The Banking and Strategy Initiative

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Praying for a Lib-Dem London? | Advantage zyaada

With UK elections up at the next corner, a lot of the world currency markets are riding the tube to figure out where to go and sadly the event is almost slipping thru unnoticed because of the great grecian tragedies being played out in Greece, China, California and even Chicago. The Tea party may not be a tragic epic but it is outscoring British elections in attention and we have a situation where the unknown, unwanted Lib Dems have shot up 10 points in the surveys after the third debate, yesterday. however, we got hold of some local blogs and rediscovered our old unliveable London in the throes of a last minute media upheaval ( I recommend and here is one of their most social personalities dribbling through ..

[Stephen Fry]

What Right Have I to Blog?

Should I even be writing this blog? In a free country under the new dispensation of social networking is my ‘influence’ so disproportionate that for me to be revealing my voting intentions (which I am not quite going to do, by the way) in some sense inimical to the democratic spirit? I have about a million and a half Twitter followers, most of them I should think of voting age. If I changed the mind of even 1% of them would I somehow be cheating?

There are arguments for and against my involvement at such a level. One argument is that columnists in newspapers who have absolutely no more legitimacy in terms of influence, education, knowledge, understanding or right to persuade and interfere than I have are attempting to do so every day and with far more vitriol, conviction and absolutism than I would ever dare to exhibit. Which will not stop them from having a go at me were I to presume to pop my head above the parapet and suggest a voting preference. The screams of “Labour Lovie!” or “Lib Dem Lovie!” would be heard from here to hell. ‘It’s all very well for a pampered celebrity to parade his so-called caring credentials …’ blah-di-blah-di-bleugh. In ideological wars of this nature the first casualties are consideration, mutual respect, sense, proportion and dignity. Fair enough, one must be tough I suppose, although I’d much rather not be.

Another argument to propel me to write may be that the very weight of Twitter followers and website traffic behind me ought to bring with it some sense of civic duty. Maybe, there is a chance at least, this election matters. I don’t question whether or not it matters to the candidates, of course it does, but whether it matters more than most historically, socially and individually to us, as Britons. If this election does matter then surely my ignoring it would put me in the position of one of those rather silly people who is content to jeer from the sidelines, ‘they’re all the same anyway’ and ‘it makes no difference’ – which believe me I understand, for we are all tempted to be one of those. ‘Lord, what fools these voters be,’ we say to ourselves, if we are the kind of pompous Shakespeare quoting arse that I am at any rate, ‘you won’t catch me committing myself or risking a vote, much better for me to rely on the acuity of my vision which sees through the lot of them.’ Believe me, I do understand how tempting that position is. But I think we all know, in the innermost chambers of our heart, that such a position is unworthy of us.

The nailing of my colours to the mast might just encourage some of you to vote. I really do not mind how you vote, but I think you should. The ‘I can’t make a difference’ assertion is neither true, nor impressive, nor amusing, nor worthy, nor dignified. It is lazy, cowardly and inane. In Australia and some other countries voting is compulsory. Maybe it should be here too. At the very least the poverty and inadequacy of my arguments or assertions may at least propel you to the voting booth to vote against everything I believe. That at least would be something.

A Lib Dem UK would be a catastrophe. But would it really be better if Labour and its atrocities in Taxes and Budget cuts come back? For an already flailing British economy, the answer is a resounding No and Labour must pay for years of public profligacy and misguided policy intentions. It would in fact be imperative however to get the Lib Dem phantom out of the way as a sole party in power or an “unsuitable” partner..Britain has to get to the right answer in the next few weeks and build on its bankrupt coffers with its currency power in International trade giving it one last chance.

Financial Facts

The Pound is currently supporting a $18B deficit falling since February 2010 currently back at $1.50 levels and 89 pence per Euro.

[Bloomberg March 15]

U.K. bonds lost investors 0.9 percent in the past year, compared with gains of 5.1 percent for German bunds and 1.4 percent for Treasuries, according to indexes developed by Bank of America Corp.’s Merrill Lynch unit. The bonds underperformed even as the Bank of England bought 200 billion pounds of securities, equivalent to 89 percent of this fiscal year’s planned sales.

London’s eventual budget was welcomed with headlined extras in Capital Gains and the populace digested 3 billion in NI additions for employer taxes and banks announced turnaround 4th quarters with good performances from Lloyds and Barclays . Lastly, there is a 3 billion pounds with European Investment Bank and a few million for university based start ups. However much water has passed since then and Britain’s own debt position remains precarious for Labour to moot a 25% GST/VAT regime and unforeseen cuts in spending. The shadow chancellor’s options however were unappealing and devoid of real choice, Tories also lack a clear agenda to get Britain back on the rails..that just means an early political demise for the British Political system is well and truly at hand.

NI is a brilliant way of ensuring social security but including other taxes creates a vast red sea between the actual income and that claimed in your pay letters. Wonder how one will tackle opponents of social security when it is such an ungainly footprint in the public domain?? Also GST/VAT regimes cannot hope to be fair exceeding 20%. The required redesign should be a simple one if one starts with a clean slate, but that is what any government in power will end up doing, esp in ECB receivership later.


This entry was posted on May 5, 2010 by in Financial Markets and tagged , , .


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