Chancellor's crass statement show's Britian's helplessness and hopelessness.

To believe that offering around seven billion pounds to a bankrupt neighbour, partly in debt to your own banks for amounts possibly over a hundred billion, will somehow save your own banks from shortly having to eventually seek similar loans from other debtor neighbours is fantasy in the extreme.

In a short televised clip on Sky News last evening,(where a sharp and well informed young man called Hills illustrated what a pawn of the establishment Jeff Randall has become since being employed by that broadcaster) George Osborne, Chancellor of the Exchequer, made just such a claim in a brief interview clip. He had earlier not been so frank in Parliament, flanked by his bosses Cameron and Clegg, where he had laid the blame at the door of national necessity before a House of Commons full of supine MPs few able to discern the complete absurdity this statement makes of their own positions and Osborne's recent budget of supposed austerity cuts.

The banks are calling all the tunes but the banks cannot be saved as is now being seen quite clearly in Ireland where EU leaders may in future come to be typified by Brian Cowan on the video at this link.

The IMF lacks the funding and the ECB will soon be seen to be committed way beyond its means, that is what Britain's leaders should be preparing for, not throwing more good money (what that?) after bad!

Child Benefit Restrictions - announced yesterday but for 2013?

The most interesting aspect of the cut to universal child benefit announced by George Osborne at the Tory Party Conference yesterday, left unqueried elsewhere as far as I can gather, was both the timing of its annoncement and the date it will come into effect. These aspects relate to Coalition Politics and I will post my own thoughts on these questions here later today.

I sense change in the wind

There are no straws as yet but hints of coming enormous events abound. Sensing a change in the weather, as discussed in this interesting link, is one thing, but suspecting significant moves amongst the former major powers of the European Continent, which perhaps just might indicate a long overdue awakening from their long sleepwalk towards collapse and obscurity, is assuredly quite another thing altogether, so let us examine some clues.

First must come trade, the essential life blood for most nations, particulary a maritime trading one and even more so a society built on trade by an island race. For decades trade has been a non-issue in Britain, accepted by euro fanatic and eu-sceptic alike as an area delegated to the Common Market, European Economic Community and now the European Union. Yet of late the Coalition Government has been in a state of some agitation to find a figure of sufficient stature for the formerly unimportant post of trade minister.

Reactions to the originally announced appointment of Leon Brittan, such as that in The Spectator three weeks ago linked here, were such that a volte face occurred and it became known that the former Thatcher Cabinet Minister and longtime eu-parasite was merely to find a candidate of sufficient stature for the post. Can that be believed, since when, after enactment of the European Communities Act of 1972, have any qualifications whatsoever been required as mere toady to Brussels while nominally speaking for Britain on Trade?

Well times have changed indeed, for step forward Stephen Green, Chairman of none other than HSBC, survivor of the credit crunch with no call for Middle East capital injections such as those required by Barclays and recently reported master rat ready to quit the sinking ship of the post-Osborne City of London for the more prosperous roots betrayed in its name, hardly an option for a Midland Bank whose petty acquisition first brought it to these shores! The Guardian report of his appointment last Tuesday is linked here.

So Stephen Green must feel he will have a proper job to do. In any re-alignment or re-structuring of the EU, trade will be Britain's Ace of Trumps and will thus need to be carefully and cunningly played with our alternatives meticulously crafted well ahead of any final crunch point.

The second sign of serious fall back positions being established came in the daily press briefing from Open Europe of yesterday, linked here, from which comes the following:

AFP reports that French Budget Minister François Baroin was yesterday in London to discuss the upcoming negotiations of the EU budget with, among others, Chief Secretary to the Treasury Danny Alexander. Speaking after the talks, Baroin admitted that he did not manage to persuade his British counterparts to re-negotiate the UK rebate. “I have made many efforts and put on the table several arguments. But I have understood that the Britons had no intention of changing their stance”, he said, adding that during the talks he had also made clear that French President Nicolas Sarkozy’s position on the Common Agricultural Policy “is not negotiable”. He concluded, “at least […] these talks have shown the determination of both our countries to defend the respective positions”. France and the UK have agreed to limit the increase to the 2011 EU budget to 2.9 percent from the last year.

