The End Of The Beginning


As fast as Britain’s government is disintegrating, with six members of the cabinet expressing disloyalty to Brown in the Snow Rebellion, the finances are cracking even faster.

John Redwood writes on www.johnredwoodsdiary.com

I warned on this site some months ago that interest rates were likely to go up. I said I did not think people and institutions would go on lending to the government at 2-3%.

They won’t.

At yesterday’s prices the government has to pay 4% to borrow money for 10 years, and 4.5% to borrow money for 20 years. The old bonds issued that have no repayment date now offer more than 5%. That’s big moves – large falls in government bond prices, big increases in the interest rates.

Why does this matter?

It matters because it means we taxpayers will now have to pay a lot more interest.

We will pay more interest on the near £200 billion of new borrowing this government is doing each year. We will pay more interest on the old borrowing that falls for renewal. Each 1% increase in interest rates costs us an extra £2 billion a year interest, a sum which escalates as more borrowing falls due for renewal and as more borrowing is taken out. Ends.

Borrowing is fast heading to over £1 Trillion, as I have been blogging recently. If we have to pay 4.5%, that will cost £45 billion a year in interest payments, or more depending on when spending is finally brought down. This comes up from £10 billion, which interest payments were costing until fairly recently.

This is distressing news. Britain is being driven by Gordon Brown’s long insanity to a point where we are seen as one of the world’s basket cases, not creditworthy and not to be trusted. The cuts that are inevitable will have to pay higher interest before they even reduce the borrowing gap between spending and revenues. This is what debt does, pushing the good times further and further into the future.

To my mind it’s incredible that the bankers have taken so long. At last the world is starting to see Gordon Brown and his trillion Pound debt for what it is – a total loss of control by a political gambler, who’s gambled to save his political skin with our future health and prosperity, and lost.

He’s now locked in his bunker with his own people starting to ignore him and talk of his end everywhere. His opponents, though, cannot rest and must keep on wearing him down until he finally cracks.

But amazingly the BBC and the media still carry on as if all is perfectly normal. As in Nazi Germany, the Propaganda Ministry is staying loyal right to the very end, and refuses to offer even one word of doubt that the ‘Leader’ is going to rule in perpetuity.

It might be comical to see them struggling in the face of impossible odds to save Gordon Brown, even now, as the City crumbles around him, but make no mistake, these BBC goons like Nick Robinson would rather die with Brown than have to witness a Conservative government taking over in Downing Street.

TODAY’S SILVER LINING

I promised the worriers who find my writing too depressing, to look out for some good news where I can see it. Yesterday shares in the Royal Bank Of Scotland kicked up from 29.5p to 32p, reducing the government’s losses. Their shares were bought at 65p. Maybe one day these shares will be sold at a profit!!

To quote someone else famous, who was faced with an appallingly difficult and long drawn out crisis, fighting against an even worse form of powerful insanity, the following words ring true once more –

‘This is not the end.

This is not even the beginning of the end.

But it is perhaps the end of the beginning.’
Winston Churchill speaking after winning The Battle Of Alamein.

Let’s think positively. Once Gordon Brown and New Labour are defeated, the long slow job of sorting out Britain can start. Today, with the political and the financial signals going into the red zone, it seems that Brown and Labour’s days in the bunker have to be numbered. ‘The end of the beginning’ is coming.

The Tap Blog is a collective of like-minded researchers and writers who’ve joined forces to distribute information and voice opinions avoided by the world’s media.
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6 Responses to “The End Of The Beginning”

  1. Beezley says:

    Alas, the Conservatives are no better. I used to think as you do; I used to think the conspiracy theorists’ version of the NWO was bonkers; but nothing that Cameron has done or said in the past four years leads me to believe he is on the side of people and not in the pocket of the corporations. He started in PR, after all, and that is where he still is.

    The LibDems are the same. It’s all a front to keep the peasants engaged while the real business goes on in private. I even have my suspicions about UKIP and the BNP, stalking horses set up to siphon off and identify dissenters.

    Reconnection of individuals with each other is the way. Throw away your telly and get on the net, that’s my motto!

  2. tapestry says:

    I agree with the last sentence except I like singing and use a Ziller karaoke set to blast Heartbreak Hotel and other Elvis numbers through my TV set in original soundtrack, while I torture my audience.

    Give Cameron a chance. If he’s a dud then we’ll know soon enough.

  3. Beezley says:

    >a Ziller karaoke set

    Didn’t the CIA use one to flush out General Noriega? 🙂

  4. tapestry says:

    The Ziller is a recent development in the karaoke arsenal. Noriega must have succombed to earlier technology.

  5. Anonymous says:

    Who does the government borrow money from?

  6. tapestry says:

    Bank Of England
    The Gilts Market
    Or Print Your Own

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