Economatix - Life through the lens of the Capital Markets

From the monthly archives:

August 2008

The death throes of US GAAP?

by dionysus on 2008/08/29

From the Wall Street Journal of yesterday this stunner (Editors Note: which isn’t a stunner at all, but has been widely discussed in Congress, by the SEC itself, and on Wall Street for a number of years already);

WASHINGTON — The Securities and Exchange Commission signaled the demise of U.S. accounting standards, kicking off a process Wednesday that could ultimately require all publicly listed American companies to follow an international model instead.

Introduced in two steps, the shift could eventually cut costs for companies and smooth cross-border investing. At the same time, investors worry it will create confusion, especially during the transition. Other critics worry that the international system offers too much wiggle room for companies, compared with the more precise rules enshrined in U.S. standards.

The SEC’s proposal would allow some large multinational companies to report earnings according to international accounting beginning in 2010. The SEC estimates at least 110 U.S. companies would qualify based on their market capitalization, among other factors. The agency also laid out a road map by which all U.S. companies would switch to International Financial Reporting Standards, or IFRS, beginning in 2014, at the expense of U.S. Generally Accepted Accounting Principles, the guiding light of accountants for decades.

The proposals will be open for public comment for 60 days and could be finalized later this year.

I’ll have more on this later, but for now, would someone get me a glass of water beer, and a couple of aspirin please?

  • Share/Bookmark

Be the first to comment

Officer's Mess

by dionysus on 2008/08/29

Here is Simon Heffer of the Telegraph, on Gary Glitter, (whom I refuse to acknowledge with a descriptive or bio link): “Most rational people would find it quite acceptable if he were to be taken out and shot in the back of the head.”

This prompts several thoughts, including, just how many rational people does Mr. Heffer know? And, since when did Mr. Heffer OR the Telegraph have such trust in the infallibility of justice in countries like Vietnam, where Glitter was tried and convicted?

A third thought is more general: no matter how much the Telegraph comment pages try to be modern or intellectual – and there have been truly heroic attempts down the years – occasionally they stray from the path of reform, and adopt attitudes and tone of the officer’s mess, circa 1937. (Readers will note that nowhere did I say, infer, or imply that that’s a “Bad Thing™” – periodically anyway!)

  • Share/Bookmark

Be the first to comment

Listening to the other side

by dionysus on 2008/08/29

Occasionally it can be instructive to listen to the rabble on the other side of the political fence. Please note that Dr. Dogshit has tongue firmly embedded in cheek here……

Seriously (just for a moment, OK?) scanning the headlines and editorials of left wing dailies and periodicals on a semi regular basis is useful and a prescribed remedy when one gets an attack of rightitis. Before visiting your local doctor, take a tour through some publications with an avowed political view at odds with your own. Rinse & repeat. You will begin to experience a sense of relief almost immediately.

SO it was this morning. Your intrepid reporter wandered over to the New Statesman to see what the unwashed are carrying on about. To my considerable surprise I discovered a leader which not only made sense, but is almost non-partisan. Incomplete yes, flawed in places yes, but lacking the shrill rhetoric so characteristic of the left.

Within living memory, Britain was a country where recycling was a way of life and waste was abhorred. Milk was delivered in glass bottles and the empties were left on the doorstep for collection the next morning.

The silver tops were kept to buy guide dogs for the blind. A beer or soft-drink bottle carried a deposit that was recoverable on its return. Rag-and-bone men toured the streets seeking waste material.

Children who failed to eat up their food were sternly told the Chinese/Africans would be grateful for it. Shops would charge for bags (which became a subject of growing consumer indignation) and so you took your own bag instead. Socks were darned, elbows patched and small pieces of string kept in the cupboard under the stairs.

Boy do I remember those days with astonishing clarity. The same clarity with which I recall freezing cold houses, pisspots under the bed, ice on the INSIDE of my bedroom windows and windowframes in the mornings, & rising damp. In other words, an overwhelming feeling that I was living in the third world (I now know that, in fact, I was). I also clearly recall shooting stones from a hand held catapult at the rag and bone man’s horse. My God did that cause me a shitstorm of grief and agony. As is often the case, I digress….back to the narrative at hand.

