Tag Archives: Coalition

Highest employment since 1971? Bull***t !

Politicians are always looking for new angles and prisms through which to observe and present statistics in the most benign way.

A comparatively recent statistical gem is as follows:

“Almost 30 million people were in work at the end of 2012, an increase of 154,000 on the quarter to September and the highest total since records began, in 1971.”

“Since records began” is quite a new angle and as nonsensical as the rest.

Today’s UK population is about 63.2 million.

The 1971 population in was  55.9 million.

That’s an increase of 7.3 million.

In 1971, unemployment was 2.98% of the workforce. Today it is 7.8%.

The figures don’t lie – they’re just encouraged to do so……..

King Gaddafi and Machtpolitik

What is it about monarchical and family rule that makes it all the rage these days? Single-party regimes seem as common as democracies but their development into  family businesses is a new development – or is it? What has kept these families in power?

The simple answer is geography, massive Western subsidies but mostly – OIL.

Since the discovery of huge volumes of oil in the last 80 years-or-so, formerly impoverished states had the cash to develop huge bureaucracies which were essentially on the ruling  family’s payroll.  Add to that their armed forces and you have an apparently immovable edifice.

Political parties and unions were superfluous because brand new welfare systems and employment created a hitherto unexperienced sense of national pride and well-being. Tribal rivalries were forgotten and in general terms, citizens rubbed along quite nicely.

Initially, the monarchs took on the mantle of modernisers but they also purposely slowed the process down because in reality, they did not particularly want to spend the money. It was all done on a promise which, for a very long time kept the masses under control. That meant that the rulers did not even have to consider involving the people in governance. Whenever  dissent reared its ugly head, promises of political modernisation would be made – but eventually, both the monarchs and their imitators – the commoner dictator-rulers, overplayed their hand. The people began to call their bluffs.

The Monarchs did not claim their kingships by divine right – as is the custom in Western monarchies.  Very few gave themselves the title “King” – Jordan, Morocco and Saudi being the exceptions. The rest used titles which resonated with the locals. They were Sheikhs, Amirs and Imams. Their behaviour, however was strictly that of Kings.

The Kings of Jordan and Morocco claimed direct descendancy of the prophet Muhammad but the others would create their own mystique by a combining claims of noble lineage and (sometimes) mythical, often miltary deeds.

Succession was  by primogeniture. This is a model which has since been adopted by what you might call non-Royal ruler-kings such as Muammar Gaddafi.

In spite of his military posturing, in his mind, Gaddafi sees himself as King of Libya with his firstborn as  natural successor.

Having said that, other Middle Eastern  rulers , for example Saudi Arabia have evolved their laws of succession so that it is not always the first-born who will rule but the ruler’s first “capable” male relative. On that basis, perhaps Gaddafi sees his high-profile son Said as the Crown Prince.

Most Middle Eastern and African “Crown Princes”  are British-trained or educated.

Traditionally, sons and cousins whose destiny  is to rule are given high-ranking military posts or very senior posts in the country’s bureaucracy. They are also funded in order to create their own fortunes.

Wealth-distribution is carefully controlled. Traditionally, the ever-expanding oil income is primarily distributed within the royal family. The powerful and potentially troublesome merchant classes are given more-or-less a free rein to create as much wealth for themselves as they can. In return, they do not become involved in national politics. They are kept sweet.

The only constant cloud on the ruler’s horizon is the relationship with the military. There are two models which have been adopted to prevent military dissent.

The first is to have a small army which is populated by a large number of foreign mercenaries , in other words, those who do not have the faintest interest in the country’s internal politics. This type of army is always commanded by a  relative of the King.

The other method relies wholly on the King’s image and personality – whether he be Royal or aspirational commoner. Quite simply, the ruler is Commander-in-Chief of the military. He is constantly visible and more often than not, dressed as a soldier. Gaddafi was a prime example. 

Psychologically, a soldier finds it easier to pledge himself to an individual rather than to an abstract concept such as a republic. It has to be personal. Even in the United Kingdom, soldiers pledge allegiance to the Monarch. The Monarch always holds a military rank  and the various high-visibility parades, processions and pageants etc always enjoy the Monarch’s patronage and participation – purely to maintain that  bond between soldier and ruler. Soldiers fight – not for their country but for their King.

In preparation for his reign, the Crown Prince will always become an army officer.

