POLITICS CORNER

[Stanley]

I'm listening to David Cameron on Today laying out his beliefs about the direction and scale of cuts. The first thing that grabbed me was, in discussing the proposed lower benefit cap, he repeated the old argument , first used by Queen Elizabeth I when the 'New Poor Law' was introduced and repeated later in the 19th century in welfare payments, that there should be a principle of 'less eligibility' and that no benefit claimant should be better off than someone in work. Over the years this has been shown to be a very blunt instrument which has left some of the most needy in the worst condition. The Mail reference this morning to the 'work shy' comes out of the same stable. I see the Sun has the same opinion....
What is clear is that the Tory policy is to take at least £13billion of the target £30billion in savings needed in the next parliament out of the welfare budget.
Another thing caught my attention. In an interview with the head of a sociology department at a university he was asked if the department was 'Left Wing'. It struck me that everyone who takes an interest in the well-being of society at large (including historians) is branded in certain quarters as Left Wing. This is nonsense. I have often been regarded as an old Lefty but have always said that this is wrong, I think of myself as a Social Democrat, one who is interested in the lot of the majority and in consequence mainly focusses on the least well off, those who need the safety net of enlightened government support paid out of general revenues. This is why Syriza in Greece have my support, their rise to power is based on a popular vote cast by an electorate who are sick to the back teeth with the dismal results of orthodox economic thinking based not on the needs of the many but the preservation of the wealth of the few. In the long run. the health and well-being of society is more important than that of the financial institutions and markets. If that makes me a Lefty then so be it. The paradox is of course that all of the critics of 'The Left' live in a stable society that has been kept that way by more enlightened thinking and policies. A healthy society is just as important to the most wealthy and the sooner they realise this the better.

[plaques]

Within our own society most peoples judgement is based on 'fairness'. This value of fairness must apply equally to the top 1% as it does to the bottom 50%. We can all see that someone who sets their stall out to soak the benefit system is totally out of order and gives leverage to those who see benefits as some sort of unjustified hand out and must be stopped immediately. Meanwhile, the top 1% are gradually changing the ground rules that give them an unfair over the rest of society. Often these changes to the rules are presented in ways that are not obviously clear in their long term affect. The current 'Fracking' discussions over 'fast tracking V general moratorium' comes to mind. Much closer to home I would point at the recent 'Pendle Core Plan', a document approaching 300 pages. How many ordinary people have the time or endurance to read through all this bumf? Indirectly this gives an advantage to those organisations who can afford to employ their own 'experts' to assess the underlying implications of the plan. After the event, everyone is up in arms about building on greenfield sites. No wonder that people get disillusioned about our so called democratic procedure.
Perhaps I should make it clear that there is nothing wrong with people who work hard and profit from their labours. By framing the top 1% we are talking about those with untold wealth, who can and do, manipulate the system to their advantage. This is no different to the benefit cheat at the other end of the spectrum. Its time for a rethink on the type of society that we wish to live in.

[Stanley]

I agree completely P. (Boring isn't it.....) Your point about the abuse of power by the top 1% is entirely valid. Just think of the money (Loose change to them) that can be invested in lobbying and influence. Remember Cameron's dining club? Still going strong.
Of course I agree about the real scroungers, they should be pursued and punished. However when we have a situation where a genuine claimant sticking to the rules, is getting a better income than some workers the place to look for redress is the poorly paid workers! It's obvious they aren't being paid a living wage. Seebohm Rowntree identified low wages as a primary cause of poverty over a century ago and published a major report on the matter. The Rowntree Foundation continue his work and have flagged up exactly the same flaws in society that he did. They have never been fully addressed. It's significant that when workers were at a premium, for instance in WW2, wage rates and conditions improved rapidly. It's the Tommy Atkins syndrome, great people when their country needs them but flung on the scrapheap after the need went away. Look at the shameful way we treat Gulf War Veterans, some things never change.
"Its time for a rethink on the type of society that we wish to live in." Absolutely right! This is why I support Syriza in Greece. They have come to the same conclusion and are doing something about it. All right, it's a tremendous task and they may fail but they will retain their self-respect! At the moment in the UK we lie back and allow the big financial interests to walk all over us. This is not just true in politics but in everyday life. Look at the way the big banks and financial institutions treat their clients. Look at the catastrophic waiting times on the HMRC call line. Make up your own list, God knows there are plenty to pick from.

