If you are new to this blog, you are invited to read first “The Largest Heist in History” which was accepted as evidence and published by the British Parliament, House of Commons, Treasury Committee.

"It is typically characterised by strong, compelling, logic. I loosely use the term 'pyramid selling' to describe the activities of the City but you explain in crystal clear terms why this is so." commented Dr Vincent Cable MP to the author.

This blog demonstrates that:

- the financial system was turned into a pyramid scheme in a technical, legal sense (not just proverbial);

- the current crisis was easily predictable (without any benefit of hindsight) by any competent financier, i.e. with rudimentary knowledge of mathematics, hence avoidable.

It is up to readers to draw their own conclusions. Whether this crisis is a result of a conspiracy to defraud taxpayers, or a massive negligence, or it is just a misfortune, or maybe a Swedish count, Axel Oxenstierna, was right when he said to his son in the 17th century: "Do you not know, my son, with how little wisdom the world is governed?".

Saturday, 6 February 2010

New Labour: could it have been worse?


In today's Daily Mail Mrs Margaret Cook, the wife of late Robin Cook, the Leader of the British Parliament House of Commons who resigned in protest against Iraq War in 2003, wrote a tribute to her late husband for taking such stance. Anyone who follows British politics knows how hard, for personal reasons, it must have been for her to do so. And how sincere and reflective must it be. Be in no doubt, despite having been in a shadow of her late husband, Mrs Cook is an intellectual in her own right.

Mrs Cook expressed her take on the ongoing Chilcot Inquiry into the circumstances of the Iraq War in 2003. She wrote:

"Wriggle and obfuscate as they have done at the inquiry, those former ministers and aides who have given evidence have only been able to cover their backs partially.

For we now know that they either followed blindly and willingly into the conflagration or they saw the folly, but failed to speak out.

Some have pleaded that, in retrospect, they made 'honest mistakes'. For people in high and responsible places, there is no such thing."


Many believe, including all eminent international lawyers including Mr Philippe Sands QC, that starting the Iraq War was not only a "folly" (which has been obvious without any benefit of hindsight) but also a crime. Mr Jeremy Paxman remarked on BBC Newsnight, that – apart from "Tony's mates" like Lord Falconer - he could not find any lawyer prepared to argue for legality of the Iraq War. By lawyers' standards there are almost always arguments "for" and "against" in any case. Therefore this amounts to quite a conclusive judgement.

The author of this blog has argued since its inception nearly a year ago, that the current financial crisis was also caused by the crimes of financiers (and quite likely regulators and some politicians) who engineered and operated, or allowed to do so, a giant global pyramid scheme. This financial scam is designed to rob middle classes off their savings and investments and distribute it amongst individuals who effectively (not notionally like, for example, pension funds or unit trust and endowment client-investors) control the financial industry. This has already been dubbed "socialism for the rich", a somewhat natural progression for Islington and Notting Hill New Labour’s "Bollinger bolsheviks".

Calling criminals in high places criminals is a taboo. The mainstream media did not come round to a conclusion that both individuals who decided to start Iraq War as well as individuals who are responsible for the global financial crisis (through a pyramid scheme) must be held accountable for their actions in a Court of law. "Not only must Justice be done; it must also be seen to be done." Accepting "honest mistakes" of politicians who dragged the country into the Iraq War is as foolish as blaming the financiers' greed and stupidity for the current crisis. These are all not acceptable, and to some abhorrent, but at the end they are legal. Therefore this attitude of ostensible criticism by the mainstream media is designed to vent the public anger at the same time allowing war criminals and fraudsters to escape justice (and, of course, preserve their ill-gotten wealth). We should not be surprised if we even see effigies of politicians and bankers being hanged or burnt if it all helps them escaping being brought to book. Financiers will be happy to organise such events (no doubt, they will even make money on them).

Here we are now. But hopefully politicians, our democratically elected representatives, especially a new intake in the British Parliament and there will be quite a lot of them after the forthcoming elections, will take more robust view on both issues.

Spectacularly started New Labour's era of British history appears to be coming to even more spectacular end. Taking a long term perspective, 100 - 200 years after we are all long gone, and our children and grandchildren too, a New Labour period is likely to be judged as a time of crime and stupidity: Britain run by war criminals and financial fraudsters. We shall be in no doubt that future generations, who will have to pay trillions of pounds for New Labour’s rule and maintain memorials of those who fell pointlessly in the illegal Iraq War, will be too benevolent or na├»ve in looking for excuses.

On the election night on the 1st of May 1997, at a dawn of New Labour era many of us sang "things can only get better". And even those who did not (like this blog's author), had genuine hopes and were well-wishers. But, still going through the Iraq mess and the financial destruction, could it actually have been worse?


PS. Since this article was published, on 7 February 2010 Alistair Campbell, Tony Blair's media guru gave interview on Andrew Marr Show. Compare this interview (especially after 4:20 of the recording) with an interview he gave on 27 June 2003 on Channel 4 News (especially after 3:20 of the recording). It is quite clear there is something he is worried about. What is it? Any clues please post in the Comments section below.

4 comments:

  1. I think that your view of recent history is slowly becomming mainstream, but I believe that you are too pessimistic in assuming the guilty will get away with their crimes.

    I expect a double dip depression with the second wave much more painful to Western populations because they are already financially weakened by the 2008 crash.

    We will see widespread despair and far more anger. The new generation of politicians which will arise from the tea party in the US, and the new MP's in the UK replacing those forced to retire due to fraud will enhance their credentials by turning on the liars and crooks in power from 2000-2010.

    Any retribution enacted as a result of the above will undoubebly be cynical and self serving, after all politicians never change, but it will still be nice to see Blair's head on a spike outside the Tower of London, and Poulson/Geithner/Bernanke unmasked as criminals.

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  2. John, thanks for reading my blog. If you think it deserves it, spread the link around.

    I hope and wish you are right about the coming changes. However the mainstream media are not really helping. Being a part of rather intellectually and morally rotten establishment (political and financial) they keep helping them. (All their criticism is designed to vent the public anger, defuse tensions and preserve the status quo.)

    BTW: it may be a matter of semantics but we are not going to have a double-dip depression. It is an ongoing depression : it will only look like a double dip due to unusual actions of governments such as stimulus packages and QE.

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  3. I too, even as a reluctant tribal Tory voter in 1997, relished a new start, a new broom, a new way of doing things. Perhaps as I had only experienced the 70s through the prism of childhood, I did not give enough weight to those who said that Labour knew one thing and one thing only - how to spend other peoples money, and not how to make it in the first place. I genuinely hoped Tony Blair would bring a sense of decency to govt after the dreadful Major years.

    Now I look back and realise a few Tory MPs shagging around, and one or two taking a few envelopes of cash just to ask a few questions in the House, was small beer. Compared to what we have now they were whiter than white.

    The entire nation has been sold down the river - literally and culturally. We are bankrupt financially and bankrupt morally as a nation.

    I cannot see an improvement without some sort of massive catastrophe, a crash in living standards of epic proportions. Then reality may bite, and the nation will be forced to live by better standards than apply now. We will have to, as we will not be able to afford not to.

    However I fear we will muddle along for many years to come before such an Augean cleanout.

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