‘It is not for us to interfere’, I wrote at the end of a post on Egypt, but of course that is not how everyone will see it. There is a certain type of politician who sees interference in other countries’ troubles as quite acceptable. Tony Blair was one such, and indeed often said he saw it as his moral duty. A bit patronising, but he’s not alone. So what will be going on in the emergency committees of the Great Powers (Britain’s committee goes by the spy-thriller name of COBRA, which stands for the more mundane Cabinet Office Briefing Room A)?
There is an interesting parallel between the Second Gulf War and the Vietnam War. Both left the public slightly sickened at what military intervention could do, and both left the public depressed at what interference could not do. There was the feeling that an inordinate amount of damage had been caused and we lost; either one of those might be acceptable, but not both. I exclude the First Gulf War because its purpose was to rescue an ally from invasion and it succeeded in that (I personally had grave doubts, believing that we went in to rescue the al-Sabah family rather than the people of Kuwait, and still wonder if they were worth rescuing).
But the Vietnam War and the Second Gulf War left the West in the position that no further international adventures would be tolerated by its people (at least not for a while). Obama, Sarkozy and Cameron, representing the great Western military powers, know that whatever they think personally, it will all have to be done by the book. ‘Soft Power’ would be best.
The Maghreb is going through one of its periodic transformations, as serious for its people, in my view, as the decline of the Roman Empire and the takeover of the forces of Islam in the 7th century. In more recent times the area went from colonial subjugation to government by the anti-colonial rebels, and now these partisans are old and corrupt and are having the reins taken from them. The problem is we don’t know by whom or what.
Some decry the domino theory, that this is spreading across the region, but I do not. The almost simultaneous popular uprisings and the access to new media threaten a new phenomenon. Executing a coup d’état on Facebook is, if nothing else, something new. Demographics play a part: The Arab World numbers around 300 million, around the population of America, or of the five largest European countries. But of those, 200 million are under 24 - two thirds, against around one third in America and less in Europe. The struggles for independence in the 1950s and 1960s are far, far away for most people. They are better educated, richer and want something better for themselves.
Our emergency committee will note all this and try to plot the direction of travel. In the 1950s, when a change in government in Egypt caused the nationalisation of the Suez canal and another failed intervention, the fear was that the new rulers would go over to Russia. Now the fear is that they will go over to militant Islam.
But does it matter? They will see it like this: firstly all these countries are already Muslim. It’s just a question of how Muslim. Morocco has a young king and may well not be a party to this. Algeria is a hotbed of Islamic militancy and is a risk. But against that its gas stocks are running out and it will see declining income over the next five years. It is not another Iran with almost infinite supplies. Libya is already ruled by an unreliable character and is already not a dependable ally. Tunisia is too small to make any difference. Egypt, by contrast, has a population of 80 million, and governs the Suez Canal and the SUMED pipeline, between them transporting around 2m barrels of oil a day (global demand is around 90m b/d). But there are alternative routes for this oil, albeit 6,000 miles longer. And why should a new government of any complexion cut itself off from this revenue?
Our committee will conclude that there is no case for intervention, and scarcely any for even soft interference. All the West has to do is to make sure China doesn’t interfere (Russia, being a net exporter of energy, won’t mind the odd competitor imploding). Let them get on with it. Let’s hope that's the conclusion. anyway
30 January, 2011
29 January, 2011
The Titian position
This from the BBC:
A 450-year-old Madonna and Child work by Titian has sold for $16.9m (£10.7m) in New York, setting a new auction record for the Renaissance master.
A Sacra Conversazione: The Madonna and Child with Saints Luke and Catherine of Alexandria was sold at Sotheby's to a European telephone bidder.
It beat the previous Titian auction record of £7.5m ($11.9m) paid at Christie's in London in December 1991.
Ring any bells? I reported back in August 2008 that The Duke of Sutherland had offered the nation a pair of Titians. The first would be £50 million and if we bought that we could have the other for another £50m. Apparently we have raised the money for the first and are now saving up for the second. I hadn't realised that this was nearly seven times the highest price then paid for a Titian and even now nearly five times the highest price. In fact, looking back through the newspaper archives, nothing was said about that at all.
The Duke of Sutherland said they would fetch five times his price at auction (although he would, wouldn't he?), that is to say they would each fetch 33 times the highest price ever paid for that artist.
Now, I am no art market expert, but my rat odour detector is beginning to flash.
And what is all this 'saved for the nation' stuff? The picture (both, if we can afford them) will be on display in Edinburgh and as I said at the time it would cost someone in, say, Wales, no less to see them than if they were in the Guggenheim in New York.
So who accepted this £50m figure?
That smell? A rat, surely? A perceptible rat.
A 450-year-old Madonna and Child work by Titian has sold for $16.9m (£10.7m) in New York, setting a new auction record for the Renaissance master.
A Sacra Conversazione: The Madonna and Child with Saints Luke and Catherine of Alexandria was sold at Sotheby's to a European telephone bidder.
It beat the previous Titian auction record of £7.5m ($11.9m) paid at Christie's in London in December 1991.
Ring any bells? I reported back in August 2008 that The Duke of Sutherland had offered the nation a pair of Titians. The first would be £50 million and if we bought that we could have the other for another £50m. Apparently we have raised the money for the first and are now saving up for the second. I hadn't realised that this was nearly seven times the highest price then paid for a Titian and even now nearly five times the highest price. In fact, looking back through the newspaper archives, nothing was said about that at all.
The Duke of Sutherland said they would fetch five times his price at auction (although he would, wouldn't he?), that is to say they would each fetch 33 times the highest price ever paid for that artist.
Now, I am no art market expert, but my rat odour detector is beginning to flash.
And what is all this 'saved for the nation' stuff? The picture (both, if we can afford them) will be on display in Edinburgh and as I said at the time it would cost someone in, say, Wales, no less to see them than if they were in the Guggenheim in New York.
So who accepted this £50m figure?
That smell? A rat, surely? A perceptible rat.
Mubarak
I remember once remarking to a Cairanese taxi driver that there seemed to be a lot of police about. He said yes, but there are even more that you can’t see. Hosni Mubarak, who came to power after the assassination of Sadat, has kept a tight grip on things these 30 years. I wonder what he is thinking now.
Cairo has a population of around 8m, but the same number again come into the centre each day, working or looking for work, making the city a hotbed of talk, rumour and now violence. Nevertheless, the number involved in the demonstrations is in the tens of thousands, a tiny percentage of the population, and the number killed is a lower percentage than when the police opened fire at Kent State University forty years ago (Hillary Clinton please note, before mouthing off again about police violence). Mubarak, who was Vice President to Sadat for 6 years and before that Commander of the Airforce, is not a man of the people and will be wondering if all this will soon blow over. In this, I think, he is wrong.
As I write, we learn that Mubarak has dismissed his cabinet. He will feel that he has been let down by others; dictators always feel that. Has it spread from Tunisia? We read in the Daily Telegraph this morning that all this has been encouraged by the USA. To be double crossed after turning a blind eye to all that rendition business! And after his help in the Gulf War!
But eventually Mubarak will see that it wasn’t the cabinet the people were complaining about; that the crowd of demonstrators was growing and they were not Americans, but Egyptians; that they are burning pictures of him, and demanding that his son Gamal doesn’t take over after him.
In short, they are demanding change, and some time, maybe even this week, Mubarak will see this and go. What he will leave we can only guess. It is not for us to interfere, but we must watch it carefully, and hope.
Cairo has a population of around 8m, but the same number again come into the centre each day, working or looking for work, making the city a hotbed of talk, rumour and now violence. Nevertheless, the number involved in the demonstrations is in the tens of thousands, a tiny percentage of the population, and the number killed is a lower percentage than when the police opened fire at Kent State University forty years ago (Hillary Clinton please note, before mouthing off again about police violence). Mubarak, who was Vice President to Sadat for 6 years and before that Commander of the Airforce, is not a man of the people and will be wondering if all this will soon blow over. In this, I think, he is wrong.
As I write, we learn that Mubarak has dismissed his cabinet. He will feel that he has been let down by others; dictators always feel that. Has it spread from Tunisia? We read in the Daily Telegraph this morning that all this has been encouraged by the USA. To be double crossed after turning a blind eye to all that rendition business! And after his help in the Gulf War!
But eventually Mubarak will see that it wasn’t the cabinet the people were complaining about; that the crowd of demonstrators was growing and they were not Americans, but Egyptians; that they are burning pictures of him, and demanding that his son Gamal doesn’t take over after him.
In short, they are demanding change, and some time, maybe even this week, Mubarak will see this and go. What he will leave we can only guess. It is not for us to interfere, but we must watch it carefully, and hope.
28 January, 2011
Bad luck
This blog's congratulations to Nelson Mandela, who, despite being detained in hospital for a couple of days, has not died.
You could almost taste the disappointment of the 24hrs news media, who had to concentrate on more difficult things, like North Africa and the British education system.
You could almost taste the disappointment of the 24hrs news media, who had to concentrate on more difficult things, like North Africa and the British education system.
27 January, 2011
The Holocaust
Today is of course the anniversary of the freeing by Russian soldiers of the survivors of Auschwitz and is observed in many countries as Holocaust Memorial Day.
Of course at the time, in 1945, the Russian Gulags were already open and many more would be built; not long afterwards millions died in China for a belief no more defensible than antisemitism; persecution of religious and tribal minorities still goes on in Africa, and we have had ethnic cleansing as close as the Balkans.
Holocaust Memorial Day is important to some, but there is no practical value to it; it has not brought an end to these horrors and nor will it ever. It is an opportunity for smug politicians to make worthy speeches. You can read them in the papers tomorrow. I shan't.
Of course at the time, in 1945, the Russian Gulags were already open and many more would be built; not long afterwards millions died in China for a belief no more defensible than antisemitism; persecution of religious and tribal minorities still goes on in Africa, and we have had ethnic cleansing as close as the Balkans.
Holocaust Memorial Day is important to some, but there is no practical value to it; it has not brought an end to these horrors and nor will it ever. It is an opportunity for smug politicians to make worthy speeches. You can read them in the papers tomorrow. I shan't.
Ship of Fools
A strange tale to tell. In 1983 the people of West Belfast, which is part of the United Kingdom but scarcely part of the real world, elected as their MP one Gerard Adams, a terrorist.
Adams did not take up his seat in Parliament, not believing that West Belfast was subject to Her Majesty the Queen but, hypocritically, accepted an office and staff allowances.
Now he has decided to leave, indeed quit the country, and try for election in the Irish Republic later this year. I don’t suppose it matters very much to his constituents, who haven’t been represented in Parliament anyway.
But there is a problem. The only way an MP may resign is by taking an office for profit under the Crown, which of course Mr Adams does not want. He sent a notice of resignation to the Speaker of the House of Commons and thought that was that. Now the Chancellor of the Exchequer has announced that he has been appointed to such an office, the Prime Minister has announced it in Parliament and Mr Adams says he has accepted no such thing.
Now, I am all for a bit if intrigue, a bit of political point scoring, and have no truck with Mr Adams who, as I say, is or was a terrorist, but all this is daft. It is like children bringing some abstruse rule of their sport to catch out someone with less detailed knowledge. It makes Britain look daft.
Here is what I propose:
- if you don’t take up your seat in Westminster within a certain time (and taking up your seat involves the oath of loyalty to the Queen) you can’t have an office or expenses and a by-election must be held so the constituents can confirm they don’t want to be represented at all.
- If you want to leave office just write a letter and there will be a by-election.
Many in the House of Commons – and this seems to include the Prime Minister - are cackling with delight at this confusion. They shouldn’t be. It makes us all look like fools.
Adams did not take up his seat in Parliament, not believing that West Belfast was subject to Her Majesty the Queen but, hypocritically, accepted an office and staff allowances.
Now he has decided to leave, indeed quit the country, and try for election in the Irish Republic later this year. I don’t suppose it matters very much to his constituents, who haven’t been represented in Parliament anyway.
But there is a problem. The only way an MP may resign is by taking an office for profit under the Crown, which of course Mr Adams does not want. He sent a notice of resignation to the Speaker of the House of Commons and thought that was that. Now the Chancellor of the Exchequer has announced that he has been appointed to such an office, the Prime Minister has announced it in Parliament and Mr Adams says he has accepted no such thing.
Now, I am all for a bit if intrigue, a bit of political point scoring, and have no truck with Mr Adams who, as I say, is or was a terrorist, but all this is daft. It is like children bringing some abstruse rule of their sport to catch out someone with less detailed knowledge. It makes Britain look daft.
Here is what I propose:
- if you don’t take up your seat in Westminster within a certain time (and taking up your seat involves the oath of loyalty to the Queen) you can’t have an office or expenses and a by-election must be held so the constituents can confirm they don’t want to be represented at all.
- If you want to leave office just write a letter and there will be a by-election.
Many in the House of Commons – and this seems to include the Prime Minister - are cackling with delight at this confusion. They shouldn’t be. It makes us all look like fools.
The hand that feeds them
The Frankfurter Allgemeine Zeitung reports on a survey carried out for it on Germans and how they regard the EU.
67% had little or no trust in the EU.
Only 12% favour faster integration
68% have little or no trust in the single currency.
These responses are at almost British levels of euroscepticism. It is only one opinion poll but it shows increasing intolerance, and this will surely become a feature of the German political scene. There is a string of regional elections in Germany due this year and we shall be watching them closely.
If Germans come to see the EU in black and white terms, as hard working Germany bailing out idle Mediterranean countries, there may come a time soon when Angela Merkel will be faced with a choice: the bailout programme or re-election.
67% had little or no trust in the EU.
Only 12% favour faster integration
68% have little or no trust in the single currency.
These responses are at almost British levels of euroscepticism. It is only one opinion poll but it shows increasing intolerance, and this will surely become a feature of the German political scene. There is a string of regional elections in Germany due this year and we shall be watching them closely.
If Germans come to see the EU in black and white terms, as hard working Germany bailing out idle Mediterranean countries, there may come a time soon when Angela Merkel will be faced with a choice: the bailout programme or re-election.
24 January, 2011
Hacking
Gordon Brown, the former Prime Minister, has asked police to investigate whether his phone was hacked while he was Chancellor, joining Sienna Miller and several others. Soon it will be the turn of the ‘C’ list celebrities and you won’t be able to get on a reality TV show unless you can claim the News of the World had got into your ‘phone.
Perhaps we are not being told something, but I think it is worthwhile recalling exactly what is alleged to have gone on. Phones have voicemail, what we used to call an answerphone, so if you don’t answer a call – let’s say you are asleep – the caller can leave a message. These messages are accessed by the owner of the phone, even from another phone, by entering in a 4-digit number. The phone manufacturer usually sets this as 0000 or 1234 and you can change it to your choice, but most people don’t bother. The guilty reporters are said to have called a number at a time when it wouldn’t be answered, and guessing the 4-digit code to access the voicemail. Technically this isn’t hacking but let that pass.
