Fortsätt till huvudinnehåll

Corrupt government hand in hand with rich financiers

That sounds like Africa or Latin America, doesn't it? And supporting lame-duck industries was something that happened in the bad old days of socialism. Not twenty-first century Britain, where politicians and bankers are all honest and above board and market forces rule, a faith demonstrated by the portrait of Adam Smith on the £20 notes.

A failed private company, going cap in hand to the government for an advance of taxpayers' money, can expect to be sent packing, with the reminder that the free market is about capitalists taking risk and accepting the good and the bad together. It hasn't worked like that, with banks receiving hundreds of billions in "insurance guarantees". Only that is not what they are at all. These are guarantees on loans where defaults are certain on a large scale, secured on bubbled up land values which are now collapsing. Thus the bankers are being protected against their follies. What ought to happen is for the banks to be allowed to go bankrupt and then the loans written off.

This is of course going to be hugely disruptive to the economy but the alternative is high unemployment which will persist for several years, and a huge loss to be borne by the taxpayer, almost certainly in the form of inflation at 1970s levels and probably much higher.

Expect serious social and political unrest this summer.

Kommentarer

Skicka en kommentar

Populära inlägg i den här bloggen

The dreadfulness of British governance

I wrote to my MP on two entirely separate issues recently. The first was to do with the replacement for the Inter City 125 train, which at £2.6 million per vehicle, is twice as expensive as it ought to be. The second concerned the benefits of a switch from business rate and Council Tax to a tax based on site values. In both cases, the replies were full of spurious, unsubstantiated assertions and completely flawed arguments. This is typical. You will not get an iota of sense from the government on any area of public policy at all - finance, economics, trade and employment, agriculture, housing, health, transport, energy. All junk. If you write to your MP you will invariably receive answers that are an insult to your intelligence, no matter what subject you are writing about. Of course they cannot understand statistics. They are innumerate. Whitehall is staffed with idiots with a high IQ. Look at their IT projects. And mind your purse, they will have that too.
Skicka en kommentar
Läs mer

How much more will the British tolerate?

The British are phlegmatic, tolerant and slow to rouse. Thus there was no great reaction after the terrorist attack in July 2005. The murder of Lee Rigby created a sense of outrage, but nothing more, since it appeared to be an isolated incident. Two serious incidents within a fortnight are another matter. Since the first major terrorist incident in 2001, authority has tried to persuade the public that Islam is a religion of peace, that these were isolated events, or the actions of deranged "lone wolves", having nothing to do with Islam, or to reassure that the chances of being killed in a terrorist attack were infinitesimally small. These assurances are are beginning to wear thin. They no longer convince. If government does not act effectively, people will take the law into their own hands. What, however, would effective action look like? What sort of effective action would not amount to rough justice for a lot of innocent people? Given the difficulties of keeping large n...
Skicka en kommentar
Läs mer

Battery trains fool’s gold

A piece by the railway news video Green Signals recently reported the fast charging trials for battery operated electric trains on the West Ealing to Greenford branch, in west London. In a comment under the video, I described the project as technological overkill, bearing in mind that before dieselisation in the 1960s it was worked by the tiny steam locomotives of the Great Western 1400 class, a 1932 design based on an 1870s design. The money that has been spent on the experiment would have paid for a small fleet of the old things. Elsewhere in the comments, I was critical of the 800 series trains. This produced a response from the makers of the video, as follows. “I may be grasping at straws here but I am guessing you don't like 8xx series trains all that much and rather wish we still had Kings, Castles and (for the branches) 14xx's. Fair? ” My reply was as follows... Yes you are grasping at straws. The model for long distance stock is the class 180, which is a 23 metre veh...
Skicka en kommentar
Läs mer