Another aspect of a ruler’s legitimacy is delivered by a close tie with the State’s main religion. This bond is reinforced by the royal family’s control of religion through funding and the appointment of clerics and church leaders. This aspect is particularly important in the Arab states.

So , the ruler and his family control the military, the  religion, all of the important Departments of State as well as  the legal system. Often, they are the legal system.

That means that when this type of government collapses, the work needed to rebuild has to be from the  bottom-up. If the ruler is deposed, so is the bureaucracy , together with the legal and  religious structures. It is a total collapse.  The delivery of a few truck-loads of ballot boxes coupled with vague promises of the Nirvana of democracy are never enough.

The gap between an Arab-style Kingdom and a Democracy is vast. Here in the UK, we have a Kindom married to a democracy but this quite unnatural mutation has taken hundreds of years to achieve “Steady State”.

Libya used to be a legitimate Kingdom but troubles began for King Idris soon after the discovery of oil in the 1950s. One of the King’s dissident relatives killed a senior adviser so in retribution, the King “downsized”. He limited the  succession and  deprived many of his relatives of Royal titles. He also became “lazy” and very quickly became less and less apparent to his subjects by not participating in parades and other public performances which are needed to reinforce a king’s legitimacy.

A  Monarch has to show himself to his subjects at appropriate times.

The gradual disassociation from the masses was a great error – an error which would be repeated in the 21st century by the man who deposed him in 1969 – Captain Muammar Gaddafi.

Libyan King Idris failed to exercise control over his relatives who were engaging in the absolute rulers’ offspring favourite  dual sports of corruption and unacceptable behaviour. Another error which was to be repeated by Gaddafi.

In the 1960s, both Americans and British had military bases in Libya. Consequently,  King Idris was perceived as the West’s puppet.  His ties to the West were not approved-of by either his subjects or the military.

Idris paid the price for his lack of control over the military , his relatives’ excesses and his closeness to the Americans and British. In 1969, he was deposed in a Gaddafi-led coup.

Over the last ten years, Colonel Gaddafi has made almost exactly the same mistakes. He has become more and remote from his subjects but as a soldier, has largely managed to retain the trust and allegiance of the military – apart from a few over-ambitious senior officers. 

Gaddafi’s sons have been trained to continue the Gaddafi dynasty and that , in essence, is what Muammar Gaddafi is fighting for. His kids’ inheritance.

While Gaddafi was practicing  Machtpolitik, blowing up planes, selling explosives to the IRA and all the other terrorist atrocities which have been laid at his door, he was perceived by his people as an independent strong leader. His threats to the West allowed him to maintain the myth of the warrior-leader. It was his perceived fearlessness and independence which carried the most currency and kept him in power.

Today he faces a sad but  inevitable closing of the family business.

Like any out-of-touch ruler, he is genuinely surprised and disbelieving of the fact that his subjects are revolting. He is probably offended as well.

His dalliances with Western leaders and apparent mellowing into a Kafkaesque effigy of a world statesman have weakened his grip on the Libyan people.

As NATO-sponsored jets strafe his kingdom, Gaddafi will have one big regret – that he did not pay enough attention to his own country’s recent history.

Vince Stable?

“Global warming? It was the Bankers.”

“Lino” Clegg  has firmly embedded himself in our psyche as the Spiro Agnew of British politics. Lino? Liberal In Name Only. It could have been worse –  if they were still known as Whigs.

Meanwhile Vince Cable continues to carry the air of either Stadler OR Waldorf from the Muppet Show balcony. Vince’s face looks more and more tortured by the day – as if someone was trying to unblock his catheter by jumping on it. 

It is increasingly apparent that in spite of the fact that the ConLib coalition is being promulgated as a “partnership”, it is an unequal union. They are not Joint Tenants but Tenants in Common and the Liberals are looking more and more like political ballast with 99% of the political tenancy being owned by Cameron and the Bullers.

Clegg’s obvious earnestness remains endearing, although one does have the feeling that an old-fashioned delivery bike may be a more appropriate mode of transport than a ministerial Jag.  DC is using him as .a messenger/delivery boy and so far it looks as if “Lino” is quite happy “in the national interest”– his favourite phrase.

The “downside” is that DC has a price to pay for Lino Clegg’s innocuous presence. That price is the Business Secretary.

Ever since Vince Cable’s crack about Gordon Brown having mutated from Stalin to Mr Bean , he has worked very hard on his soundbites. In politics, there is nothing more powerful than a well-rehearsed ad-lib. Vince’s Ministerial Jag has given him more and more confidence to create increasingly colourful and outrageous metaphors – especially those directed at the soft target which is British banking.

