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Monthly Archives: September 2008

THE ROCKET HAS RUN OUT OF FUEL.

 

The Global Economy like a rocket needs to reach escape velocity to attain stable orbit, this takes inordinate amounts of rocket fuel or in the case of the current economic crisis money. Over a long period the developing Global Marketplace has been hailed as mankinds future where all would be rich (but naturally some would be richer than others).

Investment Banking was seen as the financial equivalent of perpetual motion doing away with the need for actual production as vast paper profits were conjured up by shuffling squillions around in cyberspace, (already the subject of numerous ascerbic comments here). Primary production of food and raw materials has long been elbowed aside by the financial services sector, merely being regarded as a pawn in the headlong scramble for ever greater profit.

As predicted it is now ending in tears as the financial rocket, not quite attaining escape velocity, has run out of fuel (money) and crashed back to earth in a most spectacular manner. The opening decade of this century has certainly produced some spectacular events both man made and natural which are affecting mankinds health, wellbeing and security at an accelerating pace.

The natural events are almost certainly part of the Planets timless natural cycle largely beyond our control despite the arrogance of sectors of humanity professing to have the answers. This flies in the face of the strong case made by many for Global Warming. I still feel it has more to do with creating yet more insane markets in things like carbon trading than genuine concern for the Planet, effectively yet another lifeboat for financial Phillistines.

The man made element is almost entirely self inflicted and largely attributable to pure greed and incompetence which throughout history has invariably culminated in disaster. Lessons have obviously not been learned from history, particularly the dot-com bubble, so it necessarily follows that an incredibly hard one is being delivered currently.

Despite this awful outlook there are billions of people operating at grass roots level who while vulnerable to the fallout who will continue to function albeit possibly at a lower level. This is where the real wealth lies in countless small communities where people will be forced forced to pull together to weather the storm. Being fortunate never to have experienced a serious war situation like my parents had to this is how I imagine it may become. The wealth in question extends beyond money and encompasses expertise, tenacity, commitment and humanity that will ensure the survival of the fittest whatever the challenges to be faced.

While things may be hard and difficult for us all for a protracted period a hefty dose of financial stringency and a little deprivation may not be so bad if it forces us collectively to re-assess our priorities and aspirations.

Not knowing what another day in the madhouse holds in store, yesterdays momentous events saw both equities and oil take a dive as the US bailout plan failed to get ratified.  Brent crude opened yesterday at $101.10 losing $5.17 to close at $95.93 after a previous week that saw the biggest one day rise ever. The current performance gives credence to the theory that no one actually knows what is happening or more ominously what will happen.

 The one current element that is amazing me is that our trade is actually remarkably steady as customers take a very philosophical view of the chaos above and get on with their lives. It reinforces my comments on life at grassroots level and induces a little optimism into an otherwise bleak scenario.

The silence of the Lambs has been very convienient for Councillor Whalley and Co as they run Cornwall County Council into ruin.

 Local Democracy is a precious and fragile thing which our forebears defended with their lives and paid for in blood. Currently it has never been under greater threat as the silent docile majority unwittingly betray this sacred legacy through sloth and apathy. Ask the average Cornish Person how they feel about their place of birth and most will puff their chest with pride and declare their undying allegiance.

Unfortunately in the majority of cases that is as far as it goes apart from scoffing countless pasties, watching a Jethro DVD or rallying around our currently lacklustre County Rugby Team. By regularly indulging in these innocuous activities many feel their patriotic duty is done and all is well in our Far Western Land at the Atlantics edge.

Cornwall is a very special place, to be Cornish is a great privelige, as with all priveliges they are accompanied by obligations. We Cornish are merely custodians of our Land and must nuture it before handing it over in good order to our successors.

