The news has got about that Boris, Liam and David are despondent about the prospects for exciting new trade agreements made possible by Brexit. Disentanglement from Europe is far more complex than they thought and – to be frank- the whole process could take up to ten years. On their journeys around the world other governments have appeared pained and confused. ‘What is it that you Brits want?’ is their complaint and answers there are none.
I want to be helpful. Indeed we should all enter into this task of becoming a world power again in a helpful frame of mind. There is much to be done. Have our negotiators thought about the Pacific Islands? I guess not.
I have a suggestion. Don’t laugh I want you to take the suggestion seriously. I suggest that the Foreign Office has not prioritised the Pacific Islands. Did you know that their are some 25,000 islands in the Pacific with a total population of 40 million people? Impressive isn’t it. Of course since the days of the British Empire other countries have muscled in: Australia , Indonesia and the United States, in particular, and the EU and the Commonwealth have been active. We used to play a big role in the Pacific . People would joke about our gunboat diplomacy. (They can’t do that now of course. I was distressed to learn that all Britain’s modern warships are in dockyards awaiting repairs. Shameful!).
I appeal in particular to Boris. The Pacific is a wonderful area to take holidays with an abundance of fine beaches and welcoming hotels. What better than to spend several months in the Pacific Islands each year with friendly people. Exercising due diligence you could invite family and friends to join you. It could be very, very pleasant. Wonderful!
On a more serious note the Pacific Islands are getting their act together and the timing might be good. They have combined to form the Pacific Islands Forum which aims to help the islands develop their economies. We can help, Boris, and they can help us.
Why not look at this way, Boris. If you are going to fail in your mission why not enjoy yourself? Their is no point in spending fruitless time and energy in Canada, shivering in the hotel entrance while waiting for a cab when you could be on the beach of an exotic island. If you are going to fail do it on the veranda of a wonderful hotel on a Pacific island.It is a no brainer.
Filed under BBC, Boris Johnson, Cabinet, Economics, Imperialism, John Martin, Labour Home, Labour List, Labour Party, Larisa Martin, Liam Fox, Liberal Voice, Politics, Sky Sport
We are now entering a critical phase of this electoral cycle: local elections, parliamentary elections, further local elections, the European elections and the Scottish referendum on independance The outcomes of these elections will set the agenda for the next General Election. In this cycle, the fortunes of UKiP will determine the outcome of the General Election So long as UKIP’s standing in national polls is in excess of 10 percent, and it now stands at 13 percent in some polls, the Tories cannot win a General Election and Labour will be handicapped in the drive for a majority at Westminster. It is an easy prediction to make that UKIP is likely to top the Euro polls and at some time during 2014 will be showing, in some national opinion polls, support in the 20’s before a decline as the General Election approaches.
I assume that Scottish voters stay in control of their good senses and will vote No in the Scottish referendum. If so one would expect electoral support for the SNP to decline and a recovery of the Labour vote at Westminster to take place in Scotland. If this occurs then Laboiur would be diffiult to defeat in Westminster elections.
While economic predictions are foolhardy the odds are on poor economic performance up to May 2015. The best the Tories can hope for is slow growth, stable employment and a deficit edging slowly downwards. There will be little prospect of electoral bribes. This being so it is safe to predict that the chance of a Tory majority at the next
General Election are near to zero.
What then are the prospects for the Lib Dems? I do not under-rate the resiliance of the Lib Dems. However, if in the public mind they remain linked to the Tories in Coalition a reasonable prediction is that their parliamntsary position would decline substantially with a loss of 30-40 MPs. It would follow from this that it would be
most unlikely that they could play any part in a national coalition with any other party.
In these circumstances I would expect UKIP to win some Westminster seats at the expense of the Coalition parites but not enought seats to achieve any tactical advantage.