So what we are being asked to believe is that despite there being all night staff at the Treasury, the controller of the nation’s finances simply doesn’t answer his phone if he is in a meeting or asleep. The Governor of the Federal Reserve, not realizing this, leaves a message ‘Hi Gordon, Ben Bernanke here, I wanted to talk about your plans to pour tens of billions into the banking system, which will depress the pound against the dollar’. Gordon has set his voicemail code as 4321, to be clever, but the wily hack guesses this and the story is out.
As I say, it may be we aren’t being told something, but it looks more likely to me that this is a simple case of paranoia.
Perhaps we are not being told something, but I think it is worthwhile recalling exactly what is alleged to have gone on. Phones have voicemail, what we used to call an answerphone, so if you don’t answer a call – let’s say you are asleep – the caller can leave a message. These messages are accessed by the owner of the phone, even from another phone, by entering in a 4-digit number. The phone manufacturer usually sets this as 0000 or 1234 and you can change it to your choice, but most people don’t bother. The guilty reporters are said to have called a number at a time when it wouldn’t be answered, and guessing the 4-digit code to access the voicemail. Technically this isn’t hacking but let that pass.
So what we are being asked to believe is that despite there being all night staff at the Treasury, the controller of the nation’s finances simply doesn’t answer his phone if he is in a meeting or asleep. The Governor of the Federal Reserve, not realizing this, leaves a message ‘Hi Gordon, Ben Bernanke here, I wanted to talk about your plans to pour tens of billions into the banking system, which will depress the pound against the dollar’. Gordon has set his voicemail code as 4321, to be clever, but the wily hack guesses this and the story is out.
As I say, it may be we aren’t being told something, but it looks more likely to me that this is a simple case of paranoia.
23 January, 2011
Sunday thinkpiece: setting an example
I remember when some footballer – it might have been Wayne Rooney or it might have been any of a number of others – committed some idiocy or act of unfaithfulness, there being a call for him to ‘set an example’. And I thought ‘why should he, though?’ – here is some uneducated thug with more money than is really good for him who regularly receives the adulation of other uneducated thugs with less money than they’d like. Where in the deal does it say he should be in part responsible for the behaviour of a younger generation? That he should conduct himself in a manner befitting.... what?
But our protestant morality makes us keen to condemn. I once compared imaginary newspaper headlines with an Italian. We came up with
England: John Smith – my three in a bed shame
Italy: Forza Giovanni! Two in one night!
So how should we regard the doings of the famous? Who should be setting an example? Obviously times change: there was a time when a politician getting a divorce would have had to resign, but not now. Let’s take the example of a judge. If his marriage breaks down it is just unfortunate. Surely there is no reason for criticism. Supposing His Lordship indulges himself perfectly legally with a prostitute – aaah!, we are beginning to think, respectable pillar of society sees tart! – but prostitution is legal as long as it does not involve pimping, kerb crawling, keeping a brothel etc. And it would not affect his ability to do his job, as it would if he had been caught with his hands in the till. But we would like him to behave with Victorian propriety, setting an example.
Now politicians. After the recent resignation of Alan Johnson, the shadow chancellor, there was no suggestion he might have behaved better – nor, I think, should there have been. Boris Johnston, the Mayor of London, is said, by the girl in question, to have persuaded her to have an abortion, and, it appears, has fathered a child with another woman while still married. There seems to be no suggestion that this behaviour should disqualify him from office. Should there be? What would disqualify him?
And so, to the inevitable Silvio Berlusconi. Let us suppose for a second that he is not convicted of sleeping with an under age prostitute (by the way, this is an odd law. Prostitution is very common in Italy; is the man supposed to demand a girl’s ID before giving in to her charms? And lumped in with having sexual relations with her is the Clintonesque ‘Palpazione concupiscente’ which means, more or less, heavy petting or groping). Anyway, let’s assume that he is not guilty of that (which would, I have no doubt, be a resignation issue) what has he done?
And yet we all know, at least the press do, but I think the people as well, that he has not been setting an example, that he has let the country down, or as Gianfranco Fini colourfully put it, ‘muddied the good name of Italy’. Why, though? Is it because he was elected to represent his country and his private life must be whiter than white? What about Boris Johnston, elected to represent a city more populous than Switzerland or Ireland?
I think there are two answers. One is that Boris, the cheeky chappie, can look a bit of a victim of circumstance whereas Silvio, the worldly wise self made billionaire, looks as if he is above the rules. And the second is that Berlusconi seems to be a serial performer, creating an overall impression of falling short of the ideal.
Should there be rules as to what a politician can and can’t do? Should they be nuanced, such as (sorry to bring up Clinton again) smoking a joint but not inhaling? I think not. Voters must see things in the round, the overall picture. Churchill is an obvious example: no one complains about his drunkenness, in the light of his having been so magnificent in the war. Perhaps people perceive Boris as a wonderful mayor of London. They will turn a blind eye to his little peccadilloes if he makes a success of the Olympics, as they will to Wayne Rooney as long as he keeps scoring goals.
And Berlusconi? Well, he needs to chalk up a success or two. With that to show off, people will forgive anything. And anyone.
But our protestant morality makes us keen to condemn. I once compared imaginary newspaper headlines with an Italian. We came up with
England: John Smith – my three in a bed shame
Italy: Forza Giovanni! Two in one night!
So how should we regard the doings of the famous? Who should be setting an example? Obviously times change: there was a time when a politician getting a divorce would have had to resign, but not now. Let’s take the example of a judge. If his marriage breaks down it is just unfortunate. Surely there is no reason for criticism. Supposing His Lordship indulges himself perfectly legally with a prostitute – aaah!, we are beginning to think, respectable pillar of society sees tart! – but prostitution is legal as long as it does not involve pimping, kerb crawling, keeping a brothel etc. And it would not affect his ability to do his job, as it would if he had been caught with his hands in the till. But we would like him to behave with Victorian propriety, setting an example.
Now politicians. After the recent resignation of Alan Johnson, the shadow chancellor, there was no suggestion he might have behaved better – nor, I think, should there have been. Boris Johnston, the Mayor of London, is said, by the girl in question, to have persuaded her to have an abortion, and, it appears, has fathered a child with another woman while still married. There seems to be no suggestion that this behaviour should disqualify him from office. Should there be? What would disqualify him?
And so, to the inevitable Silvio Berlusconi. Let us suppose for a second that he is not convicted of sleeping with an under age prostitute (by the way, this is an odd law. Prostitution is very common in Italy; is the man supposed to demand a girl’s ID before giving in to her charms? And lumped in with having sexual relations with her is the Clintonesque ‘Palpazione concupiscente’ which means, more or less, heavy petting or groping). Anyway, let’s assume that he is not guilty of that (which would, I have no doubt, be a resignation issue) what has he done?
And yet we all know, at least the press do, but I think the people as well, that he has not been setting an example, that he has let the country down, or as Gianfranco Fini colourfully put it, ‘muddied the good name of Italy’. Why, though? Is it because he was elected to represent his country and his private life must be whiter than white? What about Boris Johnston, elected to represent a city more populous than Switzerland or Ireland?
I think there are two answers. One is that Boris, the cheeky chappie, can look a bit of a victim of circumstance whereas Silvio, the worldly wise self made billionaire, looks as if he is above the rules. And the second is that Berlusconi seems to be a serial performer, creating an overall impression of falling short of the ideal.
Should there be rules as to what a politician can and can’t do? Should they be nuanced, such as (sorry to bring up Clinton again) smoking a joint but not inhaling? I think not. Voters must see things in the round, the overall picture. Churchill is an obvious example: no one complains about his drunkenness, in the light of his having been so magnificent in the war. Perhaps people perceive Boris as a wonderful mayor of London. They will turn a blind eye to his little peccadilloes if he makes a success of the Olympics, as they will to Wayne Rooney as long as he keeps scoring goals.
And Berlusconi? Well, he needs to chalk up a success or two. With that to show off, people will forgive anything. And anyone.
Brian Cowen
One thing which hasn't been said about the resignation of Brian Cowen, the Prime Minister or Taoiseach of Ireland, is that he was the least attractive political leader in the world.
It is a tribute to Cowen that in an age where politicians are expected to be as smooth as game show hosts he got to the top while remaining unashmedly ugly.
It is a tribute to Cowen that in an age where politicians are expected to be as smooth as game show hosts he got to the top while remaining unashmedly ugly.
22 January, 2011
How is Silvio?
Not too good, if you read the papers. 'Everyone is against him except the United Nations' wrote la Stampa. Even the Pope has weighed in, and I must say, having your morality questioned by someone who was a member of the Hitlerjugend and then turned a blind eye to paedophilia in the Church must leave its mark on a man.
But as so often there is a disparity between what the press thinks and what the public think. In a poll conducted by Ipsos for the University of Milan, whilst 70% did not think he was being persecuted by the courts, they did not intend to punish him at the polls. Most people, it would appear, think there is no realistic alternative to Berlusconi.
But still the stories roll in. The Guardian eagerly quotes Nadia Macrì, who, you will recall, was mentioned in this blog back in November for charging €5,000 to Berlusconi but only €300 to the Minister of Public Administration, as follows:
'after sharing a swimming pool with an allegedly nude prime minister and five or six other girls, she watched as he headed for a room used for massages.
"After a bit, he said: 'Next one. Next one.' And every five minutes we opened the door and had sexual relations. One at a time."
This would be a remarkable performance for any man, let alone a 74 year old. It is probably worth another 100,000 votes to Berlusconi.
But as so often there is a disparity between what the press thinks and what the public think. In a poll conducted by Ipsos for the University of Milan, whilst 70% did not think he was being persecuted by the courts, they did not intend to punish him at the polls. Most people, it would appear, think there is no realistic alternative to Berlusconi.
But still the stories roll in. The Guardian eagerly quotes Nadia Macrì, who, you will recall, was mentioned in this blog back in November for charging €5,000 to Berlusconi but only €300 to the Minister of Public Administration, as follows:
'after sharing a swimming pool with an allegedly nude prime minister and five or six other girls, she watched as he headed for a room used for massages.
"After a bit, he said: 'Next one. Next one.' And every five minutes we opened the door and had sexual relations. One at a time."
This would be a remarkable performance for any man, let alone a 74 year old. It is probably worth another 100,000 votes to Berlusconi.
21 January, 2011
How the other half live
The Opposition finance spokesman, or Shadow Chancellor, Alan Johnson, has resigned. Half the media seems to think it is because he was having an affair with a civil servant, whilst the other half think it is because his wife is having an affair with his bodyguard. Perhaps both are true.So, where was the bodyguard when....no, let's not go there.
Mr Johnson is 60, and, one would have thought, extremely busy. He does not appear to have resigned out of shame about his marriage, but because he found it difficult worrying about the press. I don't really know whether these people should be setting an example to the nation or not. I rather think that sort of thing went out of the window some years ago, except when talking about Silvio Berlusconi.
19 January, 2011
Booze and bad behaviour
The British Government is about to impose minimum pricing for alcohol, with the result that a bottle of wine will cost at least £2.10 (€2.50) and a bottle of spirits at least £11.40 (€13.70). This idea is very wrong, and in a number of respects.
They say it is targeted at the 25% of people who drink more than the Government guidelines, a group amongst which I number myself. It’s not, though. It’s targeted at poor people; people who don’t fit into the social category of our rulers and therefore need to be controlled. Poor people sometimes want to get drunk.
This is a tax on behaviour the political class doesn’t approve of. Now, in my opinion, the State has no business regulating behaviour. We did not elect it for that.
I might mention in passing that this is not a good time to be taxing poor people.
The economist and statistician Sir Robert Giffen identified what has become known as the Giffen good. This is a good for which demand can rise as the price rises, a reversal of the traditional demand and supply equation. An example used is the price of bread for a poor family. Because of a rise in the bread price, the family has less disposable cash, and so cuts down on the more expensive things – meat, cakes etc, and makes up for the loss of food by buying more bread, still the cheapest thing on the shopping list.
For a poor family used to heavy drinking, alcohol can be a Giffen good. Following this discriminatory price rise they could well be drinking the same, cutting back on other things, or more.
Lastly, as I have said before, we shall begin to solve the problem of alcohol induced loutishness once we realise that it has nothing to do with price. Here in Italy, where wine costs a third of these levels and spirits a half, there is nothing like the problem that exists in the UK. This problem stems from the collapse of the family and the normative moral relativism encouraged by bien pensant liberals – the idea that there is no moral standard by which to judge others and so we should not judge them. Or as my grandparents would have put it, there is no sense of shame.
The problem, and I accept that there is a problem, has everything to do with social liberalism and nothing to do with the price of lager. We should either let people behave as they like - which may be preferable - or we should teach them how to behave, not punish them when they don't.
They say it is targeted at the 25% of people who drink more than the Government guidelines, a group amongst which I number myself. It’s not, though. It’s targeted at poor people; people who don’t fit into the social category of our rulers and therefore need to be controlled. Poor people sometimes want to get drunk.
This is a tax on behaviour the political class doesn’t approve of. Now, in my opinion, the State has no business regulating behaviour. We did not elect it for that.
I might mention in passing that this is not a good time to be taxing poor people.
The economist and statistician Sir Robert Giffen identified what has become known as the Giffen good. This is a good for which demand can rise as the price rises, a reversal of the traditional demand and supply equation. An example used is the price of bread for a poor family. Because of a rise in the bread price, the family has less disposable cash, and so cuts down on the more expensive things – meat, cakes etc, and makes up for the loss of food by buying more bread, still the cheapest thing on the shopping list.
For a poor family used to heavy drinking, alcohol can be a Giffen good. Following this discriminatory price rise they could well be drinking the same, cutting back on other things, or more.
Lastly, as I have said before, we shall begin to solve the problem of alcohol induced loutishness once we realise that it has nothing to do with price. Here in Italy, where wine costs a third of these levels and spirits a half, there is nothing like the problem that exists in the UK. This problem stems from the collapse of the family and the normative moral relativism encouraged by bien pensant liberals – the idea that there is no moral standard by which to judge others and so we should not judge them. Or as my grandparents would have put it, there is no sense of shame.
The problem, and I accept that there is a problem, has everything to do with social liberalism and nothing to do with the price of lager. We should either let people behave as they like - which may be preferable - or we should teach them how to behave, not punish them when they don't.
18 January, 2011
Italian Economics explained
A letter to the Financial Times
Sir, Italians love their friends and relatives but do not trust other Italians. This is why they save a lot and their private affluence is so high (as described by Rachel Sanderson in “Wealth of the nation is a private matter”, December 23). There are, however, four corollaries.
One, Italians do not invest in their enterprises, which remain small.
Two, those who can (mainly the self-employed) do not pay taxes.
