to spend on a new car. The reason being that they are making their “old” cars go on a lot longer. But we cannot stop making them, soon we will run out of space to park them. We are nearly running out of space to drive them that’s for sure!

Below, more cars mount up in the port of Valencia in Spain. They will not be exported as there is nowhere for them to go, so they just sit and rot in their colorful droves.

Gone are the days when the family would have a new car every year, they are now keeping what they have got. It may be fair to say that some families still get a new car every year but its the majority that now do not.

The results are in these images, hundreds of thousands if not millions of cars around the world are driven from their factories, parked up and left.

Could we say that these cars have been left to rot! Maybe, as these cars will certainly rot if they are not bought, driven and cared for. It does not look like they will be sold any day soon, many of them have been standing for over 12 months or even longer and this is detrimental to the car.

Below, as far as the eye can see, right into the background, cars, cars and more cars. But what’s beyond the horizon? Have a guess…Yes that’s right…even more cars! All brand new but with no homes to go to. Do you think they will ever start giving them away, that may be the only radical solution. Who knows, you could soon be getting a free car with every packet of cornflakes.

When a car is left standing idle, all the oil sinks to the bottom of the sump, and then corrosion begins to set in on all the internal engine parts where the oil has drained away.

Cold corrosion is when condensation builds up in the cylinders and rust forms in the bores. The engines would then start to seize and would need to be professionally freed before they could be started. Also the tires start to lose air and the batteries start to go flat, indeed the detrimental list goes on and on.

So the longer they sit there the worse it slowly becomes for them. What is the answer to this? Well they need to be sold and that just isn’t happening.

The epidemic is not improving, it is getting worse. Car manufactureres are constantly coming out with new models with the latest technology in them. Hence prospective buyers of, for example, a new Citroen Xsara Picasso want the latest model, not last years model. Hence all the unsold Citroen Xsara Picasso cars from the previous year will now have even lesser chance of being sold.

The problems then just keep on mounting up. In the end, the unsold cars that are say 2 years old will have no alternative but to be either crushed up, dismantled and/or their parts recycled.

Some car manufacturers moved their production over to China, General Motors and Cadillac are examples of this. They are then shipped over in containers and unloaded at ports. However they are now being told to put a big halt in their import into the U.S.A. as they just can’t sell them in the quantities they would desire. Consequently Chinese car parks are now filling up with brand new American cars. Well nobody in China can afford them on their meagre pittance wages, so there they will stay until our economy improves..And lets not hold our breath for that!

The truth is out: money is just an IOU, and the banks are rolling in it

David Graeber, theguardian.com
Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn’t know how banking really works, because if they did, “there’d be a revolution before tomorrow morning”.

Last week, something remarkable happened. The Bank of England let the cat out of the bag. In a paper called “Money Creation in the Modern Economy“, co-authored by three economists from the Bank’s Monetary Analysis Directorate, they stated outright that most common assumptions of how banking works are simply wrong, and that the kind of populist, heterodox positions more ordinarily associated with groups such as Occupy Wall Street are correct. In doing so, they have effectively thrown the entire theoretical basis for austerity out of the window.To get a sense of how radical the Bank’s new position is, consider the conventional view, which continues to be the basis of all respectable debate on public policy. People put their money in banks. Banks then lend that money out at interest – either to consumers, or to entrepreneurs willing to invest it in some profitable enterprise. True, the fractional reserve system does allow banks to lend out considerably more than they hold in reserve, and true, if savings don’t suffice, private banks can seek to borrow more from the central bank.

The central bank can print as much money as it wishes. But it is also careful not to print too much. In fact, we are often told this is why independent central banks exist in the first place. If governments could print money themselves, they would surely put out too much of it, and the resulting inflation would throw the economy into chaos. Institutions such as the Bank of England or US Federal Reserve were created to carefully regulate the money supply to prevent inflation. This is why they are forbidden to directly fund the government, say, by buying treasury bonds, but instead fund private economic activity that the government merely taxes.

It’s this understanding that allows us to continue to talk about money as if it were a limited resource like bauxite or petroleum, to say “there’s just not enough money” to fund social programmes, to speak of the immorality of government debt or of public spending “crowding out” the private sector. What the Bank of England admitted this week is that none of this is really true. To quote from its own initial summary: “Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits” … “In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money ‘multiplied up’ into more loans and deposits.”

In other words, everything we know is not just wrong – it’s backwards. When banks make loans, they create money. This is because money is really just an IOU. The role of the central bank is to preside over a legal order that effectively grants banks the exclusive right to create IOUs of a certain kind, ones that the government will recognise as legal tender by its willingness to accept them in payment of taxes. There’s really no limit on how much banks could create, provided they can find someone willing to borrow it. They will never get caught short, for the simple reason that borrowers do not, generally speaking, take the cash and put it under their mattresses; ultimately, any money a bank loans out will just end up back in some bank again. So for the banking system as a whole, every loan just becomes another deposit. What’s more, insofar as banks do need to acquire funds from the central bank, they can borrow as much as they like; all the latter really does is set the rate of interest, the cost of money, not its quantity. Since the beginning of the recession, the US and British central banks have reduced that cost to almost nothing. In fact, with “quantitative easing” they’ve been effectively pumping as much money as they can into the banks, without producing any inflationary effects.

What this means is that the real limit on the amount of money in circulation is not how much the central bank is willing to lend, but how much government, firms, and ordinary citizens, are willing to borrow. Government spending is the main driver in all this (and the paper does admit, if you read it carefully, that the central bank does fund the government after all). So there’s no question of public spending “crowding out” private investment. It’s exactly the opposite.

Why did the Bank of England suddenly admit all this? Well, one reason is because it’s obviously true. The Bank’s job is to actually run the system, and of late, the system has not been running especially well. It’s possible that it decided that maintaining the fantasy-land version of economics that has proved so convenient to the rich is simply a luxury it can no longer afford.

But politically, this is taking an enormous risk. Just consider what might happen if mortgage holders realised the money the bank lent them is not, really, the life savings of some thrifty pensioner, but something the bank just whisked into existence through its possession of a magic wand which we, the public, handed over to it.

