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Labour – One Notion Party

October 6, 2012

Oh to inhabit the eternal sunshine of Ed Balls’s spotless mind. In a speech to the Labour conference this week, the shadow Chancellor of the Exchequer spoke as if he were a completely different Ed Balls from the one who blighted Britain’s economy for the next 30 years, aided and abetted by his mentor, Gordon Brown. And as he has no memory older than two years and five months, his prescription for what ails us is identical to the other Ed Balls’s economy-destroying policies. In sum, “Government’ll fix it”, provided we all come back to its dressing room…uhhh-a uhhh-a uhHH.

Having made the not-very-original observation that Labour and Lib Dems are going to try to form a coalition in 2015, I was unsurprised by how much of Balls’s speech rhymed with Cable’s. For example, Balls also wants to see exactly the same number of “affordable” homes built each year, i.e. 100,000; both see their policy of separating retail banking from investment banking as “radical”, even though it was demanded after the Wall Street crash of 1929. Both paternalistic gurus see the need for an Industrial Policy, mind you Labour’s is a bit more refined, in that it is “Modern”. But there is still a commitment to “support the advanced manufacturing industries”. Once Again, the genius of socialism is to look at the results of market competition and declare the winner to be inevitable (it’s called dialectical materialism according to history’s stupidest economist, Karl Marx Esq.). Like the Lib Dems, Labour will spew taxpayers money all over these companies to ensure they never again feel the spur of competition. Further, our future economic prosperity will be founded on state-funded “green jobs” that will flow from investment in renewable energy; and we will continue to have the bloated, couldn’t-give-a-monkey’s NHS take as much as it wants from us, like it or lump it. And finally, in a sentence, Balls, just as Cable did, promised that the government would create jobs – which it will, by destroying two for every one it creates.

It is one thing for a well-off socialist polemicist or a Marxist academic to know nothing about economic cause and effect (for example Eric Hobsbawm, God have mercy on his soul), but it is unforgivable that a man who pulled the levers of economic power and saw the outcome, to be in denial about the consequences of his choices. I counted four “kick-starts” in Balls’s speech and a couple of “get the economy/house building industry moving agains”. In other words, despite the fact that the guy was intimately involved in making Britain the over-leveraged, over-banked, service industries-only dystopia that it is today, he thinks we didn’t get enough of our Keynesian medicine to get better, and he’s going to double the dose. The only problem is that he won’t get the chance, because the market won’t let him.

It is an empirical observation that the maximum national debt/GDP ratio observed historically was 150%. Was this because governments always backed away from going higher, or was it because beyond 150% something happened, external to the policy makers, to bring the ratio back down? Invariably, the latter explanation prevailed and once creditors abandoned a country, the borrow-and-spend perpetual motion machine breaks asunder. Thanks to Balls & Co. Britain is rapidly heading to the 150% level. If I had a safe place to stand and watch the catastrophe that is going to befall Britain I could laugh my head off twice over. Once at the arrogance of Balls and his ilk who think they can command the economy as if it were a plane in turbulence and again at voters’ stupidity for re-electing these imbeciles. Whenever Balls and Osborne (see next week’s post) pronounce on what they are going to do fix the economy, I am often reminded of the punchline of the old joke about the constipated elephant – where the scientist is laughing at the monkey trying to put the cork back in.

Balls also called for an enquiry into the “culture and practices of the banking industry”. Well, I can save Ed a lot of time and money and tell him what the practices of the banking industry are, i.e. to create money out of thin air, using a debt instrument. Is his enquiry going to conclude we need sound money? I think not.

 The single surprise was that he decried the “billions wasted on a soaring benefits bill”. Sadly, he didn’t conclude that it should be cut as a first step to recovery, because he can’t remember that he and his mentor were responsible for sending it to the stars in the first place. Instead of letting wages for unskilled and semi-skilled labour rise due to a shrinking labour population, he and his boss imported literally unknown numbers of cheap workers to keep wages at a level where only an idiot would get out of bed rather than sign-on. If the past is a foreign country, Balls doesn’t even have a passport.

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From → Chapter 1

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