 For an isolated peninsula at the very edge of the British Isles our forebears gave so much to others across the Globe. From the earliest shoots of Christianity through peculiar skills in metalurgy and hard rock mining to cutting edge engineeering that drove the Industrial Revolution forward elsewhere. Cornwalls scions have excelled in science, innovation, business, the Military and exploration for centuries, out of all proportion to our numbers in relation to the overall population of the British Isles. Out of grim necessity Cornish People took their expertise to the four corners of the World to the greater benefit off all.

Despite this mighty legacy those who remained behind have let themselves, largely by default, become regarded as a backward, often difficult bunch of malcontents suspicious of strangers and resistant to change. This is largely the result of the collapse of indiginous heavy industry leading to a generally lower wage economy and lower expectations over an extented period since the middle of the 20th century.

Like it or not change is and always has been inevitable, change for the better is highly desireable, the route to success lies in being able to embrace change and actively participate in its competent management towards a sucessful outcome. This should deliver the best solutions for all while acknowledging and preserving diversity and tradition. Current developments tend to indicate that undesireable social engineering is taking place to artificially increase the population of Cornwall to the serious detriment of the indiginous people in an already overpopulated area.

Given its recent track record it is not unreasonable to conclude that Cornwall County Council has colluded in this policy evinced by its unhealthy aquiescence to and eager co-operation with both the discredited RDA and Regional Aseembly. The policies pursued by these (on the Governments own admission) ineffectual organisations seem intent on Cornwalls asimillation into a Region rather than sympathetic development to benefit the clearly disadvanteged indiginous population.

In abdicating the basic obligation of democracy by largely failing to vote and therefore participate in its satisfactory conduct the majority of Cornish People now find that decisions are out of their hands and effectively beyond their control. The problem is exacerbated by the politicisation of the democratic process when  dogma, diktat and blind obedience to the Party message subsumes local  allegiances, considerations and needs further lowering voter expectation and perception in the process.

This fault line has been glaringly exposed on numerous occasions during the current tenure of County Hall by the incumbent majority interest. Objective One, waste management, the Unitary Authority, newspaper, and logo fiasco’s are but a few examples of failure to properly formulate policy, consult, evaluate, and competently control outcomes.

Basically in any democracy the electorate get the standard of representation they deserve, if the majority cannot be bothered to participate the second rate and incompetent candidates will slip under the radar and get elected on a party political ticket.

This is the current situation at County Hall where our County currently faces undesireable, ill concieved and badly debated major policy changes that threaten to divide and haunt us for generations to come. Democracy has collapsed to such a degree that debate is despised and dissidents merely branded troublemakers out to rock the boat.

Fortunately there are still some good Councillors who are well aware of the mischief being perpetrated in our collective name. Their vioce is stifled by the compliant but nonetheless the smoke signals denote that a doughty resistance is being mounted to the outrages being perpetrated.

We are at or very dangerously close to the point where the Governance of Cornwall is decided by the appointed rather than the elected. The bunch of incompetent quasi traitors that have been seduced into this awful situation are about to finalise the betrayal of the Cornish electorate by effectively destroying the democratic process as we know it.

The recent announcement of the appointment of the new Unitary Chief Executive at a salary of £200,000 per annum is an excellent case in point. A glance at his C/V confirms he is a high flyer, obviously well connected, flitting from one juicy post to the next. This must beggar the question of commitment, the very nature of this new post dictates that continuity is a pre-requisite, as is an in-depth knowlege of the unique nature of the task ahead.

Given the transitory nature of the appointees previous posts this immediately raises serious suitability issues such as is there a minimum period of service specification in his contract? if not why not. This further beggars the even more awkward question, has he merely been parachuted in to fulfil the role of an expensive short term hatchet man? If this were subsequentlty to prove to be the case rule by the appointed at County Hall is already fact.

This highly questionable appointment is a classic example of the potentially disastrous outcome of the Cornish Electorates ongoing neglect of its duty to question and monitor the conduct and performance of its elected representatives over the past decade of accelerating failure at County Hall. 