Most of these things were commonplace, at least until the 1960s. But no sooner had we created our new, more convenient world than we started worrying about it. Friends of the Earth launched its first waste campaign – returning thousands of empty bottles to Schweppes – in 1971, and the first bottle banks appeared in 1977. A 25 per cent target for recycling of household waste was set in 1990; even though we’ve reached the target, the amount we consume has risen so steeply that unrecycled waste has fallen only slightly.

In plain language the Western world is walking backwards into a swamp. The article goes on to say……

The whole issue of waste is surely one of the great policy failures of the past 50 years. With global warming, politicians can at least argue that the science was inconclusive until about 20 years ago. But it was always obvious that our capacity to dispose of waste wasn’t infinite.

Even now, governments do little more than nag consumers, with local authorities mandated to threaten fines or unemptied dustbins (the prospect of the latter always terrifies the British) for those who put their cans in the wrong receptacle. However, as the House of Lords science committee observes in a report published on 20 August (HL Paper 163), that isn’t really the problem: only 9 per cent of total waste is domestic. And, as usual, the government is reluctant to confront powerful business interests. Regulations exist – usually thanks to Brussels – but they are opaque, fitfully enforced and disjointed. For example, a European directive makes each individual electrical manufacturer responsible for taking back, reusing and disposing of its own products. No EU member has implemented the directive and, in the UK, it isn’t even on the statute book.

Don’t…..PLEASE DON’T get Dr. Dogshit started on the issue of “the statute book”. Let’s move on, shall we?

I don’t deny that regulation is difficult. Quite often laws, introduced for entirely laudable purposes, exacerbate other problems. The Lords committee explains how regulations to make vehicles safer also create more materials to be disposed of and, by increasing weight, further add to carbon emissions. Hygiene regulations, combined with retailers’ mortal fear of being accused of poisoning their customers, are responsible for a high proportion of food waste. Nor would I pretend consumers can always be let off the hook.

Wait….wait…..just hang on, this next bit is priceless;

As a Unilever representative rather irritably pointed out to the Lords committee, people who complain about excessive packaging for shampoos would do more for the environment if they turned off the shower while they lathered their hair.

HAHAHAHA! It would be hard for an adherent of any political philosophy to argue the merits of that assertion! Ooooh, I can feel an upcoming post evolving which might perhaps be tantalizingly entitled; “Fat, Lazy, Ignorant White People don’t give a damn about the consequences (or the costs) of their actions”

Obviously the greater majority of people have never lived or worked on a submarine. Every last drop of water is of vital importance, and the habits that living in that environment create are useful. Wet body, turn off water…soap up & clean body (and hair), turn water on, rinse soap away, turn water off -> exit. You would be amazed at how little water is necessary to take a really pleasant shower. Let’s not discuss any other habits acquired while cruising the depths in defense of life, liberty, and Soviet submarines intent on starting WW III. Onwards………

Nevertheless, waste is integral to what Robert Reich, in his most recent book, [Editor's note: URL inserted, it does not appear in the original article] calls “supercapitalism”. Unchecked supercapitalism produces waste as inevitably as it produces inequality, job insecurity, loss of community and so on. We are rapidly reaching the point, long promised by futurologists, where we throw away clothes after wearing them once, and we already dispose of many electrical goods as soon as they go wrong.

The average British household currently spends a mere 60p a week on repairs. The economic logic is impeccable: the goods are made in countries where labour costs are low, while repairs have to be carried out here, where costs are high. But even when goods don’t need repairing, we still throw them away. Supercapitalism’s brilliant answer to increasing durability is to elaborate and refine so that goods feel obsolete almost as soon as you buy them. Even environmentalism has been turned to supercapitalism’s advantage: always buy a new machine, you are told, because it will be more energy-efficient than the old one.

That was a clever point, and rather well made – by Dr. Reich in his book, not by Mr. Wilby, the article author.

Business talks of “consumer demand”. But nobody ever marched to demand an end to recyclable milk bottles, more upgrades for mobile phones, more cheap Chinese imports. (People usually march to protect something they have, perhaps a job or a nice view, not to gain something they don’t have.)

Eh? What utter rubbish! “We demand higher wages”, “We demand shorter hours”, “We demand an end to totalitarian rule” this list is endless. FFS, completely absurd….