Historically, the Bank of England has tended to be a bellwether, staking out seeming radical positions that ultimately become new orthodoxies. If that’s what’s happening here, we might soon be in a position to learn if Henry Ford was right.

UK has ‘worst quality of life in Europe’ according to the latest uSwitch quality of life index

UK has ‘worst quality of life in Europe’

Survey of 10 developed European countries puts UK at bottom of the pile due to high costs of living, while France takes top spot

The UK has been named the worst place to live in Europe for quality of life, behind countries with damaged economies such as Ireland and Italy, according to the latest uSwitch quality of life index. The UK emerged as having the second lowest hours of sunshine a year, the fourth highest retirement age, and the third lowest spend on health as a percentage of GDP. Despite above average household income – the fourth highest in Europe – Britons have 5.5 fewer days holiday a year than the European average and endure a below average government spend on education.

UK households also struggle with a high cost of living, with food and diesel prices the highest in Europe, and unleaded petrol, alcohol and cigarettes all costing more than the European average. As a result, more than one in 10 Britons (12%) said they are “seriously considering” emigrating, with “broken society” the biggest concern for 59% of those questioned, followed by the cost of living (49%), and crime and violence (47%). Just 5% of those questioned are happy in the UK.

The study examined 16 factors to determine where the UK sits in relation to nine other major European countries. Variables such as net income, VAT and the cost of essential goods were put under the microscope, as well as lifestyle factors such as hours of sunshine, holiday entitlement, working hours and life expectancy.

France bagged the top spot for the third year running, despite families earning an average £31,767 (compared to the UK’s £38,547) and working longer hours than people in the UK. But the French enjoy 2,124 hours of sunshine, have an average retirement age of 60, and receive 36 days of holiday a year. They also live a year longer than Brits, with an average life expectancy of 81.4 years compared to 80.4 in the UK. People in France, Spain, Italy, the Netherlands and Sweden call all expect to live longer than people in the UK.

Spain, Italy, the Netherlands and Germany rounded out the top five best European countries for quality of life, with Denmark, Poland, Sweden and Ireland also above the UK in the table. Last year, Ireland was joint bottom with the UK.

France and Spain are also where people in the UK would most like to live, with 13% of the 2,036 adults surveyed by uSwitch choosing Spain and 7% opting for France. The Spanish can expect to live just over a year longer than people in the UK, and enjoy the highest number of days holiday in Europe with 39 days. Spain also has the lowest alcohol price of the 10 countries.

Uswitch said it had weighted each category to “nationally representative criteria” using sources such as the OECD, the Met Office, the World Health Organisation and Eurostat. It then calculated a standardised score for each category, defining quality of life as the sum of the standardised scores.

Ann Robinson of uSwitch.com said: “Last year, at least our neighbours in Ireland were worse off, now we can’t even console ourselves with that. We are now officially at the bottom of the pile. We may still be enjoying the fourth highest household income in Europe, but the high cost of living means we are living to work.

“When coupled with many of the issues facing households in the UK today it is not surprising that one in 10 of us have contemplated starting a new life abroad. But for those of us who decide to stick it out and ride the storm, there will be no choice but to batten down the hatches. Cutting back where possible to help combat our high living costs will go some way to improving our quality of life.”

Labour Party Manifesto 1900

 

The VOAG Focuses On The Labour Party, As Another Member Resigns

With the European elections looming, and the Borough Council elections only a year away, the VOAG publishes a letter of resignation from the Labour Party, posted on Facebook by a former member.

The stark reality is that only a Socialist Party of the Bolshevik type can lead the working class, those that work and produce the wealth, to a better future. Only a Socialist society, one that produces goods and services, not for profit, but according to what’s needed and democratically agreed upon, can fulfill our needs, the producers. With true equality of opportunity comes true freedom.

As Karl Marx, the founder of modern socialism said: “Where one can do one thing today and another tomorrow, to hunt in the morning, fish in the afternoon, rear cattle in the evening, criticise after dinner, just as I have a mind, without ever becoming hunter, fisherman, herdsman or critic”…”Where in place of the old bourgeois society we shall have an association in which the free development of  each is the condition of the free development of all”. (Karl Marx, communist Manifesto).

Lenin declared, in his book What Is To Be Done, that “economic arguments [for socialism] are the most widely applied, but not the most widely applicable”. The essence of socialism, the project, often forgotten by fellow socialists overcome by the day-to-day struggle, is the complete transformation of society, the transcendence of mankind, and the liberation of humanity. Socialism, as Marx once said represents “the very beginning of human history“.

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I am returning my membership card for the Labour Party as a means of saying that I wish to resign from the party. It is with regret that I am doing this but I see no other option.

I joined the party in October last year as a longstanding member of the Fabian Society. As an expat, I had come to the University of Cambridge the previous month and was horrified at the damage the coalition government had done to the social fabric of Britain. I had thought and hoped that both the aggressive foreign policies – notably the war against Iraq – as well as many Thatcherite notions endorsed by ‘New Labour’ had been part of the past, and that the choice of Ed Miliband as a more ‘left-wing’ candidate had signified a fresh start for Labour. I admit that I had been very much wrong.

I have closely followed Labour’s policies and campaigns since. Most of these have been concerned with shallow, cosmetic and ultimately insignificant campaigns. Britain surely faces more challenging problems than ticket touts at major rugby events (23 February). The most visible response to the dire problems faced by a society which for the first time since 1945 has seen the Red Cross in action delivering food to the needy has been Miliband calling for a ‘freeze’ on energy bills. Surely nobody in the Labour party is so naïve as to seriously believe that such a move were possible without renationalising the energy companies.

The excesses of an entirely market-driven society and of almost completely deregulated capitalism could be felt by all in 2008 and the following years: Profits had been privatised, and losses socialised. Yet I cannot remember reading any statements by Labour during these last few months that would have called for fundamental changes to an economic model creating the rifts running through Britain. Quite to the contrary, recently even the Labour Party, or rather some members thereof, attempted to jump onto a populist bandwagon to please an immigrant-bashing and xenophobe, Daily-Fail-reading petit bourgeois sector of the electorate with a petty, islandish outlook. This, at least, was the impression conveyed in late January, early February, when the Labour leadership failed to stand up to such tendencies galore, and instead attempted to play the ‘tough on immigration’ card.