We have also recently been blithely informed that our right to deliver our collective verdict on this serial ineptitude through the Ballot Box has been delayed at least until late Autumn 2009 by which time the Unitary Authority will have been in existence without an effective mandate for at least five momths.

 

 

Removing the cause should lessen the effect.

The ancient Chinese curse “may you live in interesting times” is particularly appropriate given the fascinating set of circumstances currently unfolding in the Global economy. The American Government certainly seems galvanised by the financial horror story unfolding in its midst as it desperately attempts a mega damage limitation excercise as financial institutions continue to react like a line of domino’s.

If the current situation had been devised as the script for a particularly lurid work of fiction it would be dismissed by critics as implausible, however as is the case the truth often proves stranger than fiction. For far too long the now utterly discredited but formerly revered “Masters of the Universe” have practiced their own brand of toxic financial chicanery which has ruthlessly driven Globalisation making them appear invincible in the process.

The creed of always wanting more, often to the great detriment of small nations and individuals, has been fashionable and indeed actively encouraged as the obscene profits rolled in with never a thought for sustainability or indeed long term stability. A large part of the current problem has been engendered by greedy thoughtless short-termism cynically designed to produce the greatest possible return in the shortest possible timeframe without due regard of or concern for the inevitable colateral damage generated in the process. 

The aura of invincibilty fostered in furtherance of this singular objective has been a thin veneer hiding the inescapable fact that there is a distinct race of arrogant, amoral, avaricious financial bullys and thugs who until now have encountered little by way of adversity or serious setback. Add to this nauseating mix the further fact that they are playing with other peoples money in cyberspace where no personal pain is felt from the wrong click on a mouse and the scenario for current events becomes set in tablets of stone. The perpetrators are clever beyond doubt, sharp and unerringly dedicated to their mission, financial zealots, cold and calculating, but effectively devoid of  moral fibre, true wisdom or humanity.

Perhaps the American Administration ought to avoid getting too touchy feely with bleating distressed Wall Street types long overdue a serious reality check. Perhaps instead, the US Treasury ought to focus on directly assisting the legion of largely forgotten victims of the miss-selling of the original sub prime mortgages that triggered todays mess . These unfortunate, largely ignored victims of Wall Streets excess and profligacy have now lost their homes, many of which are currently unsaleable. All while the mounting liabilities have been sold on by financial institutions wittingly or unwittingly creating the trail of toxic debt at the root of the problem in the process.

This is solely the result of cynicism, incompetence and greed on the part of those who sanctioned sub prime mortgages for unsuitable recipients in order to find a home for the tidal wave of hot money generated by a period of excess profitability. The repercussions of this obvious folly are currently stifling the visibly faltering Global Economy. Vast amounts of money gave the illusion of power which predictably  corrupted absolutely as the rotten edifice of presumed financial competence and invincibility crumbled from beneath their feet.

The culprits responsible for this still unfolding, unprecedented Global financial calamity must not be allowed to escape the consequences of their collective folly and greed. To bail them out to reoffend with impunity would be an insult too many for ordinary tax payers who will in reality, stand the ultimate loss whatever transpires.

Part of the solution must be to neutralise the triggers such as the bonus system, short selling and the knee jerk rushes in and out of commodity trading for pure short term financial gain. This must in some measure serve to lessen the insane effects suffered by an effectively paralysed banking system that have propelled us where we are today.

There are chilling parallels between the current travails of Global Capitalism and the earlier collapse of Communism, in the final analysis both systems proving morally bankrupt and therefore unsustainable were always doomed in the long term. 

Despite the increasingly adverse events unfolding true enterprise and human resourcefullness is still there in the background getting on with the job of creating tangible benefits in a quiet sustainable manner. The previously uncontrolled reign of the “Masters of the Universe” has long insulted their fellow beings who have suffered, largely in silence, from the excesses’s currently wreaking so much havoc and mischief on us all.