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Dec

The Pound in your pocket

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Gordon Brown's failing brand of Keynesian economics has been branded as a disaster by 2 German ministers. Well, I have to agree with them.

Despite Balls and Miliband stupidly trying to tell us that this is the German way of supporting Brown, it doesn't really take an economic genius to work out that you cannot spend your way out of debt, but only dig yourself deeper into the shite. (you try it, see how far you get. You very quickly learn you cannot swim in bullshit).

The lessons of history are being ignored and swept under the carpet by this bunch of imbeciles, however you will notice that I keep using a particular Churchill phrase on this website for good reason,
“The further back you look, the further forward you can see.”

So lets take a look back, to 1967, under the premiership of Harold Wilson and the announcement that was put out for him by the BBC.

The Prime Minister, Harold Wilson, has defended his decision to devalue the pound saying it will tackle the “root cause” of Britain's economic problems.

The government announced last night it was lowering the exchange rate so the pound is now worth $2.40, down from $2.80, a cut of just over 14%.

The decision came after weeks of increasingly feverish speculation and a day in which the Bank of England spent £200m trying to shore up the pound from its gold and dollar reserves.

In a radio and television broadcast this evening, the Prime Minister said devaluation would enable Britain to ” break out from the straitjacket” of boom and bust economics.

Very familiar words from the past few months. I think Brown's hypnotist must have found some of Wilson's old papers in the archives. Now considering that the Pound has effectively been devalued by 30% in 2 months, I get the feeling that Brown has never learned the lessons of the Wilson years.

The same statement goes on:

He said: “Our decision to devalue attacks our problem at the root and that is why the international monetary community have rallied round. The bank lending rate has been raised to 8% and there will be cuts of £100m in defence spending and in some capital expenditure programmes.

So, so familiar isn't it. If taking history as our guide, I, and others believe that it will not be too long before we also see an 8% bank lending rate, probably more, as the failure of Brown's monetary policy kicks in.

And what of the Tory Opposition at that time, headed by Edward Heath?

Conservative leader Edward Heath has also appeared on television to reply to Mr Wilson's broadcast.
He accused the Labour Government of failing in one of its foremost duties – to safeguard the value of the country's money.
He said: “Having denied 20 times in 37 months that they would ever devalue the pound, they have devalued against all their own arguments.”

Is this Brown's Deja Vu moment? This really is history repeating itself, but in corporatist Britain today Brown just blames the markets rather than his own bad policies, regulations and stranglehold over the financial sector.

Well, at least by looking back, we know what to expect in the future. More debt, higher bank rates, inflation, and if it plays out as it did after 1967, a new government.

With such tactics, there is always a bounce, small though it is, and the history tells us:

Chancellor Roy Jenkins introduced a series of unpopular indirect taxes in the 1968 budget and a bill restricting wage rises to 3.5% proved equally unpopular. The economy was beginning to pick up by 1970 and Labour's fortunes in the polls were reviving, prompting Mr Wilson to call an election – but it was Conservative Edward Heath who won.

Following the resignation of Harold Wilson from the Labour leadership he was replaced by Jim Callaghan.

Mr Callaghan who was Chancellor during the devaluation, went on to become Home Secretary and later leader of the party and prime minister in 1976-79 during which time he presided over another economic crisis and the Winter of Discontent.

So you see, history tells us that not a single Labour leader has been good for Britain, good for the Pound or good for the country.

The current prime minister Gordon Brown is of the same rotten Labour mould. (yes I did spell that right). Brown has presided over a 30% devaluation in real terms of your money.

Wilson told us all in 1967,

“It does not mean that the pound here in Britain, in your pocket or purse or in your bank, has been devalued.”

Well we didn't believe Wilson then, and we don't believe Brown now.

Deja Vu anyone…….

Now, if you want to see a real economic policy, one that will protect the value of our currency, one that puts the public first rather than saving politicians butts & votes, then take a look at the Libertarian Party policy.