UPDATE
Exactly as predicted, the broadcast media this morning are hailing Cameron’s patriotism in opposing a financial transaction tax and “Protecting the City of London”, as though this were the Blitz.
Both the BBC and Sky News have featured economists “explaining” what a bad thing a financial transaction tax would be for the City of London. Both were employed by institutions which would have to pay the tax – a fact which was not pointed out.
Despite the fact that a large majority of academic economists, the European Commission, 23 European governmnets, the Obama administration, and Vince Cable before he got his ministerial chauffeur, all believe that a transaction tax is an essential step towards preventing the banking speculation that caused this whole mess, the media are not presenting anyone who believes in the transaction tax.
No, the media narrative is simple. It’s fighting off the Johnny foreigner, Batting for Britain.
What a load of crap.
End of update: here is yesterday’s piece:
The xenophobic yaah-booing of the Tories over the demand for Cameron to show the “Bulldog spirit” is Europe is quite sickening. It is astonishing that the broadcast media have universally bought in to the spin that Cameron is “Defending Britain” by opposing the banking transaction tax, that all other major European powers want.
Cameron is not defending Britain. He is defending his banking paymasters. A transaction tax is essential to discourage multiple speculative transactions and other banking practices which have shown they can wreck entire national economies. Cameron’s opposition to the transaction tax should be vilified as reckless and a blatant pursuit of class interest, not universally lauded as “patriotic”.
Our schadenfreude at Germany’s difficulties is misplaced. Germany remains a much better economy than the UK. They manufacture a great deal more and thus have a much better balanced economy. Despite having swallowed East Germany, German GDP per capita is once again higher than that of the UK, by about 3%.
Crucially, as shown in the recent OECD report, income in Germany is much more fairly distributed than in the UK. The UK in fact is twice as unequal. In the UK the top ten per cent of the population have an average income that is twelve times that of the bottom ten per cent. The same figure for Germany is six times. What is more, inequality in Germany has been falling for the last six years, whereas in the UK it is accelerating.
Yet the German economy has outgrown the UK economy in the same period. That is impossible, according to every TV pundit I have seen in the last month. “It is massive reward for thrusting executives that encourages them to put the dynamic effort in, that leads to economic growth and drags the low paid mere mortals along behind them. If the gap between rich and poor is not colossal and widening, the economy cannot perform as well. Otherwise these vital high earners will desert us and move to Singapore.”
The mantra that economic growth must entail a widening wealth gap is scarcely challenged in the mainstream media narrative. But it is plainly untrue. In Germany in 1990 the top 1% of income “earners” received a staggering 11.1% of total national incomes. By 2007 that figure was – still 11.1%. By contrast in the UK in 1990 the top 1% took 9.9% of national income. By 2007 that figure had shot up to 14.2%. And all the indications are that in the last four years it has accelerated still faster, almost certainly now over 16%.
So if those braying conservatives are right about what makes economies grow, our economy should be streaking ahead of Germany. But it isn’t, quite the opposite. Meanwhile the “right wing” Merkel has overseen a greater drop in inequality than Britain has seen in two generations.
A period of humility from Britain is called for. Those braying Tory MPs are fools.
Thanks Nuid
I think the Iranians will be jumping for joy. They’ll be able to reverse engineer it. It looks intact so perhaps it had some sort of engine(?) failure and glided into land? If it was shot down one would rather expect it to be a wee bit dented….secondhand, one not-very-careful-user.
Incidentally, I thought that sending a military aircraft without permission into someone else’s airspace, even if it was unarmed, was a pretty provocative near-war type of act.
Not that one expects proper observance of legal procedures from the dear old Great Satan nowadays.
The drone looks very much like an RQ-170 (top pic, head-on view: port wing and part of “fuselage”)
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Which the Yanks are pretty well adnitting they lost while spying on Iran – not a stray from Pakistan or Af:
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http://www.taiwannews.com.tw/etn/news_content.php?id=1781374
True, true, true – all true. But I wish you’d drop the conventional assumption that growth is a good thing. It’s an impossible thing. I’ve posted this link before, but never mind:
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http://physics.ucsd.edu/do-the-math/2011/07/galactic-scale-energy/
I share your feeling John Goss and my father said the same as he put me on train for Plymouth aged 16yrs to begin a 5yr journey as a naval artificer apprentice renowned as the best engineering training in the world.
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Twenty years later as head of manufacturing I visited many metal producing factories; thousands of square feet with row upon row of lathes, milling machines, casting and sheet engineering whose owners literally oozed ingenuity, creativity and a flair to circumvent ‘impossible’ designs. It is these metal products heartland industries that declined under Blair as he relied on service and financial sectors in the South. Manufacturing employed 7 million in the 70’s and is now less than 1.5 million today (NASDAQ).
