The UK’s austerity policy is ideologically driven and is aimed at diverting finance from the poor to the rich under the pretext of the economic crisis, writer John Wight told RT.

Britain's Chancellor of the Exchequer George Osborne is announcing billions more in the government spending cuts while austerity measures are already biting for many people across the UK.
Osborne claimed that British economy is “out of intensive care.” RT asked Wight if he thinks that is really the case.

John Wight: Only in a fine world of the Tory party would that be the case. The country’s seen 1.1 percent growth in the last three years – the worst level of growth in this country’s economy over the last 100 years. That can by no means be considered a success. 

RT: Who's going to be the most affected by these latest cuts?

JW: Clearly the poor are going to be hit harder as a continuation of the mass experiment in human despair, which this coalition government has cheated to describe as an economic policy. It is ideologically driven and we see economics of the madhouse. And it is done with the objective of affecting the transference of wealth from the poor to the rich under the pretext of an economic crisis – not reason, it’s a pre-text. The economic crisis which hit this country in 2007 was their economic 9/11.

RT: Official figures show the deficit has been growing last year, despite previous cuts. So is there any point to them?

JW: Well, that’s what I’ve just said: this is ideologically driven. If you are considering these policies on the basis of economics, then clearly it is completely irrational. The US economist Paul Krugman lately described it as “a medieval doctor draining a patient’s blood,” and when that doesn’t work, draining more blood from the patient. This is entirely appropriate to describe this economic policy, this austerity. Austerity historically has been discredited. It doesn’t work in times of recession. At a time of recession the government needs to spend more to reintroduce the man which is contracted as profits stumble. And you must place this along the fact that the Office of Financial Statistics, the government’s own body set up to monitor these things, came up with a figure in April which stated that in the final quarter of last year UK businesses, excluding banks, were sitting on 318 billion pounds of surplus. And that money is money we need in the economy. They are not investing, they spend all the inducements from the government by the way of tax subsidies and tax cuts for the rich that the government has given to the rich over the last three years. 

RT: What do you think is the best way that the government can fight the deficit?

JW: It has to start investing in the real economy. It has to start directing banks to lend rather than pleading with banks, especially banks in which we own a majority share, such as RBS. The government should take over RBS’s operations and start lending in the interest of the real economy. The economy needs it. We have a housing crisis in the country, it’s the worst in the world, it’s a scandal. And we need to start investing in affordable homes. Rather than punishing the poor for being poor we should start actually diverting money from the rich to the poor, as befitting a civilized society. 

RT: Osborne announced cuts to the police budget. Do you think that will affect the crime rate?

JW: Well, not really, because based on what we know now a lot of criminals are actually in the police. They are also sitting in the boardrooms and in the House of Lords. It may have an effect. But I think they’ve consolidated the police and taken away the regional power from the police. It is yet to be seen. But as I say the cuts in the police budget are minimal compared to the cuts for the poor in terms of benefit cuts and so on.

The MI6 building, which is the SIS (The Secret Intelligence Service) headquarter, is pictured at Vauxhall Cross in central London (Reuters/Toby Melville)

 UK intelligence will receive the largest budget boost in the latest government review of public spending, reports the Telegraph. The funds increase follows civil rights uproar at UK involvement in the NSA spy scandal.

British Chancellor of the Exchequer George Osborne will present a review of public spending for 2015-16 on Wednesday with a view to cutting the deficit. While, funding for most government bodies will be slashed, MI6, MI5 and the Government Communications Headquarters (GCHQ) will receive a bonus of up to $154 million.

The increase of 3 percent in overall funding for intelligence organizations, which already have a budget of $2.9 billion, will make them top of the UK government’s spending agenda, overtaking the health service, education and military.

The institutions that will suffer most at the hands of the $17 billion austerity cuts include the Business department, the Culture department, the Home Office and the Justice department. The Ministry of Defense, meanwhile, faces cuts of around $1.5 billion, with the reassurance that this will not stipulate a decrease in front-line troop numbers.

Recently, UK intelligence has come into the firing line after it was discovered the GCHQ has access to a massive global network of communications, storing calls, Facebook posts and internet histories. GCHQ also shares this data with the NSA.

The extent of the spy program is such that whistleblower Edward Snowden, who originally leaked the information to the Guardian, called it “worse than the US.” Rights groups were up in arms about the sheer scope of the network able to monitor 600 million ‘telephone events’ a day.

“This appears to be dangerously close to, if not exactly, the centralized database of all our internet communications, including some content, that successive Governments have ruled out and parliament has never legislated for,” said Nick Pickles of UK privacy campaign group Big Brother Watch.

GCHQ, for its part, has defended its sweeping eavesdropping network, saying it had always been “scrupulous” in complying with the law.

In answer to the public uproar to the sweeping surveillance programs, UK Foreign Minister, William Hague spoke out in support of the spy network and data sharing with the US. He said that both the US and the UK had acted in compliance with the law and used information only “to protect citizens’ freedoms.”