If this analysis is broadly right we would haver had a further shake in the party system that could in some circumstance lead to paralysis. As the economic circumstasnces inherited by a new Labour Government would be difficult if not dire Britain might emerge from the experiment of Coalition in a virtually ungovernable
All this will become clearer to participants and pundits. Will those individuals at the heart of this disaster do nothing? I have never believed that they would behave as rabbits staring into car lights. The Coalitiion will break up and David Cameron could be confronted with a leadership election before May 2015.
Filed under BBC, Cameron, Coalition Government, Conservative Home, Deficit, Economics, Europe, General Election 2015, Labour Blogs, Labour Goverment, Labour Home, Labour Party, Lib Dem blogs, Liberal Voice, Local elections, Nrew Stateman, opinion polls, Parliament, Rerendum, Scotland
The rumour circulating the corridors of Westminster is that our George is to introduce a door tax in next weeks Budget. A door tax! I hear you exposulate.What the hell is that? Hold on. I’ll explain A great deal of thought has gone into this. I’ll elucidate.
It’s no good just increasing taxes on a few regulars. It is subject to diminishing returns (See ch.2, Bentham The Principles of Economics). We need something that is new, easily levied and fair to rich and poor alike. By door I mean door space – every room has to have one. I know you smart Alec’s will take a screwdriver and remove the doors but you can’t fill up the spaces and get in and out of the room. Caught you there. We don’t need to be precise. There would be a scale according to the number of romms. Lets take the usual sort of 3 bedroomed house. We would assume 8 door spaces, a two bedroomed property 5 spaces and so on. Now here’s the egalitarian bit. How many doors does a mansion have? Well a small one might have 15-20, a large one, well goodness knows. Let the devil take the hindpost. Get the idea. Let’s assume £10 permonth for a small property and £40 for a large one: that is the tax wil range between £60 a year and £500 a year with the rich paying more. Get it? The number of homes is some 35 million (Well you try to do better.) This we can say is an informed guess. The type of forecast you would expect from the Treasury -let alone the OBR, giggle, giggle. This revolutionary new tax would raise £1,800 million a year. Good bye crisis. Move to one side, David, I’m coming in. The Treasury watchwords under my guidance are create, invent and pioneer. We Osborne’s didn’t get where we did in life by the wailing and nashing of teeth. At least not our teeth!
Filed under BBC, Coalition Government, Conservative Home, Economics, George Osborne, Guardian, Labour Blogs, Lib Dem blogs, Liberal Voice, OBR, Treasury
I have been very quiet in 2012. The reason: finishing a book. Now my freedom conincides with the happy beginning of a new year. The old year had a great deal to grip our interest. We were certainly not short of copy or headline. Some of these, frankly speaking were both silly and ephemeral with hysteria on all sides of the political spectrum. However, at this stage of the electoral cycle it has not mattered more than fig or two. This year is different. As I hate right wing rhetoric, and distrust Tory attempts to divide British society, I struggle to be fairminded. You shall be the judge.
I was wrong in believing that the Coaltion would collapse suddenly and violently under the pressure of its own contradictions. When times are bad people prefer to be hung together at the latest possible time. What both the Tories and Lib Dems have succeeded in doing is to speak both ways with one message to the electorate and the other to their own members. Of course members do not like this and engage in a disquieting chorus of their own. However, commonsense suggests that the reckoning be pushed off to the future.
The Lib Dems are better placed than I believed likely. Electoral support has levelled out at about 10 percent and in local elections in the south they have benefitted from Labour votes in areas where Labour is not likely to win. The converse is that in the Midlands and the North the party is steadily being eliminated. I do not believe the party can improve on this poll rating. The Tories would be mad to allow a leaders television debate in 2015 (not least because UKIP might well be able to claim participation). So no bounce there. If the Lib Dems can continue to project a progressive image they are likely to avoid abject humiliation.
