Friday, 3 April 2009

The view from afar

I caught the back end of the mediafest that was G20 on Sky yesterday, despite the telephone numbers (always be assured of a high bullshit quotient when Ministers talk about billions and trillions) that are required to be repaid by your grandchildren and possibly Great Grandchildren in lower living standards and higher taxes, this is not going to make much difference to the UK economy.

Basically over fifty two percent of the population are dependent on their income on the state, we produce very little that the world wants to buy.The major financial centre that is the City of London, has proved yet again that it has the nous of a kid in a sweet shop, that gorges its self until it is sick.

The Private sector is taking all the pain, The Public sector continues to grow. Neither Labour/Cons/Social Democrats will even attempt to challenge the status quo.

High personal and corporate taxation will drive good business away, the Banks that ran squealing to the taxpayer, have not learned anything and will continue on their arrogant way -stealing and lying, as they are untouchable.

The way forward has always been clear- break up the megabanks into regional banks with strong links to industry, massive tax reductions on PAYE to release the taxpayers own money back to them. This will entail massive job losses in the public sector quangos and benefits culture.

Whitehall needs to be broken up and power devolved back to the county level, the concentration of power in one incompetent man like Brown, has been the road to disaster that we are still treading.

G20 was a gathering of flim flam men, the exagerated body language of relaxed, smiley people was a confidence trick of massive proportions, they sought to convey the impression of an elite in control, relaxed with the situation now. All of these 'negotiations' have been going on for months- the communique written even before the chosen on landed at Stansted.

Big International 'Solutions' are not going to make the slightest impact on the structural damage done to the UK, different solutions at regional and local level are.

The mediafest is not going to make much impact on the jobless figures, rictus gurning with Obama may improve slighty Brown's electoral prospects, however once this 'solution' fails. Its back to Austerity Britain with all that entails.


electro-kevin said...

How long do you think before this failure of the G20 (at least for us) shows through ?

I'm thinking May.

Anonymous said...

'The Private sector is taking all the pain, The Public sector continues to grow....'

Guthrum, you hit the nail on the head. Either the government (whoever is in power) puts a hatchet to public spending, or the IMF does it for them. There is no other option. Period.

Ampers said...

A pretty good assessment of what is needed, but it is all pie in the sky.

The left and right may hate each other, but as they are now both Statist in this country, they will hate any Libertarian ideas evem more.

People reading this who really want to know about solutions should Google the Mises Institute. Now these "Austrian Econimists" know all about what should be done.

Letters From A Tory said...

I'm already looking forward to the next unemployment figures, in a kind of 'I know I shouldn't be' way.

caesars wife said...

not sure if regionalising the banks will help (how do you spread sector risk), and dont forget councils have scams .

just need a sever deterrent for politico cabals making loads of money , and politicians bull crapping us

at least with county councils you get some accountability .

whats all this about g20 small print ??? wait and see ???

Rab C. Nesbitt said...

What happened to Stan's blog?

Oldrightie said...

My silly old mind is at a loss to grasp that if a G20 meeting is all it takes to fix the bloody roof, how come the rain came in in the first place?

Gareth said...


There's got to be a problem or they'd have nothing to 'fix' and look Statesmen-like. For Brown to save the world first he must imperil it.

Otherwise, left well alone, people get along, trade and prosper without much need for politicians.

Anonymous said...

my g20 pantomime goes as follows:
act 1 - Brown goes to USA and is snubbed. This lowers expectations for G20 meeting, and makes any future praise from Obama seem greater.
act 2 - Brown does his world tour and it's a bit crap, again lowering G20 expectations.
act 3 - Germany and France want tougher regulations, France threaten to pull out. Lowers expectations, and gives illusion that the countries don't all agree.. that there is some debate
act 4 - All the countries come together for about 3 hours, suddenly they all agree (quel surprise), Brown is praised and made to look good, they smile a lot and pat themselves on the back for a momentous decision, and release a communique that was written months before hand.
After the show - all that intellectually challenged masses think what a great thing the leaders have done, everyone in the know can't believe they believe it

North Northwester said...

Personally, I feel richer an dmore secure already, thanks to New Improved Wonder G-20.

