Daily Mail
"Local government is now entirely producer-led. Everything is run for the benefit of those working in the organisation. And to hell with the mug punters paying for it through ever higher taxes and charges.Jumped-up local councillors suffered severe attacks of grandiosity and awarded themselves ridiculous titles, lavish expenses and fat allowances, which have doubled in five years.The old ‘ways and means’ committee, which met once a month to balance the books, was transformed into a full-blown ‘Cabinet’ in permanent session, Fairtrade coffee and Jaffa cakes all round.Salaries soared into the stratosphere as town clerks restyled themselves ‘chief executives’ and demanded private sector rewards. We have ended up with a significant number of local government employees being paid north of £200,000 a year. Now the money has run out, it falls to these superannuated superstars to decide where the ‘cuts’ must be implemented. And, as I predicted straight after the election, they aren’t going to put themselves out of work.So they cynically close libraries, day centres and swimming pools and give P45s to school dinner ladies and lollipop men. When it comes to the pain, it’s women and children first.
"
Tuesday, 15 February 2011
Monday, 14 February 2011
China is the world's second largest economy
Telegraph
"That allowed China to pull ahead with a GDP total of $5.88 trillion (£3.68 trillion) for 2010, on a non-adjusted nominal dollar basis, compared to $5.47 trillion for Japan.
By comparison, the United States recorded GDP of $14 trillion in 2009, but experts have predicted that after sweeping past Germany, France, the UK and now Japan, China will catch up with the US by as early as 2030.
Similar predictions were made for Japan’s prospects during the 1980s. However, after more than a decade, being overtaken by China reflects Japan’s declining political and economic power. "
"That allowed China to pull ahead with a GDP total of $5.88 trillion (£3.68 trillion) for 2010, on a non-adjusted nominal dollar basis, compared to $5.47 trillion for Japan.
By comparison, the United States recorded GDP of $14 trillion in 2009, but experts have predicted that after sweeping past Germany, France, the UK and now Japan, China will catch up with the US by as early as 2030.
Similar predictions were made for Japan’s prospects during the 1980s. However, after more than a decade, being overtaken by China reflects Japan’s declining political and economic power. "
For the avoidance of doubt
Dr Richard North
"There are no cuts. I say again, there are no cuts. What the Cleggerons are talking about is a reduction in the rate of increase in public expenditure as compared with the June budget. This is helpfully summarised here (see left) and the source is here.
You will see that the current financial year expenditure is £696.8 billion. By 2014-15, the projected expenditure was to rise to £757.5 billion. Little George is now proposing that this increase is limited £739.8 billion. This now becomes a 17.7 percent "cut", albeit that expenditure is still increasing."
"There are no cuts. I say again, there are no cuts. What the Cleggerons are talking about is a reduction in the rate of increase in public expenditure as compared with the June budget. This is helpfully summarised here (see left) and the source is here.
You will see that the current financial year expenditure is £696.8 billion. By 2014-15, the projected expenditure was to rise to £757.5 billion. Little George is now proposing that this increase is limited £739.8 billion. This now becomes a 17.7 percent "cut", albeit that expenditure is still increasing."
There haven't been any net public spending cuts – but try to say so and you'll be howled down as a liar
Telegraph
"Still, as I say, the story is now past correction. Denying the scale of the reductions – ie, quoting the actual statistics – is so jarring that, not only do you fail to convince, you damage your credibility across the board. It’s like claiming that Margaret Thatcher raised spending on the NHS: it might be statistically accurate but, to eighty per cent of your listeners, it establishes you as a liar.
What the government means by “cuts” is, in fact, what Thatch meant: that public spending will shrink as a proportion of GDP. In other words, the state sector will grow, but the private sector will grow faster. Since the former is funded by the latter, this surely makes sense.
Yet so embedded is the idea that there has been an absolute reduction in state spending that a narrative is now forming to the effect that the economic slowdown is being caused by “the cuts”. What cuts, for Heaven’s sake?"
"Still, as I say, the story is now past correction. Denying the scale of the reductions – ie, quoting the actual statistics – is so jarring that, not only do you fail to convince, you damage your credibility across the board. It’s like claiming that Margaret Thatcher raised spending on the NHS: it might be statistically accurate but, to eighty per cent of your listeners, it establishes you as a liar.
