Tuesday, 4 May 2010


By Dr S. Deman
In 1997 people voted New Labour Party to power with more than 2/3 majority after Mrs. Thatcher of Conservatives ruled the United Kingdom for many years with an iron fist. Two charismatic ladies, Mrs. Thatcher in UK and Mrs. Indira Gandhi in India emerged in two different part of the world with legacies of suppression of Coal miners strike & Falkland war by the former and a declaration of the State of Emergency in India for 2 years in 1975-77 by the latter. I recall headlines in Indian Newspapers during Mrs. Gandhi's visit to UK, "Steel Authority of India meets the Iron Lady" . Although Mrs. Thatcher's honeymoon with Ronald Reagan was no mystery to the world with displaying huge posters throughout the Europe during the Falkland, "Gone with the Wind", President Reagan holding Mrs. Thatcher in his arms Mrs. Gandhi appeared not to have bowed down before the US hegemony even after having accepted CIA money to fight Kerala elections is less known.

Despite repeated disappointment people elected Labour Party three times with Tony Blair’s charisma which is nowhere to be seen this time. However, the policies under the so-called New Labour were fundamentally no different from Conservatives. In fact in some areas their record was even worst. National debt was almost doubled, collapse of housing market followed Banks failure, unemployment rate soared to 12% etc., leading the UK economy into a quagmire. People witnessed unprecedented recession since the Great Depression and there are no sign of fast recovery. Bank of Scotland’s Chairman’s stated that, "UK economy is bumping along the bottom".

Shadow Chancellor, George Osborne argued that the Government measure would cost £2,000 per family which was a "new world record as the single biggest bail-out of any bank anywhere in the world". He also accused the Chancellor with not even being prepared to put the full figure - £39.2 billion - before the Commons. This extra money comes a year after the Government spent £14.5 billion on shares in Lloyds and pumped £20 billion into RBS to prevent a collapse in the banking sector. The new money is part of a restructuring forced by European Union competition rules. RBS is selling branches in England and Wales, NatWest branches in Scotland, the Churchill and Direct Line insurance arm and parts of its investment banking business. Lloyds will offload branches in Scotland, Cheltenham & Gloucester branches, and the Intelligent Finance online business.

There is a public outcry for a healthy banking industry to be supportive of international trade which drives wealth creation around the world for the benefit of developed and developing nations alike as one of banking principal social purpose. It has been strongly suggested that compensation scheme should discourage inappropriate risk-taking and bonuses should be directly linked to the overall performance of the company as a whole rather based on profit and loss performance of any individual. However, contrary to pre G20 summit (at Pittsburgh) pronouncement by Lloyd Blankfein, Chairman and Chief Executive of Goldman Sachs and Stephen Green, Chairman of HSBC, recent windfall for Goldman Sachs, JP Morgan and CitiGroup tells a different story as corporate sharks are already claiming share of their pie for which the taxpayers via government have paid heavy price without the unknown benefit to them. In short, one can summarize the Brown/Obama policies as ‘socialization of losses and privatisation of profits in the name of wealth creation is not only a privilege but it is also a social responsibility. When is the pay back time for poor?

Election analysis shows that no single party will be able to have a majority and there is a possibility of ‘Hung Parliament’. However, people are far ahead of politicians and trying to workout their strategy to vote the best winning candidate in each constituency in a triangular contest. Poll opinions are changing every day and people do not seem to care much about them as the media has their own agenda and never play constructive role. It appears Mr. Nick Clegg of Lib Democrats will be leading followed by Samuel Cameron of Conservatives (may go ahead in near future due to fear of Hung Parliament)  in but one thing is for sure, Labour Party mafia is OUT FOR GOOD!!!

In Northern Ireland DUP will sweep again which will be a positive factor for Conservatives. 

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