Tuesday, October 28, 2008

Pound Collapse Shows Britain Not "Best Placed"

You can’t buck the market someone once said, perhaps that is why every time Gordon and Alistair tell us that “Britain is best placed to weather the global crisis” the pound falls another notch. As you can see from these charts the pound is down 25% against the dollar and the yen in the last three months and over 10% against the euro this year.

This has one benefit, it helps exporters. However Britain runs a current account deficit and imports more than it exports. Key commodities are priced in dollars, so although oil has fallen 50% in price, the fall in the pound against the dollar means that that benefit is reduced by 25%.

The reason the pound is falling is because foreign investors don’t want to hold sterling assets. Money supply (M4) is off the chart, the government is flooding the debt markets with cash, gilt issuance is going to be a massive £100 billion, the government is still a AAA risk for now, but so were many investment banks until recently. Nobody believes Gordon’s “we have reduced government debt” routine, it is laughable, where did the money for all the schools, hospitals, quangoes and bureaucrats come from Gordon? Include all the taxpayers liabilities and UK government debt is up there with Italy at over 100% of GDP.

There is a lot of scepticism about Gordon’s borrow more, spend more solution. It will be years before any capital infrastructure spending will come through to the real economy, it will worsen the government’s indebtedness and crowd out the private sector. The Tories seem incoherent and without a macro-solution, a little help here and there for small business isn’t going to turn around the economy. “Sound money and economic responsibility” is all very well, if that had been government policy rather than just an opposition slogan we might not be in this mess. It has come to something when the LibDems offer voters more in tax cuts than the Tories. Today Britain desperately needs a real growth package for the real economy. The Tories are too timid and scared of the old Labour attack lines. Voters understand that government spending has to be tightened, Clegg senses that too, why not the Cameroons?

Monday, October 27, 2008

BBC Drama Shock : Not Left-Wing

What has happened to Spooks? Have they got a new script writing team? The heroes in tonight’s episode were MI5 agents, saving the lives of innocent women and children – service families. Adam the hero dies in the process despite having already saved the life of a British soldier from would be Al Qaeda terrorists set on a beheading. The soldier was presented sympathetically, as a father and husband who refused to read out the speech dictated to him, preferring death to dishonour.

The ultimate baddie was a Russian spymaster. What no evil Christians? No duplicitous Americans, no Israeli Mossad manipulators, no big business plutocrat exploiters? This is the BBC, we expect to be force fed left-wing platitudes and propaganda, not given a patriotic tear jerker.

The 10 O’Clock News returns things to normality: “Tonight America is accused of terrorism…” Don’t start paying the TV licence fee just yet.

Osborne Admits Mistake

Mandelson remains unrepentant and says he would be happy to meet Oleg the Oligarch again. At least George Osborne won’t be cavorting around on billionaire’s yachts:
“I think I did make a mistake. In politics it is not just what you say and what you do, but how things look. This did not look very good and I regret that…”

He sounds like he is willing to take his punishment.

Rich & Mark’s Monday Morning View

Sunday, October 26, 2008

Sunday Sleaze Round-Up

Saturday, October 25, 2008

Woolas Gets Pied

Friday, October 24, 2008

+++ Deripaska / Mandelson Tapes Rumour +++

Friday Caption Competition

"Shoot to Kill" News Management

Guido said that Labour would take a tougher line with news management now that Mandelson is back and Alistair Campbell is lurking about in the background. Rami Okasha, Labour’s head of communications in Scotland, was in charge of handling Sarah Brown’s visit. He threatened unruly hacks with heavies from Special Branch, “There will be six or seven guys with guns who will keep you away from her. You may be shot and then it won’t be my problem.” This boy could go far…

Thursday, October 23, 2008

Foreign Donors Row, Compare and Contrast

Over at the New Statesman Martin Bright lists three foreign donors who routed £50,000 each via British companies to the Tories. The Daily Mail has hit on Robin Saunders, the foxy City financier, paying for a table at a Tory fundraiser with a personal cheque for £6,600, which the Tories returned (because she is an American) and she replaced it with a company cheque. Compare the total of £156,600 given by four foreign donors via British companies to the Tories with the £4,125,000 given by Lakshmi Mittal, an Indian national, to Labour.

Mittal even managed to get Blair to do PR for his company as part of the deal…

Labour’s attack is being marshalled by a re-invigorated spin and smear operation and nobody should under-estimate the powers of the returning Dark Lord. The Tories now have a real fight on their hands, the playing fields of Eton and St Paul’s clearly have not equipped them to deal with Mandelson. This is going to be a long dirty fight.


Seen Elsewhere

Mock the Week’s Weak Comedy | Nigel Farage
Can Jim Murphy Save Scottish Labour? | Guardian
There is Still Appetite for the Westminster Lunch | Jon Craig
Labour Turn Their Backs on Jewish Community | Dan Hodges
Chivalry is Not Dead | Laura Perrins
Jonathan Jones is a Tw*t | Iain Dale
Second Scotland Poll Suggests Labour Wipeout | Times
Paedo Probe Boss Urged to Quit | Sun
Keynesian Tories Won’t Eliminate Deficit | Tim Montgomerie
Whitehall Doesn’t Work | Dom Cummings
Russell Brand’s Tax Avoidance Firm | Sun


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David Cameron drug policy reformer and leadership contender in 2005…

“Politicians attempt to appeal to the lowest common denominator by posturing with tough policies and calling for crackdown after crackdown. Drugs policy has been failing for decades.”



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Is it just me, or is Nigel Farage just a top hat and a monocle away from being a Batman villain?


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