2014 Budget summary (pictorial edition)

What the new-style pound coin will resemble:
 

The flower is called "thrift"... (source)

What the modern pound is worth:

 

(There were 80 of these to the old pound)

What Osborne and the Coalition have done to guarantee savers against inflation:

http://img.tfd.com/wn/88/6C789-zilch.png

What will happen as a result of personal pension changes allowing the investor unlimited access to the fund:

(source)

What's going to happen long-term anyway:

(Source)

What the Government is planning for its own future:

Leading the way...

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False proximity

In 1996, Princess Diana died in a car crash. As an extremely glamorous member of the British royal family, she was a major celebrity whose death was followed by an enormous amount of grief expressed by many who never knew her personally.

Mostly simulated one assumes, but why grief?

Surely we feel no genuine grief at the death of a celebrity we don’t know. Yet presumably many people felt close to her – a false proximity nurtured and encouraged by the media and by Diana herself.

False proximity seems to be an extremely common illusion, applying to abstractions as well as people. Celebrities are part abstraction of course. The Diana virtually all of us knew was mostly a glossy image nurtured, refined and endlessly fascinating to millions...

...Knock, knock, knock.

Two members of the Labour Party came to the door in the middle of writing this post. Canvassing for the EU elections no doubt. I waved them away and shut the door. I don’t want real proximities to mess up a post on false proximity do I?

Yet those two political toilers were presumably motivated to bang on my door by a false proximity to both people and political abstractions. Ed Miliband even! Plus equality, fairness, a just society and suchlike. Proximity to a Cause on my very own doorstep but no thanks – that’s not how detachment works.

Our ancestors were heavily influenced by a false proximity to God, ghosts, demons and even the local priest or vicar. Although I tend to wonder how common even that level of piety really was among horny-handed drudges with little to look forward to apart from a mug of sour ale at the end of  a long day.

Now we foster a sense of false proximity to everything from the latest teen idol to holiday destinations. What else is an exotic holiday but the illusion of false proximity to a more interesting or desirable location?

We foster a sense of false proximity to celebrities of course, but that about other abstractions? Royalty, honesty, integrity, intelligence, social class, other cultures, professional standards, science, the arts, places, the boss, style, football clubs, disasters, human suffering, conflict, the supernatural, the environment, whales, dolphins, furry animals, trees, forests and even the whole universe.

False proximity sells myths.

Even simile, metaphor and simple comparison may create a sense of false proximity between one idea and another, one situation and another, one event and another, a historical figure and one from the present day.

The distorting lens of the media presents unusual people as being fascinatingly closer than they really are. We get the same beguiling effect of false proximity when the media present us with rare events such as terrorist bombings or freakish murders.

• A community is in shock after a young man was shot…
• The film premiere was held last night - the stars were…
• Armed police chased him across this road… 

It all adds up to a dramatic but distorted version of what is going on in the world. False proximity stirs up emotional confusions and sidelines detachment. 

Which of course is the whole idea.

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Ukraine: Belarus gets the message

Source: http://eurodialogue.org/Druzhba-Pipeline-Map

"Belarus will make all efforts towards returning Ukrainian-Russian relations to brotherly and good neighbourly ones, helping find options to settle all the existing contradictions and preventing armed confrontation," said the Belarusian Foreign Minstry on Wednesday.

This outbreak of reasonableness may have been prompted by the annexation of Crimea and the ongoing campaign to grab eastern Ukraine, across which runs a major Russian gas pipeline towards Turkey and (via the future South Stream spur) to Western Europe.

But it may also have to do with a sense that the game is up for the gas (and oil - see above map) bandits of eastern Europe. Yevhen Bakulin, the chairman of the Ukrainian national gas company Naftogaz Ukrainy, has just been arrested for corruption.

Four years ago, the President of the Ukraine claimed that his Prime Minister Yulia Tymoshenko had driven the company into insolvency in order to forge a closer cooperation with Russia.

