Tax Cuts for the Rich ... and Double Dip Recession for Everyone Else

George Osborne, the 'smug mugger', in his recent budget stole from the nation's pensioners and gave the proceeds of this raid to the rich ... by cutting the top rate of tax for himself and his multi-millionaire friends.

His budget also effectively started an omni-shambles, which other ministers have also since 'built upon' (e.g. Frances Maude and the self-generated petrol crisis, Theresa May and her shambolic failure in the deportation of Abu Qatada, Jeremy Hunt and his relationship with the Murdoch's) ... and are still building upon!

And now we see the true outcome from these immoral charlatans ... a double-dip recession, with no prospect for a prosperous future in sight (except for the ultra-rich - according to recent surveys).

THE ONS has confirmed the economy contracted again in the last quarter, by 0.2%, despite a late boost to retail sales (due to a exceptionally warm month in March), and (if conspiracy theories are to be believed) a last minute attempt by Ministers to 'manufacture' growth by creating a self-generated petrol crisis to boost sales of petrol in the final days counted in the first quarter results (nb once the final day had passed, they toned down their message immediately).

Simple estimates (see below) suggest that the increase in petrol sales would have boosted GDP by around 0.1% ... enough of an amount, the Government had hoped, would have just have prevented double-dip recession headlines being reported.

Number of cars - 31 million

% People filled up - 30%

% Tank filled up - 40%

Petrol Tank - 65 litres

Petrol price - £1.39

Petrol revenue raised - £336,102,000

GDP - £1,400,000,000,000

GDP/Quarter - £350,000,000,000

Increase in GDP due to petrol crisis +0.1%

And the real concern for these people now is that their estimates proved to be nowhere near either ... despite the temporary 2% boost in retail sales in March!

And will the Government reverse their strategy, e.g. give back the money to the pensioners and put taxes back to where they were for the rich, or will these 'arrogant posh boys', who 'show no remorse, no contrition, and no passion to want to understand the lives of others', plough on regardless ... 

IMHO Nadine Dorries has already answered this, without anyone else having to try!

Irradicating the "Economics of Exploitation"

A great blog from the Renegade Economist ... which makes the case for a new economics ...

"While unearned wealth is both a symptom and a driver of economic injustice, the objective of transformative social change is not to soak the rich, but to create an environment in which economic opportunities are more widely distributed among the population ...

The recent riots and looting in London and other English cities are symptomatic of deep economic dysfunction. The social fabric is straining under the weight of an economics unable to offer any possibility of a different, better future.  The social contract is under greater pressure than at any time since the 1930s. But there is a crucial difference between the world then and the world today: a transformation in our collective moral aspirations that offers a spark of hope for the future, the kind of spark that in the dark days of the mid-20th century it took a world war, and the horrors of the holocaust, to ignite.

A just economy will not emerge from the tired debate between left and right, or endless arguments over whether free markets or state control of the economy deliver the best outcome. Justice requires that we transcend these stale and failed dialectics. Neither the contemporary vision of a free-market economy, nor a state-socialist or Keynes-inspired social democratic model can deliver a just economy; each is too riven by conflicts and compromises to get anywhere close.

Nothing short of fundamental reforms to the three pivotal institutions of the modern economy will do. Without substantial changes to the tax system; the financial system and the monetary system, a just economy will remain beyond reach.

Foundations of a New Social Contract

While a smaller, less expensive, state is perfectly achievable once everyone is permitted a viable stake in the economy, the state will still have an important function for which it will need to raise revenue through taxation. But it should tax the use of land and natural resources, things that are limited supply, rather than wages and profits. Taxing the output of economic activity discourages entrepreneurship and penalises hard work.

Financial markets must be reformed so that their sole purpose becomes the channelling of investment capital to the real, productive economy; activities that create the goods, services and experiences that people need to live decent lives, and the extras that promise the possibility of fulfilment and happiness.

Alongside these changes we need a new system of money creation; one that ensures stability in the money supply and that sufficient credit is available to fund every viable new business start up, or sustainable plan for expansion. Money should no longer be created as debt, as this places an unnecessary and counterproductive burden on both business and the economy as a whole.

