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Newt encounters a different kind of Tea Party, writes Laurie Penny

"To my astonishment, the audience applauds. Gingrich is in a spot."

"To my astonishment, the audience applauds. Gingrich is in a spot."

"You're from Britain? You want to watch out," says the man with the Newt 2012 sticker plastered across his paunch. "If you don't do something soon, your country will be under Sharia law. And that won't be any good for you, miss. You know what I'm saying."

I have come to a meeting of the Staten Island Tea Party, where Newt Gingrich, currently the front-runner in the Republican presidential debate, is about to give a campaign speech.

My new friend, Kevin Coach, is a retired police officer in his early sixties. He was a supporter of Herman Cain, but as the former pizza-chain mogul's presidential bid recently collapsed in a welter of sexual assault allegations, Kevin has switched allegiance . "Anyone but Mitt Romney," he says.

We need to talk about Kevin, and the five hundred other overwhelmingly white, middle-aged Americans who have gathered to hear Gingrich speak today.

This man --  a former cop with fists like ham hocks that he thumps on his knees for emphasis, a libertarian blogger, a Tea Partier and, finally, a person wearing a baseball hat without a shred of irony -- is everything that people like me are supposed to loathe. But I don't.

When he informs me about the practical dangers of the burqa -- "no side vision. Those women are constantly getting run down by cars" -- he flashes a grandfatherly smile, and I suspect that the safety of young women on the roads of a notional Islamic Caliphate of Britain is, on some level, a genuine concern for him.

The basic emotional language Kevin Coach is speaking is one of fear, and I believe that this fear comes from a place that is chillingly familiar.

Suddenly, it's time for the Gingrich show.

The presidential hopeful takes the stage, surrounded by an entourage of security personnel, well-wishers from central casting and a terrifying fem-bot of a wife who is here to promote a children's book she has written about American exceptionalism, which stars Ellis the baby elephant on a journey of neoliberal indoctrination. The book is available in the lobby.

There is a call to stand, and the pledge of allegiance is chanted with hands on hearts and the veterans in the audience applauded with that peculiarly American cultish credence that is somehow less, rather than more, frightening when it's happening all around you rather than on the television.

We take our seats, and it takes Newt Gingrich -- a man with the aspect of a toad with expensive dental work and whose forced exit as Speaker in 1998, under a cloud of corruption, followed midterm election defeat-- roughly three minutes to lose the interest of half the audience.

The people gathered here are less rapt by Gingrich's clunky, high-school-debate-champ, pro-market propaganda than they are by praise for the idea of America as an "exceptional nation", which draws the largest cheer of the afternoon.

Stand-up fights nearly break out at two separate points in the speech, the first when a group of infiltrators from the Occupy movement stand up and attempt to disrupt the proceedings by shouting "Mic check!". As they are evicted, thick-necked men seated all around me stand and pump their fists in the air, chanting "Newt! Newt! Newt!"

This Tea Party gathering is a jumpy, anxious crowd, teetering between violence and implosion. It is a crowd that wants its prejudices pandered to, a crowd that is worried about jobs, a crowd that has allowed itself to be convinced of a wholescale, unfair confiscation of privilege from white, middle-aged, middle-class Americans; a crowd whose members want to believe that they are still special and powerful, as if they ever were.

It is not a crowd of monsters. If it were, it would be easy to dismiss. It is a crowd of frightened, angry human beings watching their lives get steadily worse, and that is a far scarier prospect.

These people could come from any state in America. They are parents and grandparents and teachers and small business owners, the core of the Republican vote, and they are swallowing hard lumps of rhetoric about dissolving the welfare state and cutting taxes for the rich washed down with bland Obama-bashing that always steers far enough away from overt racism to avoid headlines.

This is how the trick is done. This is how -- with the Eurozone is in crisis, with rioting and protest in the streets of major cities across the world and the Durban climate talks likely to signal the end of even the limited climate concessions offered by the Kyoto protocol -- a friend of big business like Gingrich persuades white-collar workers to vote in their millions to protect banks and corporations from regulation.

The trick, however, is wearing thin. During the question-and-answer session, a middle-aged man in a fleece jacket takes the microphone and tells the crowd, struggling to stop his soft voice from breaking, that he is at risk of having his home foreclosed, that he is fighting a bank that wants to take everything from him and his family. He wants to know, should Gingrich become president, "What would you do regarding the financial crisis and making the banks pay?"

To my astonishment, the audience applauds. Gingrich is in a spot. This man has obviously not been listening to the preceding hour of gentle tubthumping about giving banks even more freedom to do whatever the hell they like with public money. The candidate gives a mitigated statement in support of small, local banks, and the audience cheers.

"I'd just like to say," says the questioner, quietly repeating the mantra of the Occupy movement, "that I am one of the 99 per cent, and I appreciate this dialogue."

It's a dialogue of desperation and hope that answers the same concerns shared by many of the ordinary Americans gathered here, without resorting to co-optable xenophobia or cheap cultural prejudice. It's a dialogue that gets to the heart of injustice in the developed world.

And it's a dialogue with which, soon enough, even the Republican Party may find itself forced to engage.

Laurie Penny is a contributing editor to the New Statesman. She is the author of five books, most recently Unspeakable Things.

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.