At the same time (2010), Vladimir Socor commented on Jamestown.org:

"In Belarus, however, the presumably Russia-oriented president Alyaksandr Lukashenka has all along resisted Russian control of the oil processing plants and transit pipelines. The Kremlin is arm-twisting Belarus by shifting oil transit volumes into the Baltic Pipelines Sytem (BPS), which circumvents Belarus to reach Russian Baltic ports for tanker transportation to Europe. Similarly, Russia threatens to bypass Ukraine’s gas transit system by laying pipelines on the seabed of the Baltic and Black seas. Moscow uses the threat of circumvention to pressure Belarus and Ukraine into sharing control of their oil and gas sectors, respectively, with Russian companies. In that eventuality, Russia would presumably maintain the supply and transit flows by overland pipelines through Belarus and Ukraine.

"While the threat of bypassing Ukraine through the Baltic and Black Sea is hardly credible, the circumvention of Belarus is credible and indeed in progress through BPS Phase One, which is already operational, and the incipient construction of BPS Phase Two. The pressure is now growing through the threat of abolishing oil subsidies to Belarus, following Minsk’s attempts to improve its relations with the EU."

It's the old story. Middlemen taking "protection money" from traders in transit, whether it be exotic fabrics along the Silk Route or the ancient, Brittany-bound exports of Irish copper and gold across the Cornish peninsula that made King Arthur's court so wealthy.

Sadly for us who like the idea of democracy, it takes an autarch to beat the oligarchs into submission. Putin is taming Belarus and Ukraine by a combination of muscle and (with the threat of Nord and South Stream pipeline developments) Thatcherian "competitionanchoice". At least he appears to be acting broadly in his nation's interests, unlike the treacherous claques of Westminster.

There is a passage I recall from a biography of Armand Hammer, where the American entrepreneur was transporting much-needed pencillin by rail into Soviet Russia. At one rural station, the train was delayed by an official looking for a certain consideration. A telephone call was put through to Stalin, the man was shot, the train moved on.

Putin may not be a nice man, but he is, to use Mario Puzo's words, a "reasonable man". This is business. as Hyman Roth said:

"I let it go. And I said to myself, this is the business we've chosen; I didn't ask who gave the order, because it had nothing to do with business!"

If you want the luxury of freedom, be prepared to turn off your gas and electricity.


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Ukraine: never mind the Fascism taunts, follow the money

"... while the focus has most recently been on Crimea, eastern Ukraine is expected to be the next hotspot, with the action centring on Donetsk, the regional capital of the industrial heartlands. Pro-Russian activists say they are ready to fight against Kiev and its "fascist" backers in the West. And upon the outcome of this struggle will depend on whether the country splits between east and west."

- says Richard North today (htp: Raedwald).

As I said on Wednesday:

"... was the whole thing [anti-government Ukraine protests] set up by Russia in the first place, to provoke a crisis aimed at the annexation of Crimea, near which will run the South Stream gas pipeline?

- and possibly, in due course, eastern Ukraine, which is also predominantly Russian-speaking and across which runs Blue Stream?"
The core curriculum in our schools should include history and map-reading.

See also my Monday post on how Putin has for years been building up infrastructure on the shores of the Black Sea, using the Winter Olympics as cover. Some echoes of the 1938 Munich Games, perhaps; but unlike Hitler, Putin's not mad. Let him have his Sudetenland.

For really, it's business as usual: he's selling what we want to buy.

For the third time: http://en.wikipedia.org/wiki/File:Major_russian_gas_pipelines_to_europe.png

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Osborne gives us the threepenny bits

Pic source: BBC

The proposed new-style pound coin is publicised on the day of UK Chancellor George Osborne's Budget speech to Parliament.

The 12-sided design resembles the pre-decimal brass threepenny piece first issued in the reign of Edward VIII. The resemblance is more than physical, as we shall see.

Before 1937, threepence coins had always been based on silver, but the silver content reduced over the years and the coin eventually became inconveniently small. Why? Inflation, the curse of the twentieth century.

This year marks the centenary of the outbreak of the Great War of 1914-18. The Daily Mail's purchasing power calculator shows that one pound in 1915 was equivalent to £87 today. Coincidentally, under the old coinage system, there were 240 pence to the pound, or 80 "thrupenny bits". So a modern pound coin is worth much the same as a WWI threepenny bit.