[Tizer]

I can't add much to that...I agree with you both! The trouble is that most people are their own worst enemy. Look at the news headlines today about Apple making the biggest profit of any company in history - people are falling over themselves to pay more than they need to, just to have the name and the latest version of a bit of fashionable bling.

[PanBiker]

Heard on the radio this morning that the average smartphone user looks at the device 221 times a day, that's the average person! Also noted that young children now learn to scroll before they can talk. Nothing to do with politics but a reflection on modern society.

[Thomo]

Spot on Tizer, the same applies to the gross amounts of money involved in football, the sport of the working man. I am sure that many fans pay money that they can ill afford to watch they who can earn more in a week than they do in a year, many of the recipients of this wealth then openly flaunt it in front of their admiring fans.

[Stanley]

Celebrity today has changed, it's nothing to do with talent but the ability to consume. Same syndrome drives the ever-growing gambling industry which makes Apple look like a corner shop.
See THIS Guardian report on Syriza. A balanced assessment I think. I listened to re;ports of the first cabinet meeting of the new government and Alexis Tsipras was making all the right noises. Interesting that their opponents are already flagging up dire warnings about 'Links with Russia' and implying that they are 'Communists'. Shades of McCarthy and the Committee on Un-American Activities. There will be more of this because they are getting support from some very surprising quarters. George Papandreou, the former Greek Premier had some interesting things to say about them. He is not opposing their views on the inequality produced by the EU bail out conditions. The money markets are attacking Greece as they do not want to see the gold mine of their interest income damaged. What is often forgotten is that bail out agreements like the EU/Greece arrangement can be very profitable for some. Ask yourself where all the money goes to.....
There was an interesting comment yesterday from an unlikely place, a discussion of the wording of the Lord's Prayer. In the original Greek version it is 'forgive us our debts as we forgive our debtors' and is a reference to the Judaic concept of the Jubilee, a 50 year event in which theoretically all debts were cancelled and balance restored. Doubtful if it ever happened but the belief is that the concept of debts being a matter of honour and demanding repayment is a relatively modern concept. It's an attractive theory as it is debt repayment which is used as the principle on which austerity and hence inequality, are based. This has been recognised in international politics in respect of debt cancellation for developing countries. There are good examples in Africa. All worth thinking about.....

[Stanley]

See THIS report of Mark Carney's attack on German austerity and imbalances in the EU. In effect he is backing Syriza on a day when a leading German economic think tank says that Greece should be either forced to pay back what it owes or leave the EU. This debate is polarising and at the moment it is the anti Syriza forces who are the main contributors via the media but this will change as other anti-austerity forces get their act together. At the moment Greece is the lightning rod that attracts the ire of the traditional monetarists, they could be in for a big shock. The recent EU elections suggested that there was a large body of voters out there who are equally dismayed by the way the EU project is going. How long before Greece becomes a catalyst?

[Bruff]

And part of the Jubilee was the forgiveness of the debt convicts owe society and so was therefore marked by their release. As the punk band The Stranglers sang at the time of the Queen’s Silver Jubilee in 1977, ‘let out all the prisoners, ‘cos that’s a jubilee’.

