Cameron taking us all for fools - We must all fight him harder

"You're taking everyone for fools" - that was one of David Cameron's regular digs at Gordon Brown back in the days before the Condem coalition. If that was true, then not enough people were taken in to offer Brown another term in office. David Cameron however has had no difficulty taking people for fools.

This week, in Questions to the Prime Minister, Cameron explained how reforms to the welfare system were necessary in order to manage Britain's economic deficit.

His government's menu of ideas include tinkering with the NHS, pricing young people out of education, taking child tax credits out of the homes of those young people who depend on it, and making young people go and work for wealthy corporations for free. It's like we are going back to the future - and the future is 1812 rather than 2012.

At the same time, there are suggestions that the 50p tax rate for high earners may be on the way out at the next budget. On that note, I am not sure how that helps the nation's books, but I am confident it will not lead to an increase in revenue. Maybe there are a few more pounds left to shake out of the pockets of our young. The one thing he will not be able to do is take is their school milk - his mentor already plundered that a generation ago.

How can all this eternal assault on the nation's children be explained? It is quite simple. One one hand, wealthy business people donate to the Tories; on the other hand. many young people do not vote. The young and the poor have been battered by the Tories throughout history, but somehow the party's vote continues to hold up.

The Liberal wing of the Condem axis have paid the greatest price in terms of lost votes. This is understandable as they promoted a worthless manifesto in 2010 which tricked many people into voting for them. Their worthless campaign involved lying to students on university campuses about changing university fees. When I say 'changing', I refer to their promise to eliminate them. I wonder what happened to that one.

The Lib Dems have argued that they did not win the election and can only negotiate concessions in the Tory-led decision-making processes. This may be true, but I am not sure I have ever witnessed more of a spurned opportunity in the history of British politics. They have leverage to be far more disruptive than they are currently being. Rather than just waving policy through, how about scuppering a few Commons votes, just to let the Tories know that this Condem coalition lark is not going to be all easy?

Not only have the Lib Dems spurned the chance to show the power their casting vote gives them, they have also spurned the chance to set a more contrary convention for coalition governments. Where was it written in the rules that coalitions have to be so collegiate? A bit of antagonism would not suddenly bring down the coalition government, so they should give it a go.

At the moment the Lib Dems are being taken for fools. Then again, at the moment the whole electorate are being taken for fools.

Con-Dem government sell Northern Rock at a loss

The incompetent Tory-led government have sold Northern Rock - the bank rescued by their predecessors during the credit crisis. The price at just £747 million is almost half the £1.4 billion invested by the taxpayer, though there is the possibility of a further £280 million. Angry? You should be.

Over thirty years, the Tories have repeatedly shown they have failed to learn from history and are doomed to repeat their own mistakes. In the same way they handed over Britain's utilities for the financial equivalent of peanuts in the 1980s and 1990s (those utilities that now change hands for billions, and charge their customers extortionate fees), they handed over the bank, almost at the first opportunity.

If a director of your company paid to acquire a struggling company, steadied the ship, then sold it for less than paid for it, would you have confidence in that director? No you would not. And I do not have faith in this government.

Where has all the money gone? (Part Two)

Almost a month has passed since I pondered the causes of all the seemingly missing money in the world. Apart from the reminding ourselves countries have run out of cash, that banks are not flush with cash and the general public certainly have little in their pockets, nothing is clearer. As a self-certified non-economist, the best I can do is produce crude theories. Here is one such theory.

I see the world as a massive game of poker. And it follows logically that there are only so many chips on the table. We all know that governments try to avoid printing money because it makes bad things happen, such as hyperinflation. So there is always a limited number of chips.

Eventually one person ends up with all the chips in the game of poker. As far as I can make out, something remarkably similar has happened to the world financial fluidity. Of course this game of global poker is so large no individual ends up with all the chips as they would in poker, but some definitely end up with greater piles than others. Worse than that, just as with poker, when someone has a big pile of chips, it becomes easier for them to take a great deal more chips from others.

It is enough to convince me that the theory of economic success is in fact a fallacy. A successful company is based on a flawed notion that those industries and companies (who, in poker analogy, have most of the chips) must keep increasing their income year-on-year. For example, company X may make a £275m profit on the year, but this is considered failure because the previous year they made £300m. What happens when all this money is lying around static in corporations? What happens when someone retires as a Chief Executive with more money than he or she will ever be able to spend?

The answer is we end up with money that is fenced out of the system and leads to a constraining of future economic success, as well as the limitation of the economic capability of those who have to share the rest of the shrinking pot between ourselves.

What does everyone else think? Have I got it completely wide of the mark - as Tories with economic qualifications will take great delight in saying I have? I may not be an economist but I do not think so. More to follow on this no doubt....

Where has all the money gone? (Part One)

It seems as though the world has been consumed by a vacuum, which has taken all our money from us. The UK is struggling to make ends meet. The USA legislatures have spent the week scrambling around to increase the country's credit limit. Greece, Portugal and Ireland are among a group of countries that have teetered on the brink of going under because of their debts. Who is owed all this money and where has all the money gone?

Are the debts owed to other countries? If so, which ones? If the USA cannot pay its bills, then I doubt many countries are doing any better. Or maybe these countries have borrowed from the banking sector? That cannot be the case either, as governments had to bail them out for their incompetence.

The problem is I am no economist, so I do not have the answer. It seems as though dollar bills and pound notes have just vanished off the face of the earth. Maybe an economist has an explanation for this. Is it possible for money to just vanish? More reflections to follow later in the week or at the weekend.