Meanwhile, EU Budget Commissioner Janusz Lewandowski has said that he will present a “neutral report” on possible new sources of financing for the EU budget at the beginning of October. However, he refused to reveal if the study would include an EU tax among the considered options.

An EU Tax has always been a step too far for the British, so can we assume that the powers that be are now behind the new EU Referendum Campaign so incompetently launched as I disclosed one week ago today. Did they then, with their loathesome advert threatening cruelty to a tiny puppy, inadvertently reveal their true intent, a referendum timed at a moment of maximum economic peril, when the public's aversion to change would be at its greatest, for use solely as a negotiating ploy with all bets hedged as carefully as possible to obtain the establishment's desired result? Maybe so, but any referendum is a risk in these uncertain and rapidly changing times and no certain outcome can be assured even with the power of the state and entire resources of the EU deployed to ensure that democracy will be finally destroyed across our islands!

Last item I will offer for your consideration over this weekend, is a carefully argued posting by an arch EU federalist on his blog published this week and very effectively arguing that no Government wishing to retain its control can forever ignore the stated opposition of a large majority of its countrymen. The entire posting on the Grahnlaw blog is linked here, but I offer this quote from the conclusion to give busier readers a quick chance to gather the drift of the multiply linked remarks:

The dichotomy between official EU membership and negative public opinion leads to the question of political legitimacy.

Is it right for a “wise” political establishment to disregard public opinion, even if withdrawal would be short-sighted and against the national interest?

Are wise decisions the essence of democracy, or is democratic government fundamentally a question of legitimacy?

In a democratic society, people assume the consequences of their collective vote, but they later have the right to try to correct their bad choices.

Is trial and error the right way for Britain?

In conclusion, sensing the wind can be prone to error, but let me quote this passage from the opening link to this posting, which unusually for this blog contains a sermon with a concluding response to the text containing the following:

"New winds are blowing. The spiritual climate is changing. The smell of fresh breezes and fresh showers are in the air."

I recommend the entire sermon for those with extra time on their hands during this grimly anniversaried weekend! Meantime I still sense change on the wind!

Czechs describe Chancellor Osborne's complete Council capitulation over City regulation

The Prague Daily Monitor, linked here, describes in a report from the Czech Republic's Economy Minister how the Coalition Government of the UK completely folded and left the Czechs isolated and alone, just as Chamberlain had done at Munich in the run up to world war, I quote:

The Czech Republic stayed practically alone with its objections when Great Britain withdrew its own objections. Czechs had no chance to alter the proposal in any way and gave in so as not to worsen its negotiating position in the future, Kalousek said.

"Gnashing our teeth at a moment when the Czech Republic stayed alone and the result was clear, we said we would not break the EU Council's unity because it is quite important for our negotiating position on other topics," Kalousek said.

"Great Britain shared our view until yesterday [Monday] and thus has offered an extraordinary show of pragmatism," he added.

Over on the blog "The Slog", linked here, John Ward is railing at the further loss of the sovereignty of parliament consequent on Osborne's concurrent crumbling on giving the right to the EU to vet and approve the UK budget.

This point is worth raising I guess, although I have now ceased to be surprised as each new Westminster Parliament grows ever more supine in the face of the erosion of their rights by the EU. Truly our MPs at Westminster are the very lowest of the low in their pursuit of salaries, pensions and perks while handing all power, work and responsibilities to foreigners over whom they have zero control! How they can pretend to represent the interests of their constituents completely defeats me, hopefully like Blair who can now barely walk the streets of London, each MP and MEP will soon receive the same contempt on the streets of their constituencies as the years of misgovernance which they have allowed the EU will demonstrate its inevitable consequences on the lives, livlihoods, purses and pocket books of their deliberately ill-educated and so far unaware electorates!

