Tuesday, April 12, 2011

Alternative Vote and the Apathy Party

If AV is a controversial step, what about tackling non-participation? The last four UK General Elections have also been the lowest in terms of turnout since World War II, according to this site:

Statistically, there appears to be only a slight negative correlation between the size of turnout and the size of the winner's majority, as witness the 2010 results:


... but the British system is full of idiosyncrasies. A constituency in the Western Isles, or Northern Ireland, or one of the industrial blightlands, is not going to have the same characteristics as one in Hampshire, Slough or Greater London. And apathy can be confused with despair: in a rock-solid safe seat, those who would vote against the incumbent if they had a chance of unseating him/her, may simply not bother to vote at all.

Why not insist that everone must vote - perhaps adding the option "none of the above" to the ballot form?

Australia has a system of compulsory and enforced participation in General Elections, and so does Singapore; among European countries where it is compulsory but not strictly enforced, are Belgium and (for Senate elections) France.

South America (which I think will have a very interesting and possibly bright history over the next century) has many countries where voters must take part. Using the information here, I give below a map of them:

Let's start with AV, and if that doesn't winkle the people out of their sofas, let's go where so many other countries have led the way. Who knows, we may one day have a democracy.

Monday, April 11, 2011

Voting reform: AV = First Past The Post



The above video is no longer available on Youtube but can be watched on the BBC's website here:

http://www.bbc.co.uk/news/av/uk-politics-13048603/referendum-campaign-broadcast-by-the-no-campaign-broadcast-on-11-april-2011
_____________________________________________

This evening I saw the political broadcast for the "No" vote and I think I've rarely seen anything so untrue and misleading.

First we got candidate Alan B'Stard promising everything to get in, then forming a coalition and welching on all the manifesto promises. Ans: No, that is what we got under the present system.

Then we saw a horse race where the third placed was declared the winner. Ans: No, under AV the victor IS ALWAYS the first one past the post, the "winning post" being 50% of all ballots cast, if necessary by taking into account second and third (etc.) preferences.

As opposed to the present system, where the last Labour government got a clear majority of 66 seats on the basis of a minority of the votes. In the 2005 General Election, out of 650 MPs, only 220 won 50% or more of the votes cast in their own constituency (see "Election results for Using and Applying statistics" here.) In over 66% of Parliamentary constituencies, all the horses failed to finish!

Working the figures the same way for the 2010 General Election, only 217 out of 650 MPs jockeyed their way past the post. That's almost exactly the same situation as in 2005; we have a coalition government only because of disillusioned and mistrustful voters switching between parties - using the current voting system.

In 2005, Labour got 35.7% (the largest proportion) of the total national vote; in 2010, the Conservatives got 36.5% (the largest proportion) of the total national vote. The mess we have is, I repeat, under the current voting system and is a result of political breakdown, not (directly) owing to a glitch in the psephological mechanism.

Some might say, why change the system, then?

I'd answer, the breakdown of the relationship between the representatives and the people is (to a significant degree) attributable to an unrepresentative system of voting, one which encourages a party political divide because MPs in "safe" seats needn't bother listening. For 20 years I had no member of any of the major political parties even ask for my vote, because however I voted, I was going to get the Labour stooge. When the constituency boundaries were altered for 2010, suddenly I had both Labour and LibDem candidates on my doorstep.

Needn't bother listening? Needn't bother working, either, in many cases: how is it possible for "hard-working" MPs to write novels, handle handfuls of directorships etc, if not for the cosy calculus of "pairing" and the lazy delegation of most of the constituency work to constituency workers? I am reminded of the eighteenth century Caribbean plantation owners who lived in London and left all the responsibility to their estate managers and overseers.

Oh, and all that guff we're hearing about how very complex AV is? Bollards. Fifty years ago, housewives were completing similar questionnaires in newspaper ads, to win washing machines - "Put these advantages in order of personal preference: price, speed, capacity..."

No-one can foresee exactly how voting will change when all votes count, or at least half of them, anyway. The LibDems needn't assume that it will benefit them most, for if it does, the other parties will adopt a raft of me-too policies. No bad thing, perhaps, to make politicians work for a consensus.

And maybe, just maybe, we'd start to examine the candidates more carefully, rather than simply glance at their rosettes. No wonder there's such resistance to change from the spoiled heirs of the present arrangement. Just who IS funding the "No" propaganda?