The Chancellor introduced his Budget with the words, "Our country still borrows too much. We still don’t invest enough, export enough or save enough. So today we do more to put that right. This is a Budget for building a resilient economy. If you’re a maker, a doer or a saver: this Budget is for you. "

Actually, it's still not one for savers. I'm on Day 647 of my attempts to get my MP to ask questions in Parliament about NS&I Index-Linked Savings Certificates. All I've had so far is substandard, ill-informed guff in written answers from three different Treasury ministers (see right-hand sidebar on the Money blog).

In Cockney rhyming slang, the "threepenny bits" stands for "the shits". Funny how all these things link up.


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Ukraine: is it just a business plan?

Were the protests really started by democrats fed up of a corrupt government? We don't seem to manage that here, so why there? These things need organising, so who organised it? Any involvement from the West?

Even if this did begin as a people's movement, France24 suggests that it may have been infiltrated by Russian agents.

Or was the whole thing set up by Russia in the first place, to provoke a crisis aimed at the annexation of Crimea, near which will run the South Stream gas pipeline?

 - and possibly, in due course, eastern Ukraine, which is also predominantly Russian-speaking and across which runs Blue Stream?

At present, according to the map below, there are two key points (one in central Ukraine, the other in western Belarus) that between them control Russia's gas exports to Europe.

http://en.wikipedia.org/wiki/File:Major_russian_gas_pipelines_to_europe.png

Quite apart from empire-building and the desire for a year-round seaport, is all this fuss really about securing energy supply routes? Putin the businessman, prudently working out a plan for economic resilience? If so, Europe wants the same - all those houses to heat, gas-powered electricity generating plants to fuel.

In which case, the hooha is strictly for the punters and the fix is in already. Maybe that's why some of the South Stream construction contracts were signed last Friday.

And when Nord Stream is completed (see map), the capacity of Ukraine and Belarus to hold Russia to ransom will be very considerably reduced.

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From Sochi to Sevastopol

from Google Maps



"What Did Sochi Get for $51 Billion? Highways, Railroads and a Lot of White Elephants," scoffed Alec Luhn in The Nation last month. Don't forget the new airport, Alec. And the new port.

Further up the coast is the "Hero City" and major port of Novorossiisk. Also being developed.

 

An hour away on the M25, northeastwards, is Anapa:

 

Between Novorossiisk and Anapa is where the proposed South Stream gas pipeline will dive into the Black Sea, on its way over to Bulgaria. Here is one map of its route, which takes in part of Turkish territory:

 

(Source, if you need to look more closely)

Here is another, rather more roughly drawn, which apparently doesn't need Turkish permission:

 

(Source)

About half of Russia's gas exports to Europe go through the Ukraine (and even the South Stream crosses a bit of the extreme eastern part of Ukraine, but a little territorial snipping - a land purchase, maybe? - could put that right).

(Source)

 

So it is very useful to have a route that avoids Ukraine and Belarus; and some of the contracts were signed last Friday. Even then, it would be most inconvenient if the Ukraine accidentally did anything off the shore of Crimea that disrupted the new supply route, but fortunately it looks as if that danger has been foreseen and forestalled.

A spur of the South Stream is planned to run through Greece, which was the subject of some little local difficulty a while back. EU legislation forbids Gazprom from buying Greek gas pipelines, so step forward a Russian cat's paw outfit called Sintez to do the job instead, according to the OilPrice website last year.

 

What with sparkly new port facilities at Sochi and Novorossiisk, not to mention the docks at the M25-serviced Port Kavkaz on that spit of land opposite Port Crimea (see below), there will be lots of logistical support for the future increase in Black Sea Russian naval and shipping activity.

 

 

Why, a bridge only some 3 miles long - like, say, the Pensacola Bay Bridge opened as long ago as 1960 - might cross the gap so easily:

 

 

Poor, dumb President Putin! He simply can't see how he has wasted all that money developing Russian assets on the Black Sea.

Nor, to be frank, can I.

Watch for (a) destabilising tendencies in Greece and (b) a gradual rise in the commercial fortunes of Thessaloniki. And - who knows? - a revival of nostalgic sentiment among the descendants of Pontic Greeks (many of whom now speak Russian) in northern Turkey, Georgia and the Ukraine.

Currently, the Bosphorus Strait is 35 metres deep at its shallowest northern part.

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