Just as bad, if not worse, is the fact that Britain currently has, arguably, the worst Secretary of State ‘for’ Education in history. Michael Gove, on this the person reading this letter will probably agree, is easily the worst person in this office in British history. Education, to some extent the most important brief in the cabinet, is in the hands of a tub-thumping madman. Yet while it is clear that a myriad of different forms of schools has done incredible damage to the education system, that tuition fees have turned higher education into nothing but a marketable commodity, there is no such thing as an education policy on the part of Labour that would even bear the potential – let alone the promise – of making the best possible education again available for all. The most fundamental key to equality is left in ruins, while Labour cannot even bring itself to let go of such a completely failed notion as academies and ‘independent’ schools mushrooming around Britain.

Ultimately, the balance we once attempted to strike between markets and citizens has been abandoned, with the former having been given complete preference over the latter. I continue to hope that from within the Fabian Society – as well as from other think tanks, as well as individuals – alternatives emerge, and that there be people within the Labour party who listen. However, so long as Labour as a party only disagrees with the Tories on how to tip the balance towards markets over citizens, rather than on how to reverse it, it is regret that I need to tell you that I cannot support the party as a member any longer.

Yours sincerely

Don’t Vote UKIP Don’t Vote Alexandra Swann: As UKIP Asks Should The Unemployed Be Allowed To Vote

The former chair of Conservative Future has suggested that the unemployed should not be allowed to vote. Tom Bursnall, who recently defected from the Tories to UKIP on Windsor and Maidenhead Council, specifically targeted the unemployed people on his “Pro Capitalist” blog, asking: “Should people on benefits be allowed to vote?”

And it gets worse — when Tom “Batshit” Bursnall goes on to suggest that rich people should receive more votes than the poor: “It would be terribly ‘unfair’ of you to give equal representation rights to the chap who contributes 50 times more than the next person. In the same way as if you own 60% of shares of a company, you’ll get 60% of the voting rights at the Annual General Meeting.”With Tom and his councillor wife trousering more than £14,000 from the taxpayer, The VOAG wonders how many more votes the Bursnall household would receive.

Now UKIP’s most high-profile new recruit, former Ukip candidate for Farnham North in the last Surrey County Council elections, Alexandra Swann, has joined in. She claims Cllr Tom Bursnall “has a point”, going on to say it is “dangerous” to let unemployed people vote. She continued: “allowing people to vote on how other people’s money is spent — if they dont contribute — is dangerous”

As with Tom Bursnall, Alexandra Swann defected from the Tories in 2012. 23 year-old Alexandra Swann was the star turn at UKIP’s recent conference in Skegness — with party leader Nigel Farage proudly declaring that “the Swann has migrated”. A statement on her website says she left the conservative Party for UKIP because Conservative-led” government submits to every liberal-left piety imaginable.’

She was narrowly defeated by the Tory incumbent, Denise Le Gal, by just 43 votes in the 2012 Surrey County Council elections. Don’t Vote UKIP, Don’t vote Alexander Swann.

The sigh of the oppressed by Gerry Downing: Gerry Downing looks at the origins of monotheism and assesses the attitude of communists towards believers

The sigh of the oppressed

Gerry Downing, Socialist Fight Group
Religious suffering is, at one and the same time, the expression of real suffering and a protest against real suffering. Religion is the sigh of the oppressed creature, the heart of a heartless world, and the soul of soulless conditions. It is the opium of the people.

The abolition of religion as the illusory happiness of the people is the demand for their real happiness. To call on them to give up their illusions about their condition is to call on them to give up a condition that requires illusions. The criticism of religion is, therefore, in embryo, the criticism of that vale of tears of which religion is the halo.

Gerry Downing looks at the origins of monotheism and assesses the attitude of communists towards believers

Abraham Leon’s book The Jewish question: a Marxist analysis has the following to say about the Jewish religion: “Whereas catholicism expresses the interests of the landed nobility and of the feudal order, while Calvinism (or Puritanism) represents those of the bourgeoisie or capitalism, Judaism mirrors the interests of a pre-capitalist mercantile class.”

Leon quotes Marx approvingly from On the Jewish question: “We must not start with religion in order to explain Jewish history; on the contrary the preservation of the Jewish religion or nationality can be explained only by the ‘real Jew’, that is to say by the Jew in his economic and social role.”

The view that the ‘ancient Hebrews’, which refers in the first place to Abraham’s tribe of nomadic sheep-herders, believed in one abstract, invisible god is incorrect. This is mythology, which projects modern values and ideas onto an ancient society to prove some linear continuity. In fact ideas of a deity and religious beliefs have changed out of all recognition since 1900 BC.

Abraham’s nomadic Hebrews settled in a small part of Canaan about 1900 BC and remained semi-nomadic. Their chief god was El. Yahweh (Jehovah) was the god of the Canaanites. Later historical revisions ignored El and gave Yahweh as the only god of the Israelites. In fact during the time of the two kingdoms Yahweh was the northern god and El the southern god. They had no idea of a single god and such an idea did not exist in the planet at the time. The religion of Abraham was polytheism, not monotheism.

The religion of Moses
The religion of Moses was more advanced and did not advocated constant warfare to destroy the gods of other tribes, as long as they did not interfere with Yahweh’s domain. It was the development of a municipal god to replace and include Abraham’s tribal gods. The Hebrews had left the land of Canaan because of famine and came into closer contact with the more advanced culture of the Nile. There is no historical evidence that they ever settled in Egypt. In fact the historical record for the reign of Ramesses II is well nigh complete and there is no mention of any major exodus of slaves from the kingdom.

They did not assimilate into this culture because their nomadic animal husbandry would not allow it. The Bible tale that Moses was raised as an Egyptian nobleman because he was found floating in a basket in the Nile by Pharaoh’s daughter is probably simply a means of saying that the leaders of the Hebrews adopted some of their religious views from the Egyptians.

