Friday, 30 March 2012

Bradford voters hammer Labour, Tories, LibDems and UKIP

Thus reads the title of John Redwood's email today. I reproduce the content below.

"Congratulations to George Galloway. The old fashioned virtues of beliefs, passion and consistency have powered Mr Galloway to an amazing victory. He has shown all the established parties that people can vote them out if they are fed up enough with them.
             The established parties will all explain it away as a one off, something that only happens in by elections. That is fine as a public position. In private they would all be wise to realise that there is discomfort with what is happening, and to adjust. Many write into this site telling me of this mood againsty the main parties, telling me UKIP will rise on the back of it. Not in Bradford West. Their 3% in this seat should lead them to  ask  some searching questions as well, just as their failure to win in Buckingham in 2010 where there were no main party candidiates was a warning sign about their approach of mainly  being an anti Tory party."

A very interesting closing comment from Mr Redwood. It nails Farage's shortcomings as a leader and parliamentary candidate.

I watched George Galloway skewer Sky's political editor in a lunch time interview today. It was a master class in how to deal with the London media. Farage is not in the same league in handling the media.

Galloway is also a man of great courage. His performance in front of the Senate hearing on Iraq did more for British prestige in the US than any British politician since Churchill. He kicked ass as the Yanks say and admire unlike Boy Dave who licked ass.

John Redwood is in my opinion the cleverest man in the House of Commons. His next email posting that I also reproduce below lists exactly the consequences of the ECB and UK money printing. What do you expect from an Italian central bank governor and an governor who knows little about banking.

Posted: 29 Mar 2012 11:15 PM PDT

The government forecasts rising price inflation as measured by the Retail Price Index in the middle of this decade, following a further decline this year.
I regularly warned about too much inflation in recent years, and disagreed with the Bank of England. They were unable to see the inflationary consequences of their policies, which duly led to well above target price rises.  More recently I have agreed with them that inflation would fall this year, as the VAT increases dropped out of the figures and as we got some respite from the falling pound.
So it has turned out. Inflation has fallen a bit as hoped.  Whilst the official government forecasts say that target inflation, (2% on the CPI) will be just fine for the next few years, I think we do need to worry whether this is true. Could the official RPI forecasts be nearer the mark? Could the CPI also rise more than they think in later years?
This week we have been hit by further pressure on pump prices for diesel and petrol. Meanwhile, the near monopoly postal service, still in state hands, has decided on an enormous increase in prices.  We are being made to pay for the decline in traditional mail volumes, and for the continuing inefficiencies of the monopoly service.  The price rise is so high that there could be a sharp fall in volume of use, once the favourable effects of pre buying of stamps at the old prices wears off.
The post item is a one off and a small component of the general price indices. It is, however, a reminder that because the state still is heavily involved in our economic life, there remains plenty of monopoly pricing power that can be deployed against customers and taxpayers. We may see it in car parking charges from Councils, in licence fees, in energy taxes, in public  transport fares, in Council taxes from next year. If at the same time world monetary looseness drives up commodity prices, and UK money operations encourage a lower pound, we could find that inflation once again outperforms the Bank’s forecasts and targets. We may also be entering a period when the Chinese and other producers of cheap export goods for us want fairer prices for what they make.
The government needs to remember that high inflation in its first two years of office has depressed living standards. Fuel and energy prices have become central political issues, as they above all else have squeezed family budgets.  The government should pursue a more energetic competition policy to break up monopoly power and  allow new competitors in crucial services. It should also want the Bank to be vigilant about inflation, after such a long period of letting it be well above target.  With all that Quantitativbe Easing money out there, as the banks do mend so there could be a surge  of credit leading to more inflation. That is not today’s problem, or even tomorrow’s, but the Bank should be thinking well ahead to what can happen. The government itself now forecasts higher inflation and higher house price inflation in due course. They could be right.
Inflation is theft by other means. It may  not even be smart theft. Whilst it does erode the real amount the government has to pay back to those who saved and lent it money, as we saw over the last two years it can also depress demand and lead to the need for yet more borrowing. The recent inflation has depressed spending power and impeded recovery."

Exactly! Inflation is government theft pure and simple. We are all going to be robbed blind in the next five years.

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