Thoughts on politics and life from a liberal perspective

Monday, 19 January 2009

Bank Bail-out Mark II

The announcement this morning about the further bail-out of the banks has left me thinking about the political implications of this and that how the ordinary rules of politics seem to have been suspended in this area.

Over the last few years, whenever any of the opposition parties came up with any idea that would reduce tax, in any area, the government would instantly go away, run through some figures on the back of a fag-packet that made the worst possible case for where the "public service cuts" they deemed necessary for the tax reduction.

Now, this was often in the order of a few hundred million pounds or a few billion which is obviously a lot of money but compared to the amount of money that is now being thrown at the banks and at other things like the VAT cut etc. it seems like piffling amounts.

The thing I don't understand is that the government still seems to be able to get away with this sort of behaviour and still claims that opposition proposals are "uncosted" and align them directly with how many schools or hospitals will "have to close". How can this be when the sort of money they are now throwing around is equivalent to more than the entire budget of the NHS!?

I understand that we are in difficult times and the bank recapitalisation is probably necessary but it is sheer hypocrisy for the government to then carry on with its tired old "cuts" claims when they are simultaneously doing this.

At a time when households and businesses are having to tighten their belts it would be perverse if government (both national and local) did not also do their bit. The government cannot credibly claim that any reduction in taxes will automatically lead to the closure of schools and hospitals etc. The public sector cannot be completely insulated from the downturn and they must do their bit.

1 comment:

Anonymous said...

They Bail Out, We Opt Out.

All of Our Economic Problems Find They Root in the Existence of Credit.

Out of the $5,000,000,000,000 bail out money for the banks, that is $1,000 for every inhabitant of this planet, what is it exactly that WE, The People, got?

If Your Bank Doesn't Pay Back Its Credits, Why Should You Pay Yours? Or Else ...

If the Banks Get 0% Loans, How Come You Don't?

At the Same Time, Everyday, Some of Us Are Losing Our Home or Even Our Jobs.

Credit is Mathematically Inept, Morally Unacceptable.

They Bail Out, We Opt Out

Opting Out Is Completely Anonymous.

The Credit Free, Free Market Economy

Is Both Dynamic on the Short Run & Stable on the Long Run, The Only Available Short Run Solution.

I Am, Hence, Leading an Exit Out of Credit:

Let me outline for you my proposed strategy:

Preserve Your Belongings.

The Property Title: Opt Out of Credit.

The Credit Free Money: The Dinar-Shekel AKA The DaSh, Symbol: - .

Asset Transfer: The Right Grant Operation.

A Specific Application of Employment Interest and Money.
[A Tract Intended For my Fellows Economists].

If Risk Free Interest Rates Are at 0.00% Doesn't That Mean That Credit is Worthless?

Since credit based currencies are managed by setting interest rates, on which all control has been lost, are they managed anymore?

We Need, Hence, Cancel All Interest Bearing Debt and Abolish Interest Bearing Credit.

In This Age of Turbulence The People Wants an Exit Out of Credit: An Adventure in a New World Economic Order.

The other option would be to wait till most of the productive assets of the economy get physically destroyed either by war or by rust.

It will be either awfully deadly or dramatically long.

A price none of us can afford to pay.

“The current crisis can be overcome only by developing a sense of common purpose. The alternative to a new international order is chaos.”

- Henry A. Kissinger

They Bail Out, Let's Opt Out!

If You Don't Opt Out Now, Then When?

Let me provide you with a link to my press release for my open letter to Chairman Ben S. Bernanke:

Chairman Ben S. Bernanke, Quantitative [Ooops! I Meant Credit] Easing Can't Work!

Yours Sincerely,

Shalom P. Hamou AKA 'MC Shalom'
Chief Economist - Master Conductor
1 7 7 6 - Annuit Cœptis
Tel: +972 54 441-7640