Three, they do not care about value for (tax) money (and elect politicians who care even less).
Four, they manage to export enough to pay the oil bill, despite the small size of their enterprises. Of course, points two and three build up in public debt.
In the short term this may protect the country from financial shocks. Is it sustainable in the long run? According to most economists it is not. Italians do not have the technology (because of point one) and the level of education (because of two and three) to compete in the global arena. However, point four is a puzzle. Does an economic talent exist that does not depend on technology and education? If it does, Italians may continue to enjoy their “amoral familism” for some time yet.
Sergio Lugaresi,
Rome, Italy
Sir, Italians love their friends and relatives but do not trust other Italians. This is why they save a lot and their private affluence is so high (as described by Rachel Sanderson in “Wealth of the nation is a private matter”, December 23). There are, however, four corollaries.
One, Italians do not invest in their enterprises, which remain small.
Two, those who can (mainly the self-employed) do not pay taxes.
Three, they do not care about value for (tax) money (and elect politicians who care even less).
Four, they manage to export enough to pay the oil bill, despite the small size of their enterprises. Of course, points two and three build up in public debt.
In the short term this may protect the country from financial shocks. Is it sustainable in the long run? According to most economists it is not. Italians do not have the technology (because of point one) and the level of education (because of two and three) to compete in the global arena. However, point four is a puzzle. Does an economic talent exist that does not depend on technology and education? If it does, Italians may continue to enjoy their “amoral familism” for some time yet.
Sergio Lugaresi,
Rome, Italy
17 January, 2011
Wikiluvvies
Anyone who uses the service will know that it was Wikipedia’s 10th anniversary last week. I have been using it almost since the day it began and have found it most useful. And it is getting better and better. And it’s free.
There is only one criticism I have heard, exemplified by this mean spirited little article in the Guardian
‘Still, it's more fun than Wikipedia, which celebrates its 10th anniversary today. Like many 10-year-olds, its grip on reality isn't strong. I once read my own Wikipedia page....’
Yes, it is the self-important who find it unsatisfactory. The celebrity broadcaster Jeremy Paxman once made a huge to do about something inaccurate on his page, and it turned into such a snivelling fuss that people were queuing up to alter the page and make it even funnier.
Wikipedia is updated by humans and there are mistakes. But most articles are referenced and you can use it as the start of a piece of research. Most of us who are not self-worshipping luvvies find it excellent.
What Jimmy Wales, Wikipedia’s founder, needs to do next is create a separate Luvvypedia or Wikiluvvy so these people can read about themselves to their hearts’ content without using up the bandwidth.
There is only one criticism I have heard, exemplified by this mean spirited little article in the Guardian
‘Still, it's more fun than Wikipedia, which celebrates its 10th anniversary today. Like many 10-year-olds, its grip on reality isn't strong. I once read my own Wikipedia page....’
Yes, it is the self-important who find it unsatisfactory. The celebrity broadcaster Jeremy Paxman once made a huge to do about something inaccurate on his page, and it turned into such a snivelling fuss that people were queuing up to alter the page and make it even funnier.
Wikipedia is updated by humans and there are mistakes. But most articles are referenced and you can use it as the start of a piece of research. Most of us who are not self-worshipping luvvies find it excellent.
What Jimmy Wales, Wikipedia’s founder, needs to do next is create a separate Luvvypedia or Wikiluvvy so these people can read about themselves to their hearts’ content without using up the bandwidth.
16 January, 2011
Sunday Thinkpiece: The lessons of Tucson
To many of us outside the USA it seems that mass shootings are a common occurrence there, and we found it a bit of a surprise that the most recent one, in Tucson Arizona, should achieve such notoriety. Anything which can capture the American media for a week has to be exceptional.
Perhaps a Democratic congresswoman being severely injured has raised the temperature a bit, and it is indeed a time of overheated political debate, as the electorate reconsiders its views on Obama, and mulls over the media successes of the new right Tea Party movement. Congresswoman Giffords is Jewish and in favour of abortion and these two aspects have received a lot of media coverage, largely to no conclusion.
In truth we know very little about the motives of Jared Lee Loughner, who seems, if not deranged, a bit odd, a loner, perhaps the sort of chap you wouldn’t mind knowing but wouldn’t want owning a gun. As to his politics he has said that he is equally interested by the Communist Manifesto and Mein Kampf (anyone who says either of these books is interesting simply hasn’t read them).
Gun control, or lack of it, is what the foreigners say, and indeed Arizona has some of the laxest gun laws of any state. Loughner’s pistol had an extended magazine, of the sort which would have been illegal in the USA if they hadn’t relaxed the restrictions on assault weapons in 2004. He bought the ammunition in Walmart.
Most non-Americans cannot understand why gun ownership should be called ‘the right to bear arms’, a romantic euphemism which seems to muddy the waters of reality, and why it should be so loosely regulated. I must admit myself, amid brief flashes of understanding, to finding it a bit confusing. The aim of the Second Amendment was to make everyone equal, as a tool against tyranny so it wasn’t just the ruling class which had the guns. Malcolm X’s Black Power Movement raged against gun control, advising its followers to grab a gun before it was only the police which had them. I remember hearing a Texan say he kept a gun in case the Federal Government staged an unconstitutional coup. It is unimagineable that any politician would have the courage to regulate gun ownership. Americans have to live with it.
The current media fad, led by the liberal leaning New York Times, is to blame it on Sarah Palin. It seems that Ms Palin put out publicity on target seats they could win (does the word ‘target’ make you itch for an automatic weapon? Thought not) with these seats marked by the crosshairs of a gun sight. It seems also that one of her favourite phrases is ‘don’t retreat – reload’. The idea that these words might spur even an idiosyncratic young man to homicidal violence seems quite absurd.
But that didn’t stop President Obama, in an otherwise good speech, from suggesting a toning down of the language of politics, a rather cheap de haut en bas dig at his opponents from a politician who is on the ropes (and carries the curse of this blog). Obama has clearly forgotten that he himself said ‘when they bring a knife to the fight, we bring a gun’.
So it wasn’t the dialectical politics of the last century, or the confrontational politics of this one. It was a young loner raging against the machine. Mr. Loughner who, unlike most protagonists of mass violence, did not manage to end his own life, will go through the judicial process and perhaps be executed. Motives will be attributed and discarded and slowly he will be forgotten.
The lesson which will be drawn from Tucson is that there is no lesson to be drawn.
Perhaps a Democratic congresswoman being severely injured has raised the temperature a bit, and it is indeed a time of overheated political debate, as the electorate reconsiders its views on Obama, and mulls over the media successes of the new right Tea Party movement. Congresswoman Giffords is Jewish and in favour of abortion and these two aspects have received a lot of media coverage, largely to no conclusion.
In truth we know very little about the motives of Jared Lee Loughner, who seems, if not deranged, a bit odd, a loner, perhaps the sort of chap you wouldn’t mind knowing but wouldn’t want owning a gun. As to his politics he has said that he is equally interested by the Communist Manifesto and Mein Kampf (anyone who says either of these books is interesting simply hasn’t read them).
Gun control, or lack of it, is what the foreigners say, and indeed Arizona has some of the laxest gun laws of any state. Loughner’s pistol had an extended magazine, of the sort which would have been illegal in the USA if they hadn’t relaxed the restrictions on assault weapons in 2004. He bought the ammunition in Walmart.
Most non-Americans cannot understand why gun ownership should be called ‘the right to bear arms’, a romantic euphemism which seems to muddy the waters of reality, and why it should be so loosely regulated. I must admit myself, amid brief flashes of understanding, to finding it a bit confusing. The aim of the Second Amendment was to make everyone equal, as a tool against tyranny so it wasn’t just the ruling class which had the guns. Malcolm X’s Black Power Movement raged against gun control, advising its followers to grab a gun before it was only the police which had them. I remember hearing a Texan say he kept a gun in case the Federal Government staged an unconstitutional coup. It is unimagineable that any politician would have the courage to regulate gun ownership. Americans have to live with it.
The current media fad, led by the liberal leaning New York Times, is to blame it on Sarah Palin. It seems that Ms Palin put out publicity on target seats they could win (does the word ‘target’ make you itch for an automatic weapon? Thought not) with these seats marked by the crosshairs of a gun sight. It seems also that one of her favourite phrases is ‘don’t retreat – reload’. The idea that these words might spur even an idiosyncratic young man to homicidal violence seems quite absurd.
But that didn’t stop President Obama, in an otherwise good speech, from suggesting a toning down of the language of politics, a rather cheap de haut en bas dig at his opponents from a politician who is on the ropes (and carries the curse of this blog). Obama has clearly forgotten that he himself said ‘when they bring a knife to the fight, we bring a gun’.
So it wasn’t the dialectical politics of the last century, or the confrontational politics of this one. It was a young loner raging against the machine. Mr. Loughner who, unlike most protagonists of mass violence, did not manage to end his own life, will go through the judicial process and perhaps be executed. Motives will be attributed and discarded and slowly he will be forgotten.
The lesson which will be drawn from Tucson is that there is no lesson to be drawn.
15 January, 2011
The first domino?
In my post of the 12th January I voiced my fears that the unrest on the streets of the Maghreb countries could be the start of something worse. Now we see: the immovable dictator Zine Abidine Ben Ali of Tunisia has gone, fled to Saudi Arabia. Ben Ali had been President since 1987, only Tunisia’s second President since independence in 1956.
He had already said he would not stand for re-election but that was not enough.
Tunisia has had growth averaging 5%, and is the most competitive economy in Africa, with the highest per capita income. It has oil and gas and what until last week was thought to be a stable government.
If Ben Ali can fall, so can the others.
He had already said he would not stand for re-election but that was not enough.
Tunisia has had growth averaging 5%, and is the most competitive economy in Africa, with the highest per capita income. It has oil and gas and what until last week was thought to be a stable government.
If Ben Ali can fall, so can the others.
14 January, 2011
Clouseau and integration
An interesting little vignette from François Fillon, Prime Minister of France, on a visit to the UK. M. Fillon, who unfortunately looks far too much like Inspector Clouseau, declared roundly that France and Germany 'will do everything, absolutely everything, to save the euro'.
He goes on
“In order to consolidate the euro we will need gradually to harmonise our economic, fiscal and social policies, hence we are going to go towards greater integration
“The question is is the UK ready to accept or encourage greater integration of the eurozone or is the UK distrustful of that and will it create obstacles and make it more difficult to happen?'
It sounded a little bit more of a threat than a plea, but that is the usual language of the integrationists so let it pass.
Britain, as Clouseau also pointed out, has a great interest in this. So assuming we don't wish to join (and the Government could never get a law passed, even if it wanted to), and that we, as the French always do, vote in our national interest on treaty change, where does that interest lie?
In one sense, what kind of a mess these people make in their own stables is a matter for them. But until we can redirect our economy towards the Far East, and away from the moribund 'Old Europe' it is in the interests of our exporters that mainland Europe be economically buoyant. Where Fillon goes wrong is to assume that that is the same as the full political integration which would be required to control the budget deficits of the new sinners (the first countries to breach the guidelines were of course, France, Germany and Italy but we have forgotten that).
But I think it is becoming clear that full integration is not the right road for Europe. It will cause massive political upheaval as those countries with an independent frame of mind dither and horse trade over a treaty change. And someone will always get round it.
The solution to Europe's problems lies either with the weak countries leaving the eurozone or, better, the strong countries leaving it. Europe's best hope is not to hold back the efficient by making them give a blanket guarantee of the inefficient. It is to let the best maximise their performace and help the weakest up that way.
We should say politely to M. Fillon that Britain's long term interest lies in the euro breaking up, and as friends, the best we can do for them is to save them from the insane, one-track minded political class that would prefer poverty to taking a step backwards politically.
We should oppose any treaty which will make Europe poorer.
He goes on
“In order to consolidate the euro we will need gradually to harmonise our economic, fiscal and social policies, hence we are going to go towards greater integration
“The question is is the UK ready to accept or encourage greater integration of the eurozone or is the UK distrustful of that and will it create obstacles and make it more difficult to happen?'
It sounded a little bit more of a threat than a plea, but that is the usual language of the integrationists so let it pass.
Britain, as Clouseau also pointed out, has a great interest in this. So assuming we don't wish to join (and the Government could never get a law passed, even if it wanted to), and that we, as the French always do, vote in our national interest on treaty change, where does that interest lie?
In one sense, what kind of a mess these people make in their own stables is a matter for them. But until we can redirect our economy towards the Far East, and away from the moribund 'Old Europe' it is in the interests of our exporters that mainland Europe be economically buoyant. Where Fillon goes wrong is to assume that that is the same as the full political integration which would be required to control the budget deficits of the new sinners (the first countries to breach the guidelines were of course, France, Germany and Italy but we have forgotten that).
But I think it is becoming clear that full integration is not the right road for Europe. It will cause massive political upheaval as those countries with an independent frame of mind dither and horse trade over a treaty change. And someone will always get round it.
The solution to Europe's problems lies either with the weak countries leaving the eurozone or, better, the strong countries leaving it. Europe's best hope is not to hold back the efficient by making them give a blanket guarantee of the inefficient. It is to let the best maximise their performace and help the weakest up that way.
We should say politely to M. Fillon that Britain's long term interest lies in the euro breaking up, and as friends, the best we can do for them is to save them from the insane, one-track minded political class that would prefer poverty to taking a step backwards politically.
We should oppose any treaty which will make Europe poorer.
Digital learning
I read that the UK has the greatest usage of digital blackboards in the world, with some 7 school classes out of 10 boasting the new technology. The equivalent in the US is 4 out of ten, and Canada 3.
The odd thing is I read it in an Italian newspaper, today's Corriere della Sera. I suppose that with an election having taken place last year, the new government doesn't want to give the old one credit for the investment.
Perhaps digital blackboards aren't a very good idea, I don't know, but one gets the feeling the UK isn't too good at blowing its own trumpet.
The odd thing is I read it in an Italian newspaper, today's Corriere della Sera. I suppose that with an election having taken place last year, the new government doesn't want to give the old one credit for the investment.
Perhaps digital blackboards aren't a very good idea, I don't know, but one gets the feeling the UK isn't too good at blowing its own trumpet.
12 January, 2011
More from the home of the brave
''We don’t have a stronger friend and stronger ally than Nicolas Sarkozy, and the French people.' said President Obama, which will come as a blow to the hundreds of families of those who have died in Iraq and Afghanistan so that Tony Blair could be taken seriously in Washington.
We're just going to have to face it: this guy is simply not on our side.
And we, of course, shouldn't be on his.
We're just going to have to face it: this guy is simply not on our side.
And we, of course, shouldn't be on his.
Trouble in the Maghreb
Some time in the late 1980s while working for a bank I received a visit from a senior member of the entourage of the President of Algeria. They were fearing riots, he said, through the lack of food on the streets, and Islam would benefit from this, as it always did, running like wildfire among the poor and hungry. There would be global implications.