The Tories still have a chance of winning (defined as a majority or a Lib Dem coalition). However, the odds are lenghtening. Can the party succeed in squaring the circle? Can a right wing posture and radical sounding speeches carry the right wing with the leadership for two whole years. There are three daunting policy difficulties: the economy, Europe, and reform of the welfare system and none is wholly in their control. I doubt very much whether the deficit will come down, Europe will not oblige a right-wing agenda and it is an open question whether it is possible to reform the welfare system in the midst of the longest recession in modern economic history.
If we were describing a football match we would say that Labour has a comfortable lead at half-time. I doubt whether the pundits are right in thinking Labour must do more than that to stay ahead. They are lucky, lucky, lucky. Events, dear boy, are on their side. No need for handbags at half time. Keep control of the ball, keep pressing, concentrate and pray for continued divine intervention.
Filed under Benefits, Cameron, Coalition Government, Conservative Home, Deficit, Economics, Ed Balls, Ed Milliband, Europe, General Election 2015, Labour Blogs, Labour leadership, Labour Party, Lib Dems, Liberal Vision, Politics, Universal benefits
Elections are won on economics: its the economy stupid. Our numbers are bad but they will become worse. If the Eurozone collapsess they will be disastrous. But party alleigances are static. Hello, out there is any one listening. The reasons for static polls are well-known: mcu blame is attached to Labour’s inheritance of deby and the, seconly, the electorate are dogmatically fair-minded – they give credit for trying. The Coalition is trying – but in more than one meaning of the word. So it is a long and hard road for Labour toi convince the electorate that they could do better.
What will change things are events. Anyone looking back in 2011 knows how difficult it is to predict them. If they are external events there is a breathless pause while the country rallies round. What woul be the public reaction to a forced opening of the Straits of Hormouz if petrol prices doubled. How would the public react to yet another war? Would it really come to that? It might. Would things look bad for the Coalition if unemployment topped three million. Mrs Thatcher recovered from that but then she needed a successful invasion of the Falklands.
Sometimes Government’s implode. What would make the Coalition implode. European policy might if Cameron was foolhardy. Surely he won’t be tempted but you never know. Perhaps not. The Coalition might split. Not much chance of that. It is in the Lib Dem interest to soldier on rather than than be decimated by the electorate.
Once I would have been bold and would make a prediction. Should we settle for a quiet life with more of what we have got. I hope not. Perhaps if I predict it we shall get something more exhilarating. OK nothing will happen in 2012.
Filed under BBC, Cabinet, Cameron, Coalition Government, Deficit, Economics, Ed Balls, Europe, George Osborne, IFS, Labour Blogs, Labour Goverment, Lib Dems, Nick Clegg, OBR, Politics, Treasury, Unemployment
According to the well-repected bog Conservative Home, the Government is in a state of confusion. Cameron is determined to push through a major reform programmed fueled by Conservative ideology; small government, tax cuts (eventually); constitutional reform (reluctantly), educational reform (expensively), benefit reform (work if you can or else); self-help (Queen Victoria’s self help maunual has been lost), and neo-colonial glory (no one has told Assad and Ghadaffi). What is very clear, as the Archbishop of Canterbury has enunciated, no one voted for Coalition policiues. In the jargon there is no electoral mandate. For the moment the government is cemented together by the fear of electoral wrath: it is better to be hung together than singly.
Every shrewd observor knows that these issues taken separately will not sink the Coalition. The only issue that will do that is the state of the economy. We must wait for July for the GDP figures for the second quarter. If these are bad the game may be up. What would be bad? Zero growth would be bad because it would signal that there has been no growth for the nine months in which the effect of the Coalition’s economic policies has been experienced. Slightly higher growth with a projection for the year as a whole of 1 percent to end 31 March, 2012 would be bad because the public sector deficit would be at unacceptable levels. If either of these economic prognostications becomes true there the very real consequential result that the Governmen’t legislative programme would have ground to a halt and the Coalition itself in its present form will collapse.
