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?
An emboldened Conservative government would indeed be good news for ‘Strong and Stable’ funeral directors, as:
- air pollution continues unabated,
- the health service deteriorates,
- the incidence of adult depression and mental illness in children grows apace
- ‘moral fibre’ rots: latest indication:10,000 Britons signed up to one of the world’s largest paedophile internet networks
- and others are debt-ridden due to the daily onslaught of consumerist advertising,
- sedated by inane, often BBC-provided TV quiz shows
- or led astray by a violent TV/online diet.
Tom Young says May’s ‘Strong and Stable Government’: (is) More Than a Tagline – indeed it is and a Conservative stabilisation unit would, in future, see an increasingly heavy workload.
New claimants with a disability have just been hit by a £30 a week cut in benefits to save the government £1bn over four years even though their living costs are higher because of the need for assisted travel, hospital appointments, extra heating, etc., and they are likely to take far longer to find a job.
A friend who intends to vote Labour writes of his issue with the Labour message: “it remains too rooted in struggle and injustice, and not enough in giving people a reason to vote if they don’t suffer or struggle”.
But many well-placed voters are deeply concerned when seeing others in difficulties. And a far larger swathe of the population is struggling than he seems to think:
- graduates in formerly secure jobs are being made redundant,
- people in their twenties and twenties now see no option but to live with their parents,
- many people are suffering from urban air pollution and miserable traffic congestion,
- education cuts will affect their children as the Public Accounts Committee has warned,
- in some areas people in need of healthcare are affected by a declining NHS service.
- mental illness, no doubt in part due to one of more of these factors, is rising rapidly in both children and adults.
Professor Prem Sikka sees the positive, constructive Labour message; U.K. Labour Party leader Jeremy Corbyn plans:
- to raise corporation tax by more than a third over the next three years and plough the £6bn proceeds into schools and universities,
- restore maintenance grants for the poorest students,
- abolish university tuition fees
- guarantee that five, six and seven-year olds will not be taught in classes of more than 30.
- creating a National Education Service to equip Britain’s workers for the post-Brexit economy,
- extend free adult education to allow workers to upgrade their skills,
- raise the cap on NHS wages, and
- to build up to a million new homes, many of them council houses.
If ‘the sums don’t add up’, a standard Conservative knee-jerk reaction:
Withdraw subsidies from fossil fuel & nuclear companies and arms exporters, jettison HS2 and redirect investment to improving rail and waterway transport links.
Sikka rightly ends: People are our biggest asset and only they can build a nation. We have a choice: Tax cuts for the rich or investment in our future to enable people to realise their potential.
Professor Rex Harris writes:
Today I am 76 and I thought I should take this opportunity to reflect on the state of my beloved Labour Party and hopefully demonstrate that the present “doom and gloom” surrounding the party is, in my view, totally unjustified.
Although society has made enormous strides in technology and science we are still living under a very regressive political system. Thus we still have the primitive “first pass the post” electoral system whereby, with just 38% of the vote, the Tories have been re-elected for another depressing 5 years during which time the gap between rich and poor will become even wider.
Lack of scientific expertise in Parliament
The cabinet is still predominantly ex-public school and male and in the composition of the new parliament of around 650 MPs, only a very tiny minority will have any significant scientific/engineering background and hence technical knowledge. I believe that in the last parliament there was only one science-based PhD and, in the current batch the picture is probably even worse.
This critical absence of technical expertise is, to my mind, extremely worrying as the quality of the future will be dependent on implementing long term, technically-based measures determined by the overwhelming need to reduce carbon.
The mammoths in the room are climate change and resource depletion and yet these topics received barely a mention in the debates leading up to the 2015 general election. These and related areas will determine, not only the future shape of the Labour party but that of the whole world and these should be the dominant themes in the current and future debates.
When asked to define the most challenging aspect of his political life, Harold McMillan stated:
” Events dear boy, events”
This was a very wise statement and with the increasing manifestation of
climate change in the UK as well as throughout the world, related events will become ever-more predominant in political life. The difficult, if not impossible task, is to predict the exact time it will take for the reality of climate change and resource depletion to have a significant impact on the electorate.
Currently, I believe we are all living in a “fools’ paradise”
The stark reality is that our present consumer driven economic system cannot provide the necessary long term solutions to these problems and this is why the Labour party must not seek short-term political gain by trying to emulate our existing system which seems to be based predominantly on the motivating force of personal greed.
The necessary changes cannot be achieved by short-term tinkering with the existing system
The majority realisation that there has to be a radical change could come in the next 5 years or it might take longer, but come it will.
In the meantime the Labour party, along with other like-minded groups, has to formulate detailed root and branch policies to provide a workable alternative to the present unsustainable system which is based on the growing consumption of ever diminishing raw materials and evermore carbon-based energy.
The Labour Party must provide the blueprint for a sustainable future and the sooner it sets its mind to this objective the better.
It might be useful to consider what could be some of the political priorities (in no particular order):
- Introduce a system of proportional representation and real federalisation within the UK.
- Increase substantially the proportion of female Labour candidates.
- Try and increase the proportion of candidates with a scientific/engineering background. Aim for engineers and scientists to be “on top” not just “on-tap”.
- Develop a series of independent technical workshops to inform MPs and other policy makers of the technical challenges that lie ahead.
- Set-up a parliamentary group to investigate comprehensively the impacts of climate change and resource depletion. For instance, to develop a full-scale recycling strategy
- Look to build a purpose-built parliament building in the Midlands and convert the existing parliament buildings into tourist attractions.
- Strengthen and expand the concept of a “Green Bank” to fund new businesses based of sustainable technologies.
- Electrify all urban transportation and develop battery recycling technologies.
- Strengthen and develop EC and other international ties.
These are just some of the many priorities that Labour will have to address, analyse and then formulate workable solutions. A far cry from today’s often trivial and somewhat irrelevant arguments
Date: Monday, 27 July, 2015, 16:03