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As you say “will be difficult to get that industrial base back, if we ever do.”
The story about the Iranians apparently successfully electronically ambushing an American drone spy plane should be a sobering lesson about respect for adversaries. It could be the result of Iranian espionage in the West, as well as expertise. I remember when Serbs shot down a stealth aircraft and then held up mocking signs, ‘Sorry, we didn’t know it was invisible.’
Komodo,
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It seems intact and China is already preparing a team of engineers to discover the technological principles.
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http://www.youtube.com/watch?v=fRwnofz4Hjg
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I am very interested in the design.
Komodo,
Have you seen this clip?
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Iran is not a broken, and fuckedup country to be pissed about with. They have shown time and again they will not tolerate any kind of aggression, and they mean that.
also to be found here
I always despaired whenever Thatcher talked economic “commonsense.” Taking the lessons from a cornershop in Grantham and applying this “wisdom”, in a gigantic experiment, to an entire nation. One of the well-known falacies in economics is precisely what Thatcher was guilty of, dangerous, simplistic, nonsense.
However, it was very, very, profitable nonsense and dogma for those riding the crest of the wave, as the UK’s manufacturing base was systematically undermined and societies resources diverted into various bubbles, like the housing market. The idea of sacrificing the manufacturing base, and the skills and inovation that went with it, was madness, though with a purpose.
It was all about “class warfare” and the transfer of weatlh and power, away from the traditional working class and towards the City and the financial sector; destroying the foundations not just of manufacturing but of real political opposition in the process, creating a de facto dictatorship of finance over all other sections of the economy.
Of course the massive, and sadly wasted, revenues from the oil and gas bonanza in the North Sea, were used to give the false impression that the economy was growing, but subtract the North Sea, and the dire condition of the “real” economy is unfortunately all too clear.
In reality the revenues from the North Sea should have been ring-fenced and used to re-tool the UK’s manufacturing base, modernise the transport sector, especially the railways, invest in education and jobs, instead it was used on a spending spree and cutting taxes, and policies designed to transfer wealth upwards on a scale that’s almost unimaginable.
Much of this would have been impossible without the media helping to facilitate this gigantic fraud, Thatcher walked hand in hand with the Murdoch press which has had an effect on the UK similar to the Black Death.
Forty years of systematically moving in the wrong direction, destroying the very nature of the country’s capacity to create wealth and jobs, reversing this madness will, if it’s even possible, be a gigantic, decades long challenge.
In Iran last year the rumor was that Iran already had a drone intact, and were trying to copy the design (and even improve it), how true that was I don’t know, although the guy who told me was my niece’s boyfriend who is son of one of the generals. I can believe it. I will not be surprised if US government knew about it as well, it was just too embarrassing for them to admit then. Now there is a psychological war between Iran and the west, so Iran is claiming that they have got a drone (I wonder if it the picture is of the one they already had!).
Anyhow good luck to them, I am no fan of Iran government, but I like even less the government of UK and USA!
We should also be concerned about the political ramifications of the destruction of the Euro and possibly the falling apart of the European Union.
The UK fought wars in an attempt to stop prescisely what’s happening today; Germany becoming the cental power in continental Europe, which given it’s geographical position, wealth, productive capacity, and large population, is only “natural.” Arguably WW1 was a desparate attempt to stop the rise of Germany, and that disaster had horrendous consequences for Europe in the 20th century. The UK empire chose to risk destory Europe and crippling itself financially, in order to stop Germany… but only succeeded in delaying the inevitable, and at incalcuable cost; like; becoming a bankrupt state, losing an empire, and turning into a US vassal state.
How will the UK’s ruling elite react to a Europe that’s firmly based on the central economic and financial power of Germany? Could the UK go to war with Germany again? This sounds fanciful, but if Europe becomes “German” how will the Americans react to this potential threat? Already there are voices in the US who are concerned about the role of Germany in Europe and its creeping “nutrality” and “friendliness” with Russia. Imagine Germany’s industrial strength married to Russia’s vast natural resources in an alliance? Germany turning it’s face to the East and away from the West.
Well said Writerman! Interesting Azra is it possible to get more information from your contact?
I’m a german and I am surprised to read this:
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The same figure for Germany is six times. What is more, inequality in Germany has been falling for the last six years, whereas in the UK it is accelerating.
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The german media have reported the opposite in the last days about that very report. Inequality has risen from six times to eight times in the last two decades.
Have a look for yourself.
http://www.welt.de/multimedia/archive/01521/OECD2_jpg_DW_Wirts_1521562z.jpg
http://www.welt.de/wirtschaft/article13751800/Einkommensschere-geht-auseinander.html
https://www.ftd.de/politik/deutschland/:oecd-studie-die-einkommenskluft-waechst-und-waechst/60138466.html
Mark, sadly or happily (for my brother), the relationship between my niece and that boyfriend ended! but when I am next in Iran I will try and get more info about what is going on.. a very interesting article by Frank Gardner, actually it made laugh
http://www.bbc.co.uk/news/world-us-canada-16095823
We should also see war as a “natural” part of economic activity, an extention of economic activity between nations.