Eventually, using money from we didn't ask where, we began to finance shipments of chickpeas, the local staple. Of course Algeria has massive revenues from gas, but nobody knows quite where the money goes.
Algeria has been rumbling with discontent since then, and now we see it has broken out on to the streets. There have been riots all over the Maghreb, particularly in Egypt and, surprisingly, Tunisia, which is ruled by the iron fist of President Ben Ali. The issue is not yet empty bellies but lack of jobs, for North Africa is dependent on the EU and times have been hard there.
It may be this is temporary or it may be, as I fear, the start of something bigger. These rulers are the last of the old guard, who were activists before independence: Bouteflika of Algeria is 74 this year; Ben Ali of Tunisa has had his 74th, while Mubarak of Egypt is 82.
The question is, who will replace them?
Eventually, using money from we didn't ask where, we began to finance shipments of chickpeas, the local staple. Of course Algeria has massive revenues from gas, but nobody knows quite where the money goes.
Algeria has been rumbling with discontent since then, and now we see it has broken out on to the streets. There have been riots all over the Maghreb, particularly in Egypt and, surprisingly, Tunisia, which is ruled by the iron fist of President Ben Ali. The issue is not yet empty bellies but lack of jobs, for North Africa is dependent on the EU and times have been hard there.
It may be this is temporary or it may be, as I fear, the start of something bigger. These rulers are the last of the old guard, who were activists before independence: Bouteflika of Algeria is 74 this year; Ben Ali of Tunisa has had his 74th, while Mubarak of Egypt is 82.
The question is, who will replace them?
10 January, 2011
Inflation is coming back
An interesting point to note: the Bank of England's pension fund is now nearly 95% invested in index-linked (ie inflation proof) securities.
Perhaps they should have a word with the Monetary Policy Committee.
Perhaps they should have a word with the Monetary Policy Committee.
09 January, 2011
Sunday Thinkpiece: bankers' pay
Well, we’ve just been through the Christmas good will to all men bit and now we are into a new year full, I hope, of misplaced optimism, so I ask you this: has anyone got a good word to say for the bankers?
Ah. This looks like an uphill struggle. But let’s proceed. I used to work in the City of London, mainly financing companies (this creates jobs, as we found out as soon as it stopped happening. But nobody gave me any thanks and I didn’t expect any). Reading what I read in the press, it is as if, at the end of the year, the senior management ‘phoned up and said ‘Look, Tim, we’re awash with cash and we wondered if you could take any more – perhaps a million?’. Unfortunately it wasn’t like that. The job was quite well remunerated, but they paid me as little as they needed to in order to keep me (to the extent that they wanted to keep me).
But banking is well paid, everybody knows that. Why do they pay out so much, though, given that they are trying, like any business, to keep their costs down? The answer is that there’s a shortage of talent. So why don’t those people who whinge about bankers’ earnings give it a try? Take the millions and have a champagne lifestyle – why not? Actually it’s quite difficult, the hours are extremely long, there is no job security and the bonus system means that in the bad years you are likely to get a fair bit less than you were expecting.
I don’t mind anyone who is good at their job earning a lot of money. David Beckham is an example, as are several actors and actresses, musicians and artists. That’s what our system is about – people who are good making it to the top.
Of course people’s views of bankers are coloured by the credit crisis. ‘Their greed brought down the whole system, the ordinary people have to bail them out and now they are paying themselves millions again, of our money.’ That’s the sort of comment which is typical.
I think it is important to deal with this in detail. Firstly it is nonsense to say that the system was (nearly) brought down by bankers’ greed. You can take bankers’ greed as a given fact. ‘Greed is good’ said Gordon Gekko; I would say it is normal. Automobile manufacturers want to make and sell as many cars as they can; architects want to design as many buildings as they can. This isn’t greed, it’s rational behaviour in a modern society. Bankers were hungry for success in the bad times and in the good. When they invented new mortgage products enabling many, many more people to buy their houses, no one complained it was driven by greed.
The system was (nearly) brought down by politicians wanting to look like the architects of the good times. Bill Clinton instructed state controlled mortgage institutions to offer cheap loans to people who had no realistic chance of paying them back. Gordon Brown kept interest rates artificially low and hinted that he had invented permanent boom. Of course bankers recycled this vast pool of cheap cash – they were supposed to.
It is the point about ‘paying themselves with our money’ which nearly hits home. Of course the government has no business telling companies what they can pay their staff – incomes policy is regarded by economists on both left and right as having been a serious error. But shareholders have the right to decide what their employees earn and having poured our cash into the banks, the government is now a shareholder in several. So should the British Government limit the earnings of staff at Lloyds, or Royal Bank of Scotland? The problem is that the other big banks, Barclays and HSBC, didn’t take the taxpayers’ cash, so they would be able to mop up the best employees from the ones who did, these employees jumping ship, naturally wanting to avoid limitations to their salaries.
So to keep their best staff, even the nationalised banks have to pay the going rate. And if they don’t have the best staff they will earn lower profits and be worth a lot less when the taxpayer wants to sell.
So the government then descended to pleading with the banks to reduce their bonuses, particularly for Chief Executives to set an example. Here is what happened
Lloyds (Eric Daniels) 2007 £1.8m waived 2008 and 2009
Barclays (John Varley) 2007 £2m waived 2008 and 2009
Barclays (Bob Diamond) 2007 £17.9m waived 2008 and 2009
RBS (Stephen Hester) waived 2009
HSBC (Michael Geoghan) 2007 £1.9m waived 2008 donated £4m 2009 to charity
So it looks as if a few men may have given away something in the region of £50m. And where was the chorus of thanks? There wasn’t one. To the left and to the ignorant they’re still pariahs.
So this year they are forecasting a bonanza. Remuneration committees (bank directors don’t pay themselves, another popular misconception) will give them what the market thinks they are worth. It will be a lot.
Ah. This looks like an uphill struggle. But let’s proceed. I used to work in the City of London, mainly financing companies (this creates jobs, as we found out as soon as it stopped happening. But nobody gave me any thanks and I didn’t expect any). Reading what I read in the press, it is as if, at the end of the year, the senior management ‘phoned up and said ‘Look, Tim, we’re awash with cash and we wondered if you could take any more – perhaps a million?’. Unfortunately it wasn’t like that. The job was quite well remunerated, but they paid me as little as they needed to in order to keep me (to the extent that they wanted to keep me).
But banking is well paid, everybody knows that. Why do they pay out so much, though, given that they are trying, like any business, to keep their costs down? The answer is that there’s a shortage of talent. So why don’t those people who whinge about bankers’ earnings give it a try? Take the millions and have a champagne lifestyle – why not? Actually it’s quite difficult, the hours are extremely long, there is no job security and the bonus system means that in the bad years you are likely to get a fair bit less than you were expecting.
I don’t mind anyone who is good at their job earning a lot of money. David Beckham is an example, as are several actors and actresses, musicians and artists. That’s what our system is about – people who are good making it to the top.
Of course people’s views of bankers are coloured by the credit crisis. ‘Their greed brought down the whole system, the ordinary people have to bail them out and now they are paying themselves millions again, of our money.’ That’s the sort of comment which is typical.
I think it is important to deal with this in detail. Firstly it is nonsense to say that the system was (nearly) brought down by bankers’ greed. You can take bankers’ greed as a given fact. ‘Greed is good’ said Gordon Gekko; I would say it is normal. Automobile manufacturers want to make and sell as many cars as they can; architects want to design as many buildings as they can. This isn’t greed, it’s rational behaviour in a modern society. Bankers were hungry for success in the bad times and in the good. When they invented new mortgage products enabling many, many more people to buy their houses, no one complained it was driven by greed.
The system was (nearly) brought down by politicians wanting to look like the architects of the good times. Bill Clinton instructed state controlled mortgage institutions to offer cheap loans to people who had no realistic chance of paying them back. Gordon Brown kept interest rates artificially low and hinted that he had invented permanent boom. Of course bankers recycled this vast pool of cheap cash – they were supposed to.
It is the point about ‘paying themselves with our money’ which nearly hits home. Of course the government has no business telling companies what they can pay their staff – incomes policy is regarded by economists on both left and right as having been a serious error. But shareholders have the right to decide what their employees earn and having poured our cash into the banks, the government is now a shareholder in several. So should the British Government limit the earnings of staff at Lloyds, or Royal Bank of Scotland? The problem is that the other big banks, Barclays and HSBC, didn’t take the taxpayers’ cash, so they would be able to mop up the best employees from the ones who did, these employees jumping ship, naturally wanting to avoid limitations to their salaries.
So to keep their best staff, even the nationalised banks have to pay the going rate. And if they don’t have the best staff they will earn lower profits and be worth a lot less when the taxpayer wants to sell.
So the government then descended to pleading with the banks to reduce their bonuses, particularly for Chief Executives to set an example. Here is what happened
Lloyds (Eric Daniels) 2007 £1.8m waived 2008 and 2009
Barclays (John Varley) 2007 £2m waived 2008 and 2009
Barclays (Bob Diamond) 2007 £17.9m waived 2008 and 2009
RBS (Stephen Hester) waived 2009
HSBC (Michael Geoghan) 2007 £1.9m waived 2008 donated £4m 2009 to charity
So it looks as if a few men may have given away something in the region of £50m. And where was the chorus of thanks? There wasn’t one. To the left and to the ignorant they’re still pariahs.
So this year they are forecasting a bonanza. Remuneration committees (bank directors don’t pay themselves, another popular misconception) will give them what the market thinks they are worth. It will be a lot.
08 January, 2011
Europe worse than Iraq
Further to my post a couple of days back where the propaganda from the European Commission claimed a success in '“Securing a sound economy and stronger financial markets", the latest quarterly report from the Data Services company CMA arrives over the airwaves.
Of the ten most risky state borrowers in the world, as measured by the cost of insuring their debt against default, four are in the eurozone: Greece (which slips into the No1 spot ahead of Venezuela, whose President is mad), Portugal, Ireland and Spain. In addition Hungary, which holds the rotating EU Presidency (as opposed to the permanent President, Rumpy, who is Belgian, and the President of the Commission, Barroso, who is Portuguese) slips in at No.9, the ninth worst international sovereign credit risk. Iraq is tenth.
The inability of any eurozone statesman, particularly Chancellor Merkel, to make any kind of decision, means things are going from bad to worse.
The reason for this is that the eurozone is a political construct, not an economic one, and they can't bring themselves to believe that it is a disaster, which is gradually impoverishing the people of Europe. At the moment all they are doing is lending these countries more money, which is not the solution to overindebtedness. They are wishing the whole thing would go away so they can get back to enjoying their lunches and their pousse-café in peace.
But it won't go away; it will get worse.
I have said it before but it is worth repeating.They have three choices: take control of the fiscal side of each member (politically unacceptable to the members), allow member states to go bust while in the euro, or allow them to leave. These last two are politically unacceptable to the bureaucrats, and this is why they told the lie (there is no other word for a statement made in the knowledge that it was untrue and with intent to deceive) that they were “Securing a sound economy and stronger financial markets".
I repeat, if they don't do something, this will get worse in 2011
Of the ten most risky state borrowers in the world, as measured by the cost of insuring their debt against default, four are in the eurozone: Greece (which slips into the No1 spot ahead of Venezuela, whose President is mad), Portugal, Ireland and Spain. In addition Hungary, which holds the rotating EU Presidency (as opposed to the permanent President, Rumpy, who is Belgian, and the President of the Commission, Barroso, who is Portuguese) slips in at No.9, the ninth worst international sovereign credit risk. Iraq is tenth.
The inability of any eurozone statesman, particularly Chancellor Merkel, to make any kind of decision, means things are going from bad to worse.
The reason for this is that the eurozone is a political construct, not an economic one, and they can't bring themselves to believe that it is a disaster, which is gradually impoverishing the people of Europe. At the moment all they are doing is lending these countries more money, which is not the solution to overindebtedness. They are wishing the whole thing would go away so they can get back to enjoying their lunches and their pousse-café in peace.
But it won't go away; it will get worse.
I have said it before but it is worth repeating.They have three choices: take control of the fiscal side of each member (politically unacceptable to the members), allow member states to go bust while in the euro, or allow them to leave. These last two are politically unacceptable to the bureaucrats, and this is why they told the lie (there is no other word for a statement made in the knowledge that it was untrue and with intent to deceive) that they were “Securing a sound economy and stronger financial markets".
I repeat, if they don't do something, this will get worse in 2011
07 January, 2011
England's cricketers
Wonderful cricket down under as England win the Ashes series 3-1. England's domination of the series can be seen in this statistic: each side could lose 100 wickets over the 5 matches. Australia lost 91 wickets for an average of 29 runs. England lost 56 wickets for an average of 51 runs.
Cricket fans love statistics. What about this? I hear on the BBC that in three of the matches the final ball was bowled during Radio 4's shipping forecast.
Cricket fans love statistics. What about this? I hear on the BBC that in three of the matches the final ball was bowled during Radio 4's shipping forecast.
06 January, 2011
What they're doing (to) for you
The European Commission has produced a video entitled 'What has the EU done for you in 2010?' If you have a strong stomach you can watch it on the EU Commission part of the Europa website
Amongst its claims is “Securing a sound economy and stronger financial markets", an inversion of the truth so egregious that most people will find it laughable until they realise they are paying for this Newspeak.
And the sun shone in London over Christmas and Greece is overtaking Germany as the financial powerhouse of Europe.
Amongst its claims is “Securing a sound economy and stronger financial markets", an inversion of the truth so egregious that most people will find it laughable until they realise they are paying for this Newspeak.
And the sun shone in London over Christmas and Greece is overtaking Germany as the financial powerhouse of Europe.
Freedom of Information
Thanks to Dizzythinks for this. The UK Home Office received the following Freedom of Information request:
Dear Home Office,
my son is in year 9 at school and he has been given homework to find out the top 10 uk crime, we can't find any information and was wondering if you would be able to help us. his homework needs to be handed in on the 4th january. thankyou for taking time to read this.
Yours faithfully,
mrs wright
The Home office said they were unable to give her an answer, which shows that either they didn't approve of her little ruse or.... that they didn't know
Dear Home Office,
my son is in year 9 at school and he has been given homework to find out the top 10 uk crime, we can't find any information and was wondering if you would be able to help us. his homework needs to be handed in on the 4th january. thankyou for taking time to read this.
Yours faithfully,
mrs wright
The Home office said they were unable to give her an answer, which shows that either they didn't approve of her little ruse or.... that they didn't know
05 January, 2011
03 January, 2011
Football and free lunches
FIFA. Federation Internationale de Football Association (and I’d still like someone to explain why it has a French name) goes from bad to worse. You will remember that two of its executive committee members were found to have sold their vote on the location of the world cup, and in a huff the committee decided not to award it to England, where the investigation had begun.