The Coalition Government of the Conservatives and Liberal Democrats are proceeding at a breathless pace in conceding new powers to the EU. At this rate we will be fully EU federalised even before the coalition ceases to be!

Conservative Chancellor, George Osborne hands UK Financial Regulation to the EU

The report from the Associated Press is here.

The financial transaction tax has not been agreed today, but will no doubt follow in the near future given Prime Minister David Cameron's approval of the concept on 17th June at the last European Council meeting.

The European Parliament has to agree the multiple new EU Regulatory Authorities, but given the only country with an International Financial Centre in its Capital has only a small minority of such MEPs, AND the fact that almost all of these are troughing traitors to the land of their birth, there is no hope remaining that a financial services flight from London will now begin, thus further worsening the complete bankrupt state of the United Kingdom.

Thanksa bunch, you treacherous Tory con men and all the other UK politicans who have deviously laboured down the years to achieve this end!

25% Cuts everywhere to save the sacred cow of the NHS!

Only Overseas Aid will be exempt from the 25% cuts everywhere else in government spending to allow the outdated, inefficient and obscene relic of Marxism that is the NHS to continue its grotesque squandering of the national income and what is worse the country's ever growing borrowing of overseas funds.

If the public attending the Channel 4 TV debate on public sector cuts of one hundred billion pounds this week are representative of the nation at large then 75% of the nation are in agreement with this strategy (one reason I choose not to live in the lunatic asylum that England has become is that I believe the staggering insanity this figure represents as fact).

Only when the individuals represented by this 75% number are sufficiently screwed by the 25% across the board cuts everywhere else will elected politicians have the courage to take a scalpel to the NHS, winter fuel allowance, universal child benefits and all the other trappings of the extreme socialist society that is the UK as daily promoted in the media, particularly the BBC, itself exempt from any pain in this far left, blindfolded Chancellor's budget!

Osborne lacks luxury of an IMF bail-out!

A study issued yesterday concludes that the IMF lacks the capacity to meaningfully assist an economy the size of that of the UK. Issued by Futurus it concludes as follows:

CONCLUSION

The IMF does not have the capacity to bail-out Britain. In an extreme case, it might provide standby arrangements of US$ 30-40 billion a year for three years. Such amounts are small in relation to British fiscal deficits of US$ 240 billion per annum. Of course, it will be argued that, even in the case of an IMF bail-out, there will be no need for the IMF to totally fund UK borrowing. It is argued that once the IMF commits money and insists on a proper deficit and debt reduction programme, private international investors will fund the bulk of the necessary UK borrowing. That may, or may not, happen. It is a matter of confidence.

Without prospect of significant financing from the IMF, the politicians cannot avoid immediate and severe reductions in public spending. There is no risk of a British default on existing debt but, if these reductions do not happen, access to further funding may evaporate forcing an overnight reduction in spending so that it is covered by revenue.

George Osborne must therefore implement cuts in this week's budget that match or exceed those likely to be imposed in an actual call to the IMF for help!

George Osborne at ECOFIN tomorrow

As the Euro plunges this morning on Far East markets, read here, Britain's new Chancellor of the Exchequer, George Osborne, is scheduled to attend his first ECOFIN meeting, (background notes here) which is likely to be critical for the economic future of the UK. I suggest the following three crucial stances must be adopted if the country is not to be sucked further down towards economic disaster.

Firstly on the One Trillion US Dollar euro currency rescue package supposedly agreed on 9th May:

Bruno Waterfield and Open Europe have effectively argued that use of Article 122 as legal justification is an outrage. Britain's refusal to join the EU over many years will provide ample proof in the minutes of past ECOFIN meetings to back-up the assertion that the reason for such abstention from the euro was the certainty of the currency's collapse in the absence of concurrent fiscal and monetary union. History proves no currency union can last without economic union, that raison d'être was the driving force behind the euro project, the federalists disingenuousness in arguing it as a circumstance outside their control is bare-faced cheek! This crisis was foreseeable, always predicted by this blogger and successive UK Governments and therefore quite clearly totally within the control of all involved. Article 122 may well apply to the economic consequences of the Icelandic volcano but little else in today's circumstances.