Where did the religion of the Egyptians come from? There is a quote from Marx that explains: “The necessity for predicting the rise and fall of the Nile created Egyptian astronomy, and with it the domination of the priests as directors of agriculture.” [1] God made himself known to Moses not from the burning bush or from the posterior of Yahweh, but from the social necessity of the Egyptian peasants to know when the Nile would flood so they could regulate their seasonal activity of sowing and harvesting. And only the priests knew that. The peasants had no idea how they knew this and the priests were not going to tell them because knowledge was indeed power. So the ignorant peasants readily believed that the priests were passing on the knowledge of when this was to happen because only god could know that and the priests must therefore be his representatives. The pharaoh was a god because he was the chief priest who knew everything, although there quickly arose a certain, often ill-defined, separation between religious and secular rule. This was not simply a conscious con trick, but a social necessity.

Whilst the Israelites lived in Egypt, the pharaoh Akhenaton had attempted to impose an early form of monotheism in the form of worship of the sun god, Aton, but the society reverted to their traditional gods on his death, and he himself had insisted on remaining a god. The advance to a multi-people empire and towards monotheism was thwarted for that time and the city built by Akhenaton in honour of the new god fell into ruins after his death. But the time for these ideas had arrived and was bound to circulate in an advanced culture like Egypt.

Moses supposedly created the Arc of the Covenant at Mount Sinai, where the god of Israel dwelt after the exodus. True, he was only visible as a sunburst, but, as he lived in that wooden box, he was remarkable small and not very abstract. Moses developed a primitive form of monotheism, dispensing with the multitude of lesser gods like the golden calf, in his own society and for his people alone. Yahweh was, after all, only the god of Israel. The religion of Moses was inspired by Egyptian culture, but retained the old Hebrew tribal deity. In fact the majority of the ‘Israelites’ who departed in the exodus may have been Egyptians.

Moses elaborated the Ten Commandments as new precepts to form the legal basis of a settled and more peaceful community. It was not a religion of one god overseeing all the peoples of the world onto whom humanity projected their idealised selves. It was a halfway house that had not yet developed the notion of one god for everybody. They just did not consider such a state possible because it was not possible at that stage. It was the later rise of great multi-people empires that posed this question.

Paul Lafargue
Over a hundred years ago, Paul Lafargue, explained the evolution of the belief in one god thus: “The idea of god, planted and germinated in the human brain by the unknown elements of the natural environment and the social environment, is not something invariable: it varies on the contrary according to time and place; it evolves in proportion, as the mode of production develops, transforming the social environment.

“God, for the Greeks, the Romans and other ancient peoples, had his dwelling in a given spot and existed only to be useful to his adorers and hurtful to their enemies; each family had its private gods, the spirit of deified ancestors, and each city had its municipal or state god. The municipal god or goddess dwelt in the temple consecrated to him or her and was incorporated into the image which often was a block of wood or a stone; he or she was interested in the fate of the inhabitants of the city, of these alone. The ancestral gods concerned themselves only with family affairs. The Jehovah of the Bible was a god of this kind; he lodged in a wooden box called the Arc of the Covenant; which was carried along when the tribes changed their location; they put it at the head of the army, that Jehovah might fight for his people; if he chastised them cruelly for their infractions of his law, he also rendered them many services, as the Old testament reports.

The Greeks and Romans, like the Jews and the first christians, had no thought of their god being the only god of creation: the Jews believed in Moloch, Baal and other gods of the nations with which they warred as firmly as in Jehovah “¦ The municipal divinities, which belonged to the warlike cities of antiquity, always at strife with neighbouring peoples, could not answer the religious needs which mercantile production created in the bourgeois democracies of the commercial and industrial cities, obliged on the contrary to maintain pacific relations with the surrounding nations. The necessities of commerce and industry forced the new-born bourgeoisie to de-municipalise the city divinities and create cosmopolitan gods “¦ These new divinities, Isis, Demeter, Dionysos, Mithra, Jesus, etc “¦ still took on a human form, though the need was beginning to be felt for a supreme being which should not be anthropomorphic; but it is not until the capitalist epoch that the idea of an amorphous god has imposed itself, as a consequence of the impersonal form taken on by the property of corporations.”

Lafargue here clearly spells out the reasons for the rise and development of monotheism: commercial necessity to trade peacefully. This had superseded the previous necessity, which was to advance by capturing your neighbour’s territory by war. Notions of god and versions of monotheism continued to be developed from the ancient primitive municipal monotheism of middle antiquity to the sophisticated supreme being of the French Revolution and Hegel’s ‘absolute idea’, as humanity’s productive forces gave rise to new social necessities.

Trade routes
Look at any map of trade routes from antiquity to the modern epoch. Almost all show major routes through or near the ancient land of Palestine. It was the land of the Canaanites, a great trading people. The invading Philistines (who gave their name to Palestine) took on much of the culture of the Canaanites, like the Israelites. They invented an alphabet because they needed to tally and record their trading activities, so the ship’s captain and crew would not rip them off.

The Israelites learned to write from the Philistines (presumably between wars). So it is easy to understand that the record of what happened to the Hebrews from Abraham to Moses is second-hand and written to suit the politics of a later epoch. From 1100 to 539 BC the Phoenicians – the name given to the northern Canaanites by the Greeks – traded and settled the Mediterranean lands, just as the Jews did later and for the same reason: location and opportunity. It is entirely unremarkable that the Jews followed and developed this long tradition.

It is part of the mythology of Judaism, developed by the Zionists, that a nomadic tribe could have been culturally more advanced than the Canaanites because of their monotheism. The archaeological dig at Hazor, northern Israel (1955-58) settled all these arguments against the fundamentalists. Modern dating techniques enabled the archaeologists to outline a precise chronology. In the 13th century BC Joshua led the Israelite hosts which defeated Jabin’s city of Hazor (the biblical account that places the battle later under judge Deborah’s leadership was proved incorrect) and burned it to the ground. “Then, in a very long processes, some of those sites began to be resettled by the still nomadic Israelites, who slowly but surely turned the settlements into proper cities, particularly from the time of the Kings onward.”

Further excavations discovered a foundation deposit, which consisted of a jug containing a figurine of a war deity. This was immediately prior to the rebuilding of the city by Solomon soon after 1000 BC. This is a classic example of a more advanced people being conquered by a primitive but more warlike people, who then assimilated the religious culture and customs of the defeated people over a period. They adopted some of their gods like Baal and Hastoret.

