Archive for August 14th, 2010

Saturday, August 14th, 2010

Tony Blair, Dr. Kelly, the Dossier and Hutton.

I have read the comments and listened to the arguments advanced by all sides since the issue of the death of the scientist was raised again in the Times. There are powerful and informed voices raised in favour of an inquest. There are equally strong arguments advanced to leave sleeping dogs lie. Nothing that I have heard, read or seen, changes my view that an inquest is essential. It may not change the notion of what happened to Dr. Kelly, but it will explain it and close the matter. It could, of course, if the Coroner is not convinced, leave the question unresolved, with an open verdict. That would be a telling repudiation of Hutton.

I know some suspect murder, others a conspiracy at the top of government. It may very well be that this unfortunate man, driven by conscience and anxiety to share his fears with a journalist, cracked under the relentless spotlight of the media and the shabby treatment by the authorities and took his life.

To me there are oddities unexplained. Why was Tony Blair, a seasoned political leader,  negotiator with former terrorists and the man who had ordered three wars, so ashen faced and distracted when the news broke? Nobody had ever seen him so uptight. This was, after all, on the face of it, the suicide of an official who had bitten off more than he could chew. Why should the government feel threatened? Why were the police and coroner not able to investigate normally through an inquest and come to a conclusion? What was the big deal?

Why was a public enquiry set up in the form that it was to halt the normal process of the law? Why did it come to   conclusions which, on the published evidence, seemed perverse? Was it to get at the truth or cover it up? Was this New Labour spin for the sake of control, because they were control freaks, or because there was something to hide. Did that something matter or just matter to them?

There may be nothing in it. Yet if you put the names Blair, Kelly and Hutton together, add a sofa, a dossier and various Downing Street personalities, most people get an uncomfortable feeling. We need to know why. An inquest into David Kelly’s death according to the law, together with the findings of the Chilcot Inquiry, may together tell us the answer.

Through my life I have been absorbed by mysteries. Who killed  President Kennedy? Did the Titanic break in two? Was Hess murdered, or was it even Hess? There is a list. I could go on. Only the Titanic has yielded up her secrets. I have my theories about the others. But then so has everyone.

Saturday, August 14th, 2010

Economic Growth

As the fissure between Keynesians and Monetarists opens, while recovery stutters uncertainly across the West, it becomes clear that they talk of two economies. One is based on borrowing driving consumption and asset inflation. The other is based on saving and enterprise driving the creation of tangible wealth. The former is in trouble, the latter is doing rather well.

This blog has recently been proclaiming that bad news is good. Falling house prices, negative lending or, as I prefer, net saving, tougher requirements demanded of borrowers, narrowing of the trade gap, improved industrial performance, all point to the re-balancing of the economy to provide a more certain route to future prosperity.

Against this a worried population braces itself for major job losses in the public sector, restricted income for those who remain, cuts in public services, reforms in welfare meaning fewer will be entitled and then perhaps to less, against a refrain from the left about a double dip recession. 

There is, in fact, no such thing as a double dip recession. What there is, and we do not want it, is an illusion of recovery bought with borrowed money, which is not sustainable without constant stoking, leading to crippling sovereign and personal debt. In the end the cost of the debt absorbs the majority of the output of both personal and national effort.

There may, however, be a compromise. I am not at all sure we should aim to sell the national stake in RBS, Lloyds and Northern Rock. We already have retained the bad bits of Bradford and Bingley and Northern Rock. Because these funds are closed and running off, they are now showing a profit. There is a powerful case for suggesting that the taxpayer should retain a competitive presence in retail banking to sponsor new enterprise loans, said to be so scarce, by allowing these banks to operate at lower capital ratios than independent competitors. In the last resort they are protected because of the Government’s shareholding.

The so called investment arms would have to be cut adrift to sink or swim and the independents would be told that if they required rescue in future their invest arms would be allowed to go bust, their shareholders would be wiped out and their retail networks would be absorbed into the state owned banks to secure ordinary depositors. This form of regulation, which is light on rules but heavy on consequences, would allow a little extra flexibility to nurture recovery, without damaging the re-balancing of the economy.

I commend it for consideration.

Saturday, August 14th, 2010

Mosque at Ground Zero

It is understandable that many bereaved families have some misgivings about this plan. President Obama has reminded everyone of the true nature of America as a country, based on values which in combination give it a purpose enshrined in the very highest ideals. Not always does this work out and there are times when it leaves the track, but not over this.

President Obama is to be applauded for standing up for the very freedoms which apply to friend and for alike, which America’s enemies envy and seek to destroy. A great President is one who gives a clear lead in the dynamic adventure which is the United States, made up not of an indigenous tribe or race, but of the coming together under one flag of people of every race and creed. He reminds that evil comes with every faith and all Muslims are no more tainted with the blood of terror than all Christians are tainted by the perversions and atrocoties of the Nazis. 

The President already shows many of the qualties of the greatest of those who served before him. Not everything is going his way. The economy remains a problem, he inherited wars that cannot be won and he faces tough mid term elections in November. But America is already a warmer, fairer place projecting a much less abrasive image to the rest of the world. The Mosque will be a symbol of this renewal.