Capitalism - A flawed and corrupt system

Capitalism - where money is allowed in 'free markets' to flow in an unrestricted way ... and without any social/moral compass ... is flawed. In the hands of the greedy, corrupt and power-hungry, money is not used to help people, but to exploit them ... in pursuit of yet more money and power ... and over the last few decades these people have proved themselves to have no conscience or morals whatsoever.

Let's start with those who argue for 'free markets' all around the world. By arguing for this what they really mean is that they should be allowed to invest in whatever they want, whenever they want, wherever they want, and where they are most able to exploit the workforce/natural resources. If a country tries to defy them, and not allow their people to be exploited, then they will threaten them ... move their money elsewhere ... and force their communities/countries into ruin. 

Does this really happen? ... of course it does! And we see the consequences of this every day! It's why manufacturing moved to China, moving on to Vietnam ... and will eventually move to Africa (which is what China themselves are also starting to do). It's how corporations regularly threaten governments with moving their operations/jobs overseas, unless governments slash their tax bills and give them exactly what they want (e.g. Banks regularly threaten to move their centres of operation overseas to avoid taxes and any regulation restricting their immoral activities, and Vodafone were also recently let off £6bn in tax)!

Corrupt bankers, who created this global crisis, and forced governments to bail them out (using taxpayers money!) resulting in all the sovereign debt crises, are now using this bailout money in the "money markets" to force governments to take yet more bailouts (e.g. Eurozone crisis)! By wielding their power, they are forcing governments to slash public services and slash pay/conditions for the poor, in the form of "austerity programmes" (nb the UK Government is doing this whilst also slashing income tax for the ultra-rich and allowing executive/ bankers pay to soar)! 

The bankers have for decades created money out of thin air (legalized electronic counterfeiting!), lent it out at interest (money for nothing), and made 'debt slaves' of everyone. They have then been gambling this money on the 'money markets', with minimal regulation (and no 'gambling tax', despite every other form of gambling being heavily taxed!) ... where they personally take all the profits, and taxpayers take all of the risk and losses (nb this still hasn't changed)!

These are not 'free-markets', but 'corrupt markets', where the ultra-rich can openly exploit and devour the poor/hard-working. 'Free markets' would have allowed corrupt banks to fail ... they would not have handed them taxpayers money! The banks should pay the cost of 'insuring' themselves against failure, and be taxed accordingly (nb which would naturally be far greater than any traditional gambling tax)! However the Government are not doing this (nb a financial transaction tax is being vehemently opposed in the UK), as they are 'in the pockets' of the bankers and the ultra-rich ... and even if they weren't ... they would be continually threatened by them (e.g. with moving their operations overseas, moving their money, and/or forcing 'a run' on their currency/country).

If anyone has any doubt about the corrupt way in which capitalism is working ... one only needs to look at recent actions of the Bank of England and George Osborne. In the past they pumped an additional $325bn into the banks, via their so called 'Quantatitive Easing' programme, in the hope it would feed through to businesses and the wider economy ... but the banks lent very little of this out to actual businesses ... preferring to gamble with it and increase their bonuses again!

Because of this Osborne and King have just recently announced a scheme to give them more money ... but this time they are trying to position it as money they can only use to lend to real businesses! Says it all really! One Government minister also admitted this was needed because bankers were 'investing' elsewhere to get better 'returns' (i.e. in 'money for nothing' scams ... e.g. insurance, counterfeiting, gambling with other people's money)!

Moral businesses desperately trying to add value, help others and create jobs have been (and are still being) deliberately starved of money/resources ... by corrupt bankers who couldn't care a jot and are only interested in swelling their own immoral/grotesque fortunes. Adding real value to people's lives takes time, effort and resources/people, all an anathema to bankers ... as they cannot compete with legalized 'money for nothing' schemes ... 

'Free-market capitalism' effectively promotes 'money for nothing' schemes (e.g. 'financial engineering') and results in the systematic destruction of real economies/communities ... it blights communities ... and survives only because of ignorance, apathy and the centralization/control of power and capital (the 'means of production').

