May 31

In the end you cannot force through public spending cuts on people having broken the rules yourself. You cannot force through higher taxes having broken the rules.

It does not matter that you could have legitimately claimed more within the rules. Or that you paid back everything claimed even though you were only breaking the rules for the last 2 years.

Sadly for all of us taxes and cuts are coming.

Weak people like the Labour Party leaders who have inflicted this on us will squeal crocodile tears for the poor into their chopped onion hankies. Ed Balls will try the child’s fantasy that the 6 Bn of cuts this year might be the cause of a double dip recession – the real truth is the cause is that the economy cannot structurally support any growth without incurring more debt thanks to 8 years of moronic economic management by Balls organ grinder the savant Brown.

The alternatives given a Marxist revolution looks a way off is that we become what Greece would if it were not a small country in the Euro – hint no one’s bailing out the UK. Already Danish companies are threatening not to supply vital drugs as they are a) owed money b) some clown thought he could reduce the price by 25% overnight without negotiating with the supplier. Think of that next time we refuse to pay for some supposedly vital new drug on the NHS! A poorer Britain unable to buy medicines that are proven and necessary to work!

Time for everyone to grow up. Instead the opposition on both wings will use the peccadilloes and mistakes of individuals to justify opposition to what is necessary.

I say don’t get angry at Laws, Osborne, Cameron, Clegg, Cable, Clarke, et al blame Brown and the people who voted in enough numbers for a Labour Party to complicate parliament. A Labour Party complicit in a foreign policy that saw 15 more innocents slaughtered today – no doubt the Israelies as the UK/US coalition does will call them insurgents and terrorists with Obama’s private blessing but that is another blog.

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May 09

True to form Eurocrats rushed out to blame the markets for Greece’s problems.

This is arrant nonsense. Greece’s problem is that it spends and consumes more than it earns. The markets therefore with no real austerity package and even less will in place will not lend it money at interest rates below 9%. Frankly the markets are being over generous I would want 20% a week. Indeed I would be QuickQuid or Wonga to their worker short at the end of the month and breaking out the APR of 2365% or more. The real issue is why would anyone back Greece when it seems unwilling to live within its means?

Greece is in the Euro and so are many other over consumers and that is why their currency is dropping. The only thing preventing complete meltdown is this fact and hence Greece is actually protected from the markets.

The worry for us should be the plight of the UK? It has debts like Greece and is not protected by other bigger and stronger countries. It’s already got piss poor pensions and welfare payouts. It’s already got a retirement age of 65 and rising. It’s workers already work the longest hours in Europe. We already have the smallest houses and biggest quality of life issues of any major economy.

Quite how Britain’s austerity program will bite should be causing more concern than whether Nick and Dave consummate their affair. Given we already have sold, mortgaged and given up everything for a pile a debt.

Where can the British state cut back?

Will anyone retire before 70 who is not rich?

This is Brown ‘s legacy.

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May 09

UKIP must wish the election was next Thursday and indeed we can all feel let down by the media breaking the real story after the election. That the Euro nations will bureaucratically try to force the rest of us to pay an equal share for the bail out of the PIIGS nations – 110 Bn for Greece alone who at present show no signs of making the changes that will not lead to us losing the money. The Observer tries to hide it but a possible £10Bn liability to the UK at a time when Labour and the Liberals argue against a mere £6Bn of cuts as significant.  Maybe it will not come to pass.

Given any kind of pro Europe policy will look like madness potentially by this time next week think Clegg wants a 2nd poll? Think the Govt and they get near 45% under PR? Even when that chicken comes home to roost? Bare in mind that whether we end up with this debt or not it raises the problem of making others people’s mistakes your problem. Further integration is not an overall vote winner more of a niche for the Lib Dems to mine (they are only after 30% of the vote as a ceiling).

Hopefully Darling can prevent us getting this debt and any future debt. However for me it is the death of closer integration as that is what it would mean. We cannot afford it anyway.

For Clegg his party’s weaknesses exposed if he cannot deal he is saying to people that a vote for them is by and large wasted and he’s back to last year looking at a rump of 20 seats and irrelevance. Mercifully few will be able to spend much on a 2nd election but Lib Dems would get the backlash from their pro Europe policies which are now clearly fantasy and like the Immigration policy in line for new nuances in the next few years.