Economic Renaissance for the Majority

These measures would curtail the minority enjoyment of unearned wealth and bring the benefits of a dynamic, opportunity-rich economy within reach of many more people. It’s perhaps not easy to imagine such a future economy, and it’s probably impossible to model the precise impact of these changes in terms that conventional economics demands, but such modelling is not necessary. These reforms would have to be implemented gradually so they can be fine-tuned as their impact becomes evident. And a great deal more research is required, especially into the impact that changes in each of these spheres will have on the other two: the mechanisms of the tax, financial and monetary systems are complex and interdependent.

If such changes are to be successfully implemented, they will have to be coordinated internationally. This may seem an impossible goal, but it’s not so very different in scale or complexity to the changes unleashed by the process of economic globalisation over the last thirty or so years; it’s just better motivated.

Over to You…

But none of this can happen without the commitment of a critical mass of people. Where that tipping point lies is impossible to know but it is out there. What we need now is the most successful marketing campaign in history. Central to that campaign should be the message that transformative change to economic structures and institutions is possible, and if such change were achieved, the life experience of the vast majority of human beings would be dramatically improved.

Next week, in the final article in this series, I shall look at the prospects for this campaign, and at the importance of established democratic structures in the process of revolutionary economic change"

"Nothing in the world... not all the armies... is as powerful as an idea whose time has come." Victor Hugo 

... This is a great article. IMHO the current form of 'economics' is a mixture of Poweromics (the 'economics' of exploitation, self interest and greed) and little will change until Ignoromics reduces (as suggested in the last paragraph ... 'over to you').

For instance over the last few days the banks have made a conserted and co-ordinated effort (with the CBI - the "Voice of Banks" - not the "Voice of Business" - as they are most bankrolled by the Banks) to strike fear in the public and threaten the Government not to split retail banking away from investment banking (nb which is being brought in to stop taxpayers having to bailout reckless bankers again). Creating fear is a common tactic used by those in Power (remember the Iraq war and those 'weapons of mass destruction'?) ... and the banks are using the 'destruction of the economy' as their 'weapon of choice' (even though it is they that destroyed the economy in the first place)! 

The Liberal Democrats say the want to press ahead with reform, but David Cameron and George Osborne are taking the opportunity (i.e. comments about the threats to the economy) to say they would like to 'park the reforms in the long grass' until the economy is stronger (anything to do with the 'backhanders', lobbying and their ultra-rich friends perhaps?) Just have a guess where these guys are likely to go after they leave Politics ... and I am sure it will be, just like Tony Blair before them, to lucrative jobs in the City!

The problem with the current economics is that it is not just the financial system that is corrupt, but it is all the other essential pillars of society too ... such as Government, the Media (remember Murdoch and the News of the World) and the Judiciary.

The move away from taxing jobs/profit to taxing unearned income/wealth (e.g. land values, gambling, financial transactions etc) is IMHO a 'no brainer' ... as is taxing the extraction of limited natural resources ... and making illegal the electronic counterfeiting of money (which the legal system allows the banks to do every day - i.e. creating money out of thin air, loaning it out and charging interest on it!) as well as the reckless and deliberate destabilising activities of banks (e.g. shorting, and the creation of 'toxic products' such as credit default swaps).

Current economics is unfortunately proving itself to be more about the movement of money/resources to wherever Governments allow them to exploit/profit from people the most ... a form of 'economics' contrary to 'growth' and 'well-being' ... and more about the "Economics of Exploitation". 

More arrests and resignations ... as 'leaders' continue to be exposed

As the scandal continues to escalate, and 'terriers' such as Tom Watson and Chris Bryant gain the upper hand in exposing the truth and bringing those involved to justice, the 'leaders' in this murky 'underworld' are clearly starting to panic (as they are no longer in control).

Over the course of the weekend, Rebekah Brooks (CEO News International) resigned (despite Rupert Murdoch flying in to look after her) and has been arrested on charges of corruption and phone hacking.

Likewise, Sir Mark Stephenson, the top police officer in the country has now resigned because of the hiring of Neil Wallis (Andy Coulson's deputy editor at the News of the World) as a communications adviser to the Metropolitan Police at a time when phone hacking allegations were being reviewed. Following his arrival, the police downplayed claims of phone hacking and refused to reopen the case (e.g. despite the evidence they had clearly saying the opposite)! Wallis, like Andy Coulson himself, has now been arrested on suspicion of conspiring to intercept communications.

Some are speculating that the arrest of Rebekah Brooks this Sunday was deliberately brought forward to stop any further (and more damaging) revelations being made public (e.g. about the relationships/collusion between the media, police and politicians), as Brooks is due to face tough questions from a cross-party Committee of MP's on Tuesday.