Moral businesses create value, corrupt bankers/financiers systematically leech from this and destroy value, and should be stopped from doing so ... We need state run community banking, investing in real business, and out of the hands of immoral bankers (gamblers), where money is invested by the people for the people ... and guess what ... we actually already effectively 'own' two banks as a result of recent bailouts ... so why don't we get on with it and put these to good use ... by putting capable, honorable and trustworthy community stakeholders on boards ... n.b. and we do not want Richard Branson or Philip Green types ... who preach to everyone, but pay no tax themselves)!

Corrupt economics: Destroying Value ... and Communities

The Government is currently promoting the fact that they are shifting their focus onto exports, manufacturing (cf finance) and growth (i.e. job creation).

However this once again appears to be all spin and no substance!

Our current trade deficit is at its worst level for seven years, manufacturing is shrinking (not increasing), and recent figures show that the vast majority of jobs currently being created are in finance (over 60%) - not manufacturing (less than 3%)! 

This Government tries to tell us the financial sector makes up a small part (less than 10%) of the total economy, which is a complete distortion ... this small figure does relate to the manufacturing sector, but not the financial sector ... and the job creation figures provide a truer picture of reality ...

Corrupt 'free market capitalism', is systematically backing/ promoting 'money for nothing' scams ... over 'real' hard-working businesses desperately trying to positively contribute to society and add real value to people's lives ..

It is well known and well documented (e.g. on this blog) that bankers (and finance companies in general) do not add any real value to society ... in fact they're actually systematically destroying value ... hence they need to be reigned in. 

In the future 'adding real value' needs to be positively backed/promoted ... and destroying value needs to be made illegal or, as a minimum, taxed very heavily to replace/cover any value it may destroy (i.e. just like other forms of gambling, tobacco, alcohol etc currently are). This Government is vehemently resisting any financial transaction tax ... which would be a good start to achieving this goal ... and why? ... well, they are 'in the pockets of the bankers', are also threatened by them (e.g. threats to move their centres overseas if they don't like what the Government is doing) ... and they allow this corrupt banking system to counterfeit money and to keep the 'means of production' (i.e. money/capital) mostly in the hands of themselves (over 60% of all new jobs/investment) ... so they can create and exploit yet more 'money for nothing' scams (i.e. 'financial engineering')!

They are systematically stealing taxpayers money, plundering and destroying communities, and stealing people's future ... by burdening communities with debt slavery for decades to come. 

Capitalism is better described as the 'economics of exploitation' ... and this is not being tackled because we also have a mockery of a democracy.

As Aristotle once said ...

"Democracy is when the indigent, and not the men of property, are the rulers"

... and ...  

"In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme" ... 

Destruction of the NHS ... and 'a mockery of democracy'

The current Government are hell-bent on destroying the NHS ... a NATIONAL health service set up in 1948 by Aneurin Bevan and created out of the ideal that good healthcare should be available to all, regardless of any wealth, and based upon three core principles:

* that it meet the needs of everyone
* that it be free at the point of delivery
* that it be based on clinical need, not ability to pay.

Prior to gaining office the Conservative party deliberately kept secret their radical plans for the NHS from the people of this country. Their plans for the NHS were cooked up by Lansley over many years in opposition, and yet they failed to tell the people anything about their plans prior to the election (as no-one would have trusted them, and no-one would have voted for them)! 

Worse still, the Conservatives continually lied and made use of copious amounts of spin (nb David Cameron is only trained in PR) to persuade the country that they could be trusted with the NHS and that the "NHS would be safe in their hands". What irony and hypocrisy. The NHS reforms introduced by this manipulative Government therefore had no mandate from the electorate, and on entering Government they have consistently (and deliberately) circumvented any democratic right/process. In summary, they have made a 'mockery of democracy'.

And what about their continual spin ... that the NHS is 'Safe in their Hands?' What a joke! On being told by the Information Commissioner (and the High Court) to publish the risk register associated with these reforms, the Government have steadfastly refused to do so, whilst continuing to rail-road the reforms through.

The reforms are highly toxic and designed to deliberately destroy the very foundations/principles of the NHS. They open the doors to mass profiteering, by commissioning groups as well as private providers, which will taking money out of the system that would have otherwise been spent on healthcare. 