The kingdom of the House of David arose around 1000 BC. Yossi Swartz wrote: “The priests of the kingdom tried, according to the records in the Old testament, but without much success, to enforce the belief in one god, Yahweh. How could these priests enforce the god who resided in Jerusalem, on the people of a village who believed that they must serve their local god who does not have to travel far to punish them?”

Following the return of the Israelites to the land of Canaan the next great learning experience was the defeat of Judah by Nebuchadnezzar and the exile of the ruling class to Babylon. There they learned the most advanced trading practices from the most advanced civilisation of the age, the Babylonians. Here the most important Talmud was written which laid down the religious, social and political norms to enable a trading and money-based ruling elite to function without continual inner conflicts.

Yossi Swartz explains: “The defeat of Israel by the Assyrians in the 8th century BC led to the assimilation of the Israelite peasants into other nations, and hence the legend of the 10 lost tribes. Two hundred years later the Babylonians destroyed the kingdom of Judah and the Jewish aristocracy was exiled to Babylon. During the Persian empire established by Cyrus, this aristocracy was sent back to Palestine as political agents of the empire.”

Modern Jewish culture
This was the real beginning of modern Jewish culture. During the Babylonians exile the prophet, called Isaiah the Second because of similarities with the first Isaiah, elaborated the modern Jewish god. His monotheism was universal and not held in by national boundaries. The old God of Israel was a sunburst in a wooden box, which the Philistines were able to capture. The new God of Israel had become too widely travelled and too ambitious to be confined in a small land, let alone in a wooden box. He had to be made suitable for a far-flung trading people, most of whom now lived in the diaspora. However, despite this development, elements of the exclusive ideas that went back to Abraham’s Yahweh survive to this day and have re-emerged over the centuries whenever the Jews found themselves embattled.

The ready acceptance of the new monotheism proved that its time had come. Cyrus, the victorious Persian king, defeated and subjugated all the mercantile trading rivals of the Jews (the Philistines and Phoenicians/Canaanites) and they now seized control of the trade routes as his agents and then spread throughout the territory of successive imperial powers as traders and merchants. Martin Gilbert’s Jewish history atlas gives us a picture of what the next period was like. His maps show growth of the diaspora (500 BC to 100 AD).

The Jews, he says, “moved about freely as traders” and “established flourishing communities” under the protection of the Greek and Carthaginian empires all along the coasts of the Mediterranean and the Black Sea, Gilbert writes. The Sinai frontier, near the ancient land of Goshen, the home of Jacob, Joseph and Moses, was repopulated by the pharaoh with 30,000 Jews in 270 BC, the origins of the large Alexandrian Jewish community.

The Jewish risings against Roman rule paint a very different picture than the standard Zionist one. The Jews revolted against Rome in Judea twice, in 66-73 AD under the leadership of the Zealots, and Bar Kochba in 132-35 AD. However, they rose up also in Cyrenaica (the land around modern Benghazi in Libya), in Syne on the Middle Nile, in the entire delta of the Nile, in Cyprus and in Mesopotamia (all between 115 and 117 AD), according to Gilbert’s map.

Contrary to Zionist myths, the brutal suppression of the Bar Kochba revolt by the Roman general, Hadrian, was not the origin of the diaspora. That was the trading lifestyle of the ancient Jews and the far earlier conquests explained above.

The bulk of world Jewry was already far from home. The war between the Romans and the Jews was a clash of cultures, which reflected conflicting economic interests. Basically Rome was subduing the Mediterranean lands to extract tributes to feed the ever growing parasitic nobility and restless plebeian masses at home and they wished to appropriate the money that flowed from the activities of Jewish traders and cash-crop farmers.

Universal monotheism
Bruno Bauer’s theses are by far the most logical on the history and origins of early christianity. According to Bauer, christianity was first postulated by the Alexandrian Jew, Philo Judea, and developed by the Roman Stoic philosopher, Seneca.

Its fundamental tenets were: “the inborn sinfulness of man; the logos, the word, which is with god and is god and which becomes the mediator between god and man; atonement not by sacrifice but by bringing one’s own heart to god; and finally the essential feature that the new religious philosophy reverses the previous world order, seeks its disciples amongst the poor, the miserable, the slaves and the rejected and despises the rich, the powerful and the privileged – whence the precept to despise all worldly pleasure and to mortify the fresh “¦ And, as we see, we need only the keystone and we have the whole of christianity in its basic features: the incarnation of the word becomes man in a definite person and his sacrifice on the cross for the redemption of sinful mankind.”

In 313 AD the Roman emperor, Constantine, chose this religion above two others. It had been modified since its development 300 years before from a primitive redistributive consumer communism of the poor Jews of the Roman empire to one that could suit the needs of Rome. Constantine found he could easily adapt christianity to the pressing need to have a unifying ideology to bind together and oppress a far-flung multi-people empire.

This new christian religion excluded all other gods and forbade its followers from believing in them. As part of the dialectic of history christianity also hailed the fall of the world of antiquity as a victory of the spirit over the flesh and the just reward for corruption. It became the ideology for spreading the new empires that emerged out of the dark ages at the end of the first millennium.

A will o’ the wisp
You will note that in the search for the origins of a universal monotheism we are constantly frustrated by the realisation that every form of monotheism we examine is not really monotheism at all. Right up to Constantine’s adoption of christianity all religions acknowledged and believed in other people’s gods, as well as adoring and obeying their own (as interpreted by a privileged priesthood).

Even christianity is not really a universal monotheism. There is the doctrine of the trinity – three gods in one, and one god in three – although believers were bound to acknowledge under pain of the inquisition that each of these ‘persons’ was individually god. And then there was the anthropomorphic belief in Jesus Christ as god, made man, made god again; and all the saints, who are sort of minor gods (leaving aside how we may rationalise or adore the Virgin Mary) the faithful may worship if they choose. In fact there is a logical argument that the only real monotheistic religion is islam and that must surely explain its remarkably progressive nature from the 7th to the 15th century.

Contemporaneously with the religious wars in Europe in the 17th century, deism – a new form of monotheism that was more genuinely and rationally universal – developed. This rejected all religious practices associated with formal religion (which they blamed for Europe’s devastation) and ascribed to the supreme being the role of creator and initiator of motion. This was the divine watchmaker theory. Miracles – the fundamental method used by all religions to get the believer to suspend their critical, logical judgement – were rejected. The English philosopher, Anthony Collins (1676-1729), was the chief theorist of this school. Abraham Lincoln was a deist.