This is not something that Cameron, the Murdoch's or the police officers likely to be implicated want to see, but the net is closing in on all of them.


James and Rupert Murdoch have been summoned to attend the Committee of MP's and their future roles in BSkyB and News Corporation are now also being questioned (by fellow directors and shareholders) ... and with Brooks no longer acting as a 'firebreak' they both look increasingly at risk!

More resignations are likely from the Metropolitan Police too (e.g. John Yates) and David Cameron also looks increasingly vulnerable too ... as he, unlike Sir Mark Stephenson, has steadfastly refused to take responsibility or apologise for his poor judgement in bringing Coulson into Number 10 (despite all the warnings he received). 

Cameron is desperately trying to steer the scandal away from him and towards the issues associated with the media and police, to distract attention away from the relationship between himself and News International ... but the evidence is growing by the day. Cameron's diary shows he met News International executives on a regular basis (c.f. executives from all other media groups - including the BBC) and in his resignation speech the Metropolitan Police Commissioner alluded to the difficulties in raising issues with regard to News of the World with the Prime Minister when Andy Coulson was in the position he was!

Cameron has consistently failed to explain in detail the precise circumstances in which he took on Coulson, as well as any discussions held around the time of his subsequent resignation. Cameron, like the Murdoch's, has no 'firebreak' either and he has stated the decision to recruit Coulson was 'his and his alone' ... hence his position is starting to look increasingly vulnerable too.

Will Cameron survive ... IMHO it's too early to say at the moment ... but we do know this scandal is not going to go away and has got a long way to go ... and those who have abused their power/trust are struggling to keep a lid on it!

Yvette Cooper, the shadow home secretary, said: “It is striking that Sir Paul has taken responsibility and answered questions about the appointment of the deputy editor of the News of the World whereas the Prime Minister still refuses to recognise his misjudgment and answer questions on the appointment of the editor of the News of the World at the time of the initial phone hacking investigation. People will wonder at why different rules apply for the Prime Minister and the Met, especially when as Sir Paul said himself, unlike Andy Coulson, Neil Wallis had not been forced to resign from the News of the World.”

Politicians round on Murdoch ... and force him to drop his BSkyB bid

Cameron clings on ... by announcing more details of the judicial inquiry being planned into the scandals involving the media and police ... and by deciding to support a 'cross-party' coalition debate (though did not himself attend!) ... responding to the scandals embroiling News Corporation and pressurising News Corporation to withdraw his bid for BSkyB - which Murdoch has now done!*  

To save his own skin Cameron has had to jettison his ties to Murdoch and finally 'let Coulson go', saying ... 'if he lied to not only to himself, but select committees and judges, then he should be prosecuted'. Cameron will I hope that attention gradually moves away from the questioning of his judgement on hiring Coulson, but is probably quietly worried about what Coulson himself might say now (e.g. Coulson on being arrested commented he "has a lot he would like to say, but currently can't").

'People power', building up as a result of growing concern about the misuse of power and the growing influence of the internet (e.g. social networks), is starting to force politicians to listen, and forcing corporations to think carefully about any negative impact on their brands (which is why they were quick to withdraw their advertising from News of the World).

Cameron has reduced the proposed inquiries down to one, and some see this as a clever way of taking some of the 'heat' away from the regulation/ownership of the press and away from how politicians work together/conspire with the Media ... however a number of groups, including the 'Hacked-Off' campaign and the family of Milly Dowler, are putting pressure on the Government to ensure the inquiry is both wide-ranging and thorough (e.g. it covers the behaviour of Politicians and Government in relation to the media). After talking to all party leaders, they said that they are reassured that voice of the People is starting to be heard ... and that they will continue to challenge the actions of groups such as the Press, Police and Politicians.

Let's see ... this has a long way to go ... 

* Is Rupert Murdoch trying to save News Corporation and/or his son James, currently Chairman of News International and Non-Executive Chairman of BSkyB ... as people are starting to ask if News Corporation is 'fit and proper' to own the existing 39% of BSkyB it currently owns too! ... and US senators are also starting to ask for enquiries into the practices of News Corporation in the US!

More self interest and greed ... from the Public this time!

As the scandals surrounding the News of the World continue to grow, and the nation's anger at the lack of adherence to any moral/ethical standards and codes becomes visible to all, the nation may have just inadvertently shown Cameron et al that they might be able to 'get off the hook' ... 