What the government means by “cuts” is, in fact, what Thatch meant: that public spending will shrink as a proportion of GDP. In other words, the state sector will grow, but the private sector will grow faster. Since the former is funded by the latter, this surely makes sense.
Yet so embedded is the idea that there has been an absolute reduction in state spending that a narrative is now forming to the effect that the economic slowdown is being caused by “the cuts”. What cuts, for Heaven’s sake?"
Fears for UK growth as inflation sabotages austerity
Telegraph
"UK inflation is running at almost twice the rate as that on both the Continent and the US, as the weak pound has pushed up the cost of imports. A spike in global commodity prices, for oil and food in particular, has also fuelled price growth, as well as the VAT rise from 17.5pc to 20pc.
Despite soaring inflation, the Bank has left rates unchanged at their record low of 0.5pc for two full years. The Bank will explain its policy on Wednesday in its quarterly Inflation Report. The Governor has long argued that, excluding imported and one-off cost pressures, "inflation is close to zero and well below target".
However, markets have already begun to de-couple from central bank policy, with sterling rate futures pricing in a first move in May and a total 0.75 percentage point rise by the end of the year. "
"UK inflation is running at almost twice the rate as that on both the Continent and the US, as the weak pound has pushed up the cost of imports. A spike in global commodity prices, for oil and food in particular, has also fuelled price growth, as well as the VAT rise from 17.5pc to 20pc.
Despite soaring inflation, the Bank has left rates unchanged at their record low of 0.5pc for two full years. The Bank will explain its policy on Wednesday in its quarterly Inflation Report. The Governor has long argued that, excluding imported and one-off cost pressures, "inflation is close to zero and well below target".
However, markets have already begun to de-couple from central bank policy, with sterling rate futures pricing in a first move in May and a total 0.75 percentage point rise by the end of the year. "
Friday, 11 February 2011
Labour ministers 'leant on IMF' to disguise devastating truth of pre-credit crunch economy
Daily Mail
"The report found that information was withheld from the IMF and the public by the British authorities, Fund officials were intimidated, and regulators at home and abroad failed to spot serious risks in the banking system and the economy.It will make uncomfortable reading for current shadow chancellor Ed Balls, who was a powerful figure at the Treasury at the time.It will also be a blow to Labour leader Ed Miliband, who was an economic advisor to then Chancellor Gordon Brown in 2004 and 2005.The Conservatives claimed it was ‘incredibly telling’ of the way the Treasury operated with Mr Balls and Mr Brown at the helm.The aggressive attitude of Treasury officials meant the IMF was too soft with other regulators in the City of London, according to the report."
"The report found that information was withheld from the IMF and the public by the British authorities, Fund officials were intimidated, and regulators at home and abroad failed to spot serious risks in the banking system and the economy.It will make uncomfortable reading for current shadow chancellor Ed Balls, who was a powerful figure at the Treasury at the time.It will also be a blow to Labour leader Ed Miliband, who was an economic advisor to then Chancellor Gordon Brown in 2004 and 2005.The Conservatives claimed it was ‘incredibly telling’ of the way the Treasury operated with Mr Balls and Mr Brown at the helm.The aggressive attitude of Treasury officials meant the IMF was too soft with other regulators in the City of London, according to the report."
Wednesday, 9 February 2011
What does the BBC think of Radio 4's 10m loyal listeners? Too many are white, Southern and elderly
Daily Mail
"You might assume that being declared a ‘national treasure’ and boasting 10million listeners a week means Radio 4 is doing everything right.Yet the station’s output is still not good enough for the BBC Trust.In a performance review, it has ruled Radio 4 needs more northern presenters, a younger audience and to improve its appeal to ethnic minorities."
"You might assume that being declared a ‘national treasure’ and boasting 10million listeners a week means Radio 4 is doing everything right.Yet the station’s output is still not good enough for the BBC Trust.In a performance review, it has ruled Radio 4 needs more northern presenters, a younger audience and to improve its appeal to ethnic minorities."