Greengrocers got by for years telling their customers there was “no demand, madam” for anything more exotic than a cabbage.

OK, that’s one aspect of “the old way” we’re heartfelt glad to see gone!

People buy what is made available to them, provided it delivers gratification at a reasonable price. As Reich points out, supercapitalism gives us great deals as consumers and investors, without our even troubling to ask for them. Unfortunately, it gives us bad deals as citizens. Drowning us in waste is just one of them.

A mostly sensible article, and there’s little in there to disagree with – except…when I do disagree with it. Sorry folks, I just can’t help it.

I do question however whether this was an article on recycling, or a book review. If it was the former then part of the essential structure for any discussion about recycling (meaning the economic underpinnings and forward looking cost/benefit ratios of various types of recycling) is missing. If it was the latter then it’s an appallingly written, unimaginably awful review. Considering that it was written by Peter Wilby, I’m disappointed. He’s been around journalism for long enough to know better. Then again, it’s the New Statesman, not the Spectator I stuck my head over the fence to see what was laying around, I didn’t say I was ready to sign up for a subscription.

Tennis anyone?

  • Share/Bookmark

Be the first to comment

Kitchen design

by dionysus on 2008/08/29

I had to do this…I just had to. There has been an overabundance of serious content lately, it’s time to redress the balance.

cat

Many thanks – as always – to I can has cheezburger

  • Share/Bookmark

Be the first to comment

The decay and death of citizen rights

by dionysus on 2008/08/29

The Times is carrying an article today that should fill us all with alarm. If this doesn’t prove the point I’ve been carrying on about for years now, then nothing will. Warning: this has nothing whatsoever to do with terrorism, the war on terrorism, or the ever present threat of attack from the great unwashed hordes who worship the prophet.

The ban on police being able to question suspects after they have been charged would be scrapped in measures announced yesterday to increase the number of people being convicted.

Ah, I see. We need to improve the statistics. Plus we want more people found guilty of [....] and sent to the Gulag. OK, I understand. It all makes perfect sense.

If you thought that was good, just hang on, because there’s more to come.

Under the proposals the 24-year ban on police being allowed to interview suspects after they have been charged, unless there are exceptional circumstances, would be lifted to allow officers to continue questioning for a further 24 hours. After that, officers would require the authority of magistrates to continue their questioning.

If a person refused to answer postcharge questions, courts would be able to draw an inference of guilt. The Government also wants to make it easier for police to continue questioning a suspect for longer before they are charged. It proposes to remove the rule that stops police from carrying out interviews when they have “sufficient evidence” to charge the person. Instead officers would be able to continue questioning until they have enough evidence for a “realistic prospect of conviction”.Courts would be allowed to draw an inference that suspects are guilty if they have refused to take part in an identity parade.

So the age old presumption of; “innocent until proven guilty” has been removed. If any British person still thought that they were living in a country respectful of the values of democracy it must – even to those deluded souls – surely becoming apparent that another foundation stone of we describe as a civilized society has been demolished.

I trust that during those times that the EU feels obliged to beat up on, let’s say Turkey as an example, – to reform their judicial institutions and move closer to the norms and values of Western societies and community wide values, that the British government will STFU. Why? Because, dear reader, there is another Kremlin outside of Moscow. Its address is 10 Downing Street.

  • Share/Bookmark

Be the first to comment

Rat meat price increases

by dionysus on 2008/08/27

One for my Dutch colleagues and friends, from the Trouw of today, but don’t worry, there’s an English version further down the page! :D

De rat wordt duur betaald
PNOM PENH (ANP) – De explosieve stijging van de inflatie maakt in Cambodja ook de rat duur. Door de sterk gestegen prijzen van varkens- en rundvlees kiezen veel Cambodjanen steeds vaker voor het goedkopere vlees van de rat.

De groeiende vraag heeft echter ook de prijs van rat inmiddels aanzienlijk verhoogd. Een kilo rat is in Cambodja het afgelopen jaar vier keer zo duur geworden. Een kilo rattenvlees kost daardoor nu 5000 riel (ongeveer 80 eurocent). Dit is nog altijd wel aanzienlijk goedkoper dan een kilo rundvlees, waar momenteel ongeveer 20.000 riel voor moet worden neergeteld.

