Saturday, December 10, 2011

Whose interests was Cameron protecting?

'The Guardian' reports; "Arguing he had to protect the City of London, Cameron demanded that any transfer of power from national regulators to an EU regulator on financial services be subject to a veto." David Cameron has followed the agenda of the City of London and the people who are responsible in the first place for the financial crisis. However, this was to be expected and any real news might have been a decision to the contrary. Nevertheless, that should not prevent us from having a look at two obvious consequences of this decision to continue with the disaster capitalism that got us all into this right old mess in the first place.

Firstly, as the 'Guardian's' Jonathan Freedland points out, the "two speed Europe is here and Britain is in the slow lane." However, the belief that some in the City and in the Conservative Party might have that the UK will be in some sort of  "new Switzerland" is viewed with scepticism by Mr Freedland who goes on to write:
"We'll need to retrieve the fondue set that's been lying under the stairs since the late 70s, find a way of making the trains run on time when there's snow on the ground (and when there isn't), develop a love for cuckoo clocks, build a nuclear shelter in every home and get used to not mowing the lawn at the weekend. And of course no wars, no puking in the streets on a Friday night and no poor people. Piece of torte."
We might not always love boring Switzerland but the people can cook, they tend not to be frustrated to the point where they they throw up on the street and ..... well, they do make good products and they have been preserving their Welfare State. Indeed, we even get the impression that the bankers in Zurich at least realise that part and parcel of their having their "torte" and eating it is at least keeping the natives at home happy.

Not so back in "Blighty" and as Olaf Cramme quite rightly points out, another major consequence, of Cameron's pandering to the "Eurosceptics" is that:
"this approach will seriously undermine Britain’s attempt to rebalance its economy. The City of London is set to benefit further from a policy which puts low corporate taxation and regulatory exemption at the heart of the economic strategy. The consequences could be far-reaching and if the financial service industry makes up an even bigger share of GDP because of its growth and revenue potential, other sectors, including manufacturing, can only shrink further. In the end, all this will make it much harder to boost productivity levels in an economy which requires a greater qualified mid-level work force. A return to the pre-financial crisis folly is looming."

..... there you have it folks and at it is at this point that the little embedded video becomes compulsive and compulsory viewing and it is at this point any British reader of this post might just ask him or herself the simple question; "whose interests did Cameron protect yesterday?"

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