Ah, but without (so-called) first-past-the-post we wouldn't have had Thatcher, say the Conservatives. Well, I think a general retrospective reassessment of her achievements is in order, seeing as how we've nearly killed our industrial base and allowed the financial sector to come out in a massive, choking algal bloom. But while we're reviewing her with the crystal hindsight of history, we can look again at the miserable record of the Socialist governments, too. The vaunted advantage of a government enabled to take bold action on the back of a Parliamentary majority founded on a minority of votes, is not such a strong argument, in my view. *

And why should all be decided on red and green benches in the best clubs in London, anyway? We're long past the time when it took days to ride a horse to the capital and every provincial church told its own time; modern communications call into question the antiquated system of remote, unresponsive, not infrequently rather arrogant and sometimes downright corrupt representation.

When it really matters, the people can and will declare a clear opinion, even against the advice and guidance of their leaders, as witness Iceland's referendum on the bailout of the banks. More referendums, say I - provided the arguments to inform them aren't as lying and twisted as what I saw tonight.
________________________

*Update (November 28, 2017): Only twice since 1918 has any party garnered more than 50% of votes cast nationally in General Elections - the Conservatives both times, in 1931 and 1935 - see page 12 of "UK Election Statistics: 1918 - 2017" (pdf) on the House of Commons website here:

http://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-7529#fullreport

Saturday, April 09, 2011

In the paper shop

The newsagent was reaching under the shelves with a litter picker, searching for plastic ties and brown paper from the morning's news bundles.

In came the old man who has spent £30,000 on National Lottery tickets since it started.

"You'd better not bend like that in front of me, or you'll get the Golden Rivet. Are you looking for your wallet?"

"A penny."

"A friend of mine once bent down for a penny, and broke his neck. Never bend down for anything less than fifty pee."

Sunday, April 03, 2011

Bill Whittle vs Michael Moore

You don't have to be a right-wing commentator like Bill Whittle to think Michael Moore is a crowd-manipulating phony. But I think Mr Whittle may have proved more - and less - than he intended.

It's clear from what he tells us that seizing the entire income and assets of "the rich" would cover the USA's expenses for only a year. Of itself, this does not exonerate those who benefitted hugely from skewing the economy. What he has shown is that the damage done to Humpty Dumpty is greater than all the king's horses and all the king's men can easily undo.

Eating the rich is revolutionary talk à la française and like Robespierre, Michael Moore might find he'd started a revolution that ate its own children. Reasserting the rule of law is another matter, and it would be part of the corrective process of justice to fine, jail or defenestrate from public office those who had the mens rea in this morass of criminal incompetence and wickedness. This is something for which Karl Denninger himself has often called. Right does not belong to the right, any more than to the left.

What a shame that Mr Whittle has forbidden all responses to his video. I suppose he would consider what I say to be merely part of his "predicted sewer backwash on the intertubes".

Saturday, April 02, 2011

Behind the truth: Pastor Terry Jones and the Koran-burning

It could all be a terrible mistake. Pastor Jones may have thought he was burning his financial records:

"At first, Terry and Sylvia Jones split time between the Cologne and Gainesville churches. Then in 2008 they cut ties with the Cologne church after members accused the couple of financial improprieties connected with their side business, TS and Company, which is owned by Terry and Sylvia Jones. TS and Company sells vintage furniture on eBay and was supposed to help support the churches."

Thursday, March 31, 2011

The secret target of tax / NI merger: the self-employed

The recently-announced plan to combine or harmonise levels of income tax and National Insurance Contributions could see the self-employed hit hard.

The government is moving the State pension system away from the layer cake of basic pension plus additional variable toppings of Graduated Pension, SERPS and S2P and towards a single income benefit for all set at a level that lifts pensioners out of the complicated and negatively-reinforcing savings trap.

But if all get the same benefit, it could be argued, all should pay the same, or at least the same rates. I think we may end with the self-employed paying the same proportion of their income in tax and NIC as employees - possibly also including what is currently the employer's contribution. This might vitally boost the government's flagging finances.

I commented on the stealth tax of NIC back in 2007, and showed how for an employee on basic rate tax the total government swipe was equivalent to a marginal rate of 40%. There is (or was, until the introduction of the 50% tax band) really not much difference between basic and higher rate tax-paying employees.

But there is a distinct advantage for certain categories of fairly highly-paid professionals to be self-employed or work as partners rather than directors. This could change - and what a juicy target those (e.g.) barristers might present!

Potentially, there's a plus for us ordinaries: if this tax-cum-NIC were all income tax, then it would be far more attractive for average earners to make personal pension contributions. Skandia thinks we could see the end of Higher Rate Tax relief on pensions; but I think it possible we could see, in effect, HRT relief for all. That would be radical, and ultimately beneficial. And it would reward the prudent ant above the live-for-today grasshopper.