De rat is niet alleen een uitkomst voor arme Cambodjanen, maar levert ook een bijdrage aan de export van het land. Ambtenaren van het ministerie van Landbouw schatten dat Cambodja elke dag ongeveer een ton levende ratten levert aan Vietnam.

Reuters also picked the story of course, and interestingly the numbers are in accord.;

PHNOM PENH (Reuters) – The price of rat meat has quadrupled in Cambodia this year as inflation has put other meat beyond the reach of poor people, officials said on Wednesday. With consumer price inflation currently running at 37 percent according to the latest central bank estimate, demand has pushed a kilogram of rat meat up to around 5,000 riel (69¢) from 1,200 riel last year.

Spicy field rat dishes with garlic thrown in have become particularly popular at a time when beef costs 20,000 riel a kg.

Officials said rats were fleeing to higher ground from flooded areas of the lower Mekong Delta, making it easier for villagers to catch them.

“Many children are happy making some money from selling the animals to the markets, but they keep some for their family,” Ly Marong, an agriculture official, said by telephone from the Koh Thom district on the border with Vietnam

“Not only are our poor eating it, but there is also demand from Vietnamese living on the border with us.”

He estimated that Cambodia supplied more than a tonne of live rats a day to Vietnam.

Rats are also eaten widely in Thailand, while a state government in eastern India this month encouraged its people to eat rat meat.

  • Share/Bookmark

Be the first to comment

Bring on the windfall tax! eh?

by dionysus on 2008/08/27

Unsurprisingly, “green” consumers surveyed by the Times in an “analysis” piece this morning, seem to support a windfall profits tax on energy suppliers.

The mob in action, a text book example if ever there was one.

These same consumers if polled differently would squeal like stuck pigs if asked whether or not they would support increased taxes on their households, if they used a car with a gross curbside weight of [xxx] or an engine size over [yyy] or disposed of more than [zzzz] lbs of spoiled food. Yet they happily endorse the idea that a redistribution of wealth is appropriate and desirable, when a “big fat energy company” is the target for a raid on profits. The politics of envy, self interest, selfishness, and greed at work once more. “Gimme Some”. OK, greedy consumers at work…move along, nothing to see here.

On the industry and government side of the fence….

In no way is the present reality of runaway energy costs palatable, yet it is beyond dispute that the price of crude at the wellhead has increased to uncomfortable levels, but commodities in general have been surging of late. Whether that’s due to rampant speculation, or to underlying macroeconomic causes can be argued fiercely. This writer believes it’s a combination of both, and thinks that’s a fair view. Certainly the supply network is precarious at best, there is scant capacity within the system to handle problems with suplly, or surges in demand. Readers will clearly recall the impact of hurricanes on Gulf supply, and also refining capacity, and closer to home, serious incidents at UK refineries causing price spikes.Demand is coming online in the developing world. India and China represent a recent spike in demand, the magnitude and impact of which was unforeseen as short as a decade ago.

Nothwithstanding the arguments above, are energy suppliers profits excessive? That’s problematic to answer definitively. Undoubtedly refiners are paying more for crude and gas, distributors are distributing a product which costs more to purchase. It can be argued that embedded costs have long since been amortized, but that’s less than half of the answer. Reinvestment in plant, and also in exploration has to be funded from somewhere. After a prolonged slump in exploration, the pace has picked up again because oil at $70 a barrel didn’t generate sufficient revenue for energy companies to embark on exploration and development of deposits located in ultra deep (1000′+ waters) or in inhospitable areas such as the Arctic shelf. It takes decades and unimaginable amounts of capital to fund exploration, and even more to develop reserves that are identified by wildcat drilling….

Back to the mob, and also morality. If a rational person is reading this, you may look askance at that last word, and wonder what the hell morality has to do with any of this. That would be a reasonable question. The answer is nothing, but the lunatic left can always be trusted to cleave to the true Marxist line. Take public statements made by Lindsay Hoyle, Labour MP for Chorley, as quoted in the Independent today in this article;

“The only stick they [energy firms] will understand is a windfall tax. I have no problem with companies making profits. These are excessive profits, these are immoral profits. It isn’t good enough and we have got to take action now.”

