Compulsory Union Membership in Local Government = Labour Party State Funding

I mentioned on Twitter this morning an argument I had among then family members  regarding compulsory trade union membership taken up by husband and wife graduates of the University of Wales in Cardiff when gaining employment in Local Government. They argued they had no choice but thereby and thereafter one presumes, made contributions to a Trade Union supporting the Labour Party. In spite of being graduates, and thereby well educated and rounded in British terms, one a civil engineer the other a solicitor, neither professed to be able to see any objection to this closed shop arrangement.

Hundreds of thousands of British people down the decades must presumably have held similar opinions! Even Thatcher never tried to tackle the similar closed shop systems operated by the associations of the so-called professions - thus corpoatism which is destroying us has deep roots in society!

Thus was the Labour Party financed to successively wreck the  economy of our country and corrupt the Conservative Party towards socialism. as they have now fully achieved with Cameron in control.

Only when the mass of ordinary people, (struggling to support their families in this daily worsening economic situation,) confront these truths, will any proper national independent recovery be possible! Work cannot even be begun while the three existing leading parties still gather electoral support.

The Bust Banks of the EU

So the IMF has forced the farce over Greece finally into the open. Repayment of funds already advanced to Greece will be pushed further back into the distant future with all aware that means never, the interest rate paid will be reduced to less than one per cent with the clear understanding that following the German elections this too will get ever closer to zero with actual payments of any installments a figment of fantasy.

So much for moral hazard!

In Spain the horror of Bankia continues to be treated as other than it clearly is, read some questions raised by the Wall Street Journal from here and various earlier postings on this blog as to how that situation was allowed to develop.

In Britain we have RBS, Northern Rock, Lloyds HBOS etc while France and Belgium so far share Dexia with others no doubt waiting in the wings. The entire Greek farce of recent years has after all been designed to protect German, French and other too big to fail financial institutions from the consequences of their own decisions.

First thing this morning I tweeted that we needed a collective noun for the kind of filth who have been involved in making these obscene and disastrous policy errors as follows:

Martin Cole ‏@IroniesToo

We need a collective noun for the members of the three main political parties who have sold off our democracy and their morals: #SULLIED??

On reflection #SULLIED seems rather mild

How Bankia conned its customers and small investors.

Reuters has a good analysis, linked here, of some of the dirty tricks used to keep the large bank Bankia afloat for a few more months in Spain.

Given that foul, dirty and despicably fraudulent tactics were used to disguise losses within the Spanish banking sector and pass off some of the already known losses to depositers AND that this happened in one part of the EU where all that is awful, rapidly spreads throughout the other twenty-six member states while all that is worthwhile is ruthlessly turned against and eradicated, it would be worthwhile if Britain's bank account holders read of some of the tricks used, so as  to avoid being duped in the same manner and reduce similar potential losses in Britain.

This is probably particularly true regarding RBS, whose head has warned of huge coming financial penalties in respect of that bank's failings over LIBOR, events that took place before the taxpayer became obligated for its past sins, read here.

Rodrigo Rato, former head of the IMF and head of Bankia, has at least been arrested, see here, for criminal fraud in Spain as has one of the top bankers in Ireland but no such moves have been seen in Britain.

Little seems likely to happen in the UK given the glimpse we have been given into the mindset of our leaders over the London Olympics, as covered in this post from Orphans of Liberty, linked here.

Moody's Banks' Downgrade & the RBS/NatWest Account Chaos

Yesterday the glitches within the RBS/Nat West account handling electronic systems affected my family as far apart as Chicago and SW France, although we do not use either bank on a day to day basis! What disasters that possibly lie ahead does last evenings downgrade of so many mighty names in world banking by the rating agency Moody's portend?

Some media sources suggest that the account guarantees offered by the sovereign authorities of the country in which such banks are domiciled give reason for us all not to worry, small comfort when a click of the mouse will take you to other crisis reports which describe how such sovereigns are themselves in hock to the self-same banks! Smaller still when looking at the calibre of the politicians who run the sovereigns that will supposedly stand behind such commitments. A large sack of spuds somewhere in the kitchen might be a better back-up. Nat West, Sky News has just announced, has some customer accounts that have gone without an update for three days and that the problems continue to be unresolved - this from a banking group almost entirely now owned by British taxpayers!

Iceland's former Prime Minister on trial for negligence!