They will also destroy the 'doctor-patient' relationship and any trust patients have in their doctors, due to clear conflicts of interest (made clear by the Royal College of GP's) that have not been addressed! Doctors will now have to balance any diagnostic decision (and any decisions about subsequent treatment) with reduced budgets and a new found ability to profiteer (e.g. from withholding/limiting any diagnoses/care provided). The reforms deliberately try to bribe GP's to ration healthcare (e.g. by offering them bonuses for doing so). Yet despite this, the vast majority of GP's directly oppose the bill and want to see it dropped, some out of 'principle', and some from the fact that they know they are going to effectively become a scapegoat and the focus of people's anger (as people realise that care is effectively being withheld by them, unless they can afford to pay). 

Indeed, this Government has been careful to deflect any blame on the future lack of healthcare provision away from themselves and onto local groups (a divide and rule strategy). GP's are clearly the main target but the Government have also effectively removed the world NATIONAL from the term 'National Health Service', as there will no longer be a national standard for the type, or level, of care offered across the country (with no-one taking overall responsibility for this). This will result in a "post code lottery" health service; destroying the concept/principles of a NATIONAL health service ... And if anyone thinks they'll be able to simply move doctors if they're not happy, think again, as the Government have not allowed this (you will effectively have to move house to change your GP surgery - and even then, it will still depend on you being able to find a different, and more caring, commissioning group)!

If offered treatment, patients are also seeing waiting times dramatically increase, with Government officials desperately trying to remove any remaining waiting time measures/targets (n.b. people are also seeing appointments offered, but repeatedly cancelled too). Increasing waiting times are also a crucial (but toxic and hidden) ingredient of these reforms, as they are needed to pressurize people into paying for health insurance and/or paying to queue jump (NB they will now be able to jump the queue, as NHS hospitals will be able to allocate up to 49% of their time/resources to those who pay, and those willing/able to pay will be treated first, by exactly the same NHS doctors and nurses ... which in turn will make waiting lists/times even longer).

This destroys the very foundations of the NHS, in that healthcare should be "based on clinical need and not the ability to pay". With these reforms this will clearly not be the case in the future. Indeed, it is noticeable that Government ministers are always careful not to use this particular phrase when defending their reforms, and only say the NHS is about care still being 'free at the point of delivery'.

With the destruction of the core principles of the NHS, what we are seeing is the dismantling of the NHS ... and a list of 'the guilty', who should be charged with 'crimes against humanity', can be found below, along with their respective roles:

David Cameron, for his lies, deceit and hypocrisy. Andrew Lansley, for cooking up this immoral plan to destroy the NHS. Both parties are guilty of pressing on regardless, ignoring fundamental issues/concerns raised by every healthcare professional group, and systematically manipulating/ circumventing democratic processes (e.g. publication of the risk register).

 

Nick Clegg, for allowing these reforms to progress at all (with no electoral mandate) and forcing Liberal Democrats to ignore all concerns/principles in order to vote for these reforms. Shirley Williams for selling her soul to help Clegg and switching from 'protector' to 'cheerleader' (NB Lord Owen, a previous Democrat along-side Shirley Williams, is still desperately trying to stop the bill without the publication of the risk register demanded by the Courts). 

 

Ed Miliband for 'throwing a sickie' and not attending a rally against NHS reforms, so he could accept a VIP invitation to watch Hull City play football instead.

Andy Burnham (and John Healey), for failing to articulate a clear (and proven) alternative to these reforms ... based on engaging and empowering the workforce to radically improve the service ... and in the process making the NHS more seamless and efficient (i.e. 'lean') ... n.b. the complete opposite of this Government's approach, which focuses on fragmenting (and destroying) the service, ignoring any advice and/ or concerns of healthcare professionals, and handing over the money to those seeking pure profit (e.g. McKinsey's, commissioning groups, insurance companies and private providers), and not those on the front-line who are passionate about the NHS and want to create better healthcare for all (i.e. the healthcare professionals).

and finally, Tony Blair and Gordon Brown, for ditching socialism (in favour of crony capitalism, self-interest and 'spin') and for abandoning all the 'ordinary', hard working, people they were supposed to represent. Their failures (e.g. bank deregulation, bank bailouts and the subsequent pressure to slash public services to pay back all the resulting debt) in effect created an 'open door' for the Conservatives to step into, impose a slash and burn strategy, and blame the Labour party for having to do it! 