 "We should have nothing but pride in the unique and indispensable intelligence-sharing relationship between Britain and the United States," Hague said in his speech at the Ronald Reagan Library on Tuesday afternoon. He went on to call the US-UK alliance a “bastion of freedom.”

Moreover, he stressed that such surveillance was “indispensable” to combat the growing threat of terrorism.

Following the brutal murder of 25-year-old soldier Drummer Lee Rigby by Islamist extremist in Woolwich in May, UK intelligence has come under increased scrutiny. There were suggestions that MI5 and MI6 could have done more to prevent the death of Rigby after it was found that one of the alleged killers, Michael Adebolajo, had already been flagged by UK intelligence as a potential threat.

A wave of outraged comments have swept the German media after it was revealed Monday that British secret Government Communications Headquarters (GCHQ) wiretapped the dataflow of Germany’s major transatlantic cable.

The northern German public broadcaster NDR and Süddeutsche Zeitung newspaper reported late on Monday that Germany’s external intelligence service BND (Bundesnachrichtendienst) has been in the dark about GCHQ wiretapping Transatlantic Telephone Cable No. 14 (TAT-14) connecting Germany with the US via UK, in the framework of its Tempora data collection project.

The TAT-14 fiber optic cables entered service in 2001. It is operated by private consortium German Telekom and used by around 50 international communication companies for phone calls, internet connection, data transfer etc.

Countries like Denmark, France, the Netherlands, and the UK itself also use this cable for internet connection to North America.

The capacity of the 15,000km TAT-14 is enormous; it transfers hundreds of gigabytes of data per second in both directions. The report claimed British GCHQ has already had access to 21,600 terabytes of private and business German data transferred through the cable.

The initial reaction from official Berlin concerning Edward Snowden’s revelations about British intelligence straddling Germany’s major fiber optics cables without Berlin’s knowledge was rather moderate.

Senior German Interior Ministry official Ulrich Weinbrenner admitted to the Bundestag committee that it was known “in general form” that foreign tapping programs - like American PRISM and British Tempora - existed.

Having met American President Barack Obama last week, German Chancellor Angela Merkel cautiously commented that collecting information needs ‘proportionality’ and that “the free democratic order is based on people feeling safe.”

However, German government spokesman Steffen Seibert announced that Berlin wanted explanations from NATO allies “on what legal basis and to which extent” surveillance had been conducted. 

 The head of the Free Democratic Party parliamentary group, Rainer Brüderle, demanded an investigation.

"A comprehensive monitoring of citizens in the network cannot and will not be accepted ," he told Passau Neue Presse.

"We need to step back here and say clearly: mass surveillance is not what we want," said Jan Philipp Albrecht, a German Green member in charge of a planned overhaul of the European Union's data protection laws.

"We urge the Federal Government and the EU Commission to  initiate an infringement proceedings against the UK government," which would have to deal with the matter, Albrecht said to Berliner Zeitung.

"The Federal Government and the Commission must take the issue of protecting fundamental rights seriously," the rapporteur added in the Judiciary Committee.

Albrecht’ thoughts were echoed by CSU MEP Manfred Weber who told Berliner Zeitung that "If European law has been broken, such as in relation to the retention, the Commission must act." The harshest comment came from German Justice Minister Sabine Leutheusser-Schnarrenberger, who dubbed the total eavesdropping from a NATO ally a “Hollywood nightmare.”

Federal Commissioner for Data Protection Peter Schaar called on the federal government to proceed on an international level against data espionage from abroad.

"The federal government must insist that our emails will not be penetrated by foreign intelligence services," he demanded according to Bild newspaper.

The methods used by the American NSA and British GCHQ agencies are “secret, but lawful” and “subject to proper UK statutory controls and safeguards,” stated UK Foreign Secretary William Hague.

But such statements have produced little effect on the public or within expert communities. “How much and which data of German citizens and companies had been secretly accessed by the Anglo-American intelligence services NSA and GCHQ, for example by tapping glass fiber cables?” questioned Greens party parliamentarian Hans-Christian Ströbele, as quoted by Deutsche Welle (DW).

“The shoulder-shrugging explanation by Washington and London that they have operated within the law is absurd. They are not our laws. We didn't make them. We shouldn't be subject to them,” Spiegel online columnist Jakob Augstein. “We have not asked the NSA and GCHQ to ‘protect’ us,” he said.
Gisela Pilz, a data protection expert with the parliamentary group of the liberal FDP, the junior partner in the governing coalition, agrees.

"We observe with a great deal of concern and dismay the amount of data that has been collected and stored," she told DW.

Chancellor Angela Merkel's coalition government was caught in the crossfire of criticism for not ensuring national digital security.

It is the responsibility of the German government to see that foreign agencies no longer process the data of German citizens and companies, Augstein stressed, because “a government that cannot make that assurance is failing in one of its fundamental obligations: to protect its own citizens from the grasp of foreign powers,” he concluded. “Germans should closely observe how Angela Merkel now behaves.”

The head of the Bundestag's intelligence supervisory committee, opposition Social Democrats deputy Thomas Oppermann, called to speed up the elaboration of data privacy legislation currently being drafted in the EU.