David Cameron Talks...Britain Suffers

David Cameron Talks...Britain Suffers

David Cameron talks a good talk. That's why his rich backers in the UK are so pleased with him, and the top rate tax reduction in April.

However like Mitt Romney's billions of campaign dollars, they will fall on the stoney ground of a British Electorate which will not vote Lib Dem ever again, and is seeing the economic injustices and imbalance as creating a US , laisez faire ghetto-and-condo society.

In April the new lower rate comes in for top tax payers. In fact I am not against a lower rate for those earning up to £60,000 a year: it actually isn't a lot of money in London and also these are people in positions of responsibility often in the public sector who at least declare all their income. However of course in the same month, the very poorest subsistance families and those WORKING families on a single minimum wage will have their kids clothes, their holidays, their christmas presents stolen by Dear David and his rich chums, all in the aid of "balancing the books and getting people back into work".

This is where his rich pals and former Eatonite fund managers can't paper over things: it was his rich, yuppie funny-money backers who caused the recession. It was them who leant money and took their cut and made a housing market boom based on a house-of-cards of credit. But it is they who don't have to pay, and in fact will pay less after April. It is many of them who are defering their bonuses based on some recovery from abject failure in 2012 into the April tax year. Britain is becoming an obscene party for the rich as the expence of a public, with the Tories trying very hard to blame labour for the catastophy.

Labour of course did over spend or rather spend in relation to the up phase of the "economic cycle" lasting for another term. So did many other states, and several conservative governments. They tried this trick in the US too, blaming the president who sat on top of the Bush approved bubble and a congress and senate legislature largely strangled by the super rich backed fascists and oligarchs in the Republican party and right of the democrats.


However raising taxes at this top rate doesn't always work of course: they are the very high earners who can employ accountants and find tax effective mechanisms, and they have enough power within their organisations to negotiate further bonuses, share options and foreign employ to avoid tax. But this is not the whole picture: now there are many more highly paid middle managers, engineers and technocrats. So there is a rich seam to be taxed above around 55K and of course a new super rate could be imposed above 80K for example, to claw back in some cash from those overpaid GPs for example. This also forces more people in the private sector into actually buying shares or indeed setting up their own private companies to supply their expertise and take a profit while enjoying the business tax-write-offs.

Effective taxation means maximising revenue. If you raise top rate too much, then you don't bring in so much tax. However as there are far more salaried high earners who don't have ready access to "mechanisms" then let them eat Dan Cake.

The Great PR Fraud of the Century

All governments try to blame the last outgoing who now sit in opposition. The problem is though that Labour despite having a very good opportunity for winning the next election, are losing the PR battle because the Tories are much better at it.

The tories know who they represent " the hard working types who want to get on" which is the same types who think there is no need for minimum wage OR benefits and that is kind of implied as in Labour then getting the " wasters who want to turn up and take the cash and deliver poor services" which the tory voter believes in, and many of those struggeling on low incomes also see as time wasters. We could come in a situation like in the USA where white-trash vote republican because of this aspiration-desparation effect. Their lives will get worse under a right-wing slow down but they will still aspire and blame big-bad-government.

Labour have lost their way and the big PR machine for the rich the Tory party is, will slowly convince enough people that labour are the route of all ills, and not their rich backers who favoured the laisez-faire, puny-weak governance of stock and capital markets. I hope the press do not forget this.

The New, Newer Right

David Cameron has had a major amount of exposure on our own national TV news of late, along with politics in England. Cameron is from the new, newer right who talk soft to the working man and woman in the street about how much better they will be with massive cuts in public budgets, while both splashing money at failed banks and protecting them from any responsibility and minor increases in taxation.

On europe and the eurozone, Cameron is unfortunetly on the correct side of right! It is high time the left in the UK also showed this degree of scepticism. Nationalism is what drove the 1983 election in favour of Thatcher: we want our money and we want our Falklands! To paraphrase Gordon Browns declaration on the Euro, Britain, and Norway are not convergent to the big Four economies in the Eurozone. We have oil and are linked into that global trading loop and "barrel barter currency", while the UK has oil, massive renewables, a major global financial centre (be it based ever more funny-money over for stocks in companies which do anything) and a housing stock bubble which is teetering at the edge of collapse. Why let the Eurozone drag the housing market into a "correction" when the government's own policies of feeding the international rich will cut the whole castle-of-cards at the base and bring it all down. If they are unlucky.

I often wonder if this recession was engineered by the world's capitalists to try and nail the solid left of the social welfare and public spending programmes into what has happened: cutting off their leverage and forcing them to balance the books based on lower tax-income forecasts. However it is the Greek's and Irish super-middle classes whose greed, corruption and short sightedness : the v ery opposite of prudence; which demonstrates the stupidity of the men in blue and grey suits in banks and beaurocracies. Like many eras, and we are in a new dangerous era, it is symptomatic of what came immediately before and will throw up some radical curees.

Conspiracy theorists love this type of suggestion though. David Ike is probably rubbing his hands and writing a new book about this recession being a construction of international capital. If the whole thing were not so tied to orginisations acting either irresponsibly or individuals acting criminally then a conspiracy could be plausable.

Why be in the euro anyway then? As said I do not support scandinavian countries or the UK being in the Euro now : they will probably end up more or less in the dollar otherwise, but the economies stand too much to gain from high currency valuation in terms of buying power and public spending. However for Spain, Italy and the smaller nations, the Euro zone both simplifies business and protects the supply chain against fluctuations which can errode bottom line over night. Also it gives a united front for a Europe in growth against other major currencies, maintaining buying power.

Scandinavia and the UK benefit from the fluctuations and the stability at the core ironically enough. On one side raw materials get cheaper, on the other exports


Let's face it we buy stuff and okay add value to larger "things" or more technical "things" or military protected "things". Service industries and Keynsian public spending keep it all afloat and feed the property market with well paid policemen, doctors, lawyers, administrators and politicians. You can't sell a burger  to a night duty nurse or a night at the opera to a  well paid publocrat in Shanghai when they live in Brussels.



Therefore are the new, newer right a danger. They don't like this money circulating around the hoi polloi. They want more of this money to be "freed up". Small government. Liberalisation nouveaux. Flow up and trickle down. Plenty of talk of freedom, but like in the USA will you be "free" to work 12 hour days and yet not have economic access to medical care?

I see the real danger in the errosion of social mobility. Obama had identified this and health care for all as two major factors holding back growth and well being in the USA. Shame cry the right. If  you work hard then your kids maybe get to go to uni. Well Uni may well be clogged up with the type of lame rich kids we meet on eurotour: they know they will get by on arrogance, and the economic power of their parents. Essentially they clog up the system and then drift off into property management and capital, leaving the enterprises their parent built to their own fortunes or worse, crippeling them in arguements about how to exit their capital share holding.