RIP NHS ... a casualty of self-interest and greed, and a lack of real democracy ...

and why ... well this is down to a combination of ignorance and apathy.

RIP Britain ... and watch out for impending riots.

Aristotle once said ...

"Democracy is when the indigent, and not the men of property, are the rulers"

"In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme"

Those currently in power are desperately trying to ensure that this will never happen ... and indeed the opposite remains true ... by wielding all the power at their disposal (including the deployment of paramilitary forces armed with water cannons, tear gas, tasers and plastic bullets) ... and the answer to this ... mass protest ... withdrawal of labour ... and the use of 21st century technology.

Ignorance is not bliss ... and democracy is a long way off (e.g. look at the NHS reforms)!

Scientists have suggested the theory of democracy has a key flaw - that most of the public are just too stupid to pick the 'right candidate'!

According to the theory, the democratic process relies on the assumption that a majority of citizens recognise the best political candidate, or best policy idea, when they see it.

However research led by Professor David Dunning, a psychologist at Cornell University, recently showed incompetent people are inherently unable to judge the competence of other people, or the quality of those people's ideas.

This research is misleading however, and for numerous reasons. 

First of all it assumes the majority of people are ignorant/incompetent, which they are not. A good dose of common sense, and a greater sense of community/purpose, can go a long way ... but this has been steadily displaced by a mix of self-interest and greed (modelled by current 'leaders').

Secondly, the research ignores the deep and corrosive influence of all those with vested interests who quietly wield power; from politicians, media tycoons, lobby groups, big business, bankers and landowners. Put these into the mix too and it becomes quickly clear that the vast majority of messages people currently receive are hardly unbiased (e.g. remember 'dangerous climate change' and 'weapons of mass destruction')!

Thirdly, the research assumes that what we now have can be called democracy! Most people in the UK are indeed ignorant/apathetic to how little influence their 'democratic system' actually affords them! People get to have 'a say' ... but only once every five years, and even then, around only 2% of votes actually count/make a difference as to who gains power (i.e. 'swing votes' in marginal constituencies).

Aristotle once said ...

"Democracy is when the indigent, and not the men of property, are the rulers"

"In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme"

Given the above, and the self-interest and greed (poweromics) being shown by those wielding power to stop this, it's clear that real democracy is still a long way off ... and will only arise if/when more people stand up for democracy ... 

Take a look at the planned changes to the NHS for instance. The Government are still trying to ignore all the opposition to its NHS bill (n.b. a bill that no-one voted for), from patient groups as well as all the healthcare experts!

The Government is attempting a 'divide and rule' strategy ... and deploying as much misleading PR/spin as it can. It also plans to deflect any blame from increased NHS rationing away from themselves ... and onto local GPs/consortium groups (and are trying desperately to bribe GP's to accept this ... with lots of cash)!

Their 'localism strategy' is being used as a smoke-screen for deflecting blame, to 'divide and rule' and to effectively remove the word 'NATIONAL' out of the National Health Service (NHS) ... creating a complete post code lottery for healthcare in the UK.

Scrapping waiting targets for treatments is also a way to force more people to pay in order to 'queue jump' ... as they will be treated by exactly the same NHS doctors and nurses (n.b. the health bill is seeking to ration healthcare provided free on the NHS, and at the same time allow existing NHS hospitals to use up to 49% of this 'freed up'/'spare capacity' to treat 'private patients')! 

People need to wake up and 'smell the coffee', and stand up and be counted ... or they will lose a vital/cherished service, a National Health Service set up to provide healthcare for all based on clinical need ... and not the ability to pay.

Dictat vs Democracy: Cameron and Lansley try and force through plans to destroy the NHS

The NHS reforms are now being exposed for what they are ... top-down dictat set to systematically destroy the NHS ... that no-one voted for and that no honorable / honest healthcare professional could ever support ...

Before entering office Cameron said his number one priority was the NHS, and that the NHS would be "safe in his hands". He also said he was "determined to put an end to top-down re-organisations".