War is, arguably, an integral part of the capitalist system, and always has been, going back to the horrors of the slave trade and colonial expansion, when entire continents were conquered and civilizations destroyed in the process.
Today the rival capitalist powers are increasingly looking around for scapegoats to blame for the economic crisis. The US and the UK point at Germany for its inaction and resistance to bailing out southern europe. Basically the UK and the US want Germany to “pay” for their irresponsibel economic policies, this is asking a lot of the Germans, but the US isn’t just asking, it wants to “force” the Germans to pay up, and this is what is potentially very dangerous indeed. Obviously the Germans are going to resist and this is where the real tensions begin to rise between the competing capitalist nations, as, under the wrong circumstances, like a depression, these tensions can, and usually do, lead to war.
Which tends to back up the claim by Iran that its forces brought down the drone through electronic warfare, in other words that it electronically hijacked the plane and steered it to the ground.
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The semantics they use! An unauthorised craft flying around in an airspace is forced down, but Frank considers this force down as Hijack. Perhaps Frank was expecting Iranians to burst into a dance routine, as those Iraqis did, and even do some singing as the Libyans so often did for the benefit of the camera.
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Self-defence in our times seems to be an “illegal” pursuit, and a crime. Although Frank admits Bat-winged, high-flying and hard to detect, America’s RQ-170 Sentinel plane is the perfect stealth drone for peering into another country’s secret sites without being caught.
An excellent article Craig. I have some knowledge of Germany and I endorse everything you say.
During London anti-government riots – When a reporter from Britain’s ITV asked a protester: “Is rioting the correct way to express your discontent?” Like David Cameron, the reporter was shocked by the protester’s response. “Yes,” said the young man. “You wouldn’t be talking to me now if we didn’t riot, would you?” Meaning that the mainstream media usually reports pro-government propaganda news and not the real issues faced by the majority of British citizen.
http://rehmat1.wordpress.com/2011/08/10/david-cameron-faces-his-arab-spring/
Fedup – Last year, on February 18 – the NewScientist had reported that the “Scientific output has grown 11 times faster in Iran than the world average, faster than any other country“.
This year, on March 28 – the NewScientist has reported that the “Iran has the fastest rate of increase in scientific publications in the world“. Iran’s scientific output rose 18-fold between 1996 and 2008, from 736 published papers to 13,238, according to the magazine.
“And if political relations between Iran and the US are strained, it seems that the two countries’ scientists are getting on fine: the number of collaborative papers between them rose almost five-fold from 388 to 1831 over the same period,” wrote Andy Coghlan.
http://rehmat1.wordpress.com/2011/03/31/iran-tops-in-science-growth-for-the-second-year/
**He is defending his banking paymasters**
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You betcha.
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The Financial Times give the game away with a piece published today titled “The explosion of hedge fund donations to the Tories”
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They report that – “Even donors admit that Tory MPs’ desire to cut the 50p top rate of income tax is because these rich City donors are so close to the party. One told the FT: ‘There probably aren’t many votes in cutting the 50p top rate of tax, but among those that give significant amounts to the party, it’s a big issue, and that’s probably why it’s a big issue for the party too’.”
Oscar
That seems incompatible with the data in the report pp 24-40.
Recently i’ve started a job in Germany and the working environment is like a breath of fresh air. I’ve met around 4 or 5 former colleagues who have left UK and now work in Germany. These are highly skilled electronics and software engineers who are unlikely to be moving back to austerity Britain for work in the short term. So Germany’s gain is Britains loss. You have to wonder if those who determine policy in Britain have any idea of the real world and how it works. Sooner or later the penny will drop but by then it will be too late, it may have already reached the tipping point. Criag’s analysis could in part apply to several Scandinavian countries who also have a much fairer wealth distribution. It seems Britain still exists in the century before last.
Currently, living in London is like living at the heart of heartlessness.
TK
Absolutely. I was just reading the fascinating Wikipedia page on Conrad’s Heart of Darkness. Strangely despite many virtues it doesn’t seem to have fully taken on board that despite all the cruelty of the Congo, Conrad makes it clear that the real Heart of Darkness is London.
Oscar thanks for adding insult to injury, you just wanted to show graphically how closely we are tracking the Mexicans, and the Yanks, didn’t you?
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Parky, you bet those who determine policy in Britain have plenty ideas about the real world and how it works, trouble is you and I are not in that real world, and frankly we don’t count. Just take a look at the chart Oscar has posted, you will clearly see where Britain stands?