Secondly on the task force on enhanced economic policy coordination in the euro area

Given the need for a new IGC next month and the likely requirement for re-ratification of the Lisbon Treaty by the 27 national parliaments, not just the European Parliament would appear to be illegally constituted but all Lisbon mechanisms similarly so. Can it therefore be legally correct or indeed even proper for the EU Council President Van Rompuy to lead this task force from 21st May? Even were Lisbon properly in force should the EU Council President be involved in a project involving a mere 16 of the EU membership? As his appointment and that of Baroness Ashton depend upon a Treaty now requiring re-legalisation, they should both perhaps be sent home, without pay, while matters are resolved.... are there none in the EU able to see this should be a wonderful opportunity to scrap the Lisbon Treaty once and for all? Can any detect any benefits the Treaty has brought?

Thirdly speaking as a member of the IMF:

Britain should make clear to its EU colleagues that the new Government considers that its IMF membership legally requires it to approve and contribute to loans to countries in economic difficulties in accordance with the founding principles. The EU and its Common Currency is not a country and therefore does not qualify for such loans or assistance. In the event a country such as Greece reverted to its national currency, the drachma, then such loans would become available presumably following an IMF advised devaluation.

George Osborne can today and tomorrow, most help the EU countries by extracting his colleague's heads from the sands and opening their eyes to the real world, which still exists and may soon thrive beyond the EU bubble! He should set the tone ahead of Cameron's first Council Meeting by voting on every topic with one sole guiding principle - the best interests of Britain. Given the direction of the EU, this will in most instances require voting NO to almost everything that is now being envisaged! What a change from their predecessors stance, ever since the time of Margaret Thatcher's Government, that would make. What benefits to the whole European Continent that would also eventually bring!

Hysterical Humphrys Over-yells Osborne

Yesterday's confirmation of this blog's assessment of the continuing horrible state of the British economy came when figures proved the recession continued through the third quarter. Discussing this on the BBC flagship Radio 4 political programme "Today" the smug, sarcastic and economics ignorant presenter John Humphrys repeatedly shouted down the Shadow Chancellor of the Exchequer, George Osborne. Readers may possibly hear this repeated on the web if they choose, the interview occurred at from eight-thirty to about a quarter to nine, it is not yet on the Listen Again facility.

Earlier this week we called for the immediate resignation of George Osborne for his lack of sensible alternative economic policies for the opposition during the past four years.

We now have added reason to call for this immature young man's departure. Any Shadow Chancellor of substance would have sternly reprimanded and thoroughly dressed down the hysterical BBC interviewer and demanded an apolgy on the spot.

It is clear that the BBC is intent upon the destruction of the wealth and morals of the nation so they can hardly be expected to remove the slimy John Humphrys from their bloated payroll, who with countless others spread their daily poison across the airwaves. The opposition must find figures who command such respect and grasp of their subjects that these awful interview techniques can be squashed at the moment they begin - that calls for hard men (or women selected on merit) not wimps.

Bank of Englan Governor finally admits insanity of Banking Bailout - Osborne must GO!

As proposals for a 7p rise in basic income tax, VAT hikes and extensions emerge this morning and Mervyn King finally pushing the alarm button last evening, is sanity about to appear in Britain?

Year after year and month after month this blog has warned of the certain disaster heading the country's way. Finally some of the incompetent madmen who have created this mess are about to face reality, will we see the Prime Minister now crack-up in public? Will the simpleton in charge of the main opposition party's economic policies now stand aside to allow a man of stature with economic experience and gravitas prepare the policies essential for effective governance?

Complete and utter financial ruin is now the best way to describe the nation's economic plight, one question is, of course, how those who caused this mess can continue in power for yet one more week - another perhaps of even greater significance for the future - is how can the Shadow Chancellor of the Exchequer, whose main task has been to effectively oppose those policies during the past few years, be allowed to retain his position for yet one more day?

George Osborne should stand down or be fired today!