Yet on entering office we find the complete opposite. Their plans (conceived and developed over many years by Lansley whilst in opposition) are in fact set to systematically destroy the NHS through the most callous, fundamental and profound top-down re-organisation embarked upon in recent UK history ... and prior to the creation of the NHS.

On encountering opposition to their reforms, Cameron announced a "pause" in the bill, "to listen" ... and said "for the reforms to succeed they would clearly need the support of healthcare professionals". Yet on initiating the "pause" it was clear this was nothing more than a PR stunt and that the real purpose was indeed not to listen, but to spend more time persuading! Cameron continually insisted that the problem was one of communication, and not the bill itself. Yet the most "callous" part of this so-called "pause" was not this, but that there was no actual pause at all - as in private Cameron told people to press-on quickly with the reforms (in particular GP commissioning) so they could argue that it was too late to turn back (which they have since repeatedly used). 

By not listening and pressing-on regardless, virtually every healthcare professional group has been forced to harden its position and to call for the bill to be scrapped. It is clear that even the majority of GP's oppose it now, with the minority of greedy GP's (who wanted to profit heavily by getting virtually the entire NHS budget into their own hands) being increasingly exposed (and sidelined) by the vast majority (due to the action of Democracy, as demonstrated by the Royal College of GP's).

And, instead of actually taking time to really listen to doctors and nurses now, Cameron and Lansley have decided to completely ignore them and try to force through their top-down re-organisation, inviting to meetings only those who will do what they say (i.e. Dictat) ... and push back against all those who get in their way ...

Will the UK continue to allow Dictat to crush Democracy ... let's see ... 

Poweromics, demonstrated by people such as Cameron and Lansley, must be challenged ... as Ignorance is not bliss ... and Apathy will kill ...


As another blogger put it ... "Putting the Tories in charge of the NHS is like re-employing Harold Shipman as your GP..."

Democracy - what Democracy? ... The Government is pushing through reforms that no-one voted for

In an article in the New Statesman the Archbishop of Canterbury, Dr Rowan Williams, has warned that the public is gripped by “fear” over the Government’s reforms to education, the NHS and the benefits system and accuses David Cameron and Nick Clegg of forcing through “radical policies for which no one voted”.

Openly questioning the democratic legitimacy of the Coalition, the Archbishop dismisses the Prime Minister’s “Big Society” as a “painfully stale” slogan, and claims that it is “not enough” for ministers to blame Britain’s economic and social problems on the last Labour government.

His two-page critique, titled “The government needs to know how afraid people are”, is the most forthright political criticism by such a senior cleric since Robert Runcie enraged Margaret Thatcher with a series of attacks in the 1980s. Lambeth Palace is braced for an angry response but Dr Williams, who became Archbishop of Canterbury nine years ago, is understood to believe that the moment is right for him to enter the political debate.

The Archbishop warns that Westminster politics “feels pretty stuck”, adding that his aim is to stimulate “a livelier debate” and to challenge the Left to develop its own “big idea” as an alternative to the Tory-Lib Dem alliance.

He said the Coalition is facing “bafflement and indignation” over its plans to reform the health service and education, he writes. “With remarkable speed, we are being committed to radical, long-term policies for which no one voted,” the Archbishop says.

“At the very least, there is an understandable anxiety about what democracy means in such a context.” 

He also went on to say that the Prime Minister’s “Big Society” is viewed with “widespread suspicion” as an “opportunistic” cover for spending cuts, as previous champions resign in protest and given the Government Big Society Tsar has now also stepped down.

Yet arguably the biggest con of all is when Politicians stand up and criticize the lack of democracy in other countries around the world ... and site western democracies as an examplar to follow! Yet in reality, in British democracy, only around 2% of votes in marginal constituencies really count, and even these votes count only once every five years! As a result, Politicians, in-between elections, do what they want in their own self-interest, regardless of what they may have previously promised the electorate (which is arguably both immoral and unethical) ... which is why the Archbishop Canterbury has decided to 'shine a light' on it.

