Crash Gordon's pyramid debt scheme

Its interesting to hear David Cameron start to talk about the need for criminal justice to be applied to those who got us into the financial mess we are in today. Directly he's talking about those involved in fraud etc. But its not a great leap of the imagination to start including government ministers in this call for justice.

After all most of the growth in the UK economy was in the public sector. All the "investment" ( Gordon speak for spending ) was used to help Labour gain more investment into its pyramid government scheme in two subsequent elections.

The government presided over a naked asset price bubble and failed to check banks were properly funded or regulated. Money was thrown at unreformed public services, and money was removed from the future by the destruction and stealth taxation of private pensions and the failure to reform unaffordable public pensions.

But in the mean time, the the casual voter, the returns looked good and they invested their trust in Labour again who repaid it by plunging the UK into the greatest debt it has ever been in - so that its leader could say he was doing something and try for one more layer on Labour's great debt pyramid scheme with a smash and grab election early in 2009.

I hope David Cameron means what he says about prosecutions and if senior government ministers and civil servants are shown to have mislead the public then they should wind up in court also. After all New Labour can now be seen for the great confidence trick it always was.

Update or to put it another way in all its horror see BOM here.

Are things spinning out of control ?

The intervention of Yvette Cooper yesterday to say that the government would not try to support the pound is amazing.

As the pound drops, so the government's plans for a debt binge and snap general election look worse and worse. It will become harder to borrow the money and the terms will become ever more hard for us all to bear in the future.

By betraying the government attitude she has removed uncertainty that could have supported the pound a little. She also suggests the government plans to let sterling slide further.

Just as no sane person wants to get their first mortgage when house prices may drop a further 30% in the next year, so anyone who want to lend the UK govt money must wonder what the payback in sterling will actually be worth.

To make things worse we now know the government is planning on printing loads of money. ( They have removed the need to tell us about this by a clause in the new banking bill ). Fear and uncertainty will stalk the markets.

Surely Stirling is going to crash further and inflation shoot up ? ( If only as we have to import so much from food to cars to gas to well most things.)

I'm beginning to wonder if the crisis isn't much closer than we suspect.

When it comes it will be quick. Probably over a weekend. The stock exchange suspended, pensions nationalised, savings converted to government bonds or used to pay foreign creditors. The IMF called in and a public TV address by a still enjoying himself Gordon Brown as he tries the second attempt of a Labour Prime Minister to con the public stairing straight at the camera lense and mouthing words about the pound in your pocket. ( Except with Brown it will invoilve words like "Fiscal action", "Hard working families", "It is right that ...", "Do nothing Tories" ).

Maybe even a state of emergency suspending democracy and ruling by orders-in-council.

Labour may soon have brought us all to our knees and left us without the means even to feed our families.

Labour's debt binge - the Truth about 10 years

I keep hearing Labour ministers talking about reducing debt over Labour first ten years.

You know what ? It true ! But its very, very misleading. Most people would describe it as lying. It is certainly misleading.

Why do they say they reduced debt for the first ten years so often ? The answer is they are trying to hide the spending ( fuelled by borrowing in the economy and caused by a binge in the public sector ).

See the graph from the National Statistics Office record which I have annotated below (source here ):

I think most people on looking at that graph - published by the independent National Statistics Office - on hearing Labour ministers talk about reducing debt over 10 years and looking at the graph most people would say Labour are trying to persuade people of something that is not true.

Odd that I haven't heard any BBC commentators pick up Labour ministers ( Yvette Cooper on Newsnight last night, Alistair Darling on radio 4's Today this morning ).

The truth is that Conservative spending plans were adopted for the first two years of New Labour - so the Conservatives take the credit for those years and then Gordon Brown believing he had abolished Boom and Bust failed to fix the roof whilst the sun shined.

Every time you hear this for of misleading boast from Labour make sure they are made to eat their words. The problem with Conservative politicians sometimes is they don't counter these Meme's and spin from Labour with anywhere near the vigor and determination that is needed.

Remeber - the Thames gateway was New Labour's idea

Given rising sea levels, and the sinking of the land in the East only New Labour could try to build in the path of a possible tidal surge up the Thames. There's a reason these places don't have houses on them right now.

Lets just hope that along with calling of a visit to house building in Reading (flooding today) Yvette Cooper thinks of the poor people who may one day have to contend with a storm surge without the protection of the Thames barrier and just the services of the Environmental "We can get flood barriers 20 miles in a emergency - no problem" agency to save them.

Just look at this government promotional video - look how close the sea and water are. Then remember that shortly the Thames barrier won't even be enough to protect London, let alone those places down stream.



Let hope we don't get Gordon Brown telling how this couldn't be foreseen and promising to set up a review and make sure the lessons are learnt. Because it will be too late for many good people by then. The sea is even more violent than a flooding river.

Update: Apparently there is to be a film starring Robert Carlyle on this very subject - or rather close with the Thames barrier itself getting over topped.