It may be that it is not only Arab countries and Greece that will have become ungovernable. I sense a gathering storm. Populations in many countries will arrive at the conclusion that politicians are not to be trusted and our political systems may colla[se. If citizens do not trust the system to safeguard ther basic interests they will seek people-power alternatives: they are already doing so in Libya and Syria. There is something intoxicating about nightly tv screens full of demonstrasing crowds with banners and music. Why not us and why not now?
I suspect that our own governemnt is frightened. If the streets fill up with pensioners and trade unionists, if it goes on through the summer, if one policy initiative after another grounds to a halt, what is there to do? What is certain is that the disease of protest and rejection of authority knows no country boundaries. I have made fun of the Big Society but I do recognise that it has some virtues. If you can state, and if it is true, that we are responsible now and not the government, might the dilemma of electoral madate be solved. The Coalition could say, ‘You (we) are the masters now. Don’t blame us blame yourself (or is it me that needs saving)?
Filed under BBC, Cabinet, Cameron, Coalition Government, Colonialism, Conservative Home, Deficit, Economics, Ed Balls, Europe, Greece, House of Lords, Labour Blogs, Lib Dem blogs, Liberal Voice, Libya, Middle East, OBR, Politics, Spending Review, Syria, Universal benefits, Yemen
Blair tells us, that is the British public, that we need a better plan for North Africa and the Middle East. What does he mean? If he means what I think he means a better plan is the last thing Britain needs. A little clarification will help. Who are ‘WE’. It appears that NATO, the European Union and the USA are ‘WE’. or to be brief the Western World. And what do we need a plan for? What is it to do for us? The purpose of the Plan is to assist Arab states become more like us. Particularly those who possess oil and mineral resources but to be fair all states within that geographic area. In our view all democracies will repect universal rights fair representation, equality and freedom under the law and all of them wish to attract more investment, grow and attract investment and develop commerce to and from the West. What should we do? We should intervene to help these changes take place and use diplomatic and financial means and armed force to help bring these changes about.
President Obama approves these objectives but despairs of a lack of willingness of NATO countries to pay the price for the extra spending on defence such a policy requires – including both France and the United Kingdom. There is, apparently, no political will. Friends Cameron and Hague have the will but not the money and each day that passes limits our armed capabilty. Imagine a conversation at the Foreign Office.
Secretary of State can we have you direction, please. Here is a list of countries we are determined to assist to democratic status. They all require a UN resolution. What do we do? What do we do, you say. We act, this Goverment acts. Give me the Calendar. Not that one, 2011 you ass. Let’s see. We need to allow a week between resolutions. Let’s do it aphabeticallyby week. 1.Bahrein 2. Gulf states(?) (need to be more precise here) Israel/Palestine (a tall order this) 3. Lebanon (good thinking), 4. Saudi Arabia, (you’re joking(? ) , 5. Syria (a brutal race, we need armed force here, get the Turkish Premier on the phone. What’s that! A deal on Cyprus needed? Have we not done one of those? Get Greece on skype. 6. Yemen ? (Good God 500,000 men could get lost in the desert. I exagerate. But you know what I mean.) What does Obama think? More defence expenditure and quickly. Something about lendlease, if it would be helpful. So we have reached a decision point. I’m strong on decisions you know. Look I can’t think clearly now. Get Liam in the office on Monday. Hold on. Here is one of my inspired thoughts. National Service! Get the unemployed youth off the streets, lower the unemployment rates at a stroke, re-issue some of those Lee Enfield’s -and off we go. Hey, ho the boys. Let Liam know ahead of the meeting, there’s a good chap.