A precedent of considerable concern to many supposed democratic leaders and Commission officials across the EU is set today when Former Icelandic Prime Minister Geir Haarde goes on trial at a special court on charges of negligence in his handling of the 2008 financial crisis. The BBC News report on this trial is linked here.

As detailed blow by blow on this blog, the British Government's handling of the banking crisis, the full effects of which have been merely deferred rather than confronted; sometimes pale into insignificance when compared to the events within the eurozone, but what Brown and Darling accomplished nevertheless will eventually require their being brought to account!

My Comment to John Redwood MP today

Posted September 27, 2011 at 6:36 am | Permalink

Your comment is awaiting moderation.

The Coalition Government has made a grave error in not opening either a full political or criminal inquiry into the dealings with the banks in the latter years of the Labour administration. Suspicions are confirmed by close reading of Alistair Darling’s recent book.
Never mind precedent, or the fear of such a tool being used against themselves at some point in the future (if they act with probity thay will have nothing to fear), the circumstances surrounding RBS/Lloyds HBOS were politically inspired and encouraged and what occurred remains unknown in spite of the £Billions of taxpayers money lost as a result!. If the Government/Public Prosecuting authorites will not act then back bench MPs should.
If Labour are allowed to dodge responsibilty, as they are presently being permitted so to do, it will not just be Lib Dem MPs thrown out in an election held amidst economic meltdown!

Alistair Darling - ever nearer the brink!

The former Chancellor of the Exchequer's book, which I am slowly making my way through, ludicrously titled "Back from the Brink" over which he nearly plunged us and towards which he propelled the country, with ever clearer and more obvious consequences, contains this mind-blowing admission, by Alistair Darling, on page 61 of the hard backed Atlantic Books edition:

Fred Goodwin's office had contacted me a few days earlier and said he'd like to meet up. Although it would mean not having my private secretary with me , I felt entirely relaxed about seeing him alone at home. I was also intrigued. I had seen other CEOs of the banks alone in the past - none of this was abnormal - but I knew that his asking to see me in private could only mean that he was worried about something.

Given all the subsequent events, the earlier description by Alistair Darling in the preceding paragraphs of the inadeqacy of the RBS Board, his own Constituency and family history connections with the Royal Bank of Scotland described by the author, surely there should now be some investigation underway by the Coalition Government of what actually occurred at, and following this extraordinary meeting?

Surely, given the scale of the horrendous losses to Britain's taxpayers as a result of Brown and Darling deciding to save this absolute disaster of a bank, something should be now be being done to bring some guilty parties to account!

RBS and Santander opt for a 21% to 67% Haircut on their Greek Bonds

The report of the taxpayer owned, British bank RBS, and the high profile but struggling Santander, to accept haircuts on their Greek bonds to further prop up the doomed Euro Currency, comes from SFGate on the West Coast of the USA and is linked here. (Sorry I missed this earlier .... please blame a birthday celebration).

If you are curious as to how come the cost could be as much as 67%, please see the article linked earlier from The Market Oracle, repeated here. I quote:

Let’s see what the "voluntary” debt rollovers will look like and what the likely debt destruction will be. This is from Global Macro Monitor. First, notice that the plan claims haircuts will only be 21%. But that assumes you can sell the new bonds at a 9% interest rate. If the interests rate demanded by the market are 15%, which is closer to reality, the haircuts are closer to 67%, after what appears to be an initial 20% cut. Will any institution not immediately try and get those bonds into the hands of the ECB? This is just ugly."

Also from the same report, is this, on the bailout by Britain's taxpayers of the Bank of Ireland on which I posted last weekend:

If and when the BoI loses its race to stay private, it's the Irish taxpayers who will pick up the tab for an extra 2.65% interest on loans from RBS, along with any other obligations passed on by the private banking sector. Considering these developments and the ongoing effects of current austerity measures, it is difficult to see the Irish people remaining "docile" for much longer. There is only a certain amount of restraint that can be imposed by cultural perceptions before the reality of economic desperation sets in. They are now merely remaining "calm like a bomb", and the fuse on that device has been lit.

Of course, from a British taxpayer's point of view, the extra interest is the premium always required for loans of a riskier nature. A point Greek PM Papandreou, missed when boasting yesterday, to his party faithful, that Greece was borrowing at rates just above those of Germany, the reward for penalty of having sacrificed all national sovereignty and the cold reality that Germany now owns Greece.

