Archive for August 13th, 2010

Friday, August 13th, 2010

Dr David Kelly

In my book I was highly critical of the astonishing Hutton enquiry which did not resolve the curious circumstances surrounding the death of this dedicated and courageous man, who has been proved so right by the course of events since his death. The decision by Hutton to seal the papers directly relating to Kelly’s alleged suicide for 70 years confirms something is being covered up. We owe it to him and his family to get to the truth. An inquest  now, called for by a distinguished group of doctors in a letter to the Times today, is imperative.

There is a changed public perception now. No longer is there trust that the authorities are either honest or well intentioned. The days when a distinguished judge can use his persona to blame everything on the BBC are well and truly gone.

Friday, August 13th, 2010

Ministry of Defence

It is good that Dr. Fox is to set about slimming the MOD. I would go further and close it down altogether. As previously stated in this blog, we did not have it in all the previous world wars and we do not need it now. It is the most financially incompetent organisation in the country and acts as a millstone round the neck of the professional military with its utterly clueless stewardship of our armed forces.

We need a small, efficient keen and lean Army Ministry, Air Ministry and Admiralty getting the best and best value out of the three services. This is how we won all our wars. The battle record of the MOD is much more ambiguous. Having said that, the new proposals are certainly a step in the right direction and should be supported. They need to be followed up with a more coherent strategic plan based on a less bombastic foreign policy. The SDR will hopefully bring that nearer.

Friday, August 13th, 2010

German Recovery

The second quarter growth figures of the German economy are startling. This is very good news. Germany demonstrates that it has the strongest economy in Europe, founded on manufacture and exports, which can take advantage of the weaker euro, weighed down by sovereign debt of southern euro zone countries. It also points the way forward for the U.K.

A factor in the German recovery is the willingness of consumers to spend some money. It is very intersting to compare the total foreign debt of the two countries. Germany stands at 1.5 x GDP. The U.K. is 4.5 x GDP. This is the core of the stronger German performance. In the U.K consumers are busy reducing their binge borrowings of the past. Comparing government debt shows less difference, both countries are hovering around 70%, but this will go up before it goes down.

Another key factor with the Germany economy is that it is based on exports and its industrialists have been very quick of the mark to develop new business in the cash rich new economies of Asia and South America. We have been very much focused on the imbalance of our trade with these economies, though less well focused on what to do about it.

It will not be surprising if Germany emerges as the strongest economy in the West. The economic challenges of re-unification have been mastered and there is now a fully operational united German powerhouse. We may find some surprises ahead. Meanwhile the figures should bring comfort to the beleaguered Merkel.