Filed under Arab League, Bahrein, BBC, Cabinet, Cameron, Coalition Government, Colonialism, Economics, Ed Balls, France, George Osborne, Ghadaffi, Gulf States, Israel, Italy, Labour Blogs, Liam Fox, Lib Dem blogs, Liberal Voice, Libya, Middle East, National Service, NATO, Nick Clegg, Obama, OBR, Politics, Sarkozy, Syria, Turkey, Wlliam Hague, Yemen
There used to be a day when the British economy was not run to please bankers or technocrats in international bodies. Alas, they are passed. However, it is worth asking when you read a forecast, in whose interest is it published? The IMF believes that it is important for its members to reduce public indebtedness and makes it a public objective regardless of the beggering of any nation’s citizens until this goal of public policy is realised. Naturally it is supportive of the budget deficit programme of the Coalition. The IMF addressed the issue of a Plan B. You will be pleased to know that if growth remains low the IMF would support monetary easing, keeping interest rates low and putting a brake on cuts (without anyone noticing it). In this way the deficit would not come down quickly in the first two years but would come down faster in subsequent years.
This revelation of the existence of Plan B is hopeful but not reassuring. If growth is slow, the main body of public expenditure cuts is realised , and assuming all other parameters are stable (other than unemployment) the deficit will not come down. The credibilty of the Government in the markets, which Boy George goes on about, will be lost. If then the Government persists it will be confronted with a mountain to climb in years 3 and 4 when credibility is lost and the deficit stubbornly high. If then Georgie presses on growth will remain low throughout the five years, So what then Grannie do we do next?
Well, dear, says Grannie, it might not be as bad as that. That’s what they all say, says I. What is the use of saying that when the flood waters have reached the bedroom sill? Shouldn’t we have been alerted before this time to leave the house? Hindsight, says Grannie, it is an easy art.
There are other dangers. The IMF talks bravely about global growth rates remaining high, surviving high commodity prices and resuming stable growth and low inflation. But then he would, wouldn’t he? But we know that all recessions and recoveries are unique. Perhaps this depression will last for ten years or more. And what shall we do then Granny, says I. Don’t worry dear, says she, I’ve put a little money aside to cope with the odd crisis. Well Granny, that’s the problem. We have been using it. Using it? No one told me that. The problem Grannie is that debts continue to rise. Good gracious, what did you say about the bedroom sill. Take me there. There’s time to jump. A splash is heard, off stage. Granny, you can’t swim! These words came too late. Poor Granny, poor me -oh, and by the way, poor you.
Filed under BBC, Budget 2011, Cabinet, Cameron, Coalition Government, David Smith, Deficit, Economics, Ed Balls, George Osborne, IFS, IMF, Lib Dem blogs, Liberal Voice, New Stateman, OBR, Politics, Rising prices, Treasury
President Obama is an eloquent exponent of the American Dream and gave we European’s a version of this on his visit to Europe last week. Dreams are important to us all but they rarely survive long in the harsh glare of light and to seek to fulfill them can lead to disaster. In the current version the extension of universal rights to democracy, representative government , equality, and the rule of law should become a foreign policy objective for the West. Its immediate focus is on extending democracy to Africa and the Middle East. In the pursuit of this objective all means, economic, financial and the use of force as a last resort are in order. It has become unanswerable in this docrine that democracy is best not only for human happiness but for the trade and economic development on which the economic stability of Western countries is so dependant.
The Obama doctrine finds an enthusiastic audience in Britain and the European Union. Scarce resources are being provided for the funding of aid and active assistance in nation building and the UN itself is enthusiastic about nation building wherever its sway can be achieved. No one is more enthusiastic than David Cameron and, judging from his recent public appearances and pronouncements, Ed Milliband.
I hear raised voices at this point. What is wrong about that then? Hold on, my revolutionary friends, say I. Rember the Mensheviks. Do you have a monopoly of vision and prophecy? Can you at this moment of history tell us what will be the outcome of the Arab Spring? Do you expect reason to prevail in Israeli- Palestinian relations? Can you predict the political develpment of Iran? What will be the nature of successor regimes in the Arab world? Is there more to this world than is dreamt of in your philosophy? Much derided as it is it is now, there is logic in the foreign policy objective of seeking stability in the world and not adding to political turbulence. Perhaps we should be a friend in need to emerging nations and not a friend in your face.