This evening, as warned on this blog 24 hours ago, the Cyprus government has resigned and appears likely to be the next Euro Group member to require a bailout.

Meantime the warning from the IMF to France is now receiving coverage in Europe, read here, a quote:

"France cannot risk missing its medium-term fiscal targets, given the need to strengthen implementation of the Stability and Growth Pact and keep borrowing costs low by securing France's AAA rating," the IMF report stated.

With one of the highest overall tax rates in Europe, France's best solution would be to reduce government spending in areas of health care and pensions to meet its medium-term targets, the IMF recommended. They at the same time urged the government to lower the taxes on labour, in an attempt to elevate France's competitiveness and tackle structural unemployment.

Has Bank of Ireland been rescued by British taxpayers through RBS?

Strange goings on again in international banking circles, read this from the Irish Independent! Are Britain's taxpayers now bankrolling the independent Irish State, which has in utter stupidity pledged Ireland's people for generations to come to underwrite all the bad debts of the profligate Irish banks.

More background is available from Golem XIV, linked here. H/T Calling England

Update - Further analysis on the impact of recent events on banks in the British Isles, from the FT is here.

Did a Fred the Shred Super Injunction potentially cost UK taxpayers Billions?

What kind of nation do our Judges believe they are serving?

RBS Directors breached their 'fiduciary responsibilities' - Wikileaks

The shocking revelation in this morning's Guardian newspaper, read here, that RBS Directors had breached their 'fidiciary duties' is hugely significant to RBS Shareholders and British Taxpayers involving as it does the whole question of the rule of law in Britain. I quote from the article:

Asked about the importance of a fiduciary responsibility, Simon Morris of law firm CMS Cameron McKenna said: "A fiduciary duty is about honesty. Shareholders give directors the power to run a company and a breach of that fiduciary duty is a reflection of a lapse in that honesty. A breach is also likely to be of interest to the FSA if it is an FSA regulated firm."

The fact that the FSA has only last week abandoned its own investigation of RBS, declaring that there was no wrongdoing at that huge bank, must leave the general public with only one conclusion to draw, that the rot in Britain's politics now goes across all three of the main political parties and extends over and up to the very peak of the British establishment. Even before this news, Britain was beginning to appear ungovernable in the face of the treason by the three main parties over the EU, this condoning and cover-up of criminal acts, which have themselves brought the nation to the brink of bankruptcy must surely spur our junior and non-involved MPs into urgent action?

Iceland again and the ongoing banking crisis.

The second day when the Online Times refuses to publish a comment of mine on the Iceland affair (see post below). Less surprisingly today perhaps, as my ire was raised by this nasty slur at the start of Mr Hattersley's article upon which I commented, linked here: "Icelanders are, by nature, intrinsically unreasonable." Hattersley states in his first sentence. At least The Economist recognises the significant aspects of the Icelandic situation which The Times chooses to ignore - Read here. MEANTIME - ANTICIPATING REJECTION - I today copied my exact comment to the Hattersley tripe in The Times, which was as follows: Mr Hattersley, as has been his habit down the years, is completely wrong on this matter. The Icelandic refusal, if confirmed in their referendum (wot that?), to repay deposits lost outside normal EU interbank guarantees are showing the way for ordinary people everywhere to eventually escape the results of the banking fiasco and the present government's policy of the printing of vast sums of useless money under QE. Brown and Darling will eventually be found to have acted illegally in the banking bailout as confirmed by the NAO on the last day of the parliamentary sitting in June last year. When they are eventually jailed (if such is possible under Scottish Law), or otherwise brought to account, then I feel sure small property owning English taxpayers will be as reluctant as the Icelanders to pick up the tab for the profligate commitments made without benefit of parliamentary approval by these two incompetents. A blow by blow account of the HBOS Lloyds RBS fiasco is available in these blog archives as well as the illegality of the bailout as stated by the NAO last June. The illegal conspiracy has now been compounded by Parliament's inaction on this matter since its return. The depth to which this law-busting conspiracy has spread across large parts of the British establishment was again illustrated last evening on the Jeff Randall programme when, from Edinburgh please also note, a funds manager refused to explain why he had deliberately thrown millions down the sewer at the behest of Brown and Darling and contrary to the obligations of his office and interests of his policy and share holders.