Or maybe we'll just see an extension of the heavy tax burden to not only barristers, but jobbing plumbers, plasterers and the like, accompanied by more horrid, bullying tax investigations.

Wednesday, March 30, 2011

Trickle-up Economics

One standard conservative argument is that the wealthy are rich because they invest their money. The poor are that way because they spend their money.

The answer is thus to decrease taxes on the rich to stimulate the economy and increase employment.

Thirty years of trying have shown this not to work.

The problem is that the conclusion does not follow from the premise.

If we take the logical approach to this, we should increase taxes on the wealthy, and make sure that the lower-income folks get it. They will spend it, possibly in stupid ways, and thus stimulate local economies. Thus, more people get jobs, the government gets more tax revenue, and the corporations make even more money.

Sunday, March 27, 2011

The Most Evil Bank Scheme Ever

Conventional economics, so I understand, ignores the problem of debt and monetary inflation, because it's assumed that the money spreads quickly and evenly throughout the system. Wages up, prices up, nobody's hurt, right?

Wrong. Just like the Oklahoma Land Rush of 1893, who gets there first wins all. This is why those in the FIRE economy have taken over.

But you know, they are small thinkers, all of them, even the billionaires. What they've done so far is like building a faulty nuclear reactor; what they could do is like dropping the H-bomb.

Here's the scenario:

1. Two new banks are created - let's call them Orcbank and Trollbank. No branches - don't need them if you don't deal direct with the public. The problem with the housing bubble is the people. They have to be missold mortgages and then have to keep up the ridiculous payments while their equity tanks. Far too messy.

2. The Federal Government borrows a scad of money from the Federal Reserve - it doesn't matter how much, because the FR makes it up out of nothing anyway (watch Glenn Beck's recent crisp summation of the Fed's history).

3. This money is divided into two equal parts and deposited interest-free in Orcbank and Trollbank.

4. Orcbank lends whatever is the legal (who makes the laws?) maximum multiple of its deposit, to Trollbank; Trollbank does the same for Orcbank.

5. Then the banks go shopping. They go to all other banks, plus Fannie Mae and Freddie Mac, buying up any residential property that is now worth less than its mortgage. Not at phony book value valuations: the real, disaster-filled forced-sale valuations. Many billions, maybe trillions of dollars'-worth. And Orcbank and Trollbank buy the lot, for the full value of the debt, cash on the nail.

6. You now have two monster insolvent banks. Oh, dear.

7. No, you don't. You merge Trollbank with Orcbank, forming the new First Bank of Mordor. And poof! the debt disappears, every last cent of it. All the assets (mortgages) and liabilities (money loaned out) on one are exactly the same as, and counterbalanced by, the other. Matter meets antimatter; mutual annihilation of all assets and liabilities.

8. What's left? The deposits, which are returned to the Federal Reserve via the Government. The interest? We'll come to that shortly.

9. Oh, and there's the not-so-little matter of free-and-clear ownership of gigantic quantities of residential real estate. First Bank of Mordor, wishing to have nothing to do with such a tedious and messy business as moneylending, deregisters as a bank and becomes the Sauron Real Estate Trust. Sauron can rent out property at whatever rates it likes, whatever the market will bear - having no debts, everything after maintenance and repairs is profit.

10. Sorry, that should read "everything after maintenance, repairs and management costs" is profit. In fact, you don't want to make a profit: you just want to pay everyone who's in on the scam. No pesky shareholders, please, so no dividends. If the Fed can be a private company and own America's government, Sauron can be a private company and own America's real estate.

All it needs is the OK, and there's a small enough number of people to see right about their doubtless and naturally very large and absolutely confidential though never defined ongoing expenses, if they're willing to take the money. And the Fed will need some interest for the money it loaned for that short period of time; plus I guess a few billion in administrative fees. Who cares? It's only money.

Upside? Some very happy people in blue suits who just relocated to the Caribbean or that island Scaramanga fitted out so luxuriously. Insolvent banks bailed out - and you can always rinse 'n' repeat if you didn't do enough the first time round (by the way, there's always the commercial real estate bubble to rescue, too).

Downside? Joe Average pays rent forever. But there's not that many properties he can buy instead of renting. In fact, you may just have turned a bubble into an incredible shortage and so up go valuations again. After all, they're not making any more land. Who knows, when the price is right Sauron may start selling tranches of real estate, just to ease the market.

And if Joe Average doesn't like it? What do you think you've got police, Army and the National Guard for?

No, surely they wouldn't do it. Surely you'd never get this past enough legislators and regulators to make it stick. But I'm telling you this idea publicly, just in case it's already been germinating in someone else's twisted little head. That's what you pay quants, lawyers and accountants for - crooked schemes to steal from the people.