“Immoral Profits” ? Let’s take a moment and publicly wonder if Mr. Hoyle was a private citizen, and his retirement was partially (and around about now he/we might conclude “wisely”) invested in energy stocks, how he might feel then? Cast adrift from the enfolding arms of government and left to fend for himself financially, what would his reaction be to a nicely growing retirement portfolio which is outpacing inflation…what then?

I think we can move on, because I think we all know the answer.

The Guardian quoted David Porter, chief executive of the Association of Electricity Producers;

“A legalised raid on the company’s bank accounts … would be very unhelpful because it would scare off investors and also could make the cost of investment much higher and, in the end, that would end up on the customers’ bills.”

Now OK, that’s something of a party line from the other side too, but the hell of it is that it’s true. Anyone who runs a business large or small will readily confirm the veracity of such a statement.

The Independent, in its article, then went on to say;

“Energy firms have already agreed to treble to £150m by 2011 the amount they spend on social programmes but the Treasury and Department for Business believe they should go further following a spate of price increases blamed on the soaring cost of oil. Companies could, for example, be doing more to help people to insulate their homes”

Here is the first grain of common sense within this rather hysterical debate….and coming from a somewhat unexpected source. Conceivably this is a sign that the government might have blinked. There are many ways of sending signals to the market.

Certainly voluntary action beats legislated theft, no one could dispute that one. I’ve previously argued to this effect here and I’ve yet to hear from a detractor within the framework of that argument. Anything that energy suppliers could do to undercut the election bribe which seems to be fulminating in the breast of GB would be a benefit to consumers and also – not insignificantly – to the Conservative party.

So here’s a rallying call to power distributors, a manifesto for change which accomplishes many goals, by beginning a multi-track rebate process, restoring an element of fairness to the marketplace, and in effect telling the baying dogs of the extreme left to STFU;

  1. TRACK ONE: Power Rebates. Doubtless it’s possible to identify those consumers who are in the energy poverty category. Show them a bill with full costs, then assign a rebate directly on the bill itself (of course with a self aggrandizing fancy name). How much? That’s the stuff around which negotiations are structured – but make it a direct rebate to the end user. Here’s why it should be done this way…..
  2. If GB hands out £150.00 in grants to households, as I pointed out in the previous rant, it would be the exception rather than the rule if that money ever wound up paying an energy bill. Shortsighted consumers would be off to the pub, their local drug dealer, or an appliance store in order to spend their latest hand out from the Kremlin Treasury. So don’t give it to ‘em directly, but provide it nonetheless.

  3. TRACK TWO: Insulation. Once again, avoid funding an alcohol sodden, drug fueled weekend, by making this indirect. In this case, a coupon. Consumers in the energy poverty (or general poverty, I hasten to add) can take a coupon to a DIY retailer and grab some fiberglass – OR – invite (REPUTABLE) contractors to join the coupon program when installing insulation and/or energy saving equipment. I stress “reputable” because I see a cottage industry of regluating contractors all over again while they steal as much as they can get away with from government before the shadow of the regulator darkens their door.
  4. TRACK THREE: Industry should begin discussions with Government to recover tax benefits from the scheme – to some extent. The net cost to the Kremlin Treasury will under all circumstances be less than GB’s scheme to buy the next election, and also deprive him of the opportunity to even try.

Tennis anyone?

  • Share/Bookmark

Be the first to comment

The BBC reports preemptive demolitions of empty commercial property, in an effort to avoid taxes.

Buildings are being knocked down as businesses seek to avoid paying tax on empty properties, a government regeneration chief has warned.

In April, the government scrapped rate relief on empty industrial property such as warehouses.

The tax was aimed at landlords who kept premises empty in hope of better rents.

But John Nicholls, chief executive of the Urban Regeneration Companies, said the tax was leading to “pre-emptive demolitions” to avoid the tax bill.

Well d’uh……

At least they’re demolishing ‘em, not burning ‘em down as they did in the Bronx during the 1970′s

[.....]For years, the city had been increasing both business and personal taxes. Among other things, this led to a substantial reduction in manufacturing in the South Bronx.

In the late 1960s, the city adopted a policy of concentrating welfare households in the South Bronx, where vacancies had become the highest in the city.

Lump sum payments of from $1,000 to $3,500 ($4,500 to $15,500 in 2000$) were available from the city, for relocation to low income residents. This provided some residents an incentive to burn their own buildings. In 1970, the national per capita income was $3,900.

[...]apartment owners, facing financial ruin, arranged for their buildings to be burned (arson) so that they could recover some of their investment through insurance.

The Bronx began to burn in about 1970. Some of the fires were accidents, the inevitable result of decaying electrical systems. Many were set by landlords who would then collect the insurance money. Often they would sell the building – whether it was still inhabited or not – to “finishers” who would strip out the electrical wiring, plumbing fixtures, and anything else that could be sold for a profit before torching it. “Sometimes there’d be a note delivered telling you the place would burn that night,” one man who lived through the period told me. “Sometimes not.” People got used to sleeping with their shoes on, so that they could escape if the building began to burn.

At the same time, during the late 1960s, many American cities experienced civil disorders, which included rioting and arson. Further, the nation was experiencing an explosion in the crime rate, with the greatest increases occurring in the inner cities. These factors combined with the government policies noted above to produce a landscape in the South Bronx that could be accurately described as similar to that of German cities after Allied bombing at the end of World War II or London after the Blitz

Different place, different time, same basic cause/effect.

Oh, and for the wannabee scholars of New York urban development during that period, the Bronx burning was not solely attributable to Rober Moses. The blame for this mess can be laid at the door of Mayors Robert F. Wagner, John V. Lindsay, and Abraham “Abe” D. Beam respectively who, jointly and severally, managed to wreck New York City quite convincingly between the years of 1954 – 1977.

But…back to the present day and our jaw dropping BBC report………

Malcolm Holmes, associate director at property consultancy GL Hearn, said his company had advised an industrial landlord in Sunderland to demolish parts of the Alexandra Business Park to avoid an annual £120,000 tax bill.

“Before April 1, there was no rate payable. Their liability went from zero to £120,000 overnight.”

He said that the company had demolished 150,000 square feet of property and was due to raze a further 37,000 to 38,000 square feet.

“Property in this part of the world does not let readily, especially the older stuff. When it (older property) becomes vacant I can see it being demolished.”

We’re talking Sunderland here. Mr. Holmes probably wasn’t exaggerating. He went on to say;

The government needed to rethink its change its policy on rate relief.

That’s a logical and reasonable statement, but it doesn’t appear to resonate with the relevant government department Gauleiter or his Obergruppenführer, since one of ‘em is quoted as saying;

[...] reforms to empty property relief were “aimed at ensuring a fairer balance between incentives to re-let property, and giving property owners a period of relief while they manage vacancies”.

“This follows recommendations by independent experts to encourage the most efficient use of land,” [it was] added, saying that 100% relief was still given for the first three months of a property falling empty, rising to six months for industrial premises and warehouses.

“There are no plans to change the policy

So….watch your local industrial parks, I’d say. Oh, and short insurance stocks too.

  • Share/Bookmark

Be the first to comment

Buh-BYE until 2012

by dionysus on 2008/08/26

Yes, it’s official, the HOlympics are over. I hope everyone made a significant pile ‘o cash out of it, that the Chinese feel that they’re part of the great harmony of the planet………………

ETCETERA ETCETERA ETCETERA.

Now, can we please get this atrocity out of the newspapers, off the television, excluded from the blogosphere. In other words “STFU about the goddamned Olympics willya?

In a way I’m quite pleased with myself, because for 2 weeks I watched none of it, even avoiding any and all mention of it on the news. No starting on ending ceremony. Nothing. Every time I saw an “Olympics Spot” coming up on the TV, I had a beer (or two, or eight, depending on the length of the program/coverage). It’s been a warm and fuzzy 2 weeks.

Oh one final note. I’m gonna do exactly the same – and more – in 2012 when this fucking circus arrives in London.

  • Share/Bookmark

Be the first to comment

The Kinnock Test? Come ON!

by dionysus on 2008/08/26

Daniel Finkelstein, a columnist for the Times Online published a rather self absorbed and silly article today. The opening is arrogance itself;

I can’t remember if I’ve told you about the Kinnock Test. I don’t think I have. It’s my party piece. Perhaps that’s why I don’t get invited to very many parties.