Tuesday, 8 February 2011
Farce of bomb-proof £20m Government building that was closed down 'because it got a bit windy'
Daily Mail
"A flagship government building has been closed due to bad weather - five months after it was officially opened.Hundreds of civil servants were turned away from the Welsh Assembly Government's eco-friendly £20.2m HQ for safety reasons yesterday, after strong winds battered its roof.It has bombproof windows and was once dubbed the greenest building in Wales."
"A flagship government building has been closed due to bad weather - five months after it was officially opened.Hundreds of civil servants were turned away from the Welsh Assembly Government's eco-friendly £20.2m HQ for safety reasons yesterday, after strong winds battered its roof.It has bombproof windows and was once dubbed the greenest building in Wales."
Jungle drums and the politics of hate
Daily Mail
"We live in an age when all language is monitored as closely as it was in Communist East Germany and careers are ruined at the drop of a so-called ‘offensive’ remark. Yet the self-appointed moral guardians of the Left believe they have a divine right to hurl whatever slanders they like provided they simultaneously proclaim their own goodness."
"We live in an age when all language is monitored as closely as it was in Communist East Germany and careers are ruined at the drop of a so-called ‘offensive’ remark. Yet the self-appointed moral guardians of the Left believe they have a divine right to hurl whatever slanders they like provided they simultaneously proclaim their own goodness."
Saturday, 5 February 2011
The real pain of the financial crisis is only just beginning
Independent
"Now comes the reckoning postponed, with the rate cuts and fiscal stimulus of 2008-09 gone. We will see more tax rises – including national insurance – and all-time highs in petrol prices, rail fares, energy bills and food costs. There will be reduced public services, unemployment nearing 3 million, falling house prices, and perhaps rising mortgage rates.
And even then we will not, as a nation, have paid the full price for past excess. Not to mention the risks of a eurozone meltdown, China's property bubble bursting, or another downturn in the US. The "re-balancing" will be painful."
"Now comes the reckoning postponed, with the rate cuts and fiscal stimulus of 2008-09 gone. We will see more tax rises – including national insurance – and all-time highs in petrol prices, rail fares, energy bills and food costs. There will be reduced public services, unemployment nearing 3 million, falling house prices, and perhaps rising mortgage rates.
And even then we will not, as a nation, have paid the full price for past excess. Not to mention the risks of a eurozone meltdown, China's property bubble bursting, or another downturn in the US. The "re-balancing" will be painful."
Friday, 4 February 2011
SPIN METER: Not much savings from stimulus money
Yahoo News /AP
"And Republican leaders now acknowledge they would be lucky to identify as much as $5 billion in stimulus-related spending cuts as part of a plan to save taxpayers $2.5 trillion over 10 years.
Where did the money go?
It's not that all the stimulus money has been spent; it has been committed for specific projects and programs. In the confusing money flow from Washington to the rest of the country, there's still about $168 billion in stimulus money that has not actually been paid out, according to the administration. But it says nearly all of that money already is tied up in contracts with companies, obligations with states and local governments, promised taxpayer relief and commitments to government programs."
"And Republican leaders now acknowledge they would be lucky to identify as much as $5 billion in stimulus-related spending cuts as part of a plan to save taxpayers $2.5 trillion over 10 years.
Where did the money go?
It's not that all the stimulus money has been spent; it has been committed for specific projects and programs. In the confusing money flow from Washington to the rest of the country, there's still about $168 billion in stimulus money that has not actually been paid out, according to the administration. But it says nearly all of that money already is tied up in contracts with companies, obligations with states and local governments, promised taxpayer relief and commitments to government programs."
Thursday, 3 February 2011
Global food prices hit new record high
Telegraph
"The United Nations Food and Agriculture Organization (UN FAO) gave warning that the high prices, already above levels in 2008 which sparked riots, were likely to rise further.
The FAO measures food prices from an index made up of a basket of key commodities such as wheat, milk, oil and sugar, and is widely watched by economists and politicians around the world as the first indicator of whether prices will end up higher on shop shelves. "
"The United Nations Food and Agriculture Organization (UN FAO) gave warning that the high prices, already above levels in 2008 which sparked riots, were likely to rise further.
The FAO measures food prices from an index made up of a basket of key commodities such as wheat, milk, oil and sugar, and is widely watched by economists and politicians around the world as the first indicator of whether prices will end up higher on shop shelves. "
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