Can I point out to you dear British reader that you live in a country constantly at war in ‘far-away countries’ for the ideals that we share with President Obama. More so than any European country we have been alongside our American friends in worthy (but impractible?) causes around the world. Let’s have more of that then, I hear you say. We Brits have an appetite for it. Does not the call to arms and economic and financial sanctions on recalcitrant states weary you a little? Are we to have a further two decades of armed struggle with all the division among ourselves this brings?
Well, yes, if need be may be your reply BUT I doubt it. I suggest to you that it is wholly absurd to commit ourselves to the Obama docrine at a time of great austerity, economic stagnation and public expenditure cuts, not least to the armed forces; that to be ‘playing soldiers in Libya’ and perhaps elsewhere is an unsupportable nonsense. For the cost of an intervention in Libya, soon to run beyond a billion pounds and ever upwards we could, for example, ensure the financial viability of care services fior the elderly, boost low cost housing or extend aid to the unemployed. No one would receive a tin medal for it but it could do good. The best way to build respect in the world is to earn it ourselves for our love and attention to our nearest and dearest.
Filed under Afghanistan, Bahrein, Cabinet, Cameron, Civil liberties, Coalition Government, Colonialism, Economics, Ed Milliband, Egypt, Europe, Ghadaffi, Gulf States, Iraq, Labour leadership, Lenin, Lib Dem blogs, Libya, Obama, Politics, RAF, Revolution, Russia, Syria, Treasury, Unemployment, United Nations, Wlliam Hague, Yemen
The GDP figures for Qtr.1 2o11 tell us what we need to know on the vexed and central economic and political dilemma of how to cut the public deficit and grow our way to economic success. No economic growth for six months is bad news. I have commented in previous posts on the optimism of OBR forecasts and that they are consistently behind the curve – and wrong. They were wrong in their belief that the last quarter 2010 figures would be adjusted upwards and that this current quarter would come in at 0.8 percent growth, They are surely wrong in their forecast for 2011.
Does it matter? Yes, it does. Lower growth means higher unemployment and public debt and lowers confidence. If the Coalition intention remains ‘fixed as the Northern star’ another round of expenditure cuts, higher taxes and a spiral downward to economic defeat and long term recession is on the cards.
To echo Lenin, what do we do now? Something revolutionary? To enter into the spirit of things, bring the Coalition to a halt. In eight days time throughout Britain the electorate have an opportunity to inflict a mortal wound by voting against the Coalition parties, and then there is the time honoured tradition of a motion of no confidence in the Commons (Dream on the Constitution has been fixed. It’s not so simple as you might think). Alas the times may be revolutionary but we are not. ‘No Bolsheviks’ here is the sign outside the House of Commons. We are all Mensheviks now Well we might start by winning the argument. When Ed Balls advanced the proposition that even the Labour objective of halving the deficit in four years might not be achievable without economic depression he was widely derided. What we have seen is that the squeeze on expenditure started by Labour and intensified by the Coalition has already had a dramatic effect on the British economy. The Coalition tax increases and cuts have only just started. It is asking a lot of business and consumers to reverse that trend when personal incomes are squeezed and small and medium companies denied loan capital.
It may not be in Labour’s power to change things for the better BUT the much derided and humiliated Lib Dems could do it if they had the will. It is difficult to determine how long the tragedy needs to unroll before they pluck up the courage to say with one (or almost one) voice that enough is enough. I hate to write this but history does help. Look at what happened to the Mensheviks and subsequently to a whole country and a substantial chunk of the European map? If you think that I exagerate you may change your mind as events unfold. I will not write, I told you so.
Filed under BBC, Budget 2011, Cabinet, Cameron, Coalition Government, Commons, Deficit, Economics, Ed Balls, George Osborne, IFS, Nick Clegg, OBR, Politics, Vince Cable