Well, based on that and that alone, he sure as shit wouldn’t be invited to any parties I ever throw. He goes on to pose the question which is central to his “party piece”

The Kinnock Test is this – do you, on reflection, think it would have been a good idea for the country if Neil Kinnock had been elected Prime Minister in 1992?

OK go ahead. Ask the question – the answer to which is utterly irrelevant – and does nothing whatsoever for (or to) the political process itself. IF you thought the article was bad thus far, there’s far worse in store. This fool goes on to say (unbelievably)……

As I pestered my (sic) centre left friends, one of them provided a striking response. Not only, he said, did the electorate get it right in 1992, he couldn’t think of a single election since universal suffrage in 1928 where the voters had got the election wrong. And you know what? I think my friend has got a point.

The proposition is that in every contest in these last 80 years the party that was more fit to govern has been victorious. Sometimes both of the main offerings were weak and unappealing, often the winner wasn’t much good, but always the winner was better able to conduct the business of government than was the loser.

There are a number of elections for which this proposition is, if hardly uncontroversial, still clearly correct [.........]

You know what? I think you were smoking something to go with your morning coffee Mr. Finkelstein, and whatever it was fatally twisted your neural pathways. It’s either that, or you’re such a self delusional pseudo intellectual horses’ ass, that you actually believe this drivel you’re writing! Then again, we’re talking about a founding SDP member who defected to the Conservative party.

So, now I have that mini-rant off my chest, let’s return to the meat ‘n spuds of this atrocious article. It is hard to think of any notable occasions on which the British electorate “got it right” and that’s not because of anything inherently deficient in the British voter. The system fails the voter in depriving the him/her of the ability to make a rational or informed choice. Consider “Party Political Broadcasts”…now if ever there was something to put you to sleep, that’s it. Yes, there’s a plethora of information contained therein, if you can penetrate the (purposely) opaque policy-speak of the individuals concerned.

There is a lengthy list of General Election outcomes where the electorate clearly didn’t get it right, and additionally the winner was demonstrably not “better able to conduct the business of government than was the loser”. That’s a post for another day, most assuredly. Yessiree Bob, that one will get done on some future occasion.

Returning to the theme of communication with the country………….

Mr. Finkelstein, I’ll put an alternative proposition to you;

“Can you identify any political figure who has enumerated the policies of the contending party in a calm, clear, intelligble, rational manner? Can you – at the same moment – identify a leading figure who, if even they happened to display any such tendencies, was able to frame their argument in a non-patronizing transparent style – you know – the style that clearly says “leadership – here it is”.

No…you can’t….and that’s because such a figure has not existed in my lifetime. The outcome of most General Elections during that (rather long) time have been driven by the politics of hate and envy. In a recent automobile review, the perennially politically incorrect Jeremy Clarkson (who needs no introduction whatsoever) postulated a hypothesis concerning the behavior of others during a road test he conducted of a Rolls Royce Phantom – we’re talking about a £300,000 car (€380,000 or $550,000 at current rates of exchange). As always, Mr. Clarkson cleverly inserted much in addition to the simple capabilities or shortcomings of the automobile he decided to review. Among many other insightful comments he made during the article, one stuck out as a perfectly formed synthesis of British social and political views;

In setting up the position he said;

the government [....] is so consumed with bitterness, hatred and envy for people with money. It is not alone.

and then

I don’t yearn for many aspects of the American way but they do seem to have this dreadful bitterness under control. When they see a man pass by in a limousine, they say: “One day, I’ll have one of those.” When we see a man pass by in a limo, we say: “One day, I’ll have him out of that.”

Witty though that may have been, Mr. Clarkson definitely made a telling point concerning the political climate during the past 63 years since Labor Labour first came to power, indulging in an orgy of Statism – reminiscent of the behavior of their erstwhile ally already rapidly retreating behind an Iron Curtain -  and thus condemning the country to over a half century of living in the political wilderness. Other countries made it through and were able to rebuild democracy, Britain didn’t. That shows today as clearly as it did when Mr. Atlee was expounding on his grand ideas for the state, on the floor of the House of Commons those many years ago.

I need to calm down. I’m going for a cup of coffee, followed by a brisk walk.

  • Share/Bookmark

Be the first to comment