BNP Paribas Rights Issue

The Wall Street Journal, link, reports this evening:

What a difference six weeks makes.

Back in August, BNP Paribas said it wouldn't repay the French government's €5.1 billion ($8.1 billion) stake in the bank until at least early 2010. Now it is launching a €4.3 billion rights issue to do just that -- in the process leapfrogging a clutch of other European banks, including Lloyds Banking Group, Royal Bank of Scotland, mulling similar efforts to repay government aid, and Unicredit, which announced a rights issue later Tuesday.

Watch for developments in the Lloyds HBOS and RBS Asset Protection Scheme saga as the next stage of the credit crunch looks set to hit removing the world from the relative calm of the phony recession.

Read John Redwood on Quantitative Easing from here.

Returning value to money is the only cure, everything attempted over the past 25 months has been working in exactly the wrong direction.

Britain is beyond rotten

The leading article in The Times today is headlined "Something Rotten" it may be read from here. The topic is the pension and tax arrangements of the outgoing head of the 70 per cent now tax payer owned Scottish Bank RBS. It describes an outrage. The Daily Telegraph meanwhile has a report of up to 1,200 unnecessary deaths at one single NHS hospital, read here. This should be no surprise, on 18th January 2008 The Guardian reported that 17,000 unnecessary deaths had been caused in the NHS, read it here. I started the New Year on 3rd January this year with a post, linked here, on the NHS which began as follows: A New Year needs a new start! The NHS lies at the root of Britain's now nearly terminal problems. If individuals will not take responsibility for their own health and well being they will not take responsibility elsewhere. The next day The Sunday Times carried a report of the NHS being in the organ sales business, read my post from here. Look at any area of Society in England, neglect imposed by the incompetent Scottish thugs who largely govern, unemployment figures rose today to 2.029 million yet Lord Mandelson (three times the subject of scandals over questionable dealings yet ennobled and running huge swathes of government policy) denying on TV that job centres in England have closed when all know they have and that millions more English citizens now fear for their jobs not just their lives in run- down and shabby health services. Money being printed by the BoE will further reduce the real amounts available for expenditure whilst providing a fleeting charade of passing prosperity - no wonder University Chancellors have divined that they will soon need to at least double tuition fees. The IMF today confirmed that Britain's recession will be the worst in the world in my view simply because it has the worst Government and zero opposition! Yes there is no opposition under David Cameron while Government Ministers lie and demonstrate their ignorance in almost every area of their supposed responsibilities. Sir Fred Goodwin is a shameful example of Britain, but scratch the surface and there is far worse within.

What value an "unwanted asset"?

Bloomberg has issued a report based upon Britain's Sunday press ramblings from which comes the following: Feb. 22 (Bloomberg) -- Royal Bank of Scotland Group Plc plans to divide itself into a “good bank” and a “bad bank” and cut costs by more than 1 billion pounds ($1.44 billion) a year to help it recover from the biggest loss in British corporate history, The Sunday Times said, without citing anyone. The cost-reduction measures will result in about 20,000 job losses, with more than half in the U.K, the newspaper said. The Sunday Telegraph reported RBS, the largest government-controlled U.K. bank, will establish a “non-core” subsidiary which will hold 300 billion pounds of “unwanted assets.” etc., etc. Apart from sniffily proving the price of the newspapers in Britain are again this Sunday worth considerably less than the trash they pass on as free gifts what else may we learn from this report. Possibly that the real loss of the taxpayers for RBS can at last be realistically estimated at 300 billion pounds. Consider this scenario - if I purchase a packet of plastic cutlery for one pound, find I have no use for it and store it unopened it might possibly at some future moment be worth something, how much can only be assessed were I to be lucky enough to find a willing buyer. Were I to accidentally sit on the package and break the contents, they remain unused but their future value becomes even less certain no-one would believe they were now worth the original purchase price - most would put their value at zero. So it is with all unwanted assets. The price paid is meaningless especially when preceded by the adjective "unwanted" which assigns a value of zero. Who cared what was originally paid, only the robbed taxpayer who apparently had them transferred at the original cost paid. Leave the debts in Scotland, that is where they rightfully belong! Losses should have been left with the original shareholders who at least had a limitation to their liability up to the value of their shares and to the capitalisation of the bank. Nothing more, how can the Scottish Brown and Darling have contrived to extend this to 300,000,000,000,000 pounds for mainly English taxpayers?