So how have they done this ... well by rushing out to buy 5 million copies of its final edition for a start! 

Rather than boycotting the paper, their own personal self-interest and greed has stepped to the fore ... with printing presses having to work overtime to print double the normal number of newspapers ... 

Greedy people are hoping to 'cash in on it' as it becomes a collectors item in the future ... and Cameron et al will be pleased to see this as it gives him a 'rock' to hide behind (i.e. everyone else is acting in their own self-interest)! 

Murdoch will also take heart from this greed and the lack of a boycott ... and take comfort from the fact that the vast majority of advertisers have only sought to switch their advertising to one of his other papers.

If people really want to show their anger then they needed to boycott all News International Papers (e.g. Sun, The Times and Sunday Times) for good, and boycott the advertisers who fund his papers! 

Unfortunately, in the circles of power, 'Money Talks' and it is only by the public boycotting them that the message will be listened to, and those currently in power (and misusing power) stopped from doing so.

This is where Cameron and Murdoch are watching closely now ... as unfortunately within the UK, whether in business or politics, it is still money that talks! 

And to all those rushing out to buy the last edition of "News of the World" ... all moral, decent and honorable people should be saying ... "shame on you - as you have shown yourselves to be living in the same sewer as the people you look to condemn" and "by going out and buying it you are probably allowing the morally corrupt to 'get off the hook' and carry on doing it again"!

Cameron - representing the People ... or doing Murdoch's bidding?

Despite coming out 'fighting' ... Cameron is struggling to shrug off his close ties/relationship with the scandals associated Coulson, the Murdoch Empire and phone hacking at the 'News of the World' ... 

His decision, despite concerns/advice raised by many people, to employ Coulson at the heart of Government creates serious question marks around his personal judgement ... and it looks like it could be sufficient to see him fall (and he knows it) ...! 

Coulson, the News of the World Editor during the scandals, was yesterday arrested by police ... and Cameron is being deliberately vague about detailed questions/checks he made prior to employing him ... and/or any specific concerns/advice he received from others. He is instead preferring to deflect questions away by saying "he had decided to give Coulson a 'second chance', that it was his decision, and his decision alone ... and that people will judge him on his decisions"! 

Given his concern about the situation ... he is clearly sheltering others from the decision to employ Coulson, to avoid other colleagues also being brought into the fray (n.b. George Osborne has been implicated too) and to avoid the crisis engulfing the whole Government and his entire Party. Unlike Rebekah Brooks, he is clearly prepared to fall on his sword ... but is waiting to see how the whole scandal develops!

Well it does not look good for him at the moment ... as it becomes clear that Cameron, in a speech only 10 days ago, was clearly doing Murdoch's bidding! With Murdoch's ruthless desire to takeover BSkyB at risk of being blocked by Ofcom*, Cameron decided to go on the offensive with a public and unexpected attack on Ofcom ... making clear his desire to get rid of the quango (i.e. he threatened them)! 

Cameron has been helping Murdoch in his takeover bid prior to doing this too. For instance Cameron took the opportunity to place a well-known ally/backer of Murdoch (Jeremy Hunt) in charge of deciding whether or not to refer Murdoch's proposed takeover to the Competition Commission (taking the decision away from the Business Secretary, who normally takes such decisions) ... and not surprisingly, after many 'discussions/ assurances' from Murdoch, Hunt said he was 'minded to pass the bid'! 

However, given recent events it's clear that there is 'politically' no way that Cameron/Hunt will get away with this right now (or at least anytime soon), so they have decided to park it in the long grass (on the grounds of having to go through 100,000's submissions they have received about the takeover)!

* Ofcom can block the takeover if they believe News International is not a 'fit and proper' organisation* to own a UK broadcaster ... and with News International now accused of deleting millions of emails, rather than co-operating fully with the Police (as they have repeated stated in public), they clearly fail this 'test'. 

** News International executives could also be facing charges of corruption in the US too, where such offences are dealt with extremely seriously (e.g. executives, whether they were knowing or not, can be completely stripped of all their assets). The Murdoch's are really panicking now ... hence Rupert Murdoch's decision to come over to the UK to try to 'take control' ... and to see who else they need to bribe/threaten!

"News of the World" chopped ... but will this 'sacrificial lamb' succeed?