Now the FIFA President Sepp Blatter has decided on the creation of an anti-corruption committee to monitor the executive committee.
I suppose it is impossible to explain to a professional freeloader like Blatter that what is needed to cure the public’s lack of confidence in his executive committee is not another committee with buildings, free first class flights, secretariats, press secretaries, spin doctors and decent lunches.
It is, quite simply, less corruption.
And less Blatter.
Now the FIFA President Sepp Blatter has decided on the creation of an anti-corruption committee to monitor the executive committee.
I suppose it is impossible to explain to a professional freeloader like Blatter that what is needed to cure the public’s lack of confidence in his executive committee is not another committee with buildings, free first class flights, secretariats, press secretaries, spin doctors and decent lunches.
It is, quite simply, less corruption.
And less Blatter.
Northern Ireland Water
Anyone who goes to Northern Ireland will know that it is always raining. It seems scarcely credible, therefore, that thousands of people in the Province have been without water for weeks, as Northern Ireland Water failed to supply them.
The people of Northern Ireland deserve a Department of Sanitation which can at least supply the sort of service you might find in Egypt or Nigeria, and should give consideration to this at the next elections.
As to the water company itself it has become a sort of subsidised care home for the worthy but inept. It shuold have been sold off years ago, in which case either the water supply would have been maintained because the regulator would have overseen the investment levels, or the state coffers would be swelling with massive fines imposed on a Utlilities Company.
Resignations, please, beginning with the minister and the chairman of the water company.
The people of Northern Ireland deserve a Department of Sanitation which can at least supply the sort of service you might find in Egypt or Nigeria, and should give consideration to this at the next elections.
As to the water company itself it has become a sort of subsidised care home for the worthy but inept. It shuold have been sold off years ago, in which case either the water supply would have been maintained because the regulator would have overseen the investment levels, or the state coffers would be swelling with massive fines imposed on a Utlilities Company.
Resignations, please, beginning with the minister and the chairman of the water company.
Ford Open Prison
I don’t like public enquiries, mainly because they are expensive and only tell the public what the person who set up the enquiry wanted them to hear. But I believe we must have one in respect of the burning down of Ford Open Prison.
I was once told that the inmates of Ford were so posh that they held a special lunch for Old Etonians on 4th June.
We are told alcohol was to blame (we’re quite often told that). Well, I must say I’ve been on the odd five-star tooty myself, but never burned down a municipal building. What were they on? Vintage Krug? Or did they distil their own hooch?
The reason we need an enquiry is that the public genuinely don’t understand how this happened. The security which keeps people in should keep people out. How is it that prisoners have access to alcohol (or drugs, for that matter)?
Some say the prison officers turn a blind eye because a comatose prisoner causes no trouble. Whatever the truth, someone must take responsibility for this.
I was once told that the inmates of Ford were so posh that they held a special lunch for Old Etonians on 4th June.
We are told alcohol was to blame (we’re quite often told that). Well, I must say I’ve been on the odd five-star tooty myself, but never burned down a municipal building. What were they on? Vintage Krug? Or did they distil their own hooch?
The reason we need an enquiry is that the public genuinely don’t understand how this happened. The security which keeps people in should keep people out. How is it that prisoners have access to alcohol (or drugs, for that matter)?
Some say the prison officers turn a blind eye because a comatose prisoner causes no trouble. Whatever the truth, someone must take responsibility for this.
02 January, 2011
Sunday Thinkpiece: the war on drugs
The war on drugs is over, and we were on the losing side. Let us now put aside our weapons, and work out how to manage what will be an uneasy peace.
For a long time there had been talk of drugs, but mainly among the well-to-do, including several members of the Royal Family in the last century. Sherlock Holmes was of course a cocaine addict. But I suppose the war on drugs really started in the 1960s.
Now, half a century later, there are drugs in our prisons, drugs in our schools, drugs on our council estates and drugs on the street being sold to children. Who better to sell them to? Perhaps pushers are the only people investing in our children. ‘Give me a child when he is seven..’ to misquote St Francis Xavier, ‘and I will give you the lifelong addict’.
In America, the war on drugs has cost $1 trillion, that’s a million dollars a million times over, and they are no further forward than we are.
So what, if anything, are we to do? It is obvious that drug use has been increasing, not even staying the same, while we chuck money and the time of the police, courts and prison service into a bottomless pit.
For me, a turning point in my thinking was the passing of the Suicide Act in 1961, making suicide legal. For the first time our bodies were our own. It is why I think the car seatbelts law is wrong: it is perfectly ridiculous that I should be allowed to slit my throat with a carving knife and yet not by going through the windscreen of a car (before you complain, I don’t say it is wrong to wear a seatbelt, just that it is wrong to be made a criminal if you don’t).
For this reason, and the stupidity of fighting a war we can never win, I think drug taking should be legalised. Discouraged, of course, but decriminalised. An addict’s body is his own, not the State’s.
What would be the effect? Most people point to the Netherlands, where pot smoking is allowed in ‘coffee shops’. What is good about it is that the purchase of marijuana is taken out of the hands of the street pusher, who would normally groom a child from marijuana to heroin. Where, however, it is a bad example is that the coffee shops have to buy the weed from the black market, maintaining the criminal connection. Drug use is rising, as are incidences of drug-based gang violence.
A better example is Portugal, where until the turn of the century an astonishing 1% of the population – that’s 100,000 out of ten million – were addicted to illegal drugs. The problem was quite out of control. In 2000, however, a new law decriminalised possession of drugs for personal use. Drugs are still technically illegal, but users are sent for treatment, not to the courts. Essentially the drug problem has been turned from one of criminality to one of public health.
What happened?
There were small increases in illicit drug use among adults, but decreases for adolescents and problem users, such as drug addicts and prisoners.
Drug-related court cases dropped 66 percent.
Drug-related HIV cases dropped 75 percent. In 2002, 49 percent of people with AIDS were addicts; by 2008 that number had fallen to 28 percent.
The number of regular users held steady at less than 3 percent of the population for marijuana and less than 0.3 percent for heroin and cocaine: decriminalisation brought no surge in drug use. The number of people treated for drug addiction rose 20 percent from 2001 to 2008.
(figures courtesy of Associated Press)
Worldwide, some 93 countries offer alternatives to prison for drug use, mainly needle exchanges and the like. The Portuguese go further: their system is not perfect – aspects of the forced treatment leave something to be desired by libertarians – but they have taken a bold step towards doing something sensible: fighting a different war, one they might just win.
The rest of us should follow them.
For a long time there had been talk of drugs, but mainly among the well-to-do, including several members of the Royal Family in the last century. Sherlock Holmes was of course a cocaine addict. But I suppose the war on drugs really started in the 1960s.
Now, half a century later, there are drugs in our prisons, drugs in our schools, drugs on our council estates and drugs on the street being sold to children. Who better to sell them to? Perhaps pushers are the only people investing in our children. ‘Give me a child when he is seven..’ to misquote St Francis Xavier, ‘and I will give you the lifelong addict’.
In America, the war on drugs has cost $1 trillion, that’s a million dollars a million times over, and they are no further forward than we are.
So what, if anything, are we to do? It is obvious that drug use has been increasing, not even staying the same, while we chuck money and the time of the police, courts and prison service into a bottomless pit.
For me, a turning point in my thinking was the passing of the Suicide Act in 1961, making suicide legal. For the first time our bodies were our own. It is why I think the car seatbelts law is wrong: it is perfectly ridiculous that I should be allowed to slit my throat with a carving knife and yet not by going through the windscreen of a car (before you complain, I don’t say it is wrong to wear a seatbelt, just that it is wrong to be made a criminal if you don’t).
For this reason, and the stupidity of fighting a war we can never win, I think drug taking should be legalised. Discouraged, of course, but decriminalised. An addict’s body is his own, not the State’s.
What would be the effect? Most people point to the Netherlands, where pot smoking is allowed in ‘coffee shops’. What is good about it is that the purchase of marijuana is taken out of the hands of the street pusher, who would normally groom a child from marijuana to heroin. Where, however, it is a bad example is that the coffee shops have to buy the weed from the black market, maintaining the criminal connection. Drug use is rising, as are incidences of drug-based gang violence.
A better example is Portugal, where until the turn of the century an astonishing 1% of the population – that’s 100,000 out of ten million – were addicted to illegal drugs. The problem was quite out of control. In 2000, however, a new law decriminalised possession of drugs for personal use. Drugs are still technically illegal, but users are sent for treatment, not to the courts. Essentially the drug problem has been turned from one of criminality to one of public health.
What happened?
There were small increases in illicit drug use among adults, but decreases for adolescents and problem users, such as drug addicts and prisoners.
Drug-related court cases dropped 66 percent.
Drug-related HIV cases dropped 75 percent. In 2002, 49 percent of people with AIDS were addicts; by 2008 that number had fallen to 28 percent.
The number of regular users held steady at less than 3 percent of the population for marijuana and less than 0.3 percent for heroin and cocaine: decriminalisation brought no surge in drug use. The number of people treated for drug addiction rose 20 percent from 2001 to 2008.
(figures courtesy of Associated Press)
Worldwide, some 93 countries offer alternatives to prison for drug use, mainly needle exchanges and the like. The Portuguese go further: their system is not perfect – aspects of the forced treatment leave something to be desired by libertarians – but they have taken a bold step towards doing something sensible: fighting a different war, one they might just win.
The rest of us should follow them.
01 January, 2011
The year that's passed and the year to come
Well, it was quite a year. Aung San Suu Kyi was freed; Liu Xiabao won the Nobel Peace Prize but was not allowed to collect it; Ivory Coast is descending towards civil war.
But the world’s main preoccupation was economic, as we learned how different nations handled the international crisis. On 1st January 2010 I wrote ‘I thought last year that the economic spotlight would fall on Europe and it hasn’t. But I believe it will in 2010.’ I was right this time. By February it was clear Greece would need to be bailed out, and the markets began to ask themselves whether the peripheral countries were European risks or independent risks. This dilemma was made more acute when Ireland’s attempts to rescue its banks failed, and the Eurozone had to bail it out, too. The question remains unanswered.
I had forecast that the Conservatives would have a comfortable victory at the general election in May and of course this turned out to be wrong. I still can’t work out how they managed it: not so much missing an open goal, but an open goal with the other side’s defence trying to help the ball in. I had thought a decisive victory would push the pound up to 1.25 but it ends the year at a bit under 1.17, as the coalition still looks fragile.
Oil, as predicted, spent the year at $75-85 until the recent cold spell in the west pushed it up towards $95; I didn’t think gold would go much further than $1,250 but at the end of the year it was $1,400, the result of continuing uncertainty and poor economic management in Europe and America.
I think oil will edge back over $100 in 2011, but am not keen on gold: barring the occasional hiccup back down to $1,250. We shall see. London stocks put on 8 or 9% in 2010 and will I think have a better year: expect the FTSE to pass 6500.
Obama has had a bad 2010, losing the House. His 2011 will also be bad, as they try to unpick his health reforms.
But it wasn’t all bad: I mentioned that 2010 would see a transfer of wealth and importance to the Far East. Singapore grew at just under 15% last year and might expect double digit growth again in 2011.
All out war between North and South Korea will be avoided, but dreams that the South would take over the North will not materialise: they just can’t afford it, and the rest of the world can’t afford to chip in.
So, more trouble in America, more of the same in the East, and more of the same in Europe: the euro must be saved because it is a political project, but Germany is not prepared, with a string of local elections in 2011, to pay for it. More dithering and inaction is all I can forecast, with the markets questioning Portugal, perhaps Spain, perhaps Belgium. There will be further social unrest at the austerity measures, making life even more difficult.
The prospect of an Iranian nuclear weapon still hangs over us. It is at this moment hard to predict the effect on Middle East Politics of Israel’s projected self-sufficiency in energy and of its becoming a net exporter. It is important but it is too early to guess whether it is for better or for worse.
2011 will be difficult, but, I hope happy; and I wish you all the best.
Finally, I predict that the Prime Minister of Italy at the end of 2011 will be..... Silvio Berlusconi.
But the world’s main preoccupation was economic, as we learned how different nations handled the international crisis. On 1st January 2010 I wrote ‘I thought last year that the economic spotlight would fall on Europe and it hasn’t. But I believe it will in 2010.’ I was right this time. By February it was clear Greece would need to be bailed out, and the markets began to ask themselves whether the peripheral countries were European risks or independent risks. This dilemma was made more acute when Ireland’s attempts to rescue its banks failed, and the Eurozone had to bail it out, too. The question remains unanswered.
I had forecast that the Conservatives would have a comfortable victory at the general election in May and of course this turned out to be wrong. I still can’t work out how they managed it: not so much missing an open goal, but an open goal with the other side’s defence trying to help the ball in. I had thought a decisive victory would push the pound up to 1.25 but it ends the year at a bit under 1.17, as the coalition still looks fragile.
Oil, as predicted, spent the year at $75-85 until the recent cold spell in the west pushed it up towards $95; I didn’t think gold would go much further than $1,250 but at the end of the year it was $1,400, the result of continuing uncertainty and poor economic management in Europe and America.
I think oil will edge back over $100 in 2011, but am not keen on gold: barring the occasional hiccup back down to $1,250. We shall see. London stocks put on 8 or 9% in 2010 and will I think have a better year: expect the FTSE to pass 6500.
Obama has had a bad 2010, losing the House. His 2011 will also be bad, as they try to unpick his health reforms.
But it wasn’t all bad: I mentioned that 2010 would see a transfer of wealth and importance to the Far East. Singapore grew at just under 15% last year and might expect double digit growth again in 2011.
All out war between North and South Korea will be avoided, but dreams that the South would take over the North will not materialise: they just can’t afford it, and the rest of the world can’t afford to chip in.
So, more trouble in America, more of the same in the East, and more of the same in Europe: the euro must be saved because it is a political project, but Germany is not prepared, with a string of local elections in 2011, to pay for it. More dithering and inaction is all I can forecast, with the markets questioning Portugal, perhaps Spain, perhaps Belgium. There will be further social unrest at the austerity measures, making life even more difficult.
The prospect of an Iranian nuclear weapon still hangs over us. It is at this moment hard to predict the effect on Middle East Politics of Israel’s projected self-sufficiency in energy and of its becoming a net exporter. It is important but it is too early to guess whether it is for better or for worse.
2011 will be difficult, but, I hope happy; and I wish you all the best.
Finally, I predict that the Prime Minister of Italy at the end of 2011 will be..... Silvio Berlusconi.
31 December, 2010
End of the year
The muscles are weak, the sangiovese is taking control of the veins and the fireworks have already started. I wish you well rid of 2010 and hope you wake up in the morning.
That's about all we can hope for
t
That's about all we can hope for
t
Birthdays
Italy will be 150 next year and there will be a party or two. Italians like to celebrate.