I note that the new Greek Finance Minister is referred to as a ‘radical’ economist. Let’s leave aside the temerity of a Government appointing an economics professor as its finance Minister reflecting how better it is to have a former Selfridge’s towel-folder in post as we do here, since when has what appears to be Keynesian with a bit of Marx thrown in been worthy of the descriptor ‘radical’? It’s a measure of just how captured we are by the prevailing Chicago school (or whatever) that any departure from this bring charges of radicalism, and all that pejoratively implies. [As an aside on our illustrious Chancellor, he was charged with picking up and re-folding those towels that had fallen from the Selfridge displays. Wisely, he was not allowed to do the more important task of initial folding for the displays].

On other matters, it looks like the debates will go ahead (with or without the PM). Personally, I don’t like the idea of debates as we are not a Presidential democracy and so do not vote for a PM (tho’ I do appreciate some folk will decide their vote on the basis of which leader eats a bacon sandwich with the greatest aplomb and the like). But, if they are now a fixture then I am glad we will have the Greens et al there.

Not least as the Greens and Plaid and the SNP are all led by women and in the case of the Greens an Australian-born woman at that. Ms Wood and Ms Sturgeon are from pretty normal backgrounds and educated at the local schools. The contrast between the men will be stark, not least given that from what I’ve seen Ms Sturgeon stands head and shoulders above any of them and it’s one of life’s great pleasures to see men getting torn a strip by a capable and confident woman.

Talking of which, anyone else seen the charming Justice for Men and Boys (and the woman who love them) Party? Their leader, Mr Buchanan. He is one hell of a crackerjack, the world’s most insecure man.

Richard Broughton

[Stanley]

Boring I know but I agree with all of that particularly your point about the ladies. Nicola Sturgeon is a delight to listen to, she goes straight to the point and, though a politician, seems honest. (Discuss, can a politician be honest....)
The Chicago School, Friedman et al, was one of the worst things that ever happened in Economics. Its success was due to the fact that it suited the wealthiest best and they threw their weight behind it. They argue for a free market but when that principle is applied to ideas espoused by poorer people they cry anarchy and radicalism. Let us not forget that it was Keynesian economics that financed WW2 and if you take the trouble to read Marx he was a pretty smart cookie!
The core principles of the forces that are gathering momentum against inequality globally are all driven by demands for change. The Right Wing parties have always advocated the status quo of the 19th century. In the long run change is inevitable and history proves that if it can't be accommodated politically other means will prevail. They call it social unrest and revolution. I favour the route taken by Syriza.....
My belief that the tectonic plates are moving is stronger by the day.

[Stanley]

See THIS for an intriguing insight into the life of Prince Charles. He is reported to have said that if and when he becomes king he will have a complete overhaul of the Honours System as the wrong people get them at the moment. Not often I agree with the monarchy but in this case, Right On!
See THIS for evidence that the European Commissioner for Finance has recognised the core principles behind Syriza's success in Greece. His basic point is that if the EU policy on austerity is not modified and electors see the present trajectory as a recipe for inequality the EU project will fail. Falling short of outright support for Greece he is nevertheless flagging up the dangers that the new social and political thinking hold for the EU. I think he is right and politicians would do well to recognise the current trends.

[Stanley]

I note Cameron's latest attack on what he describes as failing schools. The intention appears to be to eventually convert all schools to independent academies and take education out of local control. This despite the fact that his own Tory chairman of the parliamentary education committee has issued a report which quite clearly says that there is not a sufficient body of evidence to support the claim that academies are better. I listened to his education minister this morning denying that this is the case and ignoring the committee. Somebody has hold of the wrong end of the stick here and I suspect this policy is driven more by Tory DNA than hard evidence. (LINK)
See THIS for latest news on the Syriza campaign in Europe where they are doing what they said they would do, ignore the infamous Troika and speak to individual governments to explain their views. They will be talking to Osborne today. The interesting thing is that even the chief economist of the IMF is saying that the status quo can't work. There has to be movement nit only by Syriza but the other EU governments as well, particularly Angela Merkel who, at the moment, is being driven more by German internal politics then pragmatism. On the whole I get the feeling that Greece is attracting some sympathy.... So far so good and I wish them well.

