The FT reports that senior executives at several of the largest US banks have privately told the Trump administration they feared the prospect of a Labour victory if Britain were forced into new elections.
It then referred to a report by analysts at Morgan Stanley arguing that a Corbyn government would mark the “most significant political shift in the UK” since Margaret Thatcher’s election and may represent a “bigger risk than Brexit” to the British economy. It predicted snap elections next year, arguing that the prospect of a return to the polls “is much more scary from an equity perspective than Brexit”.
Jeremy Corbyn gave ‘a clear response’ to Morgan Stanley in a video (left) published on social media reflecting anti-Wall Street rhetoric from some mainstream politicians in the US and Europe, saying: “These are the same speculators and gamblers who crashed our economy in 2008 . . . could anyone refute the headline claim that bankers are indeed glorified gamblers playing with the fate of our nation?”
He warned global banks that operate out of the City of London that he would indeed be a “threat” to their business if he became prime minister.
He singled out Morgan Stanley, the US investment bank, for particular criticism, arguing that James Gorman, its chief executive, was paying himself a salary of millions of pounds as ordinary British workers are “finding it harder to get by”.
Corbyn blamed the “greed” of the big banks and said the financial crisis they caused had led to a “crisis” in the public services: “because the Tories used the aftermath of the financial crisis to push through unnecessary and deeply damaging austerity”.
The FT points out that donors linked to Morgan Stanley had given £350,000 to the Tory party since 2006 and Philip Hammond, the chancellor, had met the bank four times, most recently in April 2017. The bank also had strong ties to New Labour: “Alistair Darling, a Labour chancellor until 2010, has served on the bank’s board since 2015. Jeremy Heywood, head of Britain’s civil service, was a managing director at Morgan Stanley, including as co-head of UK investment banking, before returning to public service in 2007”.
A step forward?
In a December article the FT pointed out that the UK lacks the kind of community banks or Sparkassen that are the bedrock of small business lending in many other countries adding: “When Labour’s John McDonnell, the shadow chancellor, calls for a network of regional banks, he is calling attention to a real issue”. And an FT reader commented, “The single most important ethos change required is this: publish everyone’s tax returns”:
- In Norway, you can walk into your local library or central council office and see how much tax your boss paid, how much tax your councillor paid, how much tax your politician paid.
- This means major tax avoidance, complex schemes, major offshoring, etc, is almost impossible, because it combines morality and social morals with ethics and taxation.
- We need to minimise this offshoring and tax avoidance; but the people in control of the information media flow, plus the politicians, rely on exactly these methods to increase their cash reserves.
But first give hope to many by electing a truly social democratic party.
Is the rainbow suggesting a new party logo?
Britain’s next Prime Minister could be a 70-year old former winner of Beard of the Year who’s become a hit with young voters. Steve Beauchampé assesses Jeremy Corbyn’s chances.
My only surprise is that anyone was surprised. From the moment Jeremy Corbyn received sufficient nominations to qualify as a candidate in the Labour Party leadership contest, it was clear that here was someone who could articulate and represent the opinions of a considerable number of left leaning voters, both within the Labour Party and without. After two decades of Blairites, Blair lites and the worthy but unelectable Ed Milliband, Labour voters were being offered the choice of more Blair/Brown in the form of either Yvette Cooper or the unspeakably vapid Liz Kendall (strategy: ‘the Tories won the last two elections, so let’s adopt policies that are indistinguishable from theirs’) or decent, honest and likeable Andy Burnham, a slightly more radical version of Ed Milliband but without the geeky visage and voice.
That Corbyn has forged a sizeable and potentially decisive lead over his rivals under Labour’s new ‘one member one vote’ electoral system has caused a mixture of consternation and outrage amongst many of the party’s grandees (most of whom are backing either Cooper or Kendall) and demonstrates how disconnected with a large section of potential Labour voters they have become (the more so with opinion polls placing Burnham second). Meanwhile Corbyn, demonised and subjected to vitriolic attacks by some within his own party, and inaccurately dismissed as a 1980s throwback from the hard left of the political spectrum by Tories and most sections of the media, has fended off both the criticism and caricatures with ease, as befits a man with decades of experience of being outwith the political zeitgeist.
