What is happening at HM Treasury?
We see in their December Spending Outturn Report these vast and unexlained ‘accounting adjustments’ to the value of GBP 185 billion. Any professional financial person would see that this is not professional. Any untrained person would suspect insanity. In any case, these adjustments enable the government to hide some very large transactions of an unknown nature. We are left wondering what is going on in the minds of these people, if they think that GBP 185 billion can acceptably be requested to walk off the page, without a single word by way of explanation.
GBP 185 billion adjusted from where and to where? Can we request an answer please?
One effect of reducing the spending totals (The TME) (for that is what they are doing) with unexplained ‘accounting adjustments’ is that it enables the borrowing target to be presented as unchanged despite the well-known yet still unannounced decline in government revenues. These have fallen by at least 20% and possibly as much as 30% since April 2008. Yet in Brown and Darling’s world of fantasy finance, revenues can fall, but borrowings need not rise. Spending only needs ‘adjusting’, and hey presto!
Only by reducing the spending totals to exactly parallel the declining revenue totals can the politically all-important borrowing figure be kept constant, the alleged 12.5% of GDP. Yet everyone knows that the government has been buying shares in banks and shoring up their balance sheets to the tune of hundreds of billions, making vast multi-billion losses. Recessions are not known for reducing government spending in any case, and the notion that the government has as yet reduced spending is laughable.
And yet that is exactly what the Treasury is claiming in its December Spending Outturn Report. This time they report a decline in total spending compared to the figure announced by Darling in the House Of Commons in the PBR only three weeks earlier, by no less a figure than GBP 60 billion.
Hello. This is Bollocks.
Peter Mandelson has embarked on a one man cutting exercise in contradiction of the Prime Minister’s ‘spending can still be increased’ bunker talk, just as the German Generals in 1945 began to realise the orders coming from their leader’s underground cave, were no longer connected to reality, and began making their own independent decisions. Mandelson is clearly aware of how desperate the true situation is, as is Charles Clarke baying for Brown’s removal, and the appointment of a more sane replacement.
Brown, meanwhile looking at Treasury charts of fantasy divisions and billions of untapped resources (all spent long ago) has issued firm orders to his minions that the Conservatives are nowhere near the outskirts of Berlin. Their tanks are still somewhere near Moscow. He orders these non-existant billions to be spent immediately to stop them in their tracks. Every last pound must be sacrificed and the country that has failed him, left bankrupt.
And then the accountants have to present the accounts as if nothing has happened. It is indeed the brilliance of Gordon Brown we were always told about at last becoming visible. Just as he realised he could avoid paying his rent as a student by running numerous different bank accounts, he sees that he can spend, spend, spend and then deny it ever happened. No wonder he gained a PhD in history with such a mastery at understanding how a record can be so easily manipulated.
In the PBR in November, the TME (Total Managed Expenditure) was given, by the bunker, as on track to hit GBP 680c billion, matched with a GBP 498 billion revenue figure, and the inviolable borrowing target of GBP 178 billion. All the world knows that revenue is falling, however and the figure of GBP 498 billion is by now well impossible, but without accurate revenue figures being released, it is impossible for Osborne to attack on this front. At all costs the enemy must not be told there are now no reserves left.
The propaganda ministry is loyal to the end, and Our Leader’s HM Treasury officials are able to produce charts which reassure him as he fights the battle of his life. He has always had to fight for every victory, he tells them as they move billions neatly from one column to the next. The extraordinary figure of GBP 620c billion for spending is placed in the Treasury’s December Outturn Report, GBP 60 billion less than announced by Darling in November, three weeks beforehand. Bah! They’re losing their grasps I’m afraid.
Goebbels would have been proud. The safes and strong rooms are empty. The gold is sold, but still a loyal official can be relied on to move a few hundreds of imaginary billions from one column or another to make the situation appear alright once more.
If the PBR Spending figure of GBP 680c billion was right, then equally the December GBP 620c billion is impossible.
Signs of serious financial stress and chicanery crawl all over these reports, created by The Treasury on behalf of the government. If there was a suspicion that the Treasury was starting to act as if it were a branch of the Labour Party, producing financial reports to political order, these thoughts have now been confirmed beyond doubt.
Now the Treasury has got involved in preparing a case against George Osborne accusing him of an equivalent financial chicanery to the tune of GBP 50 billion, which he convincingly denies. It seems quite clear that the Treasury is acting as if a branch of the Labour Party, and has crossed the line from giving sound impartial advice to government, to becoming a necessary part of the growing level of insanity emerging from Whitehall.
The figures they are throwing out in this insane propaganda war are all in the Hundred Billions – (GBP 99.5 is the total of the Treasury’s biggest unexplained ‘accounting adjustment’, the largest ever seen throughout history – an imaginary ‘political’ GBP 100 billion if ever I saw one) – and now they fire a GBP 50 billion fantasy finance salvo at Osborne, hoping to make attack the best form of defence. All the charges are fictitious, wrong or fraudulent. There seems little doubt, that the Gordon Brown bunker mentality, the deep hatred of the Conservatives, the necessity to stop the Russians from entering Berlin at all costs, whether that be in terms of money, reputation or sanity, has sent them all stark raving mad.
It’s not an election we need. It’s the men in white coats.
The Times report on the attacks on Osborne HERE.
MESSAGE TO READERS. For those who tell me they find my writing on this topic depressing and very worrying, don’t be like that. This situation needs dealing with, and the lying has got to be stopped. I write in a positive spirit, confident that the finances and the political economy of Britain can be successfully re-assembled, once these evil fools are removed.
UPDATE – General Darling unable to agree with the bunker’s insane financial plans, even for a single day.
George Osborne, the shadow chancellor, seized on Mr Darling refusal to rule out a VAT rise in the next parliament. It came a day after Labour had ridiculed Ken Clarke, the shadow business secretary, for doing the same.
Mr Darling admitted that “every Chancellor at every Budget will look at all the options open to them.”
That is likely to infuriate Number 10 who have been hoping to use VAT, and the promise of (tax) rises under the Tories, as a key election weapon.
Mr Darling also did not deny that all departments outside those that have been ringfenced would face cuts.
Mr Osborne said: “Day One and Labour’s negative campaign is unravelling. At the launch of their dodgy dossier, Alistair Darling’s answer revealed more about Labour’s secret plans than what a Conservative Government would do.
“In a spectacular admission, he contradicted Gordon Brown’s allies and refused to rule out a VAT rise under Labour. He was also unable to refute that Labour’s plan implied 17 per cent spending cuts in non-protected departments.”
The awful mess Labour has made of Britain’s finances is impacting on foreign holders of UK government debt. The exodus has started. SEE HERE. Hat Tip – Guido Fawkes.