Well that was quick ... James Murdoch, son of Rupert Murdoch and chairman of News International, has just announced that the last publication of the "News of the World" will take place on Sunday. 

With pressure mounting on the Murdoch empire (e.g. key advertisers pulling out in their droves) and Government, they have clearly concluded that all the 'spin in the world' will not get them out of this hole ... hence the news that the "News of the World" is to become a 'sacrificial lamb'.

IMHO this decision is nothing whatsoever to do with ensuring a level of ethical standards in the media ... but a cold/hard business decision to try to stop the BSkyB bid from collapsing (which is something Murdoch really wants)!

Hence Murdoch's decision should not change anything ... and those in Power (Government, Media, Police), and abusing their power, need to be flushed out and locked up (wherever and whenever corruption, collusion and criminality can be proven). 

The investigations should press ahead quickly, urged on by (i.e. not deflected by) Murdoch's decision today ... News Corporation are clearly not 'fit and proper' to take over the UK broadcaster BSkyB. The House of Commons needs to keep its resolve, and strike while the iron's hot ... it must not be deflected by Murdoch's 'little game'  ... and it should impose tighter regulations on the media too (as self regulation has clearly not worked)!

However, watch the Politicians (e.g. Cameron, Hunt et al) try to turn things subtly around now ... now that the necessary 'sacrificial lamb' has been put on the table! 

How predictable they are ... how they collude together in order to maintain their positions of power ... and how gullible they think people are! 

Let's see if they're right ... and if their cunning plan works ...

Collusion and corruption - between the Media, Police and Government ...

If anyone's in any doubt about the level of 'corruption', 'collusion' and 'misuse of power' in this country (e.g. bankers, politicians, media etc) ... then they need look no further than the 'circus' currently engulfing the media right now ...

Information, known by the Police for years, but 'quietly'/'corruptly' ignored, has now been raised that the 'News of World' has not only been illegally hacking phones of celebrities/politicians, but it has been paying corrupt Police Officers £10,000's for telephone numbers of crime victims (e.g. Milly Dowler), terrorist victims/survivors (e.g. 7/7) and war victims/relatives (e.g. Afghanistan, Iraq) too ... and then, just as shockingly, deleting messages/evidence so more messages could be left (so they could also hack new messages too).

Once the scandal broke there's been uproar ... and the media (News of the World and the rest of Rupert Murdoch's Empire), Police and Government are reeling trying to work out what to do ... and, unusually, they currently do not appear to have an answer! 

David Cameron, the Prime Minister, has himself close links with current events, given his previous appointment of ex 'News of the World' editor Andy Coulson as his Director of Communications (who now appears to have been complicit in such activities) and also given his close personal friendship with Rebekah Brooks (currently News International CEO and former editor of the News of the World) too.

Mr Cameron has been predictably careful with his words ... confirming only that there will be an inquiry once the police 'inquiries' have concluded. But others are pressing the Government further over this whole murky affair, urging for both a public and judicial review into the handling off this affair, to avoid any risk of the police 'investigating themselves', and to avoid any risk of any 'cover-up'. People, such as Chris Bryant MP, are also demanding a very careful selection of who leads any such review, given the vast number of police and judiciary involved in secretive groups (e.g. the masons) ... [which in itself uncovers yet more about the corrupt world we live in!] 

Given the illegal/unethical practices going on within the News of the World/News International, many (including OfCom) are once again challenging the Government over the proposed takeover of BSkyB by Rupert Murdoch's (owner of News Corporation, News International and News of the World). 

Rupert Murdoch controls a great deal of the media already, yet Jeremy Hunt, despite strong representations (over 100,000), still appears to be resisting referring the takeover to the Competition Commission. However OfCom are themselves could consider, particularly given recent events, blocking the takeover on grounds that News Corporation does not appear to be a "fit and proper" owner of a UK broadcaster.

Ministers are loathed to challenge Murdoch, due to the power he already wields (or more specifically the misuse of power he wields!), but a number of Politicians are now saying enough is enough ... and Politicians must stop colluding with the media and put a stop to this murky/corrupt practice. Chris Bryant told the House of Commons that the 'whole political system has failed'! 

I agree ... but do you think this will happen?  ... IMHO the spin doctors (NB David Cameron was an ex-PR man himself!) will find ways to 'buy time' ... time to see how things develop and time to see how they can 'spin their way out of this' ... in order to clear their name ... and to give their 'friend' Murdoch what wants!