However, following several weeks of lazy, ignorant mis-characterisation of him across the press (not least by the BBC), a realisation finally seems to be dawning amongst the more thoughtful political commentators and scribes that Jeremy Corbyn is no joke candidate, no passing fad, but is instead a serious politician, and one with an agenda appealing to many voters previously disengaged from party politics. No cartoon firebrand Marxist he but a man of conviction and humility with a track record of being on the right side of the argument years before those in the ‘mainstream’ adopted the policies he espoused (Corbyn opposed Britain’s arming of Saddam Hussein in the late 1980s, supported Nelson Mandela and the ANC when the British Government was helping South Africa’s apartheid regime, held talks with the IRA nearly a decade or more before the Major and Blair governments did likewise, campaigned for gay rights when it was unfashionable to do so and voted against the invasion of Iraq in 2003).
And just as in Scotland, where the rise of the SNP, under the charismatic leaderships of first Alec Salmond and now Nicola Sturgeon, have helped invigorate politics, particularly amongst the young, so Corbyn’s leadership hustings have been passionate and at times electrifying affairs, populated by a sizeable number of youthful voters. A victory for Corbyn on September 12th could energise and transform British politics, providing a narrative with which a substantial number of the electorate – many of whom currently feel disenfranchised and perhaps don’t even bother to vote – can feel comfortable and might coalesce around. Because, with every media appearance, every public speaking engagement, all but the most politically jaundiced can see that Jeremy Corbyn is at least a man of integrity, putting an argument that has long been absent from mainstream British politics. Agree with him or not, but here is a politician to be respected and reckoned with, who is shifting the terms of the debate.
Thus those in the Conservative Party and its media cheerleaders who view a Corbyn victory as almost a guarantee of a third term in office may be in for a shock. Because, whilst the opprobrium directed at Corbyn from his opponents both outside and inside the Labour Party will only intensify if he becomes Labour leader, with a coherent and plausible genuine alternative to the Cameron/Osborne ideology and its attendant relentless tacking to the right of what constitutes the political centre ground, the Conservative’s agenda will be thrown into sharper definition in a way that a Labour Party offering merely a less extreme alternative to the Tories never can.
So could Jeremy Corbyn win a general election for Labour and become Prime Minister? Well, despite his current sizeable lead in opinion polls Corbyn’s campaign could be scuppered by Labour’s second preference voting system, whereby the second choices of the lowest ranked candidate (who drops out) are added to the cumulative totals of those remaining, this procedure being repeated until one candidate has over half of the votes cast, a system expected to benefit Burnham or Cooper the most.
If Corbyn can overcome that hurdle, and any subsequent move to oust him from the New Labour wing of the party, then don’t write Jeremy Corbyn off for Prime Minister. Few of life’s earthquake moments are ever foretold and by May 2020 who knows how bloodied and riven the Conservatives might be following the forthcoming EU referendum. Public appetite for the Tories and in particular George Osborne might have waned after two terms and ten years (and barely a quarter of the eligible electorate voted for them in 2015), with the Conservatives needing only to lose eight seats for there to be hung parliament. So a Corbyn prime ministership is not out of the question.
Perhaps the most likely – and intriguing – scenario to that coming to pass would be a coalition between a Corbyn-led Labour, the Liberal Democrats under the auspices of social democrat leftie Tim Farron, the SNP, Plaid Cymru and the Greens. Now that really would scare the Daily Mail readers!
August 5th 2015
Jeremy Corbyn’s policies include:
Re-introduction of a top rate 50% income tax
Tighter regulation of banks and the financial sector to prevent a repeat of the 2008 financial crisis (George Osborne is currently proposing to loosen these controls)
Substantial increase in the number of affordable homes being built
Re-introduction of rent controls to reduce the amount the state pays to private landlords
Support for Britain’s manufacturers rather than the financial services sector
The establishment of a National Investment Bank to pay for major public infrastructure programmes such as house building, improved rail, renewable energy projects and super fast broadband
The minimum wage to apply to apprentices
Removing all elements of privatisation from the NHS
Taking the railways, gas, water and electricity back into public ownership
Bringing Free Schools and Academies under the direct control of local authorities
Budget deficit reduction, but at a slower rate than that currently proposed
Scrapping Britain’s independent nuclear deterrent (Trident)
Support for significant devolution of power from London and opposition to unless voted for in a referendum
An elected second chamber
On the EU referendum, Corbyn has said that he is likely to vote to stay in, and then fight for change from inside.
Inside story: Corbyn’s campaign – the political shock of a generation
With thanks to the reader who sent this link.