Friday, 30 November 2012

Good news for the BNP

There are couple of news items that should cheer the BNP today. First the CPS has declined to prosecute Chairman Nick Griffin for his tweets in the case of the two homosexuals wishing to share a bed in a Christian lady's B&B - despite the Cambridge Constabulary trying hard to put him in the frame. This is not really unexpected - the case was a non-starter: Mr Griffin didn't even publish a real address!

And second, the BNP has beaten the Tories and Lib Dems in the Rotherham by election. In fact if you add the Tories' and Lib Dems' votes together (a la coalition) the BNP still beat them. The results in full are:

Sarah Champion (Labour)  9,866 46.25%
Jane Collins (UKIP)      4,648 21.79%
Marlene Guest (BNP)      1,804  8.46%
Yvonne Ridley (Respect)  1,778  8.34%
Simon Wilson (Con)       1,157  5.42%
David Wildgoose (EngDem)   703  3.30%
Simon Copley (Ind)         582  2.73%
Michael Beckett (LibDem)   451  2.11%
Ralph Dyson (Trade Union)  261  1.22%
Paul Dickson (Ind)          51  0.24%
Clint Bristow (Ind)         29  0.14%

Labour majority          5,218 24.46%
Turnout                 21,330 33.63%

It must be said that the turnout is rather low at 33%. However it is still a very respectable result.

Monday, 26 November 2012

Immigrant to take over Bank of England

Canadian Mark Carney is to be the next governor of the Bank of England, starting Summer next year.

Apparently we do not have anyone in this country able to do the job. Or, perhaps that should be, willing to do the job. Did all the insiders take a look at how bad the situation is and decide they do not want to be the one to blame? Send for a foreign scapegoat!

Much is being made of the fact the Carney is a former Goldman Sachs employee; something he shares with almost every other central bank governor in Europe. Well, much is being made of it by a lot of people, but not the BBC who don't mention it.

Carney has negotiated himself a tasty deal - a five year contract on twice what Mervyn King is earning. He is on record as not being a candidate for the job but seems to have changed his mind. He will be applying for British citizenship. (Is that really necessary? Surely a five-year work permit would suffice?)

Carney has the same easy money track record as Merv. He's not likely to be rocking the boat at the BoE.

Friday, 23 November 2012

You are 2.1% poorer

The ONS yesterday released stats saying that average earnings of over the last year grew by 1.4%.

Unfortunately prices went up by 3.5%.

The difference, 2.1%, is therefore how much poorer you are this year compared to last year. And this is by no means the first year you are poorer. In fact you are exactly as rich as you were in 1999! Assuming of course that you are a completely average UK resident.

So how can the economy grow if the consumers keep getting poorer? Answer: it can't. This year you will buy less stuff and so the economy will produce less stuff and producers will make less money and employ fewer people and the whole system will wind down.

What we need is those two numbers to be reversed. If inflation has been 1.4% and earnings had grown by 3.5% you would be 2.1% richer - then the economy would be motoring ahead. So, how can the government made this happen?

Well, they cannot make your pay go up very easily. In the private sector your pay depends on what people are earning in Germany and Japan and China. You cannot earn much more than them or your private sector employer would go out of business. In the public sector every extra pound you earn is an extra pound that must be taxed out of the private sector so the net effect is to slow the economy.

What they can control is inflation. Average earnings growth of 1.4% would be fine if inflation were zero. Then the economy would be leaping ahead. And imagine if inflation were negative, say -0.2%, then you would be 1.6% richer this year. Why -0.2%? Well,  because that happens to be the current inflation rate in Switzerland. How come they can control inflation and we cannot?

Monday, 19 November 2012

Fingering Lord McAlpine

Lord McAlpine, wrongly implicated by people on the Internet of abusing boys in decades past, has reached for his lawyers. The BBC has already rolled over and paid out £185,000 of our money. ITV is going to be stung for more.

Sally Bercow, wife of the Speaker of the House of Commons, awaits her solicitor's letter with trepidation after an ill-advised tweet. (Shouldn't Twitter users be called "twits", btw? Oops, I hope that isn't libelous!)

Is it curtains for Sally Bercow?

Others will be dealt with in due course. Lord McAlpine's lawyers have even suggested that if the miscreants come forward of their own freewill they will get off lighter than if they have to be dug out from under their rocks.

Serves them all right, you might think.

But wait a minute. Why is the Beeb handing out our money so freely? What did they actually do?

They ran a package on Newsnight which said an unnamed senior Conservative from the Thatcher era abused a boy in a childrens' home - several times. Unnamed senior Conservative? Does that say Lord McAlpine to you? Is that the first name which leaps out? Or the second? Or the third, or even top ten?