Until ignorance reduces and people stand-up to be counted (i.e. apathy reduces) such misuse of power will continue. Let's see how much longer they'll be able get away with it ... as things continue to get worse, and honest, hard-working people continue to face the harsh reality of paying the price of bailing out the banks and continuing to fund their lavish multi-million pound bonuses. Corrupt bankers and politicians have a lot to answer for ... and the day draws ever closer when they are called to account. 

Aristotle himself said: 

"Democracy is when the indigent, and not the men of property, are the rulers" 

"In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme" 

"No notice is taken of a little evil, but when it increases it strikes the eye"

"Poverty is the parent of revolution and crime" 

and ... "The only good is knowledge and the only evil is ignorance".

Wise words indeed ... and just as revelant today.

Aristotle: The 'evil of ignorance'

For some time the wise and learned have reflected on the use, and misuse of power, and the purpose and values within our society ...

For instance here's just a few of the things Aristotle had to say ...

"Democracy is when the indigent, and not the men of property, are the rulers"

"In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme"

"The trade of the petty usurer is hated with most reason: it makes a profit from currency itself, instead of making it from the process which currency was meant to serve. Their common characteristic is obviously their sordid avarice*"

"Poverty is the parent of revolution and crime"

"No notice is taken of a little evil, but when it increases it strikes the eye"

"It is the mark of an educated mind to be able to entertain a thought without accepting it"

"All persons ought to endeavor to follow what is right, and not what is established"

"The only good is knowledge and the only evil is ignorance"

"You will never do anything in this world without courage. It is the greatest quality of the mind next to honor"

Insights (and challenges) arguably just as, if not more, relevant today ... which capture in simple words the type of Poweromics we still face today, as well as the "evil of ignorance" (or more specifically Ignoromics**) that allows it to continue.

* Avarice - Extreme greed for wealth or material gain.

** Ignoromics - People who are either effectively ignorant of the situation (e.g. the overall environment) or not prepared to take responsibility to make sure it changes for the better.

A small step in the right direction

Following the General Election, and five days of discussions, the Liberal Democrats have negotiated a referendum on electoral reform, as part of a coalition of the type not seen for over 70 years.   Whilst not a proposal to move to full proportional representation, the alternative vote (AV) is at least one step forward towards 21st century democracy.  

Most countries around the world already have such systems, and their political parties are quite used to working together as part of a coalition.  Parties have to work together and compromise, and make sure key policies are sufficiently scrutinised and prioritised, rather than simply 'nodded through' or 'pushed through' by party whips.  The effect of this is already starting to appear, with compromises already on the make up of Government (e.g. Shared cabinet), electoral reform (e.g. AV referendum) and economic policy (e.g. with lower rate tax thresholds taking priority over providing inheritance tax breaks for the rich) for the greater good. Rather than a 'hung parliament' in my humble opinion a better description is a 'balanced parliament'.

A new system based on fundamental 'values' such as fairness, responsibility and respect is also a good start, but there is a great deal to do and far more will be needed.  The challenge (particularly for the Liberal Democrats) is to now show how effective a UK coalition Government can be, showing how 21st century politics could work for the benefit of the people, as if they do not electoral reform will fall at the first hurdle - i.e. in the referendum itself.  One thing is certain, the Tory dominated press will take any opportunity to attack any change to the voting system. The Conservatives did not want to see a referendum on the voting system (as the 'first passed the post' system serves their party, and the labour party, so well), and will I am sure argue strongly against it when it comes to the referendum.  The press tried hard to push for a majority Conservative Government so they could avoid such concessions, but even with the clear headwind provided by an unfair voting system, they did not succeed.  

The voice of the people was still sufficiently large to demand compromise and coalition - and 21st Century democracy. There's a long long way to go ... and many challenges ahead ... hence we wish our new leaders, and everyone in the UK, every success in bringing this about ... and in successfully turning our economy around.

Can we have 21st Century Democracy Now

Given the current state of Politics, and the need to engage/involve people in order to create a 21st Century democracy, the time for change is now ... and no single person(s) should/can ignore the will of the people.  Protests are growing demanding change and this will continue to increase until change happens.  It's a referendum we need, giving people real choice, not yet another hand selected committee to pontificate for years and whose conclusions are only ignored in the end anyway.  

