Broker Blair, JP Morgan, and benefits from the Post Office

Tony Blair, neocon Socialist

Celebrated financial blogger Max Keiser is fond of saying that the nine scariest words in the English language are “I’m from JP Morgan, and I’m here to help you.” He’s probably right, but did you know they are the main partner bank for the UK Post Office? No, I didn’t either.

The reality is that JP Morgan (Europe) handles all the welfare payment transmissions for the Post Office. (They’re into this welfare shtick in a big way in the States as well). So JPM has all the details of how much money HMG pays out in welfare benefits, and all the people on the recipients’ database.

Hands up all those who think this is a good idea. All those with their hands up, read on.

Morgan the Pirate’s Chief Investment Office in London booked billions of dollars in losses earlier this year, after several gigantic trades went pear-shaped. In 2011, Bank of England officials raised concerns internally about the riskiness of some JPM practices, although Merv’s pervs didn’t formally alert other regulators. (Nothing new there then). In 2010, the BoE’s finest also became nervous about J.P. Morgan’s domination of residential mortgage-backed securities in the City.

Only last week, the respected financial site Seeking Alpha suggested that ‘the JP Morgan trading blunder could result in a $100 billion loss, a contagion of its massive portfolio, and even the wipeout of its entire asset base.’

And, um, leave millions of Britons without any welfare payments.

The Pirate’s credit derivatives, interest rate derivatives, and currency trading are in turn vulnerable to leveraged hidden bets. “At J P Morgan, we view leverage as a potentially powerful resource,” burbles the firm’s website, but like Goldman Sachs and other Wall Street habituees, JPM is ludicrously over-leveraged….and really hasn’t a clue to the nearest $50 billion how much of its debt is or isn’t adequately hedged.

So what on earth is this Wily ol’ Coyote doing running our dear old Post Office?

Well, you may recall that when Teflon Tony was shoved out of Downing Street by the Caledonian blackmailer resigned gracefully as Prime Minister in 2006, he fairly swiftly became a consultant to…..J P Morgan. Within months, Northern Rock went under and, to save three Labour seats, was bailed out by Alistair Darling, Brown’s Chancellor of the Exchequer. Now, you’ll never guess who lucked into getting the good bit of the bank where all the savings were: J P Morgan, thanks to an introduction from Moral Tone. We the taxpayers picked up Northern Crock, the debt-ridden part that was standing on the naughty step.

In a speech last month, Blair observed that “We need to be on the side of the modern-minded, sensible people”. All along, in fact – as the debate raged throughout the Naughties – he insisted that we couldn’t afford to keep the Post Office going in its then form. So although Peter Mandelson made promises to the TUC in the mid 1990s that he would keep the royal mail a closed shop if they helped get Tony Blair into power, once in power Mandelson demanded they get rid of 30,000 staff.

Ironically, Margaret Thatcher never seriously considered privatising it. Like most people of her generation, she saw the post as one of the bulwarks of the British state — an institution of which the nation could be proud. But Tony Blair had very different ideas.

As part of the softening-up process, Blair propagated the myth that the Post Office was losing money. This simply wasn’t true: in 1999, it contributed £310m to the Exchequer, and had made a profit for every one of the previous twenty-three years. But keen to conform to the new orthodoxy of Thatcherism, New Labour meddled and fiddled and left it in limbo, neither public nor private. Meanwhile, deliveries were slashed, staff numbers were axed mercilessly, and many villages saw their post offices sacrificed in the name of solving an  inefficiency problem that didn’t exist.

Even the bonkers Dacre Mail observed last December that ‘Future generations may laugh with disbelief that we were so attached to our state monopoly. But the Royal Mail’s proud history is a reminder that there is more to life than fat profits for the few.’

One of the few is, of course, Teflon himself. When he joined Jamie Dimorgan Chase, the former British PM gushed (my italics):

"It is a great opportunity to be able to contribute to
 the work of JPMorgan Chase. They are a leading company at the cutting edge
 of the global economy, with a footprint in virtually every part of the
 world. I look forward to advising them on how they approach the huge
 political and economic changes that globalisation brings."
Well, one of the huge changes wrought by braindead neocon globalism was an awful lot more folks needing welfare. And funnily enough, the piratical moron has wound up doing just that.
The deal between Blurrgh and Morgan has been hugely enriching for both sides. A month ago, Blair made $1 million in less than three hours by brokering late night talks between billionaire businessmen trying to save a £50billion mining deal.
And no doubt, when the hour came for the Post Office to get into bed with JPM, Tony was able to oil the wheels and grease the pump. I don’t know that’s what happened. But isn’t it awful when you suggest such a heinous thing about a former socialist, God-fearing bible-thumper, and everyone’s immediate reaction is that it’s highly possible…not to say probable?
As they used to say in the mail business, “Sorted”.

19 thoughts on “Broker Blair, JP Morgan, and benefits from the Post Office

  1. Tony Blur (none quicker) keeps on pushing the envelope, but has the stamp of a dissembler. Frankly, we don’t need any more of his deliveries.

    • Very scary chart – does not look good for the Dutch or the UK especially if these Frankenstein monsters further tighten their hold on government.

      Fascism should rightly be called Corporatism, as it is the merger of corporate and government power.
      Benito Mussolini

  2. John – are you mixing up the Post Office and Royal Mail ? They are not the same thing any more.

    Sure the EU was behind the ludicrous destruction of a fine UK service. What have we now from Royal Mail? Answer, the most complex and expensive pricing structure and the worst actual service in living memory. Not a day passes without (i) mail going missing, and (ii) a card being included saying that the poster has underpaid and there is a £1 handling fee to pay (if we can be arsed to go up to the sorting office to collect it).

    The system wasn’t broken, so of course New Labour (Mandelson & Bliar) felt obliged to ‘fix’ it.

    • MM
      The separation of the two wasn’t a done deal until quite late on. They (Royal Mail) were a client of mine in the late 90s, and their role was very much delivery. The Post Office was more about retail services, but separating the two was a typically daft idea – like trains and tracks. It just diluted the identity.
      My real fear in this is that Morgan will go tits up and everyone’s benefits will go up in smoke.

  3. Pingback: John Ward – Broker Blair, JP Morgan, And Benefits From The Post Office – 5 October 2012 | Lucas 2012 Infos

  4. The hedge funds are smelling blood with JPM at the moment. JPM had to pay above spot paper price for silver the other week at $31 an ounce for physical. Current silver price $35 which isn’t fun if your up to your neck in paper short positions and people are buying up the physical to create shortages.

  5. ‘Broker Blair’ really fooled everybody after John Smith died, into thinking he was a socialist. I was in France, watching french TV two days before the GE in UK, when Blair was interviewed at the airport, about to depart for UK The reporter asked him in french, “Mr. Blair, you will be the first Socialist PM for 13 yrs…..” Blair replied, Non,non, non, je ne suis pas socialiste, socialism, ça c’est du passé “.(I’m not a socialist, socialism is in the past).My husband said if only there was someone in journalism in UK we could tell, we could screw this bugger.. There wasn’t the internet then, or anyway we didn’t have it, & I had no idea of the telephone numbers of any english papers……But, then would they have printed it? Somehow, after all that has passed, I doubt it.
    So there you are, Blair was never a socialist, it was just something to hang his hat on while he climbed up the greasy pole.

  6. Very good article John. Do you have a theory as to why so much is not being reported by the mainstream television and print media these days? It’s critical world changing stuff and no one mainstream is reporting it. Also would you consider writing a piece explaining or commenting on how advertising and PR works in context what you research and write about. I ask because I struggling to research the matter.

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