I wonder how many people would answer correctly how old the United Kingdom is? In fact the Act of Settlement came into force on 1st January 1801, so the UK will be 210 tomorrow.
The reason we didn't have a party in 2001 was that Tony Blair had, with his devolution legislation, presided over the start of the break-up of the nation and he was embarrassed.
I wonder how many people would answer correctly how old the United Kingdom is? In fact the Act of Settlement came into force on 1st January 1801, so the UK will be 210 tomorrow.
The reason we didn't have a party in 2001 was that Tony Blair had, with his devolution legislation, presided over the start of the break-up of the nation and he was embarrassed.
Farewell the kroon
Tomorrow Estonia joins the euro, the first former soviet state to do so. Its currency, the kroon, will disappear.
Estonia will be the poorest of the 17 states of the eurozone. It needs to grow dramatically to reach the levels of Greece and Slovakia, much less those of France and Germany.
Economic growth is best nurtured with an undervalued currency and low interest rates. When the European Central Bank starts to put the brakes on to prevent inflation in France and Germany the Estonians, already poor, will suffer. They are being encouraged to join because the euro is a political project and those behind it, none of whom are Estonian, want membership to look attractive.
I suppose it is the plight of countries such as Estonia to be caught up in the doings of greater nations, but this looks particularly unfortunate. God help them.
Estonia will be the poorest of the 17 states of the eurozone. It needs to grow dramatically to reach the levels of Greece and Slovakia, much less those of France and Germany.
Economic growth is best nurtured with an undervalued currency and low interest rates. When the European Central Bank starts to put the brakes on to prevent inflation in France and Germany the Estonians, already poor, will suffer. They are being encouraged to join because the euro is a political project and those behind it, none of whom are Estonian, want membership to look attractive.
I suppose it is the plight of countries such as Estonia to be caught up in the doings of greater nations, but this looks particularly unfortunate. God help them.
30 December, 2010
A sop to democracy
In what the Government says is a move to bring the legislature closer to the people, there are to be petitions on a special website. The petition with the greatest number of votes will be drafted into a bill and put before parliament, and any petition with a certain number of signatures (thought to be 1 million) will be guaranteed parliamentary time for a debate.
This can of course go wrong for both sides. For us the voters, the government just needs one of its stooges to petition ‘We the people are greatly supportive of motherhood and apple pie’ for the bill drafting embarrassment to be got out of the way. And we need only have 36 different petitions on Europe for the vote to be divided.
Where it can misfire for the government is that the legislature is indeed out of step with the electorate. Continually polls suggest that most people in Britain would like to leave the European Union and bring back capital punishment, but you wouldn’t even get a small minority in parliament supporting such measures.
Still, we must play along. If Open Europe, or some similar organisation draws up a petition on at least repatriating powers from Europe I shall support it. Without much hope though. I smell a little bit of a rat here.
This can of course go wrong for both sides. For us the voters, the government just needs one of its stooges to petition ‘We the people are greatly supportive of motherhood and apple pie’ for the bill drafting embarrassment to be got out of the way. And we need only have 36 different petitions on Europe for the vote to be divided.
Where it can misfire for the government is that the legislature is indeed out of step with the electorate. Continually polls suggest that most people in Britain would like to leave the European Union and bring back capital punishment, but you wouldn’t even get a small minority in parliament supporting such measures.
Still, we must play along. If Open Europe, or some similar organisation draws up a petition on at least repatriating powers from Europe I shall support it. Without much hope though. I smell a little bit of a rat here.
England retain the Ashes
Congratulations to Andrew Strauss and the victoious English cricket team on retaining the Ashes in Australia, for the first time in nearly a quarter of a century. It is a remarkable achievement in that only four years ago they were whitewashed 5-0.
Real cricket fans only look to the quality of the play and don't mind who wins but it is better for the game if there is a real contest and not the same side winning every time. Australia have two years to rebuild their team before coming to England and England fans should be in no doubt but that they will do so.
The first thing they need is a captain to unite around. We shall see how Michael Clarke does in the final Test.
Real cricket fans only look to the quality of the play and don't mind who wins but it is better for the game if there is a real contest and not the same side winning every time. Australia have two years to rebuild their team before coming to England and England fans should be in no doubt but that they will do so.
The first thing they need is a captain to unite around. We shall see how Michael Clarke does in the final Test.
26 December, 2010
Italy’s education system
Dividing it into four parts, Italy’s primary education is excellent; secondary education is poor; tertiary (university) is utterly dreadful and post graduate pretty well non-existent.
So it is not surprising the Education Minister Mariastella Gelmini should have put so much effort into university reforms. Her efforts have been treated to a wave of quite disgraceful violence with police cars burnt, banks broken into, police officers and members of the public injured. Market traders have had to shut their stalls for fear that the ranting mob should overrun them. I looked at the nervous faces of the carabinieri, many drafted up from the country and not used to city streets, and thought of Pier Paolo Pasolini’s comment in 1968 that the police, sons of the people, had been attacked by the students, sons of the bourgeoisie.
But now the Gelmini reforms have passed and are law. Many useless courses at minor universities will no longer qualify for funding, and the professors’ grip on their offices, many into their 80s, which so stifles emerging talent, will end. No Italian university is in the top 250 in the world rankings (Britain has three in the top ten). It is not lack of talent: often you read of a breakthrough in science or medicine by Italian researchers, but always at a foreign university. Italy desperately needs centres of excellence to attract the high flyers into staying. These reforms, so bitterly objected to by the ‘Black Block’ international rentamob, are a beginning down that path, and those, like me, who criticise Berlusconi for doing nothing, should allow him to chalk one up.
So it is not surprising the Education Minister Mariastella Gelmini should have put so much effort into university reforms. Her efforts have been treated to a wave of quite disgraceful violence with police cars burnt, banks broken into, police officers and members of the public injured. Market traders have had to shut their stalls for fear that the ranting mob should overrun them. I looked at the nervous faces of the carabinieri, many drafted up from the country and not used to city streets, and thought of Pier Paolo Pasolini’s comment in 1968 that the police, sons of the people, had been attacked by the students, sons of the bourgeoisie.
But now the Gelmini reforms have passed and are law. Many useless courses at minor universities will no longer qualify for funding, and the professors’ grip on their offices, many into their 80s, which so stifles emerging talent, will end. No Italian university is in the top 250 in the world rankings (Britain has three in the top ten). It is not lack of talent: often you read of a breakthrough in science or medicine by Italian researchers, but always at a foreign university. Italy desperately needs centres of excellence to attract the high flyers into staying. These reforms, so bitterly objected to by the ‘Black Block’ international rentamob, are a beginning down that path, and those, like me, who criticise Berlusconi for doing nothing, should allow him to chalk one up.
25 December, 2010
You didn't know?
The Meteorological Office says we are having cold winters because of global warming.
Of course, of course. Why didn't I realise when I took that plastic bag away from the supermarket that it would cause freezing weather?
My fault, sorry.
Of course, of course. Why didn't I realise when I took that plastic bag away from the supermarket that it would cause freezing weather?
My fault, sorry.
He knows if you've been naughty or nice
Particular Christmas greetings to Salvatore Politini who having collected the pizzo, or protection money from a shop near Catania, Sicily, was arrested by a police officer dressed as Father Christmas, who had been giving out sweets to children in the car park.
Politini was also carrying a panettone Christmas cake, which he had obtained after putting the squeeze on a neighbouring bar.
Politini was also carrying a panettone Christmas cake, which he had obtained after putting the squeeze on a neighbouring bar.
Auguri!
A happy Christmas to everyone, particularly those stranded at airports or unable to see their family.
Sorry to tell you that here in Rome it is nice and warm, if a bit wet.
Sorry to tell you that here in Rome it is nice and warm, if a bit wet.
21 December, 2010
Politicians: the self-importance index
What do we think of our politicians? How bad? Hmm, as bad as that, eh?
Of coure some politicians are clearly mad, some are living in the 1950s or '60s but for the rest we should strive towards a system of evaluation. 'By their fruits ye shall know them' ran the Sermon on the Mount but I'm not sure it referred to politicians, most of whom achieve so little that there are no..er..fruits.
One way I favour is to make a measurement of a politician's perceived sense of his own importance relative to his actual importance. It is in the nature of politicians that this ratio should be high, but surely no one has a higher self-importance index than John 'Vince' Cable.
Cable is all over today's papers saying tht if he is pushed too far he could resign and bring the Government down. I have two problems with this: first, it is far from clear that his resignation would bring the Government down; his colleagues are getting too much pleasure from their ministerial cars and salaries to want to hand it all in on account of some diva's complaint from the Business Department.
Second, it is not clear to whom the threat is directed: if he were to cause an immediate election his party, the Liberal Democrats would be annihilated.
'Let your light so shine before men' says the Sermon, 'that they may see your good works'. But it also says that it's the meek that's going to inherit the earth.
Of coure some politicians are clearly mad, some are living in the 1950s or '60s but for the rest we should strive towards a system of evaluation. 'By their fruits ye shall know them' ran the Sermon on the Mount but I'm not sure it referred to politicians, most of whom achieve so little that there are no..er..fruits.
One way I favour is to make a measurement of a politician's perceived sense of his own importance relative to his actual importance. It is in the nature of politicians that this ratio should be high, but surely no one has a higher self-importance index than John 'Vince' Cable.
Cable is all over today's papers saying tht if he is pushed too far he could resign and bring the Government down. I have two problems with this: first, it is far from clear that his resignation would bring the Government down; his colleagues are getting too much pleasure from their ministerial cars and salaries to want to hand it all in on account of some diva's complaint from the Business Department.
Second, it is not clear to whom the threat is directed: if he were to cause an immediate election his party, the Liberal Democrats would be annihilated.
'Let your light so shine before men' says the Sermon, 'that they may see your good works'. But it also says that it's the meek that's going to inherit the earth.
20 December, 2010
The Queen's Head
Er.. no. not the pub.
There are reports that new legislation - originally designed by Peter Mandelson if I'm not mistaken - would have allowed someone to buy the Royal Mail and not put the Queen's Head on the postage stamps.
In the way that her head doesn't appear if I send an email, or a fax, or an instant message, a blogpost, a tweet or even on my post if I have a franking machine.
Why is it the Royal Mail anyway? I can understand why Victoria wanted it but she has been dead more than a century. I can understand why 'Royal' support was given to the animal charity the RSPCA, although she should have withdrawn it when that body became political. The Germans call theirs Deutsche Post, the Italians Poste Italiane. British Post could have been denatioanlised without fuss, like British Airways, which didn't have a picture of the Queen on its aeroplanes.
Let's take a small step into the 20th century at least: Off with her head!
There are reports that new legislation - originally designed by Peter Mandelson if I'm not mistaken - would have allowed someone to buy the Royal Mail and not put the Queen's Head on the postage stamps.
In the way that her head doesn't appear if I send an email, or a fax, or an instant message, a blogpost, a tweet or even on my post if I have a franking machine.
Why is it the Royal Mail anyway? I can understand why Victoria wanted it but she has been dead more than a century. I can understand why 'Royal' support was given to the animal charity the RSPCA, although she should have withdrawn it when that body became political. The Germans call theirs Deutsche Post, the Italians Poste Italiane. British Post could have been denatioanlised without fuss, like British Airways, which didn't have a picture of the Queen on its aeroplanes.
Let's take a small step into the 20th century at least: Off with her head!
19 December, 2010
Sunday Thinkpiece: Prince Charles
It used to be that the only time you heard the words ‘British Constitution’ was when someone wanted to test if you were drunk. Also ‘She stood outside Wilkinson’s Fish Sauce Shop welcoming him in’. Happy days.
Now, unfortunately, you hear it quite a lot.
Two of the reasons for this are the way Europe seems to be running our lives and the Coalition Government. Both have been discussed in these pages before and will be again. The third is The Prince of Wales.
I don’t know what it is about the title, but of the last five, four have caused no end of trouble. George, who became George IV, known as Prinny, was surrounded by sexual and financial scandal, as was Queen Victoria’s son Albert, who became Edward VII. Whilst George (later George V) seemed to have lived a sober and constitutional life, his only problem being that he was a crashing bore, his son, later Edward VIII caused all that trouble with the abdication. He also wanted to influence social policy, having been on several visits to the poor and saying ‘something must be done’.
Now we have Prince Charles.
It seems that 50% of the population want him to give up the monarchy in favour of William. It should be noticed, however, that this is because they think he is barking mad. It started out with him admitting that he talked to his plants, which of course many gardeners do, and since then almost his every utterance (and to be fair, there have been many) has been portrayed as if he were a couple of scones short of a cream tea. He speaks regularly on the environment, conservation, genetically modified foods, alternative medicine and architecture, none of which really interest the average chap. The public, of course, liked his first wife and feels his second either doesn’t have her winning ways or is somehow responsible for her death.
But that is not how the establishment are thinking. They have another beef. Here is Sir Max Hastings in the Daily Mail last Saturday with an article entitled ‘Why Prince Charles is too dangerous to be king’. Hastings, I should mention, is a fully paid up member of the establishment and former editor of the conservative Daily Telegraph.
Hastings contrasts the reigning Queen ‘At the heart of the Queen’s brilliant success for almost 60 years is that we have been denied the slightest clue as to what she thinks about anything but dogs and horses’ with Prince Charles in a quote from Jeremy Paxman : ‘The Prince had ¬consistently misunderstood or ignored a basic truth at the heart of the relationship between ¬royalty and the people.
‘He seemed to believe his significance lay in what he believed and did. The truth was simply that his significance lay in who he was.’
Hastings continues. ‘A courtier (Max moves in the right circles, you see) recently said to me: ‘You shouldn’t worry about this. Charles knows that from the day he becomes King, he must keep his mouth shut.’ But in the same week, one of the Prince’s intimate circle privately said: ‘The nation is ready for a visionary monarchy.’
I do not believe (writes Maxy) that if the Prince and those around him think any such thing, Charles would hit trouble as fast and hard as a truck crashing into a wall when he’s the occupant of the throne. ‘
I quote Hastings because his article is recent. Plenty of establishment types are thinking and saying the same.
For myself I don’t really agree. I don’t agree that the Queen has not given ‘the slightest clue as to what she thinks about anything but dogs and horses’ – look at her support for the coalition – nor that it would necessarily be a good thing if that were the case. And I do believe that the Prince’s utterances will in large part cease when he becomes king. There seems to be an uninformed dichotomy between saying he is an idiot and that he is so intelligent he is dangerous.
What I and I rather fancy a lot of people think is that when the Prince says something I disagree with I find him an irritating unconstitutional nuisance, and when he says something I agree with I thank God we have someone who is prepared to say such things.