This blog suggests not. The Beeb may have been thinking McAlpine but they never said McAlpine (just as well, or you could add at least two zeros to the pay out!) Not content with giving the last Director-General twice his contracted severance pay after a two-month "career" they are again handing out our money at the slightest provocation.

They should have stuck to their guns and said, "We did not name the senior Conservative so we pay nothing!"

Of course, we give them more money every year so they don't really care.

And let's not forget. The abuse really did happen. We're just not allowed to say who the paedo is.

Thursday, 15 November 2012

Zombies attack the ecomomy

Yesterday the Bank of England published its quarterly inflation report and it seems our real problems are caused by zombies!

Specifically, zombie companies. The FT says...
Roughly three out of 10 companies in the UK are now making a loss; more than during the recession of the early 1990s. But the number of insolvencies this time around is far lower. Though the number of liquidations shot up in 2008, they have fallen since and the BoE expects 16,800 companies to close their doors this year – substantially lower than the almost 25,000 that went out of business during the early 1990s. Even during the peak of the 2008-09 recession, the number of liquidations was less than 20,000 a year. (Link)
The trouble here is that there has been no "reset". Failed companies, eg companies with too much debt to trade profitably, should go out of business and make room for new companies to be set up and grow. However the BoE has kept interest rates so ridiculously low, and sprayed QE money into the economy, and behind the scenes has put pressure on the commercial banks to exercise "forbearance" - all to keep failed companies from dying. So these organisations lurch around, dead in all but name, and stop the "green shoots" from sprouting.

This isn't totally bad. It keeps unemployment down, and most people would call that a good thing.

But actually, it's not. Given the choice would you prefer a) to have a job with a permanently failing company which cuts your pay and/or your hours every year forever, or b) have a short period of unemployment followed by a job in a new company which increases your pay every year because it's thriving.

At the moment we are in situation "a". The job stats look good, but look even slightly beneath the surface and you will find the hardship of falling real incomes and ever increasing debt.

In his press conference yesterday Sir Merv "called" the next dip. We've just come out of the second dip of our double-dip recession and Merv is already preparing us for the next. He said:
"Output growth is likely to fall back sharply in Q4 as the boost from the Olympics in the summer is reversed – indeed output may shrink a little this quarter. [...] Despite a resilient labour market– as we saw again in today’s figures – the economy has barely grown over the past two years."
And this from a man whose job includes talking up the economy!

Oh, and inflation, after a brief lull has now taken off again. But what do you expect when you print four hundred and twelve billion pounds. (Economists generally seem to be including the coupon grab in the QE total. So it's an official £375bn plus the coupons at £37bn making a total of £412bn.)

See the previous post for the Great Coupon Robbery.

Friday, 9 November 2012

Bank of England to pass QE coupons to HM Treasury

The story so far. The Bank of England has magicked into existence three hundred and seventy-five billion pounds and used to money to buy UK government bonds. Bonds of course pay a form of interest called the 'coupon'. So naturally, the Bank of England has dutifully being paying interest to itself. It has been keeping the money in a special account called the Asset Purchase Facility, and the cash has been mounting up: there will be £35bn in the account by the end of this financial year (April 2013).

So what to do with all this lovely lolly? (Over-looking for the moment that it doesn't really exist.) Well the government has decided that it is going to transfer the money from the Bank to itself (ie to Her Majesty's Treasury) and spend it. Specifically, they are going to spend it on redeeming government debt. Yes, they are going to pay off the national debt with money they got by buying the debt with money they never had.

George Osborne, Chancellor of the Exchequer, has said as much to Mervyn King, Governor of the Bank of England, in a letter. Merv has replied that that's a very good idea, also can he have a peerage next year when he retires? (Only he didn't put that last bit in the letter.)

If this money-go-round makes your head whirl, that's because it is supposed to. You're supposed to be watching all the plates they've got spinning on sticks and wondering when the first is going to fall. That way you won't notice when they sneak around behind you and take some money out of your pocket.

Monday, 5 November 2012

Another immigrant rips us off


Denis MacShane, MP

He was born in the UK of immigrant parents. He changed his name from Matyjaszek to MacShane. He was sacked by the BBC for dodgy dealings and became an MP. And now he has quit as an MP after being caught printing up invoices on his office computer and signing them with various different names, and then authorising them for payment in his own name.

He has pleaded parliamentary privilege to avoid being prosecuted for this fraud.

If he walks away from this it will be both amazing and a travesty of justice.

It just goes to show, once a wrong un, always a wrong un.

And after quitting he will continue to rip us off. He will be entitled to 50% of his MP's pay, index linked, as a pension.