Sunday, August 23, 2009

Congratulations to the English Cricket Team

Worth bearing in mind that Gordon Brown didn’t wish the team well for the Ashes. Do co-conpirators remember this:

lobby cricket

It appears to have worked…

Saturday, August 22, 2009

Why Sarah Brown Won’t Emulate Michelle Obama

rsz_sesame-street-oscarEven though she is being cynically used to humanise Gordon via Twitter, her blog and a raised profile, Guido thinks there is no need for Sarah Brown to go on Sesame Street.

She already lives on Downing Street with a Grouch…

Friday, August 21, 2009

Where’s Gordon?™ Summer 2009 Edition

Dave has written to Gordon asking him where he stands on the release of the Libyan Lockerbie prisoner.  Where is Gordon?  Guido wonders if he is in Punkaharju, Savonlinna, Finland

Via : nabidana.com

Friday Caption Competition

Wanking Balls

A copy of The Big Red Book of New Labour Sleaze is the prize for the wittiest caption entry.  Note, that is “witty”, not “obvious”…

+++ Mandy Hospitalised for Prostate Operation +++

He is in St Mary’s Hospital in Paddington.

UPDATE : This is going around:

“How typical of the NHS to identify the only non-malignant part of Mandelson and remove it.”

Thursday, August 20, 2009

Tories Thrash Labour

edelman-roundersThe annual parliamentary staff rounders and picnic competition saw the Tories beat Labour 32 1/2 to 17.  Sadly, no pictures of the totty have reached Guido.  Very sad…

UPDATE : Guido pulled a few strings, and here is the victorious Tory Totty Team:

Tory-Team

Government Overspending £258 Million Per Day

The Public Sector Borrowing Requirement for July came in at £8.016 billion.  That means the government was over-spending by more than £258 million per day last month, which is living beyond our collective means by more than  £10 million an hour, 24 hours a day, seven days a week.

Gordon Brown and Ed Balls reckon the government should spend even more.  John Redwood blogs “No wonder the Governor thinks we ought to print some more money – who is going to lend us all this?” The Zimbabwean dollar rose 15% against the British pound last month…

UPDATE : The FT reports that this morning “saw another lacklustre gilt sale from the UK Debt Management Office.”  Surprised?

Not So Silly

dannat_v_jonesKevan Jones is spinning rather weakly that “It is obviously the ‘silly season’ in the blogosphere” as broadcasters and the dead tree press today follow Guido in naming him as being at the centre of the smearing and briefing against General Dannatt.

If it was just sillyness, why did his boss the defence secretary, Bob Ainsworth, issue a formal warning to him not to brief against Dannatt?  Was he being silly?

Wednesday, August 19, 2009

Dannatt v Jones

Who is the unnamed defence minister in press reports who is behind the smearing of General Dannatt?  Step forward Kevan Jones.

dannat_v_jones

On one side we have an honourable soldier who has seen action in Belfast, Bosnia and Kosovo, serving his country for the last forty years.  On the other we have a graduate of Newcastle Poly who has never had a proper job in his life.  A degree in Government & Public Policy helped him to become political and legal officer of the GMB Union, a local councillor and then an MP, where he has distinguished himself only by being one of Brown’s lickspittles.  He was one of the signatories of the “Tony Must Go” letter – that saw him eventually rewarded by Gordon with the position of Parliamentary Under Secretary of State and Minister for Veterans at the Ministry of Defence.

Last summer (while still a backbencher) he submitted dozens of Parliamentary written questions asking about military comforts and perks. Lo and behold, once again Labour MPs have submitted a number of FoI requests regarding wining and dining bills at the Army boss’s home in Kensington, West London in an effort to embarrass him.  Wonder who inspired that trick?

According to the Sunday Times, Gordon Brown personally blocked Dannatt’s promotion from chief of the general staff to overall head of the armed forces as chief of the defence staff because of his repeated calls for better pay and conditions for servicemen.

Kevan is only doing Gordon’s bidding…

Double Digit Inflation is a Black Swan

The Bank of England and most consensus economists, including most right-of-centre monetarists, are stoking deflation fears. The MPC voted to print £50 billion more this month.  Which is very convenient for Gordon Brown and Alastair Darling, it allows them to justify printing money, which they can then use to buy their own escalating government debts.  Which is a little like eating your own leg to stop you starving.

The economic debate on this is confusing, the data is mixed and to some extent depends on your time frame.  The drop in oil prices and other commodities post-crunch had a deflationary effect.  Against this you have U.S. and U.K. government debt levels which are extraordinary.  Terrifying.  Gilt yields (interest rates) are being held down by the Bank of England printing billions of pounds to buy gilts from the Treasury and artificially hold up gilt prices.

The Bank of England’s own pension fund however is heavily invested in inflation protected securities – which is odd given their public stance is that deflation, not inflation is the threat.  Consensus economists are sheep and we need not worry too much about their bleating, more surprisingly some right-wing monetarist economists, such as those on the IEA’s shadow monetary policy committee (who tend to work in the City for investment banks) are also believers in deflation.  Guido’s theory is that the reason they have supported expanding the money supply so drastically is they panicked, remember all those articles in the Guardian and the FT about the “end of capitalism”and the end of investment banking as we know it?  Their morale was low, they were afraid.  Printing money and flooding the market with liquidity would be a short term fix that would shore up the banks and save their jobs.  Hence all these right-wing economists became born again Keynesians and could be found all over the Square Mile screaming at the Bank of England to turn on the printing presses.

Well capitalism survives and thrives.  Some of those economists are now wondering about the wisdom of printing all that money.  Nigel Lawson’s biographer, Eamonn Butler of the Adam Smith Institute, changed his mind on quantitative easing a few months ago, the IEA’s shadow MPC is no longer unanimously in favour of quantitative easing.

black-swanNassim Nicholas Taleb yesterday warned of the inflation threat, Cameron conceded the possibility of a British debt crisis.  Guido thinks it highly unlikely Britain would ever default on it’s debt so long as it has a sovereign currency – we would just devalue and pay foreigners in devalued pounds.  Though Britain could have, as Cameron said, foreign investors demanding higher risk premia, higher yields.  That could see mortgage rates above 10% again – both here and in the U.S.

Warren Buffet yesterday was quoting John Maynard Keynes’ road map for political survival amid an economic disaster of just this sort: “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens…. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

Protect yourself from the coming inflation.  Like the Bank of England’s pension fund…


Tip off Guido
Web Guido's Archives

Subscribe me to:






RSS


AddThis Feed Button
Archive


Labels
Guido Reads
Follow

Get every new post delivered to your Inbox.

Join 1,646 other followers