Cameron warns of National Bankruptcy - WHY ONLY NOW?

The newspaper article is linked here.

WHY? Only now? The task of an opposition is to frame policies for problems ahead. Many, including this blogger, have seen this coming for years!

Why? Progessive, code word for the cause of the problem? In the same article Cameron refers to "Progressive Conservatism". I quote the extraordinary passage which proves him unfit for either the party or the post he holds within it:

"Progressive conservatism" was best placed to address the problems of social exclusion, he said. It would also help build a better civic society, address the economic problems the country faces, and protect public services.

My blog "Ironies Too" will continue to spell out the alternative way forward, which alone can return the nation to prosperity. Among the essentials - a return of assets today being squandered by the EU, individual responsibility, parliamentary democracy and rooting out greed and punishing the exploiters of recent years.

Cameron's complete ignorance on display again!

Last evening in Chatham according to a link from Kent, here:

Mr Cameron stressed the party currently opposed coal-fired power stations - but told the audience that with an energy gap looming, new ways had to be found to satisfy demand.

If technology was fitted to power stations that allowed carbon capture, then Britain should be "leading the way", he said.

"We have to accept there is a looming energy gap developing in our country because North Sea gas is running down and the nuclear power stations are coming to the end of their life, yet energy demand continues to grow," he said.

"Our view is that they should not build new coal-fired power stations unless they are fitted with experimental technology for carbon capture and storage [and] to make sure the technology works."

But he added: "It is exciting technology because it may be that if you can get that technology working, you can have coal-fired power stations that are clean. In Britain, we should be leading the way on this.

"One of the difficulties with capturing carbon and storing it is where you put it. In the North Sea, the depleted North Sea gas fields are the perfect place to put it and indeed pumping it into those fields may help you to recover more gas and oil out of them."

Conservatives are against new nuclear power stations, admit North Sea Gas and Oil are running out but would only approve coal fired stations with "experimental technology" which by definition might not work all of which leads to a cold dark future.

Perhaps we could burn Zac and the Shadow Cabinet they are so full of hot air they might last for a while!

One voice of sanity - John Redwood MP

Probably the sole figure in Parliament with the ideas and intellect to guide Britain through the coming period of depression is the MP for Wokingham who I urged to stand for the Tory leadership when IDS was ousted by the clique of conservative cash-rich clots. He declined correctly being aware he stood no chance in that party of the blind and blinkered.

Writing in today's Sunday Telegraph, linked here, the grass roots of the party can see what they have missed die to the blind prejudices of their elected parliamentary members. A quote:

So far, none of this is working. The cruel logic of past mistakes is pushing the economy into a vicious downward spiral.

We should remember the origins of our problem. The Monetary Policy Committee kept interest rates too low for too long. The banking regulator allowed banks to balloon their balance sheets and supplement this excessive lending with off-balance-sheet devices that came to haunt them in the bad times. The economy ran faster than could be comfortably handled, leading to a large balance-of-payments deficit as we sucked in what we could not produce at home, and a large private sector borrowing binge. Asset prices escalated giddily on the back of easy money. Homes became unaffordable without taking on a huge mortgage, which would prove too burdensome come higher interest rates or job loss. Once the authorities called time on excessive debt, there was bound to be a downturn. Their decisions to hold rates too high for too long, and then to require banks to hold more capital and cash to support their lending when we were well into the downturn, made the problem considerably worse.

I argued strongly for lower interest rates a year ago to take the edge off the coming decline. I argued against nationalising banks. I would have kept them in business by having the Bank of England act as lender of last resort, providing cash and loans against proper security, and offering stronger deposit guarantees when needed. The aim should be to see them through, with their shareholders and senior executives taking all the hit for past mistakes. The government's role towards the banks should be that of the intelligent bank manager, not the owner needing profit and access to cheap cash for himself.

Please read it all, then get on the telephone or e-mail the party and make clear that as Mr Redwood cannot replace David Cameron absent resignation, then at the very least Cameron should replace Osborne with Redwood. At least one front bench will then have a member who understands the current crippling reality!

(Post copied on Teetering Tories)