Perhaps one of the problems lies with primogeniture itself. People live a lot longer and far from having the problem of someone becoming King at 5 years old like Louis XIV and having to lead the army, we have the problem of what to do with them as they wait patiently to step up to the top job. George IV became king at 57, Edward VII at 59 and Charles is already 62.
What think should have happened is that the Queen should have abdicated in 1982 after the Falklands War, or at the latest 1987 after being on the throne 35 years. Charles would have been in the job and largely quiet for twenty odd years, and now getting ready to hand over to his son William.
One of the problems is that we don’t have a constitutional definition of what either the Prince or the monarch should be doing. I see them as guardians of the constitution and it has to be said that in that job the Queen has failed: giving away power to the Prime Minister rather than parliament, clinging to the Commonwealth even when it was just a lobby group of unpleasant dictators who wanted to show South Africa as worse than them, and failing the nation over the coalition.
We cannot have the primogeniture system perverted to bypass the intelligent in favour of a younger, prettier model. I cannot imagine Prince Charles will make a worse fist of this than his mother and believe he should be given the chance. If for whatever reason he doesn’t take the job we should have a Republic, with a President (Perhaps Charles himself as the first one) attuned to his role as keeper of the constitution.
Now, unfortunately, you hear it quite a lot.
Two of the reasons for this are the way Europe seems to be running our lives and the Coalition Government. Both have been discussed in these pages before and will be again. The third is The Prince of Wales.
I don’t know what it is about the title, but of the last five, four have caused no end of trouble. George, who became George IV, known as Prinny, was surrounded by sexual and financial scandal, as was Queen Victoria’s son Albert, who became Edward VII. Whilst George (later George V) seemed to have lived a sober and constitutional life, his only problem being that he was a crashing bore, his son, later Edward VIII caused all that trouble with the abdication. He also wanted to influence social policy, having been on several visits to the poor and saying ‘something must be done’.
Now we have Prince Charles.
It seems that 50% of the population want him to give up the monarchy in favour of William. It should be noticed, however, that this is because they think he is barking mad. It started out with him admitting that he talked to his plants, which of course many gardeners do, and since then almost his every utterance (and to be fair, there have been many) has been portrayed as if he were a couple of scones short of a cream tea. He speaks regularly on the environment, conservation, genetically modified foods, alternative medicine and architecture, none of which really interest the average chap. The public, of course, liked his first wife and feels his second either doesn’t have her winning ways or is somehow responsible for her death.
But that is not how the establishment are thinking. They have another beef. Here is Sir Max Hastings in the Daily Mail last Saturday with an article entitled ‘Why Prince Charles is too dangerous to be king’. Hastings, I should mention, is a fully paid up member of the establishment and former editor of the conservative Daily Telegraph.
Hastings contrasts the reigning Queen ‘At the heart of the Queen’s brilliant success for almost 60 years is that we have been denied the slightest clue as to what she thinks about anything but dogs and horses’ with Prince Charles in a quote from Jeremy Paxman : ‘The Prince had ¬consistently misunderstood or ignored a basic truth at the heart of the relationship between ¬royalty and the people.
‘He seemed to believe his significance lay in what he believed and did. The truth was simply that his significance lay in who he was.’
Hastings continues. ‘A courtier (Max moves in the right circles, you see) recently said to me: ‘You shouldn’t worry about this. Charles knows that from the day he becomes King, he must keep his mouth shut.’ But in the same week, one of the Prince’s intimate circle privately said: ‘The nation is ready for a visionary monarchy.’
I do not believe (writes Maxy) that if the Prince and those around him think any such thing, Charles would hit trouble as fast and hard as a truck crashing into a wall when he’s the occupant of the throne. ‘
I quote Hastings because his article is recent. Plenty of establishment types are thinking and saying the same.
For myself I don’t really agree. I don’t agree that the Queen has not given ‘the slightest clue as to what she thinks about anything but dogs and horses’ – look at her support for the coalition – nor that it would necessarily be a good thing if that were the case. And I do believe that the Prince’s utterances will in large part cease when he becomes king. There seems to be an uninformed dichotomy between saying he is an idiot and that he is so intelligent he is dangerous.
What I and I rather fancy a lot of people think is that when the Prince says something I disagree with I find him an irritating unconstitutional nuisance, and when he says something I agree with I thank God we have someone who is prepared to say such things.
Perhaps one of the problems lies with primogeniture itself. People live a lot longer and far from having the problem of someone becoming King at 5 years old like Louis XIV and having to lead the army, we have the problem of what to do with them as they wait patiently to step up to the top job. George IV became king at 57, Edward VII at 59 and Charles is already 62.
What think should have happened is that the Queen should have abdicated in 1982 after the Falklands War, or at the latest 1987 after being on the throne 35 years. Charles would have been in the job and largely quiet for twenty odd years, and now getting ready to hand over to his son William.
One of the problems is that we don’t have a constitutional definition of what either the Prince or the monarch should be doing. I see them as guardians of the constitution and it has to be said that in that job the Queen has failed: giving away power to the Prime Minister rather than parliament, clinging to the Commonwealth even when it was just a lobby group of unpleasant dictators who wanted to show South Africa as worse than them, and failing the nation over the coalition.
We cannot have the primogeniture system perverted to bypass the intelligent in favour of a younger, prettier model. I cannot imagine Prince Charles will make a worse fist of this than his mother and believe he should be given the chance. If for whatever reason he doesn’t take the job we should have a Republic, with a President (Perhaps Charles himself as the first one) attuned to his role as keeper of the constitution.
16 December, 2010
Reporting Italy
'Riot breaks out on streets of Rome as scandal-hit Silvio Berlusconi survives' (the Daily Mail) was just about typical. If you read any of the British, German or French press you will have gained the impression that the rioters, seeing that Berlusconi had survived, took to the streets.
Of course the demonstration was planned some time ago. It was about changes to education policy and cuts to cultural spending.
It is not of particular relevance but I would mention that Italy's education system is a fiasco and almost any change to it would be for the better. In fact Mariastella Gelmini's modest proposals might drag Italy's post primary school education into the 20th century (not the 21st). And the problem with spending on culture is that the money disappears; look at Pompeii: fully funded, money stolen, no expenditure, falling down.
However that is not the point; it is a good thing that students demonstrate. The violence was heavily instituted by non student, often non-Italian professional troublemakers and they would have done that if Silvio had won or lost.
I know Silvio is a bit of joke; I know most countries wouldn't want him as leader; but the Italians, for the moment, do, and some better reporting in the non-Italian press might give a fairer picture of what is going on.
Of course the demonstration was planned some time ago. It was about changes to education policy and cuts to cultural spending.
It is not of particular relevance but I would mention that Italy's education system is a fiasco and almost any change to it would be for the better. In fact Mariastella Gelmini's modest proposals might drag Italy's post primary school education into the 20th century (not the 21st). And the problem with spending on culture is that the money disappears; look at Pompeii: fully funded, money stolen, no expenditure, falling down.
However that is not the point; it is a good thing that students demonstrate. The violence was heavily instituted by non student, often non-Italian professional troublemakers and they would have done that if Silvio had won or lost.
I know Silvio is a bit of joke; I know most countries wouldn't want him as leader; but the Italians, for the moment, do, and some better reporting in the non-Italian press might give a fairer picture of what is going on.
15 December, 2010
The importance of students
In Rome they besieged the parliament. So many police were put on the streets that it was almost impossible to go round the central area, even on foot.
In England the Prince of Wales and Mrs Prince of Wales (why isn’t she the Princess of Wales?) are besieged in their car and Mrs PoW is said to have been poked with a stick. A protester has had emergency brain surgery after allegedly being hit over the head with a truncheon and another says he was knocked out of his wheelchair.
The other day I was reading a good article by Ben Brogan. He made the point that the Budget analysis contained a summary of how it would affect rich and poor, but not of how it would affect old against young. ‘..the young are getting clobbered while the old escape with their pensions and mortgage-free houses intact.’.. not to mention winter fuel allowance and free TV licences.
So how have successive governments got away with this? One answer may lie in a survey quoted in Political Betting. A lot of the students’ ire is directed at the Liberal Democrats, who said they would not allow any increase in tuition fees. Of course, just like Conservative supporters on Europe, electoral change and much else, that idea went out of the window as soon as the coalition saw the inside of Downing Street. But had the students really supported the Lib Dems?
The statistics show turnout among 18-24 year old women was 39%; amongst 18-24 year old men 50%.
The turnout of women 55+ was 73% and of men 55+ 76%.
If the young don’t vote, the politicians probably think they don’t matter; and voting, let’s face it, is probably more effective than poking a grandmother with a stick.
In England the Prince of Wales and Mrs Prince of Wales (why isn’t she the Princess of Wales?) are besieged in their car and Mrs PoW is said to have been poked with a stick. A protester has had emergency brain surgery after allegedly being hit over the head with a truncheon and another says he was knocked out of his wheelchair.
The other day I was reading a good article by Ben Brogan. He made the point that the Budget analysis contained a summary of how it would affect rich and poor, but not of how it would affect old against young. ‘..the young are getting clobbered while the old escape with their pensions and mortgage-free houses intact.’.. not to mention winter fuel allowance and free TV licences.
So how have successive governments got away with this? One answer may lie in a survey quoted in Political Betting. A lot of the students’ ire is directed at the Liberal Democrats, who said they would not allow any increase in tuition fees. Of course, just like Conservative supporters on Europe, electoral change and much else, that idea went out of the window as soon as the coalition saw the inside of Downing Street. But had the students really supported the Lib Dems?
The statistics show turnout among 18-24 year old women was 39%; amongst 18-24 year old men 50%.
The turnout of women 55+ was 73% and of men 55+ 76%.
If the young don’t vote, the politicians probably think they don’t matter; and voting, let’s face it, is probably more effective than poking a grandmother with a stick.
14 December, 2010
Thought for the Day
From Douglas Carswell MP:
"Fact 1: During 2011, Portugal must raise Euro 38bn, Belgium Euro 85bn, Spain Euro 210bn, and Italy Euro 374bn (Goldman Sachs report quoted in Telegraph).
Fact 2: Ireland, Greece, Spain, Portugal and Italy need consumer spending to fall by 15pc for their debts to become sustainable (Centre for Economics and Business Research report)
Guys. It's over. "
"Fact 1: During 2011, Portugal must raise Euro 38bn, Belgium Euro 85bn, Spain Euro 210bn, and Italy Euro 374bn (Goldman Sachs report quoted in Telegraph).
Fact 2: Ireland, Greece, Spain, Portugal and Italy need consumer spending to fall by 15pc for their debts to become sustainable (Centre for Economics and Business Research report)
Guys. It's over. "
Silvio survives!
There were three votes in it. Three heavily pregnant women turned up for the vote, one woman caused a fight in parliament when she changed her mind. But in the end Silvio won, and how he won will soon be forgotten.
We have a friend who is an academic and of the right. He had two interesting statements, some time long before the vote. The first was that the reason Fini rebelled and set out his own party was not from any serious conviction (no one here thinks politicians are capable of that) but a fear that he might be usurped as heir apparent to Berlusconi by the increasing popularity of Giuliano Tremonti, the Finance Minister. It is interesting that in left wing Italy the finance minister who makes the cuts should be dangerously popular.
The second thing our friend said said was that it would come to a vote and Fini would be polverizzato.
If three votes haven't completely pulverised Gianfranco Fini his position at the forefront of Italian politics now looks very difficult and his position as Speaker of the House all but untenable.
In England the disappointment was dripping from the lips of the BBC announcers and commentators who cannot understand Italian politics. In fact Berlusconi is still quite popular - more so than any front line British or American politician - despite the student riots and the bleating of the soft left.
The way to beat Berlusconi has been mentioned several times in this blog: promise him he can become President. The way for Berlusconi to win has also been mentioned a number of times: do something for the Italian people.
Perhaps after this Silvio, his supporters and his adversaries will all come to their senses.
But it has been fun, not least hearing the incredulous disappointment of the British commentariat.
We have a friend who is an academic and of the right. He had two interesting statements, some time long before the vote. The first was that the reason Fini rebelled and set out his own party was not from any serious conviction (no one here thinks politicians are capable of that) but a fear that he might be usurped as heir apparent to Berlusconi by the increasing popularity of Giuliano Tremonti, the Finance Minister. It is interesting that in left wing Italy the finance minister who makes the cuts should be dangerously popular.
The second thing our friend said said was that it would come to a vote and Fini would be polverizzato.
If three votes haven't completely pulverised Gianfranco Fini his position at the forefront of Italian politics now looks very difficult and his position as Speaker of the House all but untenable.
In England the disappointment was dripping from the lips of the BBC announcers and commentators who cannot understand Italian politics. In fact Berlusconi is still quite popular - more so than any front line British or American politician - despite the student riots and the bleating of the soft left.
The way to beat Berlusconi has been mentioned several times in this blog: promise him he can become President. The way for Berlusconi to win has also been mentioned a number of times: do something for the Italian people.
Perhaps after this Silvio, his supporters and his adversaries will all come to their senses.
But it has been fun, not least hearing the incredulous disappointment of the British commentariat.
Silvio's Big Day
Today is the vote of no confidence in the government, although effectively it is a vote about Silvio Berlusconi.
Berlusconi has dominated Italian politics for a decade. It is no exaggeration to say that the future of Italy is being decided.
Apparently it is down to one vote.
PS Silvio survives in the Senate by 162-135
Berlusconi has dominated Italian politics for a decade. It is no exaggeration to say that the future of Italy is being decided.
Apparently it is down to one vote.
PS Silvio survives in the Senate by 162-135
12 December, 2010
Yesterday's upheavals
I quite failed to notice that 11th December was the anniversary of the abdication of Edward VIII in 1936 and of the signing of the Maastricht Treaty in 1991 which created the European Union.
This year it seems to have passed without any unfortunate constitutional upheavals.
This year it seems to have passed without any unfortunate constitutional upheavals.
Your money in their hands (No.652)
This week's prize for egregious time (and therefore money) wasting goes to Charlie Crist, the outgoing governor of Florida, who, having set up a special committee on the matter, has secured a pardon for Jim Morrison, singer of The Doors. Morrison faced charges of desecrating public morals and profanity while drunk but died in 1971, nearly 40 years ago, having jumped bail.
The apology should be due to his fans who bought his records, impressed by his independent lifestyle. They now realise he wasn't even guilty of desecrating public morals (don't you love that phrase?).
They should have their money back.
The apology should be due to his fans who bought his records, impressed by his independent lifestyle. They now realise he wasn't even guilty of desecrating public morals (don't you love that phrase?).
They should have their money back.
Sunday Thinkpiece: who will save the euro?
‘Can the euro survive?’ asks Lionel Barber in the Financial Times. ‘Who’s going to save the euro?’ asks Claude Nougat.