The Irish philosopher, John Toland, was the first to coin the term ‘pantheism’ in 1705 to describe the new logical religion. There was a long line of antecedents who had developed this idea. Spinoza, Leibniz, Kant and Hegel were ideological pantheists, as were several of the romantic poets.

However, having achieved its highest development, monotheism also signalled its logical downfall. Learned opinion speculated that Collins and Toland were covert atheists, as well they might. Because to a materialist philosopher like Collins and a follower of the famous Jewish philosopher, Spinoza (mind and matter are one substance, Spinoza believed), it must have been an obvious step to ask, if the creator created everything and gave it motion, who created the creator? Once miracles were denied, deism logically led to atheism by a small step. The poet, Shelly, made this small step and got expelled from Oxford by the high Tory gentlemen who led that establishment and banished from his father’s house forever for this ‘crime’.

When the perfect and logical monotheism was achieved, atheism was just too tempting as the next step. Back to fideism and the Bible then with its talking donkey and snake. Napoleon had to restore catholicism in France to end the revolution.

Religion within the limits of reason alone is one of the most famous books of the idealist philosopher, Immanuel Kant (1724-1804). The ‘absolute idea’ of Georg Hegel (1770-1831) pushed god to his furthest limits. It was a great feat for Ludwig Feuerbach (1804-72) to interpret Hegel materialistically. Feuerbach’s problem arose from the fact that, like Hegel, he was unable to identify practice, where humanity changed the world and the changed world changed humanity, as the subject-object of history. It only required Marx to read Feuerbach’s work to successfully turn Hegel on his head (or set him on his feet) to identify the social necessity of the productive forces to develop, driving the class struggle as the motor force of history, and not the intentions of god or man.

After that there was no more seeking the truth about god by honest bourgeois philosophers. The truth was out and its acceptance or rejection now became part of the class struggle itself. Atheism, particularly in the working class, is seen today as a threat to the system because a fundamental element of social control has been overturned.

Religion today
Modern religions have become the expressions of the material interests of a particular ruling class or a section of that class in a particular historical setting. No Marxist would deny that that the heretical sects of the Middles Ages represented the first failed attempts of early mercantile traders to free themselves from the feudal ignorance and oppression of the church. Lutheranism and Calvinism represented the ideology of a rising bourgeoisie.

Without that understanding conflicts like the 30 years war in Germany (1618-48), when a third of the population (seven million out of 20) perished, are totally meaningless. At the time they explained it as people gone insanely bloodthirsty for their version of the love of christ, but, of course, they fought over their material interests in the final analysis – and we must stress ‘final analysis’, because we are sure that very few of them thought of it in that way at that time.

No religion can be a mixture of conflicting viewpoints reflecting the mixture of classes. All religions are a false illusion, a fundamentally idealised and incorrect view of the world, which can only strengthen oppression by preventing the oppressed from seeing that the causes of their oppression (material and psychological) are in this world. They are based on ignorance of two types: the ignorance of the primitive and uneducated of the reasons for all natural phenomena; and the ignorance of the causes of social and economic phenomena like booms, slumps, wars and revolutions. The intellectual representatives of the bourgeoisie must reject Marxism, the only explanation for and way out of these crises if they are to serve their masters, because to accept it would be to accept the inevitable demise of capitalism.

These ideas are lodged in the social relations of production that the oppressed of every age must enter in order to live. Religion is subservience in a mystical cloak, which can only serve the interests of the ruling class, in the short and long term, no matter what episodic religious conflicts might break out. The ‘mixture’ notion of Judaism is an implicit defence of the rabbi and the Zionist rulers of Israel.

Of course, religious views are more complex than simply representing a straight rationale of one’s life activity. They develop in a much more complex way. In classical Marxist understanding there is the religion of the oppressor and the religion of the oppressed. This is how Marx tackles the question:

“Religious distress is at the same time the expression of real distress and the protest against real distress. Religion is the sigh of the oppressed creature, the heart of a heartless world, just as it is the spirit of a spiritless situation. It is the opium of the people.

“The abolition of religion as the illusory happiness of the people is required for their real happiness. The demand to give up the illusions about its condition is the demand to give up a condition which needs illusion. The criticism of religion is therefore in embryo the criticism of the vale of woe, the halo of which is religion.

“The task of history, therefore, once the world beyond the truth has disappeared, is to establish the truth of this world. The immediate task of philosophy, which is at the service of history, once the saintly form of human self-alienation has been unmasked, is to unmask self-alienation in its unholy forms. Thus the criticism of heaven turns into the criticism of earth, the criticism of religion into the criticism of right and the criticism of theology into the criticism of politics.”

Marx is here dealing with religion as a whole, not just the religion of the oppressed. But he does not see any side of religion as progressive – no, it is all reactionary and must be overcome in order to achieve liberation. It is the illusion that we must get rid of in order to rid ourselves of the “condition which needs illusions”. Any religious ideology represents a reactionary element of a people’s culture, because it must represent the domination of some ruling caste over the mass of the people. It is a vehicle for internal social control by the rabbi, priest, vicar or ayatollah, all of whom make a very good living disseminating magical nonsense on behalf of the ruling elite.

In Jewish history these elites were kings and rabbis (when a theocracy ruled) and today it is the state of Israel in the main, where elements or theocracy are stronger that anywhere else, apart from in the states of its bitterest enemies like Iran and Syria. In other cultures and states it is the established church or its equivalent which provides this prop.

Religion of the oppressed
Having said all that, it is necessary to stress that Marxists do differentiate between the religion of the oppressor and the religion of the oppressed (as we do with all manifestation of oppressive bourgeois ideology, including racism, sexism, homophobia, etc in the ranks of the working class and oppressed). These prejudices may not sit as firmly in the mind of a worker, particularly when he of she is moving into conflict with their employers or is beginning to see the need to tackle the system as a whole. A space is opened for progressive and revolutionary propaganda.

