Thursday, 29 January 2009

Bail out Britain

How does he sleep at night?
I’m sorry about the picture because in some respects I think it’s in very bad taste. It is in my opinion though a somewhat accurate portrayal of what our beleaguered PM has brought this country to. I hear that he is concerned that the country now see him has the minister for recession and he wants more of his cabinet colleagues to take responsibility. I’ll bet he does but I suspect they’ll carry on doing what they are doing and keep as low a profile as possible. Brown keeps on about a global solution to a global problem but I’m not convinced by any of his rhetoric these days. Many of the larger economies are acting unilaterally and to some extent so should we. Tuesday they announced yet another bail out this time for the motor industry (this is not a bail just targeted help). The 1Billion for developing green technology is long overdue (too little and to late) but the other measurers, to support credit to buy cars seems to me to be typical Brown bonkers thinking. Didn’t too much credit get us into this mess in the first place? I can understand investing in the future for manufacturing and cars being the leading edge of the work but not in this way. Jaguar and Rover are now owned by an Indian billionaire. He bought the company and his group manage it. We should not be bailing him out. Take the companies back into British hands if we must but no bail out. Our manufacturing industries should be leading the world and can, making environmentally friendly cars not the gas guzzling beasts they are encouraging us to buy on the new credit scheme. Leave the unsold cars alone eventually the market will decide to sell at good discounts and the pile will go away. All this bail out money will keep prices high. Wrong move wrong time. Invest in the manufacturing infrastructure and training and we will recover. We have a long history of innovation and entrepreneurial ability. I know I worked in the motor industry in the very bad times. A modern industry evolved with world class products. Gordon seems to have forgotten the theory of wealth creation: - provide a service or product that people want to buy, sell it at a price they are willing to pay and make a profit. What he is now trying to do flies in the face of wealth creation common sense.
The reason for the £ being under pressure is not so much a lack of confidence in Britain but a lack of confidence in our leader.

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