Tuesday, January 11, 2011

Lets get this straight the banks are the symptom not the cause

#RedEd's is straight back to Labour's shameless denial of history tactics as they try to brain wash their supporters that the structural deficit Labour ran to bulk up the unreformed public sector ( mostly to buy votes and pay for the ambition of one certain recently ex-prime minister ) didn't cause the ever increasing debt rates our country now has, which are causing us to sell our children's future so we can be selfish today !

This really does matter. ( I had a "I get it" about the debt - stop going on tweet from a reader yesterday - but this is so important that I will keep going on about it. ) The right needs to win this argument. It is not good enough just being correct - we need to ensure the electorate understands and accepts why that is the case. The left's aims are the opposite - to make the harm worse by denying the facts and spreading easy solutions based on ignorance and frankly evil deceit.

Gordon Brown allowed a debt bubble to grow in the UK. It was great for him, as he taxed the transactions that it created, and spent them bribing the general public with their own money to vote Labour. He didn't undertake the moral requirement of improving efficiency as he needed to buy of the public sector unions for his own ambition - and as in now being realised again its the public sector unions that ensure public services are inefficient and unaffordable.

Then Brown stepped in to save banks from Labour's heartlands ( not the city of London or the South East note ! ). The Chelsea Building society would have been allowed to go tot he wall, but not Northern Rock, RBS, HBOS. A perfectly good English bank was pressured into destroying its shareholder value to rescue a local bank of Brown and Darling.

But will Labour admit any of this and apologise ( and indeed manifesto writing and Brown supporting dead beats like Red Ed Miliband should resign ) ?

Not a chance. They will lie instead. Rather than put country first they will rail about cuts in the hope of getting their ministerial limos back.

The problem is that we aren't making nearly nearly enough noise about their guilt and despicable behaviour.

Further reading:

"Did high-spending before the boom turned to bust (which wasn’t supposed to happen, you’ll remember) have anything to do with the size of the current deficit?" - Iain Martin over at the WSJ on #RedEd's taking the Gordon Brown line.

"The crash from an Austrian perspective" - Fraser Nelson at the Coffee House


formertory said...

Good man. The bankers aren't blameless but pinning the *entire* blame on them is a fantastic win for the politicians (and the BBC). A reasonable analogy is it's like blaming wasps for chasing you when it's someone else prodding the nest with a stick.

Scrobs... said...

"The problem is that we aren't making nearly nearly enough noise about their guilt and despicable behaviour."

Couldn't agree more Mr Shed.

We do in our business I assure you!

Bill Quango MP said...

The bankers have got off lightly though. No jails. No charges. Just retirement at leisure with a massive pension and all the bonuses from the boom.

But, again, this is Brown's fault. He had the opportunity at the bailout to deal with the banks when they were broke and desperate.
If it was true that there was just '24 hours to save the cash point' then there could never have been a better time to say "..we'll bail you out and we'll be presenting terms afterwards. I want the shares and you're not getting them back."

Even if it was only free banking, for every current taxpayer, for life, then it would have been something.

Instead, so frightened of the 'nationalisation' image , they did very, very little. And now, that the banks are the debtor, they couldn't care less. If they go bust, we go bust, so they can't be allowed to go bust, and they know it.

But back in 2007 they didn't.