This is how the early Bolsheviks tackled the religion of the oppressed in the muslim countries of Soviet central Asia. They approached the oppressed women in particular with extreme sensitivity. The revolutionary women of the Zhenotdel in the early 1920s donned the paranja (a garment that totally covered the face without even openings for eyes and mouth) to get the ear of oppressed women.

Dale Ross (DL Reissner), the first editor of the Spartacist League’s Women and Revolution, explained that method and history well in her article ‘Early Bolshevik work among women of the Soviet east’ (No12, summer 1976). She goes into great detail to explain the difference between the Bolshevik method of approaching this work and both the Menshevik and Stalinist method. Her article points to the fact that failure to distinguish between the religion of the oppressor and the religion of the oppressed has disastrous consequence for socialists. There is no need to ask which method the PDPA and the ‘Red Army’ operated in Afghanistan. Or which method the Spartacists’ International Communist League supported so uncritically after 1979.

“The Bolsheviks viewed the extreme oppression of women as an indicator of the primitive level of the whole society, but their approach was based on materialism, not moralism. They understood that the fact that women were veiled and caged, bought and sold, was but the surface of the problem. Kalym (the bride price) was not some sinister plot against womankind, but the institution which was central to the organisation of production, integrally connected to land and water rights. Payment of kalym, often by the whole clan over a long period of time, committed those involved to an elaborate system of debt, duties and loyalties which ultimately led to participation in the private armies of the local beys (landowners and wholesale merchants). All commitments were thus backed up with the threat of feuds and blood vengeance.

“…Lenin warned against prematurely confronting respected native institutions, even when these clearly violated communist principles and Soviet law. Instead he proposed to use the Soviet state power to systematically undermine them while simultaneously demonstrating the superiority of Soviet institutions – a policy which had worked well against the powerful Russian Orthodox Church.

“”¦ Then on March 8 1927, in celebration of International Woman’s Day, mass meetings were held at which thousands of frenzied participants, chanting ‘Down with the paranja!’ tore off their veils, which were drenched in paraffin and burned. Poems were recited and plays with names such as ‘Away with the veil’ and ‘Never again kalym‘ were performed. Zhenotdel agitators led marches of unveiled women through the streets, instigating the forced desegregation of public quarters and sanctified religious sites.”

The consequences of these brutal Stalinist methods were the same as they were in Afghanistan 60 years later: “Women suing for divorce became the targets of murderous vigilante squads, and lynchings of party cadres annihilated the ranks of the Zhenotdel. The party was forced to mobilise the militia, then the Komsomol, and finally the general party membership and the Red Army to protect the women, but it refused to alter its suicidal policies. The debacle of International Woman’s Day was repeated in 1928 and 1929 with the same disastrous consequences, exacting an extremely high toll on party cadre.”

Only the method of the early Bolsheviks will work to defeat the rise of fundamentalism today. That requires a comprehensive understanding of religion, its origins and methods of control. This article is dedicated to beginning anew that task.

Cuts to Welfare, Subsidies to Corporations – The hidden welfare state

The Black Triangle Campaign was founded to support the human rights of disabled people and to oppose the Government’s “Work Capability Assessments”, which re-classify sick and disabled people as “fit for work”.

 

The hidden welfare state that the U.K. government dares not speak of

The UK has two welfare states. There is one that is reported and endlessly discussed, and another, which is rarely mentioned. Whilst the first is suffering enormous cuts under the Tory/LD coalition, the other just keeps expanding.

Governments on the left and the right can always justify welfare cuts by pitting, for example, mobility scooters against needle exchanges, or the soft-play area in children’s playgrounds against an old people’s home. Who deserves it most, they say, students or cleaners? Old or young? But when we’re running not one, but two welfare states, that’s a totally fake scenario. The real choice is between playgrounds or gas rigs; between Meals on Wheels or The City of London Currency Speculators’ Maintenance Allowance.

There’s a connection – never mentioned – between, let’s say, Britain’s eight new deep-water gas rigs and its new food banks. The connection is that the $4.5 billion subsidy package being doled out to transnational gas corporations is a very big slice of the welfare pie. And to keep the gas transnationals on the benefits to which they are addicted, hungry humans have to queue for tinned food that is too close to its sell-by date to be kept on the shelves of supermarkets, many of which are themselves massive recipients of corporate welfare.

Not only does the UK pay out unemployment benefits less generous than Romania, Albania and the US, but the wages of the employed have simply not kept pace with productivity over the last 30 yrs. Tory Ideology is all about Handouts to the Wealthy paid for by the Poor.George Osborne has cut £18bn from benefits plus a further £81bn from public services in the name of unavoidable austerity, whilst at the same time providing huge subsidies, tax cuts and removing regulation for the hidden ‘welfare’ system that benefits the private sector.

No goods or services are directly returned to the government in exchange for these expenditures, although of course, politicians will argue that they’re stimulating the economy, helping struggling industries, creating jobs or funding important research but actually this is just a corporate welfare system.

The Cato Institute, for example, estimated that in the US, $93 billion were devoted to corporate welfare in 2002. This was about 5% of the federal budget, and nearly twice the amount spent on social welfare ie. feeding people, housing the homeless, raising children out of poverty etc.

There is no reason to think the situation is different in the UK. However, overall statistics for the UK corporate welfare budget are hard to discover, and the variety of different subsidies are staggering. Needless to say, the Tories focus their attention on fraud and waste in the social welfare budget.

Welfare fraud and waste is never far from the top of the UK’s news agenda – but the real figures often bear almost no resemblance to popular belief. The British public, for example, think around 27% of the welfare budget is lost of fraud, according to TUC research.

The Department for Work and Pensions’ latest data on fraud and error in the benefit system shows a very different reality: fraud exists, but at a far lower level than the public believes – and is outweighed by errors from claimants and officials alike. The DWP estimates £3.5bn has been overpaid due to errors and fraud in the system; 2.1 per cent of the overall benefit expenditure.

The corporate welfare budget arises from four main sources: Paying little or no tax – Tax havens; tax breaks; enjoying huge subsidies and the removal of employment and environmental protection regulations.