This is the potential of fractional reserve banking, governments that lend free money, crony capitalism and the secret magic of the Federal Reserve. They'd have to dress it up as rescuing the system and the people; you know, being responsible managers of the economy.

All they have to do is dare. And look what they dare to do already.

Saturday, March 26, 2011

New Smart Bomb

Traders were shown a radical new-generation weapon at a major arms fair today. Fitted with a sensor that monitors its target in-flight, the Moral Bomb only unleashes volcanic hell on a bad person; otherwise it dissolves harmlessly into a cloud of doves and rose petals, the banshee wail of its tailfin converting into a whistled version of "You Lift Me Up".

Many bulk orders were found on the partly-completed forms found among the wreckage of the spectator stand. Claiming "it finally puts the 'eth' in 'lethal'", a spokesman for the manufacturer said that subsequent tests would be carried out in strikes on Libyan armoured columns.

Breaking News

As all visual media are now reporting, some people have been breaking shop windows in London today. And that is the end of the Breaking News.

Elsewhere in the capital, over 200,000 people have been marching in protest against something, but nobody has noticed.

Wednesday, March 23, 2011

Index-linked savings to return!

Great news: National Savings & Investments are reintroducing Index-Linked Savings Certificates, according to this article in the Guardian newspaper.

But there is a sales target (£2 billion) and then quite possibly NS&I will shut up shop again, as they did last year. So it's likely that these will fly out very fast and you should be on the lookout for the launch - click here to get email updates from NS&I.

INVESTMENT DISCLOSURE: None. Still in cash, and missing all those day-trading opportunities.DISCLAIMER: Nothing here should be taken as personal advice, financial or otherwise. No liability is accepted for third-party content, whether incorporated in or linked to this blog.

Tuesday, March 22, 2011

Galgenhumor

The kindest people have the cruellest humour, it's kind of a ying-yang thing. Seen in an advice centre for carers today:

"I wish my lawn was EMO so it would cut itself."

"The EU has no power over Parliament" - British MP

"The EU has no power over parliament. In fact the Lisbon Treaty included a change for a provision to leave the EU. Parliament can simply refuse to incorporate EU law and in my view should be a bit more critical.

People also get confused between the EU and the Council of Europe."

Rt Hon John Hemming MP to Mr Rolf Norfolk, emailed 22 March 2011

In view of this, be prepared to challenge any Minister who claims that something is so and cannot be changed, because of European legislation. The struggle is between the people and their supposed representatives in Parliament.

Monday, March 21, 2011

More drivel, and getting more dangerous

Max "spank Prince Andrew" Hastings reaches out to the dar al-salaam in his latest Daily Mail piece:

"It remains puzzling why David Cameron, with so much unresolved in meeting the huge challenge of remaking Britain, has chosen to take the risk of leading the way into Libya.

"His boldness in an honourable and moral cause is indisputable. Now that British forces are engaged, we can only pray for their success, and hope that the crusade to remove a wicked despot from power ends as happily as do the best fairy stories."

Elsewhere in the (recent) news: "Why we should do nothing about Colonel Gaddafi", by Max Hastings.

Sunday, March 13, 2011

It begins

Is a radical a broken Conservative, one who believes in the principles of his country and whose conditioned inhibitions have snapped after too long contemplating the suborning of the Constitution?

How interesting that businessman-turned-professional-investor Karl Denninger should host a YouTube video by a subversive group that intends to mount cyberattacks on "The Machine"; a video that concludes with the soundtrack of Mario Savio's 1964 sit-down protest "put your bodies upon the gears" speech at the University of Berkeley, California.

And now that speech no longer sounds like merely the effusion of youthful testosterone, the power-ambition of spoiled adolescence; it begins to sounds reasonable, even to an older, cynical man like me, who never bought into revolution even as a student. It begins to sound like the only, desperate chance.

In that beginning are the seeds of a bigger beginning.

New Con-LibDem pact?

Why is the present Conservative government so keen on forging an alliance with the Libyan democrats?

Saturday, March 12, 2011

Linguistic survival

In Hereford today, I told the tea shop owner it was the best cup of tea I'd had from a cafe in years. Delighted, he burst out, "Goo' boy!"

Friday, March 11, 2011

A seed crystal of suspicion

Yes, an SAS team was captured by Libyan farmhands how interesting. I've met one or two SAS headbangers; "They've lost the plot," was the opinion of a regular Army captain I met in the nineties.

But I'm more interested in the presence of a British spy on a remote farm in the desert 30 miles south of Benghazi, ready-placed to rendezvous with them six months before they arrived - and three months before even the unrest in Tunisia had begun.