Are they spectacularly clueless or have they really found where the Tooth fairy keeps all that dosh?

Sir Henry Morgan said...

Amazing coming from Guthrum ... a reprise of a big chunk of the BNP's economic policy.

Anonymous said...

Good stuff, globalization is a disaster for this country, the money will simply flow towards the cheapest labour rates, the vast majority will get poorer, a small elite will become all powerful.

We need to focus inwards, discourage imports, if we can make it or grow it here we should, the City should be hung out to dry otherwise it will sell the whole country down the river it's short termism is a disease which will destroy all our futures.

Protectionism? Yes, but lets just pretend it's something else.

Gareth said...

"Good stuff, globalization is a disaster for this country, the money will simply flow towards the cheapest labour rates, the vast majority will get poorer, a small elite will become all powerful."

Globalisation lowers the cost of living. If allowed to take full effect it would cause a reasonably benign deflation of GDP and merry justification to slash away at the welfare state. Something Brown and many other politicians around the globe have been hellbent on avoiding. They have fiddled growth through Government borrowing and loosening credit. All to maintain the status quo.

We haven't got a global free trade for precisely that reason. The US, EU and others subsidise their agriculture and impose trade tarriffs shutting out African trade, and then soothe their own consciences by throwing loads of our money at the dark continent. Let them trade themselves out of poverty.

Removing these tarriffs and subsidies would be an ideal first step towards smaller and more limited Governments.

Anonymous said...


An epitaph: SMUNAF

Marcus Aurelius Antoninus said...

Rab C Nesbit
very odd! no explanation from Polish consulate on sudden departure.

qua est stanislav

Anonymous said...

Gareth, comfortable middle England is in for a bit of a nasty shock, it's all very well patonising the lower skilled when their jobs are offshored but at some point that bloke washing his pants on the banks of the Ganges will become an accountant or a lawyer then what?

Globilization is no more than the rich and powerful deciding who gets the leftover crumbs when the dinner is over.Humanity is'nt ready for universal equality just yet, not while we have centres of greed and selfishness like the square mile.

IUnknown said...

After the Prince of Darkness's little faux pas about us "being in the IMF queue", I reckon the Prime Mentalist will announce in June that the IMF have been called in.

But it will be spun:

Pravda will spin

Well done on your video appearance Old Holborn!

Vancouver realtor said...

"The way forward has always been clear..." - it depends on who you mean. I too believe that those suggestions of yours (smaller regional banks, regional politics) is the way to go, but somehow it seems those g20 leaders have different - if not completely opposite opinions and aren't very keen on listening those on the streets.

What can we do?


Gareth said...

Anon 13:35,

The credit boom was allowed to happen in part to counteract the deflation China exported to our shores. Had it been allowed to lower the measured cost of living we wouldn't have had a house price bubble, we wouldn't have had the political justification of the minimum wage, we wouldn't have needed the immigrants who will work harder, for longer, for less and we wouldn't have the obscene waste of money via the benefits system as it has priced the idle out of the workforce. There has been a huge inflation in the cost of Government on the back of all this and it is the middle class who have grown richer and fatter from it via more public sector jobsworths and mismanagers.

It may have escaped your notice but we already have accountancy firms touting for business in the UK who outsoure the donkeywork to India to be done there for a relative pittance. Were the tax system here far more simple the cost of running a business would be less which would make outsourcing of accounting services much less attractive. No protectionism needed, just smaller, simpler Government.

The square mile should be allowed to learn the lessons of the free market - Risky business is bad business in the long run. By Gordon and his chums stepping in we have avoided the rejuvinating bushfire of the bloated and inept banks which could have, in time, been replaced with better run institutions. Yet Gordon and his chums have stepped in for two very good reasons - it was partly their fault and it gives them a chance to ride to the rescue.

spark up said...

has the polish prima plunger thrown another tantrum?

la plongeuse if you please said...


no, i got so fucking stuck into the job that i disappeared up my own arsehole and emerged out of old holborn's. hey presto! it's a skilful and subtle manoeuvre which we call "making a diva oneself" (in the trade)

spark up said...


oh of apologies to madame la prima plongeuse

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