REd takes them back to the 70s

It appears that Ed Miliband has learnt nothing from history.

I was wondering when he said he backed the student protesters whether he was making the same mistake that Neil Kinnock made when he refused to condemn the violence of the Miners in 1984 and 85. He also said that he was a confirmed socialist - ok fair enough.

Then I read in the Independent that he plans to give more policy making powers to the Labour party members and that the 'profound' change to the Labour party that he promised would not overhaul the relationship with the unions.

Apparently the Unions can have more clout if they are more 'responsible'. This is the exact same relationship that Labour and the Unions had in the seventies. They had more clout, but didn't act responsibly, and there's no reason to believe they will now. Remember 'In place of strife', Barbara Castle's plan to make the Unions 'responsible' - it was dropped after cabinet disagreements. We then had the Winter of Discontent.

Some Unions act responsibly, many don't. We have another tube strike on Monday - and for what reason? It passed me by.

Ed Miliband needs to have a bigger think about his speech this weekend before he embraces this plan. A return, even only a partial return, to the failed policies of the seventies will ruin his leadership and keep Labour out of power for the next decade.

Back to the history books for REd me thinks.

Squiffy.

The Eurobind

This morning there was news of the bailout for Ireland, and just now the Greens have decided to pull out of the ruling coalition in January and try to force a new election. There's a lot of comment in the newspapers about whether the Euro was to blame or not for Ireland's predicament.

It's my belief that the single currency is partly to blame for Ireland's position. The other reason being that similarly to the UK, Ireland also had too lax bank regulation which led their banks to allow lending to get out of hand. Both the UK and Ireland had too low interest rates during the boom period, for the UK only slightly too low, in Ireland they were far too low.

The Euro, one size fits all interest rate fed the Celtic Tiger its raw meat. The low rates allowed the Irish property boom to take hold and gather pace. Paid for by increased bank lending. The boom in Ireland was far too great but there was nothing the Irish Government could do about it, other than raise tax rates sky high - which would have caused a great amount of unemployment.

There are three main levers for macro-economics; Interest rates, currencies and fiscal management (tax and spend). The Euro takes away interest rates and currency management which meantfor Ireland that the interest rate was too low during the boom, too high now and there is no chance to independently devalue. In the UK we have nearly zero interest rates and an ability to devalue and print money!

The Euro was launched with a fanfare in 1999, and seemed to function well in the boom years. Especially for those countries which are now suffering. For Germany growth was a bit lacklustre and has meant they are in a better position now. They are getting resentful now that they are being asked to bail out for countries which are on the brink. The Euro has not worked out well for the strong economies or the weak.

Several things can happen now.

• Struggle on, propping up Ireland, Greece, Portugal and Spain.
• Allow the PIGS to withdraw from the Euro.
• Reform the Euro taking more powers to the centre.
• Fold the Euro and try to keep the EU afloat.

My feeling is that the ruling elite of the EU have too much at stake in the project to let it fall apart. They will try to take powers away from National Governments to set budgets and tax artes. Will the people of Europe allow it though? I think some, including Germany, will have major problems with it. Civil unrest and more Governments could fall.

Interesting times ahead!

Squiffy.

The Missing Leader

Ed Miliband has been missing from the political scene due to paternity leave. Although that is obviously his right it couldn't have come at a worse time for him.

When you become the leader of a party you only have a certain amount of time to make an imprint on the party. Perceptions can be made incredibly quickly. Unfortunately for Mr Miliband, there are now the beginnings of rumblings about his leadership. His absence has obviously been understandable, but he needed to set the direction of travel before he went away.

Is he going to follow a Blairite path, and try to entice back the middle classes? Or is he going for a core vote strategy and say screw the middle classes. We don't know yet! Are they going to be more realistic about the deficit or try to ignore the problem?

Ed Miliband needs to make a splash on his return this week. I understand that he is going to announce some internal party reforms. Maybe this will be a pointer to the direction. I think he needs to be bold.

Squiffy.

Republicanism: Not for us.

I've just watched Janet Street-Porter on This Week. I couldn't believe how bitter she was towards Kate Middleton on her engagement to Prince William. Maybe she's a Republican, but why did she show so much malice towards Ms Middleton? Talking about her dieting as if it's a crime! If it is, you'd better lock me up.

I understand Republicanism, surely it doesn't make sense to have a hereditary head of state? Well, if you were to create a State from scratch you definitely would choose a different system. We do, however, have a thousand years of history entwined with our Monarchy and it's the most prominent constitutional Monarchy in the world due to the British Empire.

Consider the benefits. There's obviously tourism, the amount of money brought in by tourists more than pays for the price of Monarchy. They are good for morale, for instance the Queen Mother's resolve in World War II. For me, though, the biggest benefit is that the present Queen has been on the throne for nearly 50 years. She has had weekly audiences with 12 Prime Ministers. Imagine the amount of support and advice the Queen has been able to provide to the various PM's in that time. The Monarchy provides 'institutional memory'.

Then consider the alternatives. We would need a new Head of State. You could go for a ceremonial Head of State - like in Ireland. You'll get a failed or retired politician or a washed up celebrity. How about President Brown or President Jordan? No thanks. Instead you could go for a President with power, like in America where you often get deadlock with Congress.

On balance, I think our constitutionally Monarchy is much better than a possible Presidential system.

Congratulations to Prince William and Kate Middleton. It's nice to see a member of the Royal Family marry for love and that they have had a 'pretty normal' courtship. I wish them all the best.

Squiffy.

Pass the bucket

This morning I nearly threw up. It wasn't because I had drunk a little too much last night, or that the kebab was dodgy.

No, it was a couple who came and sat down next to me on the rush hour tube this morning and then snogged for around 6 stops. I can just about cope with this at night when you know that they've had a few shandies and are a bit amorous. But 9 a.m.? It's far too early to cope with the slurps and squelches. I was still trying to digest my smoothie.

Either get a room or learn to keep your tongue in your own mouth.

Squiffy.

Phil Woolas Guilty, not an MP

Phil Woolas is no longer an MP. A high court judge has declared the General Election result as null and void. This comes after leaflets made false claims about his LibDem opponent in the Oldham East & Saddleworth constituency.

A by-election is in prospect, pending a probably appeal. This will pose an interesting problem & opportunity for the Coalition. In the result Woolas beat the Lib Dem by only 103 votes. It would seem sensible that the Tories give their support to the Lib Dem. It will be fascinating to see whether it happens.

Squiffy.

Stealth Brown surfaces

After 6 months underwater, grounded in Scotland, the old stealth sub PMS Brown has made an appearance.

Finally, the man who wrote a book on courage appeared. Not showing up for the Budget, Comprehensive Spending Review, Strategic Defence Spending Review or any other significant session whilst writing a book on how to screw save the economy, shows a degree of contempt for his constituents. Those who pay his wages.

Squiffy.