Tax Havens
 The UK’s 100 biggest public companies are running more than 8,000 subsidiaries or joint ventures in onshore and offshore tax havens, according to research. The figures, published by the charity Action Aid, show that only two of the companies listed on the UK’s FTSE 100 have no subsidiaries in tax havens – while companies such as Barclays and Tesco own hundreds. http://www.guardian.co.uk. The UK Crown Dependencies and Overseas Territories constitute half of the world’s most frequently used tax havens.

Tax Breaks
Almost one in four of Britain’s biggest listed companies paid no corporation tax in this country last year – and almost half fail to disclose their tax payments to the UK at all, according to research by The Mail on Sunday.  According to the annual reports and accounts of all the companies in the FTSE 100, 47 companies gave no obvious figures for tax paid in Britain.  Of the 53 who did, 12 showed they paid no tax at all and, six actually received a tax credit.Tax Avoidance
 Treasury minister, David Gauke, admitted in reply to a parliamentary written question that only four employees of HMRC are working to capture 124 tax fugitives. The amount of uncollected tax rose again last year. A Labour MP pointed out that the four officials dedicated to the tax fugitives compares with the 450 HMRC staff involved in administering the withdrawal of child benefit from higher-rate taxpayers.

Subsidies
Currently, it is estimated that the government has already provided £43.5bn in various subsidies including the National Infrastructure Plan, the Equity Loan and Help to Buy schemes, the Enterprise Finance Guarantee and the Regional Growth Fund, with nothing to show for it. Far greater sums are in the pipeline, up to £310bn.

Meanwhile supermarkets get an enormous subsidy to help with one of their major overheads, staffing costs. This is because many employees in these large and successful companies are paid only the minimum wage. And because the current minimum wage is not a living wage, nearly everyone on it has to claim tax credits to be able to make ends meet. Those tax credits are funded by the taxpayer. The supermarkets are effectively state subsidised industries.

In addition to the recent unprecedented public support for the financial sector The NEF (New Economics Foundation) identified at least three significant hidden subsidies:

* The ‘Too Big to Fail’ subsidy: The government now provides a public guarantee, effectively insurance against banks going bust. This gives banks a huge commercial advantage over other firms in a market system. It means banks are able to borrow money much more cheaply than if they were not ultimately underwritten by the public. Exchanges with leading auditors in front of the House of Lords Select Committee on Economic Affairs in January 2011 confirm this. A conservative analysis reveals that this hidden subsidy could be worth £30 billion annually. It means that bonuses to senior staff for ‘performance’ and dividends to institutional investors are at least in part a straight transfer from the taxpayer.
* The quantitative easing windfall subsidy: When it was decided that the economy needed more liquidity, the Bank of England pumped money in using the technique called ‘quantitative easing’. To meet various, and sometimes self-imposed, requirements, it did by purchasing government bonds through investment banks. Merely for being passive conduits for this ‘risk free’ arrangement the banks took a cut of every trade. Here nef analysts found that banks enjoyed a significant windfall, but that lack of transparency keeps the likely amount hidden.
* The ‘make the customer pay’ subsidy: Since the baking crisis of 2008, the banks have been increased the gap between what they have to pay to borrow money, and what they charge people to borrow from them. This is the so-called interest rate ‘spread’. This is because they can borow money from the Bank of England at virtually 0%. As it is, the taxpayer is subsidising the banks twice over: once through taxpayer funded public support to the banks, and secondly through paying much higher interest to borrow than the banks do. This hidden subsidy amounts to at least another £2.5 billion each year.

Sale Of Small Council Homes Condemning Thousands To The Bedroom Tax – The VOAG Investigates

Thousands of one and two-bedroom council homes have been sold off since 2010, preventing tenants affected by the “bedroom tax” from downsizing to avoid the penalty, research by The Independent shows.

The controversial policy is meant to free up social housing space by encouraging hundreds of thousands of tenants to move to smaller properties, by cutting their benefits if they have a spare bedroom.

But figures obtained by The Independent show that a severe shortage of smaller council homes across the country is being exacerbated by the right-to-buy scheme – leaving many victims of the bedroom tax with no choice but to accept reduced benefits.

In the areas hardest hit by the housing crisis, more than two-thirds of council homes sold off under right-to-buy since the Coalition came to power had one or two bedrooms, figures obtained under Freedom of Information show.

Central London is suffering from the biggest sell-off of small homes. In Camden, 81 per cent of properties sold since 2010 had two bedrooms or fewer, and 49 per cent had one bedroom. Figures for Hammersmith and Fulham show that 77 per cent of sales were of small properties.

In Southwark, 74 per cent of those sold were small, with 32 per cent one-bedroom properties, and in Lambeth, 74 per cent of its right-to-buy sales were of the smallest homes.

Brighton and Hove council has sold 111 properties since 2010, of which 74 per cent had one or two bedrooms. Although Bournemouth council sold just 20 homes, all of them were small.

The analysis of 125 council areas found that of 14,616 properties sold across England, 45 per cent had one or two bedrooms. About 61 per cent of England’s total social housing stock is made up of one- or two-bedroom properties, suggesting that some councils appear to be selling off a disproportionate number of smaller homes.

Alison Garnham, the chief executive of the Child Poverty Action Group, said the figures exposed the bedroom tax as “a hasty shambles” which had forced some of the most vulnerable children into unfit housing. “It’s often pushing them into the worst quality housing in the private sector – places that aren’t fit for habitation because of problems like damp and mould.”

Labour’s shadow housing minister, Emma Reynolds, said: “The truth about David Cameron’s bedroom tax is that there are simply not enough smaller homes for people to move to. With the Government failing to keep its promise on replacing every home sold through right-to-buy with a new home built, the shortage is getting worse.” Labour plans to scrap the policy if it wins a majority in next year’s general election.

Government efforts to reform the welfare system have resulted in tenants being moved out of expensive areas. But even those cities receiving families who are priced out are losing smaller properties through right-to-buy. In Hull, for example, 44 per cent of houses sold since 2010 had one or two bedrooms.

The housing charity Shelter urged the Government to review the bedroom tax in the light of the findings. “This research points to a serious contradiction at the heart of government policy,” said Roger Harding, Shelter’s director of communications, policy and campaigns. “Unless sufficient one- and two-bed homes are made available the bedroom tax is an unfair penalty on people who have no choice but to stay where they are.”