[Tizer]

The Podemos party in Spain is trying to be a bit like Syriza but they seem less serious and a bit more freaky!

[Stanley]

Tiz, there are indications that the Syriza concept is an idea who's time has come.... It's about the only ray of hope I see in politics at the moment....
07:45. The amount of almost slanderous comment being aimed at Labour policies by Tory supporters in business is a good indication that Labour are on the right track when they say that exorbitant profits and remunerations should be taxed more efficiently. Shades of the financial institutions threatening to leave London.....

[Whyperion]

With the Greece situation pulling down the Euro , does that actually benefit Germany ( Cheap/er exports ).
Understand the lowering of the price of oil could be a way to destabilise ISIS - though even at $40 a barrel I would have though they would still be getting in millions.

[Stanley]

Greece isn't what is 'pulling the EU down'. It's basic structural problems built in when the single currency was launched. Greece is a symptom, not the disease and many other poorer countries are teetering on the brink of the same dilemma.
Jordan's execution of two jehadists following the immolation of the pilot is a big mistake. They have done exactly what IS wanted, responded with equal violence.
Watched the programme on the workings of the House of Parliament last night. To much 'tradition' and smug satisfaction with 'the old ways'. Time we tried a bit of root and branch reform....

[Stanley]

The ECB announced that it would 'do everything that was necessary' to support the Greek economy and then announced that from February 11th it would no longer accept Greek Bonds as collateral for loans.... Does the right hand know what the left is doing? It looks as though Germany is going to disregard pressure for reduction of austerity and play hard ball. Or is this just a negotiating position? If anything, the pressure is on the Euro!
It looks as though the log jam in the CSA enquiry may be broken. Theresa May has bowed to the inevitable and given the process a credible chairperson, statutory status so witnesses can be forced to testify under oath and removed the time limit. More significant, the work will start immediately and may well throw up a floating mine or two in the General Election campaign. This and the Rotherham Report accept as a given that there was collusion to bury the evidence and this can only point to the higher echelons.....

[Stanley]

Greece got a dusty answer and the cold shoulder in Berlin. I can't help thinking there may be a big mistake being made here....

[Bruff]

Quite an interesting snippet in the FT Diary section following the new Greek Finance Minister’s visit to this country. He spoke apparently to an audience of City types and hedge funders. He spoke for 2 hours and at the end received a standing ovation. He was apparently, quote ‘’…. probably more eloquent than the entire British cabinet’’, and ‘far from the mad Marxist he’s made out to be’.

No, he simply has an alternative view to the prevailing orthodoxy and of course, his credentials mean he’s likely to make other Finance Ministers look like chumps.

Richard Broughton

[Stanley]

Interesting Richard.... Not all city types are blinkered by profit and greed to the realities of economics and there is no doubt that the case being made by Syriza is dead in line with the latest economic thinking on debt management and inequality. The forgiving of German debt and the Marshall Plan after WW2 is not an exact parallel but it floated Germany and Europe out of an economic disaster and was the basis of recovery. Some German commentators vehemently reject this thesis but that doesn't alter the fact that it is true. From the same stable we get the rejection of any suggestions that the 'Mediterranean Problem' is a direct result of flaws in the structure of the single currency. But, the tide may be turning....
As for this government's economic performance, the problem isn't eloquence but economic illiteracy and refusal to move form outdated and discredited theories of 'sound money'.
Both the EU and the UK need a change of course and Syriza could possibly be a catalyst.
See THIS for a similar movement in New Delhi.
See THIS for a damning and quite possibly accurate assessment of David Cameron's performance in current foreign politics. I think it is significant. Deep cuts in armed forces and continual criticism of the EU inevitably damage UK position at 'The Top Table'. Just as it should be. Problem is that Cameron isn't concentrating on Home Affairs for the benefit of the country but because of an increasingly desperate General Election campaign, most of it negative. Personal attacks can't paper over the cracks in performance.

