Monday, 14 November 2011

Euro Crisis Confirmed - Thanks Tony. We didn't know

As if we needed his validation, Tony Blair has confirmed that we have a real Euro crisis. Thanks Tony, we needed to know that.

What he also tells us is that there are two bad questions to be asking at this time:

1) Who caused this problem?

2) How can we solve it so that it doesn't happen again?

Why are these bad questions when they seem perfectly reasonable and central to solving the repeating cycle? Well, Honest Tony tells us that the key issue is to solve the crisis that we are in today and save the Euro or face catastrophe.

Or are there other reasons? Well, analysing who caused the problem would mean dissecting his tenure as PM and that's sacrosanct - nobody should be allowed to refute the Blair Years. And that if we found out the answer to 1) then we would work to limit the scope of financial people and what they can do and earn in 2). Oh, and Tony now works as a Non Executive Director paid $millions for both Zurich and JP Morgan. Vested interest seems to spring to mind but there's me being all cynical again.

Fair play, Tony has lost a couple of good friends in the last few weeks and I don't mean his mentor, Lord Gould (RIP). I mean Silvio Berlusconi of the free Tuscan holidays and Col Gadaffi - he'll be running out of places to visit soon.

Blair is wrong about the questions, as with many other things he tampers with. We need to get to the heart of the problem to stop this cycle that we are in and stop being faced with the daft dilemma of: a) Try to grow out of trouble and increase deficits or b) try to cut deficits, don't grow and the deficit rises anyway. We are damned if we do, damned if we don't. We have to go back and tackle the root causes before we are beholden to this dilemma always.

The fact remains that we allow a thin proportion of the world population to earn mega bucks and we don't get any social benefit out of them doing so but get all the downside when we wake up and realise there were no real profits at all. These people pay proportionally less tax than anyone else on the planet. Their companies do the same. We need to stop this happening. I don't think OWS has the right answer as capitalism is required but even Milliband was close to the truth when he described this as 'Predatory Capitalism'. And that's not even the right description - it is that fact that these people own us.

We believe that if we stopped these people earning this kind of money by playing the games they play with world money markets then capital flow and credit would dry up. That isn't that case. There is more than enough money for these people to earn for the rest of their lives if they used the money to do the right things in a capitalist society. Greed is a terrible thing. There are only so many millions you can spend in a single lifetime.

The problem is that Politicians are patronised and controlled by these people. Robert Peston is not far wrong. Only last week there was a platform where David Cameron was speaking to entrepreneurs which he shared with Philip Green. This man earned a single dividend of £1 billion from Arcadia and did not pay a single penny in tax and he is revered as a great businessman, knighted under the Blair regime - a shining example of entrepreneurial genius.

He's not the richest or the real offender on the financial stuff although he can leverage billions for takeovers from the same banks we use and make billions without staking a penny when we can't even get a decent mortgage offer on bricks and mortar. That's the difference.

Until we break this cycle we will never get anywhere and that's why people like Blair, who have been corrupted by patronage and money, need to be ushered off the scene and some real people ushered in to get to grips with these problems. And David Cameron is not behaving like the right sort, for my money, even though he understands the big issue of deficit better than most.

But Tony has spoken, we must listen. Old programming dies hard.

No comments: