Tuesday, 14 June 2011

UKIP's Economic Naivete

I seldom write on UKIP these days as I find it all a bit boring as I will explain. However when UKIP impinges on Eurozone monetary economics in a particularly uninformed manner I feel obliged to comment. I discovered this on looking at  www.democracyforum.com and I am grateful for one who calls himself Baron von Lotsov for the link I post below to the UKIP website:

I quote from this site:

"Nigel Farage, Leader of UKIP, today joined UKIP supporters in Westminster while MPs debated whether or not UK taxpayers' cash should be used in future bailouts of struggling Eurozone economies.
Under the banner 'No More Bailouts' he announced UKIP's five point plan:

Stop the Eurozone bailouts - repeated transfusions won't resuscitate a corpse.

Release Portugal, Ireland and Greece from the prison of the Euro, and Spain if they want to.

Write off a lot of their debts so every nation's finances are sustainable.

Re-establish their currencies at realistic values that enable them to grow.

Save Europe's economy and get it growing again. And don't let them rejoin the Euro, or it will all happen again."

The full unexpurgated show can be seen by clicking on link

I recommend a viewing. I think that is Winston MacKenzie on Farage's left and did I see McGough in the background? Its another gimmick to go alongside the headless chickens in the pantheon of Farage gimmicks and ends with a spirited rendition of "There's a hole in my bucket".

Turning now to the 5 point plan, it asks the EU to dissolve in a puff of smoke like Aladdin's genie and just go away and at the same time would wreck havoc in world finances which would make the Lehman's default and resulting bank crisis we are still enduring look like a minor incident.

They are inter-related points some good, some bad, all hopelessly naive.

Stop Eurozone bailouts, result Greece, Portugal and Ireland default their bonds and Spain goes into meltdown.  Every European and international bank would be left with a huge hole on their balance sheet and would immediately request another government bail out and we all now know who ends up paying for that!

Release the PIGS from the Euro. The end of the EU project. Wonderful except Turkeys don't vote for Xmas and Pigs don't vote for New Year.

Write off their debts. Its nice for Nigel to be so generous with other peoples money and leaves again a huge hole in bank balance sheets. Already one LibDem MP is whingeing about the 80% haircut on his Allied Irish PIB.

Re-establish PIGS currencies at realistic levels ie kick them out of the Euro and end the EU as we know it. Just wishful thinking and would leave the PIGS with a huge amount of Euro debt that would have to be repaid in Euros from a depreciating currency. ie more austerity for the PIGS.

Save Europe's economy, get it growing and don't let the naughty PIGS rejoin the Euro. There is nothing wrong with the core EU economy or its growth rate! It does not need saving but the UK economy does, its in a far worse state then core EU, so lets concentrate on that.

All in all a gamma minus, populist  non-plan to a very complex and intractable problem. If you want to influence thinking on this problem you have to get real and get some people in to write the UKIP policy in this area who know what they are talking about like Tim Congdon. Gimmicks won't wash Mr Farage.

I noticed on Butcher's forum another thread entitled, 'Roger Knapman to return'. This is complete rubbish. UKIP have just elected Nigel Farage as leader with 60% of the vote. Roger like me is a democrat and respects the will of the UKIP members. They have spoken and endorsed Nigel Farage. Let us leave Mr Farage to get on with the job.

Roger I know will be concentrating on the salmon in the Tor and Tamar and will continue to be a loyal ordinary member of UKIP which is what he has always been.

For myself I will be kept occupied by my wife as I have always been. I also will continue to be a loyal UKIP member though I would not be human if I did not feel bitter about my expulsion from the NEC based on a document written by the Tory turncoat Bannerman. I leave it to the members to judge who was the loyal member of UKIP and who were the political opportunists.

Due to my wife's plans I will not be posting again until 25th June.


david abbott said...

Taw, surely

Greg_L-W. said...


Tor & Taw are Poles apart!

Hay perhaps he has a particularly long cast and from that Tor hopes to surprise the fish in the Taw!

never the most practical of men!