He claims to be pr0-business but continues to take great delight in banker name-calling. It seems that it is OK for him to refer to bankers as “spivs and gamblers” but when he does that , he is only referring to a very small percentage of those who work within banking. It confrims the old-fashioned view that those who like to make money and flaunt it are ALWAYS bad people and figures of fun. That’s the British Way.

According to Old Man Cable, Capitalism is “killing competition”. Capitalism creates competition . Competition is only killed when capitalism mutates  into monopoly – whether State monopoly or Private monopoly, the effect is the same. Although our banking system appears as a collection of separate businesses, the way that they are regulated and administered has just about removed any remnants of competition between them and the industry is now acting as a multi-headed monopoly.

Where is the competition between banks? They certainly used to compete but not any more. Because of the State’s intervention, they can now  buy money at about 1% and sell it to the consumer for whatever they want. Worse still, they are now givenmoney by the State and then sell it to us for more-or-less what they please.

Not quite what Adam Smith had in mind and one feels that he would have been miffed by being quoted out-of-context by a Business Secretary who has a clearly perceived, self-inflicted “use-by” date.

Our collective appetite was whetted by the customary pre-speech leaks which suggested that the Business Secretary was to “attack the banks”. Why attack the banks for doing what comes naturally – something that few politicians understand – delivering profits for shareholders and rewarding those who delivered the profits?

Short-term profits are NOT damaging the economy. What has damaged most economies in the last two years has been the global con-trick  of  Goldman-Sachs spivs designing the Credit Derivative. Everything flowed and  grew from that one fiscal spawn of Satan. The bankers were both victims and slack-jawed observers.

There has been a lot of criticism of Vince Cable  delivering an “emotional” speech. The speech was not emotional per se – it was a contrived speech, designed for the front pages for the glorification of Vince Cable and to please his rapidly diminishing band of groupies.

The Business Secretary’s bleating about “restraint” in the payment of bonuses was pointless because all that he will achieve is to increase bankers’ salaries.  

“I make no apology for attacking spivs and gamblers who did more harm to the British economy than  Bob Crow could achieve in his wildest Trotskyite fantasies, while paying themselves outrageous bonuses underwritten by the taxpayer.” 

That’s an easy one to sort-out, Vince. Keep Mervyn King’s trembling finger away from the printing-press “START” button because if you don’t watch him, he’ll do it again.

In actual fact, Vince Cable’s posturings were no more than a touch of “wind-and-wee”with  a seasoning of badly conceived and amateurishly executed metaphors. All that he’s trying to do is to blackmail the banks into lending more at lower rates. Then he would be able to beat them up for “irresponsible lending” .

He also took the opportunity to call for the banks to be separated into Retail Banking (High Street) and Investment Banking (which isn’t really banking).

The Business Secretary has obviously forgotten that companies are created in order to deliver profits for the shareholders and the shareholders have the right to reward their executives however they wish. The shareholders are NOT social workers.

If your economic theory is more Trotsky rather than Keynes, you may be silly enough to say something such as: ” I am shining a harsh light into the murky world of corporate behaviour. Capitalism takes no prisoners and kills competition where it can, as Adam Smith explained over 200 years ago.” 

NO you’re NOT and NO he didn’t. However, it has been noted that Vince’s ideas are 200 years old and second hand.

He continued: “I want to protect consumers and keep prices down and provide a level playing field for small business, so we must be vigilant right across the economy… Competition is central to my pro market, pro business, agenda.” 

That rant is more bovine than Keynes.

 He carried on to say that it is not easy for the Liberals to be Tory lackeys but added that  “It’s necessary for our country that our parties work together at a time of financial crisis. It is an opportunity for the party to demonstrate that we have the political maturity to make difficult decisions and wield power, with principle.” 

He has clearly demonstrated that he is attempting a brand new political trick – which is to be in Government (when DC is listening) and Opposition (when his Leftie Liberal chums are listening) . As Business Secretary, he should be seen to be a pro-business champion and leader. As a flabby very Left wing Liberal, he has to be seen to bash the banks and regurgitate Labour’s populist slogans. Every dawn sees him sounding more and more like Alistair Darling.

Was Vince Cable too high a price to pay for coalition and can he steer business and commerce through the rapidly approaching choppy waters of  recovery within the context of a falling pound, collapsing market and high unemployment?