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Sadly the Japan  example appears to be coming to Europe. Moribund capitalism anchored by debt and no growth.  The alternative we re-flate and live beyond our means longer till China pulls the plug? Socialism?

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May 09

Want to know who got the £800 million Brown and Darling left us on the hook for when they took our debts off the banks?

When we were borrowing against non existent sub prime assets who was making money on our over consumption?

Want to know who will not be paying for the debt that has made them super rich?

People can get upset like Greece or just accept the Rich do not live anywhere. That the fetishising of them by our political leaders as wealth creators is wrong. They make money on money and always get their pound of flesh. When their customers cannot pay who picks up the debt? The taxpayer.

By backing the debt Darling  and co guaranteed the returns of people who will never pay tax here. Maybe they had no choice but the reality is clear.

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May 01

For some reason mostly centre left politicians have in the UK been very pro Euro. Indeed the main anchor on the Labour party trying to get us into a single currency has been  two fold. Unpopularity and till it became a bad idea there was Brown’s 5 economic tests. This was typical Brownism an attempt to seem one way whilst doing nothing and I applaud it. The 5 tests could never be met.

Indeed it’s sad that Clegg and the Liberals still seem some mileage in a policy that is best ridiculed with the one argument that comes up holiday makers who pollute the atmosphere will not need to spend a fiver getting some cash in some countries.

What I have always had against the pro Euro camp is by and large they are like fans of a football club. The way they have inched us to European integration without seemingly any desire for it among populaces. Even when countries have negative plebiscites their results are disrespected and another one organised with dire threats from politicians and another one if that fails – sorry but referendums are not democratic as you are made to vote for something till you say what the Politicians want and then never get to vote again!

For me I am happy with a common market, a secretariat but see no need for the expense of a European Parliament which is yet more Brownian politics. It’s meant to be a symbol of democracy but ala Brownian projects it’s far too expensive and achieves very little. Most laughable because its elections fall mid term it’s staffed with anti EU MEPs from Britain. Look at voter turn out we just do not care for it.

What is bizarre with the Euro is how the Germans  would enter a currency and not insist on almost running the other economies. For a country that now rightly it seemed resisted the desperate Obama and Brown plans to to reflate their unsustainable bubbles Germany now finds itself having to prop up 5 weak economies who have thrown 2 fingers up to economic sense whilst sharing a currency.

Equally baffling about the Euro is why countries like Greece and Italy with their preference for inflation over decision making would want a strong currency. Thence their decline in competitiveness every year with a currency that cannot move to match – much like the rest of the UK has with a leeching City which after the bailout has contributed nothing to us over the last 20 years. The other side is of course no doubt in private Angela Merkel is glad the elephant that is the UK’s public debt is not on their currency either.

Smaller economic units make better sense to me. They can be more representative of local interests. However vested they are they beat national vested interests in the EU.

Keep the common market and co-operation on foreign policy. Dump the Parliament and stay out of the currency.

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Apr 27

Standard and Poor have brought the guillotine down on any Greek pretension that they have any say in their economy by reducing their debt status to junk bonds. One feels for Greek workers but unless they are planning or willing or able to junk Capitalism they have no choice. Time for the Greeks to grow up and take the medicine.

What really showed Greece up was that the EU and IMF agree a rescue fund and the weak willed Greek Prime Minister sees an easy way out by just grabbing this money and don’t do what is required as though the markets would just swallow that – make their problems everyone else’s problems. If anyone bails them out now they are burning money that is in short supply in the world at present.

For me double dip be damned the British need to decide to cut early. We do not want to be caught in a Tsunami of bad debt next year with Japan, and the rest of the PIIGS nations in a race to the bottom. Plus as we are not in the Euro there will be no queue of people to bail us out. In a world that could be deflating around us even the growth dependent cuts planned may not be enough anyway.

Like Greece we are not dumping capitalism anytime soon so any other policy is roulette. The reality in the modern world is this you either behave or have your ball taken away from you. Greece has had its taken away and the only way to get it back is to be serious about living within their means.

This is one policy that I kinda back the Tories on because to cut sooner creates market confidence and is not a hostage to fortune. We don’t know what the world will be like in a year’s time and I’d rather not find out how a nation running huge untackled deficits with low market confidence lasts in a Globalised Capitalist world.

Sadly this could develop in a race to the bottom.

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