Groups such as Power2010 and Take Back Parliament lobbied Politicians in London today, handed in a petition, demanding change and for Nick Clegg not to 'sell out' (to those who are used to Power and misuse that Power).  Clegg came out to talk to the groups, and made it clear he came into to Politics to reform Politics.  Let's hope he continues to demonstrate 21st Century values (e.g. Trust, Honor, Respect), staying strong and true to his word ... and taking responsibility for heralding in a new 21st Century democracy.

To Petition the New Prime Minister you can sign the e-petition requesting People Democracy here too (open for signing once they take office).

Masters or Servants?

Nick Clegg, the Liberal Democrat party leader, unveiled five proposals to control "the bonus culture" in the City. Clegg said there should be "no rewards for failure" and called for a "top-to-toe" overhaul of the British banking system (including an end to "morally obscene" salaries and bonuses).

"The problem started with the banks so the solution must start with the banks too," he said at the party's daily news conference yesterday, and he said the public should feel that "never again are your everyday savings held "hostage" by people in the City.

The Liberal Democrats' five-point plan to reform the banking system would:

1. Limit cash bonuses to £2,500 annually, with any bonuses in excess of this figure to be paid in shares which could not be sold for five years
2. Ban board directors from receiving bonus payouts
3. Extend the Financial Services Act so loss-making banks were not allowed to pay bonuses
4. Ensure the names of all banking employees earning more than the prime minister were published
5. Lead to directors of banks being fined if their institution broke the industry's code of practice

These five steps would "transform the culture of greed which continues to disfigure the banking industry in this country" and ensure the banking system became "the servant, not the master", Mr Clegg said.  

The party's Treasury spokesman, Vince Cable, said the UK was "still in a major economic disaster" and that "The country is now poorer than it was before the banking crash and what we need to be focusing on is how we prevent it happening again” (echoing many of the posts on this blog).

Mr Clegg said it would reveal a "new approach" to a financially-stable economy, based on equity not debt, "where we learn as a country to build things again, not just bet on things on computer screens in the City" … from a leader who may well yield significant influence/power in a few weeks time this is good to hear, but he will need to think more carefully about the steps needed to successfully transition from an outdated and flawed economy (Poweromics) to a 21st century value adding economy (Leanomics) … and just like President Obama made clear, we must ensure the banks pay taxpayers every penny back (and make sure investment banks are separated from commercial/high street banking too).

In my humble opinion, Vince Cable appears to be the closest to identifying what a successful 21st century economy needs, having also hosted sessions promoting the introduction of a Land Value Tax (to replace unjust/unfair taxes) for instance. The Liberal Democrats also want to completely overhaul the archaic (19th Century) voting system, so MP’s properly represent (and are held accountable to) the people they are supposed to serve. 

If you’re relying on others to help you – good luck – you’ll need it. Labour are relying on spin and clearly cannot be trusted e.g. this week Brown stood up to tell us there will be no more income tax rises … but he said that last time, and watch out for National Insurance everyone, which is just another name for the same thing (n.b. they’ve given no guarantees on this one and Brown has also raised it before) – why did the press (e.g. the BBC) not ‘press’ him on this…?  As for the Tories, Cameron has said he wants to give people ‘power’ (e.g. by letting parents set up their own schools – more of a gimmick than a practical solution), but at the same time has no desire/interest in changing how MP’s are given power or wield (e.g. profit from) power.  Instead the Tories want to slash public spending, change inheritance tax laws to favour the rich … and would vehemently oppose changing/removing unfair taxes and replacing them with a Land Value Tax (as the Tories represent, and are heavily backed by, all the rich land owners/bankers profiting heavily from land without adding any value at all). 

The election provides an opportunity to allow a little more common sense to filter into our Economic/Political System (e.g. values, fairness, justice) and if this happens our failing economy may actually start to turn around.  If it does not it will simply continue its downward spiral (don’t be fooled by any apparent ‘recovery’ – as the Government simply postponed all the ‘pain’ until after the election) until the situation gets so dire that people finally decide to do something about it – but at this stage it’ll probably be too late to successfully turn things around (NB I do not support any political party and like most people hold the vast majority of MP’s in contempt – however I do care about people’s future, the state of the economy and the level of democracy in the UK).

Let’s see what the next few weeks hold …