The answer is that the euro doesn’t deserve to survive. When the idea was first mooted, back in the Maastricht negotiations in 1992, the problems were clear. It wasn’t just eccentrics like me: a whole raft of economists and senior politicians pointed out that economies were going to be moving at different speeds, and that unless Europe had control of the fiscal levers the new currency was going to be subject to unbearable stresses.
In some respects the problems are the same as we see in England. I have lost count of the number of times I have heard or read some one say ‘Now the economic policy is in the hands of the independent Bank of England...’. But it’s not economic policy the Bank controls, it’s only monetary policy. The other strand of economic policy, fiscal policy, or control of government spending and taxes, still lies in the hands of the Treasury. So Gordon Brown, while muttering about prudence and reminding us that it was he who ‘made the Bank of England independent’, was able to increase government spending beyond the level of imprudence to the level of madness. Now every year the Governor of the Bank of England has to write to the Chancellor explaining why inflation will be over three percent again, despite both of them knowing it was Gordon’s fault. Before long interest rates will have to rise to deal with this inflation and that will slow economic recovery.
Now imagine this uneven mess multiplied by 16. Spending in the Eurozone is in the hands of people as different as the Greeks and the Germans. The Greeks were, as Greeks are, corrupt and greedy, while the Germans were, as Germans are, cautious and prudent.
The point I am making is that they knew all this, the founding fathers of the euro. They knew that there really should have been political unification (which would include Eurozone control over countries’ budgets) before monetary union, but at the time they wanted all members of the EU to join and there was no way Britain, Denmark and Ireland were going to accept that. So cunningly they embarked on the euro project knowing there would most likely be a crisis and believing that that would trigger political union. Now, in the midst of the crisis they’re still thrashing around, the European political class, trying to take away a country’s control of its own expenditure and taxes, and therefore its freedom. George Osborne was right to prevent them forcing a corporate tax increase on Ireland.
Ireland is now embarked on a downward spiral of reducing expenditure, thereby reducing the tax take, thereby necessitating lower expenditure. It will most likely default. The Eurozone is reaping the harvest of its own policies. It was conceived in dishonesty and doesn’t deserve to survive.
The answer is that the euro doesn’t deserve to survive. When the idea was first mooted, back in the Maastricht negotiations in 1992, the problems were clear. It wasn’t just eccentrics like me: a whole raft of economists and senior politicians pointed out that economies were going to be moving at different speeds, and that unless Europe had control of the fiscal levers the new currency was going to be subject to unbearable stresses.
In some respects the problems are the same as we see in England. I have lost count of the number of times I have heard or read some one say ‘Now the economic policy is in the hands of the independent Bank of England...’. But it’s not economic policy the Bank controls, it’s only monetary policy. The other strand of economic policy, fiscal policy, or control of government spending and taxes, still lies in the hands of the Treasury. So Gordon Brown, while muttering about prudence and reminding us that it was he who ‘made the Bank of England independent’, was able to increase government spending beyond the level of imprudence to the level of madness. Now every year the Governor of the Bank of England has to write to the Chancellor explaining why inflation will be over three percent again, despite both of them knowing it was Gordon’s fault. Before long interest rates will have to rise to deal with this inflation and that will slow economic recovery.
Now imagine this uneven mess multiplied by 16. Spending in the Eurozone is in the hands of people as different as the Greeks and the Germans. The Greeks were, as Greeks are, corrupt and greedy, while the Germans were, as Germans are, cautious and prudent.
The point I am making is that they knew all this, the founding fathers of the euro. They knew that there really should have been political unification (which would include Eurozone control over countries’ budgets) before monetary union, but at the time they wanted all members of the EU to join and there was no way Britain, Denmark and Ireland were going to accept that. So cunningly they embarked on the euro project knowing there would most likely be a crisis and believing that that would trigger political union. Now, in the midst of the crisis they’re still thrashing around, the European political class, trying to take away a country’s control of its own expenditure and taxes, and therefore its freedom. George Osborne was right to prevent them forcing a corporate tax increase on Ireland.
Ireland is now embarked on a downward spiral of reducing expenditure, thereby reducing the tax take, thereby necessitating lower expenditure. It will most likely default. The Eurozone is reaping the harvest of its own policies. It was conceived in dishonesty and doesn’t deserve to survive.
11 December, 2010
Thoughts on corruption
Silvio Berlusconi has been accused of buying MPs before the forthcoming no confidence vote.
Most people will assume he is guilty, but for myself it has got me wondering whether surrendering your principles for money is worse than surrendering them for power.
In the UK Liberal Democrat MPs have been offered ministerial positions, that is to say jobs at the public expense, in return for their vote on the tuition fees bill.
At least Silvio uses his own money.
Most people will assume he is guilty, but for myself it has got me wondering whether surrendering your principles for money is worse than surrendering them for power.
In the UK Liberal Democrat MPs have been offered ministerial positions, that is to say jobs at the public expense, in return for their vote on the tuition fees bill.
At least Silvio uses his own money.
09 December, 2010
UK University Tuition fees explained
This from Nick Robinson, political editor of the BBC:
'The minister who introduced student tuition fees now says a graduate tax may be better even though he once described the idea as unworkable...
he's opposing the man who pledged to oppose any increase in fees who now insists it's the right thing to do...
... who's in coalition with a man who wrote a manifesto promising that his party would scrap fees but is now planning to double them.'
Hope that's clear.
'The minister who introduced student tuition fees now says a graduate tax may be better even though he once described the idea as unworkable...
he's opposing the man who pledged to oppose any increase in fees who now insists it's the right thing to do...
... who's in coalition with a man who wrote a manifesto promising that his party would scrap fees but is now planning to double them.'
Hope that's clear.
Olympian freebie
While the world is talking about Julian Assange and Wikileaks some more embarrassing information has slipped out, or rather been dragged out. It is about the Olympics and is in response to a Freedom of Information demand by The Spectator and Games Monitor. The organisers wanted to keep this secret, and held out for two years.
The official language of the 2012 London games will be...French. English will be the second language. At the stadia the Union Flag will fly fifth in precedence, after the Olympics flag, the flag of the London games, the UN flag and the Greek flag.
The freeloaders – the International Olympic Committee, foreign sports administrators, guest freeloaders etc – will have to be supplied with 40,000 hotel rooms and 700 cars with drivers, a further 400 having pool cars.
It’s not just the cost of all this that object to, it is the shame of a once proud nation having to give in to the demands of a corrupt, unelected clique and then pay for the privilege. Oh, and I should like to know why they were trying to keep it a secret.
The official language of the 2012 London games will be...French. English will be the second language. At the stadia the Union Flag will fly fifth in precedence, after the Olympics flag, the flag of the London games, the UN flag and the Greek flag.
The freeloaders – the International Olympic Committee, foreign sports administrators, guest freeloaders etc – will have to be supplied with 40,000 hotel rooms and 700 cars with drivers, a further 400 having pool cars.
It’s not just the cost of all this that object to, it is the shame of a once proud nation having to give in to the demands of a corrupt, unelected clique and then pay for the privilege. Oh, and I should like to know why they were trying to keep it a secret.
08 December, 2010
The way to do it.
Congratulations to the people of Slovakia who, according to Agence France Presse, have instituted a system whereby MPs are paid less according to the size of the budget deficit, at a rate of double the deficit percentage. So the current proposed deficit of 7.8% would see their pay reduce by 15.6%.
An ideal system for the European Parliament.
An ideal system for the European Parliament.
07 December, 2010
On badgers and music and RP
I was looking forward to the programme and rearranged my schedule to hear it. There would be 30 minutes about a badger that Shackleton took to the Antarctic. It seemed one of those wonderful curiosities that the BBC unearths from time to time. 'The badger survived' promised a happy ending.
Anyway it turned out to be a banjo (or nasal guitar). Not quite so interesting. In fact not itneresting at all.
We really have to do something about the pronunciation on the BBC. Many of the more senior correspondents and news readers speak clearly and well, but for some years it has been impossible to get a job there unless you had a regional accent. I remember tuning into a programme about stockings, only to find it was about stalking; the late Michael Vestey wrote of a programe on the importance to us all of psychopaths (cycle-paths).
Italy, Germany and France have greatly varying regional accents, but maintain a system of received pronunciation, which everyone can understand. The BBC finds it not politically correct to do so, and I am finding I am paying for an organisation which conveys news in a manner I often can't understand.
I have noticed no howls of public anger about the BBC's badgers - sorry, budgets - being cut. In my view, that is because the BBC is not providing an adequate service. It could begin to change by offering received pronunciation on its news service, keeping the regional brogues for the local stuff.
Anyway it turned out to be a banjo (or nasal guitar). Not quite so interesting. In fact not itneresting at all.
We really have to do something about the pronunciation on the BBC. Many of the more senior correspondents and news readers speak clearly and well, but for some years it has been impossible to get a job there unless you had a regional accent. I remember tuning into a programme about stockings, only to find it was about stalking; the late Michael Vestey wrote of a programe on the importance to us all of psychopaths (cycle-paths).
Italy, Germany and France have greatly varying regional accents, but maintain a system of received pronunciation, which everyone can understand. The BBC finds it not politically correct to do so, and I am finding I am paying for an organisation which conveys news in a manner I often can't understand.
I have noticed no howls of public anger about the BBC's badgers - sorry, budgets - being cut. In my view, that is because the BBC is not providing an adequate service. It could begin to change by offering received pronunciation on its news service, keeping the regional brogues for the local stuff.
06 December, 2010
More news from Italy
OK, quiz time. For one point tell me who or what these quotations are about and for another who said or wrote them
‘You who think. You who imagine. You who transform reality into dream. You express the desire to be there, to resist. You who want to give, you see a universe without limits and confines, a world which believes in progress. You who love. You who, simply, are.’
‘I am absolutely in agreement that I am a certain age, and that I ought to leave sooner or later, but I shall pass the baton when I have finished the programme, but never to the spivs of the old politics. I am a world star and they want to push me out.’
Sorry if the first one made you feel a little queasy. They are both about Silvio Berlusconi; the first is a poem by Lory del Santo, model and former girlfriend of Eric Clapton, and the second is by the great man himself.
Both quotations depict Silvio as a man with a mission, driven, like a knight of old, to perform certain specific tasks while still on this earth. However the first... no, no, I am sorry I can’t read it again.
It’s Berlusconi time in Italian politics as the government faces a vote of no confidence on 14th December. This blog will be giving live coverage (No, it won’t, Ed.)..
The rebels, led by his former deputy Gianfranco Fini, claim to have enough signatures to the motion to unseat him, in which case there will either be elections or the President could impose a technical government.
The problem is that the people, whilst they no longer seem to give credence to the errant knight image (difficult to pull off if you consort with tarts), still do not seem to have confidence in the opposition, the left wing Partito Democratico. And many, whilst supporting the removal of Berlusconi in theory, would be horrified if by backing Fini they allowed the left back in. And many MPs are conscious that they owe their comfortable positions in life to Berlusconi.
So whilst this may be end of Silvio, my advice is not to write him off just yet.
‘You who think. You who imagine. You who transform reality into dream. You express the desire to be there, to resist. You who want to give, you see a universe without limits and confines, a world which believes in progress. You who love. You who, simply, are.’
‘I am absolutely in agreement that I am a certain age, and that I ought to leave sooner or later, but I shall pass the baton when I have finished the programme, but never to the spivs of the old politics. I am a world star and they want to push me out.’
Sorry if the first one made you feel a little queasy. They are both about Silvio Berlusconi; the first is a poem by Lory del Santo, model and former girlfriend of Eric Clapton, and the second is by the great man himself.
Both quotations depict Silvio as a man with a mission, driven, like a knight of old, to perform certain specific tasks while still on this earth. However the first... no, no, I am sorry I can’t read it again.
It’s Berlusconi time in Italian politics as the government faces a vote of no confidence on 14th December. This blog will be giving live coverage (No, it won’t, Ed.)..
The rebels, led by his former deputy Gianfranco Fini, claim to have enough signatures to the motion to unseat him, in which case there will either be elections or the President could impose a technical government.
The problem is that the people, whilst they no longer seem to give credence to the errant knight image (difficult to pull off if you consort with tarts), still do not seem to have confidence in the opposition, the left wing Partito Democratico. And many, whilst supporting the removal of Berlusconi in theory, would be horrified if by backing Fini they allowed the left back in. And many MPs are conscious that they owe their comfortable positions in life to Berlusconi.
So whilst this may be end of Silvio, my advice is not to write him off just yet.
04 December, 2010
Germany and the euro
The Guardian today quotes Angela Merkel as saying 'if that is what the euro has become perhaps we should join some other club'. Naturally a host of commentators have rushed to mention that Germany derives great benefit from the euro, and indeed this is the case. Germany exports a huge amount to countries on the periphery of Europe and if it left the currency union the remaining euro currency would fall against the new Deutsche Mark, pricing those exports out of the market.
But I think people are missing something here. Europe, America and Japan are awash with cash, and as signs of the recession fade some of that is going to have to be hauled in. Germans are terrified of inflation; they have all heard of the experiences in 1923 and are going to push for a tightening of monetary conditions just as others need them to be kept loose. To control inflation they will either need hugher interest rates or a stronger currency. What will happen then?
The problems of the euro go beyond sovereign default.
But I think people are missing something here. Europe, America and Japan are awash with cash, and as signs of the recession fade some of that is going to have to be hauled in. Germans are terrified of inflation; they have all heard of the experiences in 1923 and are going to push for a tightening of monetary conditions just as others need them to be kept loose. To control inflation they will either need hugher interest rates or a stronger currency. What will happen then?
The problems of the euro go beyond sovereign default.
03 December, 2010
Unfair competition
Still on the subject of sport: from Padua we have a glimpse of the rich fabric of Italian politics.
Every year St Anthony of Padua is celebrated with the running of a marathon. Now, in discussions about next year's race, Councillor Pietro Giovannoni, of the Northern League, has proposed cancelling the subsidy for the race on the grounds that 'it is always won by African athletes or foreigners in underpants'.
Every year St Anthony of Padua is celebrated with the running of a marathon. Now, in discussions about next year's race, Councillor Pietro Giovannoni, of the Northern League, has proposed cancelling the subsidy for the race on the grounds that 'it is always won by African athletes or foreigners in underpants'.
The World Cup (2)
Andy Anson, the head of England's failed bid to stage the World Cup in 2018, has said that the blame lies squarely with The Sunday Times and the BBC for investigating corruption in F.I.F.A.
It is possible he is right. England got only two votes, one of which was from our own delegate (we assume). For myself I should rather have a free press than the World Cup, but there can now be no barrier to a comprehensive investigation and I hope that our investigative journalists get to the bottom of the matter.
It is possible he is right. England got only two votes, one of which was from our own delegate (we assume). For myself I should rather have a free press than the World Cup, but there can now be no barrier to a comprehensive investigation and I hope that our investigative journalists get to the bottom of the matter.
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