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The chart forwarded is the measure of the success of the plutocrats, whom have conjured up a third world ambiance within a so called developed countries. This outcome is no mean feat, and it has been based on a steady push for the downward spiral of poverty for the masses through carefully measured and thought out transfers of wealth on wholesale industrial scale from the commonly held assets to privately owned assets from we the people, as well as the poorer sections of the society in an upward direction. The genius of trickle down economy was in sucking up of all the wealth, which would bring about the trickle down as we are subjected to at the current times, but no one noticed it.
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Throughout the period that has realised this massive shift of the wealth from the bottom to the top in a reverse Robin Hood heist. The punters attention has been pinned on the victims at the bottom of the pile, who have been vilified, and made escape goats of, by all manner of insults, and labels; lazy bastards don’t want to work, too militant to hold a job, too unqualified for any job, far too over qualified for jobs, lack ambitions, far too ambitious, have no talents, are not ready for shouldering responsibility of their own lives, etc. The contradictory signals, have all been pointing at the culprits, whom are you and I.
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This thread has become a reflection on the past industrial glory, which in fact it never was, the same bunch of bastards who are running the show now were running it, then. The only difference was, after the war, the masses of soldiers returning from the war, were not all that easy to be shafted, so the project needed to move at a crawl speed, before it got to the galloping Maggie era, and her attempts to break down the spirit of the independence, and dignity of the working Jo.
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The funny part of it all is, the surprise at the Money Junkies behavioural patterns. These have always made us aware of the disdain they hold us all at, which brings us to this point; we have never taken their disdain seriously, and that is our fault. Do we really expect the said money junkies to bankroll our selected leaders, and then let them to legislate in our favour? That would only be all too naïve. Alas that is exactly what everyone here is expecting evidently.
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Rehmat, those figures ought to be even higher, but for the clear none cooperation of some of universities more interested in politics than sciences.
Absolutely. I was just reading the fascinating Wikipedia page on Conrad’s Heart of Darkness. Strangely despite many virtues it doesn’t seem to have fully taken on board that despite all the cruelty of the Congo, Conrad makes it clear that the real Heart of Darkness is London.
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The novel is set on the Thames, but the action takes place in the Belgian Congo. Where does Conrad make it clear that the real Heart of Darkness is London?
The arms company, the oligarch and the ex-PM’s sister-in-law: lobby firm’s Wikipedia hit list So much for integrity of the Wikipedia, who was the subject of a wikipedia debate on this board not all that long ago? Mat Gould was it?
Usual left wing bollocks. Clobbering the financial services sector that accounts for 7 or 8% of GDP won’t bring back the metal bashing industries.
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If you don’t like bailing out bankers, advocate sensible bank regulation.
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The Tobin tax should be judged according as whether it benefits the economy. If it kills the financial sector then it’s probably a very bad thing. If it can be introduced without killing the financial sector, then it would provide some help in closing the budget gap.
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Germany’s success in mechanical engineering relates to many factors. The education and apprenticeship system, some covert protectionism, the mitteltand sector of the economy, which arose because German conglomerates were wiped out at the end of the war leaving space for dynamic new players, whereas Britain was stuck with sclerotic dinosaurs including, for many years, the nationalized industries, and globalization-mad politicians happy to export the economy for a quick boost to profits.
“U.S. official: Iran does have our drone”
(CBS News) A U.S. official tells CBS News that there is “high confidence” that a captured American aircraft shown on Iranian television today is, in fact, one of this country’s most sophisticated spy planes.
http://www.cbsnews.com/8301-18563_162-57339834/u.s-official-iran-does-have-our-drone/
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Sorry for my irregular comments, but I have a lot on my plate. (not “pate” as I mistyped initially!)
John having left the RAF in 1973 I worked for the Engineering firm Leys Malleable Castings, North Hykeham, Lincoln for two years. The firm was taken over by Fischer a German Engineering Company who closed it down.
No one is going to invade Iran. It has 545,000 active military personnel, 125,000 Revolutionary Guards and up to 12.6 million Basij. Hizbollah’s 2000 fighters were trained by the Revolutionary Guard and they defeated the Israeli Army in 2006. Iran has numerous naval platforms capable of firing the Russian Sunburn and Sizzler hypersonic anti ship missiles. The Sizzler travels at Mach 3 and this only allows a ship 20 to 30 seconds reaction time.It acquired 12 X15 cruise missiles from Belarus and some people say that they came with their Nuclear warheads. If the Iranians were able to observe and capture the RQ-170 drone then it renders obsolete the F22 and F35 fighters that use the same stealth coatings. In 2002 the US Navy carried out a simulation of an attack on Iran. Marine Lt General Rimmer played the part of the Iranian forces and he sank 16 warships using asymmetrical tactics. Look up 2002 US Navy simulated attack on Iran