[Stanley]

As Osborne trumpets yet another bribe for the better off with the pensioner's bonds it's worth having a look at THIS and reflecting that the money this costs the taxpayer could be put to better use.... But are carers the voters the Tories are chasing?

[Stanley]

The offshore tax scandal attracts the usual volley of cross party accusations over who is to blame. The unpleasant truth is that both Tories and Labour are equally culpable. The last thing politicians want to do is kill the goose that lays the golden egg of party funding. No thought given to the wider effects on the country. Don't forget the number of free 'advisers' provided by the financiers and accountancy forms. Does anyone imagine they are fighting tooth and nail to repatriate tax? If you are expecting action I have only one word of advice.... Don't hold your breath!
Can we please put Margaret Hodge in charge of everything?

[Stanley]

Anyone who has read MD in PE has been aware for years that the NHS management treats whistle blowers dreadfully despite enquiries like that into Mid Staffs. See THIS for a hopeful sign. Sir Robert Francis who is in charge of the freedom to speak review has come out in the open and condemned the practice. I wish him success but previous experience shows that NHS management are often more concerned with covering their arses than taking note of clear warnings about patient safety.
Meanwhile, in another part of the forest, the collision between Syriza and the EU gets closer as Greece runs out of money around the end of February. Both sides seem to be entrenched and on the surface it looks like a matter of who blinks first. I can't see Syriza backing down this quickly. In terms of the potential damage, the EU has more to lose than Greece and there is an undercurrent throughout Europe that is sympathetic to the Greek predicament. It would not surprise me if in spite of all the anti Greece public pronouncements, the EU gives way first. It is clear they have a case and if they are forced into a default or even worse leaving the union, the repercussions for the EU economy and policies could be massive. Behind all this is the original error, instituting a single currency without the political structures to make it work efficiently. It suited the EU to let the Greek economy roar into debt and superficial prosperity. If the ECB had been in control of the budget this wouldn't have happened but the political mechanisms weren't in place.

[Stanley]

You don't hear the word 'brinkmanship' these days but there's a lot of it going on at the moment. Russia and the Ukraine and Greece and the EU are two examples. The only certainty is that the result is always a compromise and by its nature is not satisfactory. Arbitration is far better but who is going to do it?
Meanwhile, closer to home..... See THIS for a BBC report on arguments and accusations in the House yesterday. Light is gradually being shed on some very dark corners especially connected with Tory funding. Question is, how far do the attackers go, how high up the food chain? There is much in this that we are not party to.....
Later.... Gentle walking on a pleasant morning is conducive to thought... I was thinking about my last sentence... I admit I have been heavily influenced by reading Richard Crossman's Diaries. All a long time ago I know but they describe how the Westminster bubble actually worked then and I have little doubt that it's much the same now. Then as now, re-election and therefore the public perception of politics was the most important overall factor. The difference today is that there are so many different routes that information can get to us, the leak from UBS on offshore accounts is a good example of this. Once evidence like this is out in the public domain it has a life of its own, it triggers other streams of research, confirms some already suspected and a new thread develops. Like child sexual abuse it encourages others to come forward. I have little doubt that this will happen here and there will be wealthy people connected with politics watching developments very carefully. As is often the case, the cover-ups could be the big danger and this is not confined to the Tories..... Good election smear material!

[Tripps]

After listening for at least a year, from highly paid experts, telling us that interest rates would inevitably climb soon, and to be prepared - the B of E now say interest rates may drop even further from 0.5 %.

Can't help thinking of the joke with the punch line - "ah yes the questions are the same as last year's economics exam, but this year he answers are different"

One of my sons has a mortgage at 0.15% above base rate. If rates go negative say to - 0.5%, - they just did so in Norway - will the bank will have to pay him?