STATE PENSION REFORM: demolishing the ‘no money’ nonsense once and for all



mesnip18716In the next thirty minutes, the Commons will debate a pointless waste of money called QE. The Slog investigates how much it has cost, and asks how, in that light, anyone can take seriously the assertion that there is “no money left” to reinstitute the pension rights of SPA reform victims

Around 10.30 am today, there’s a debate in the Commons about monetarism in general, the Government’s continuing use of QE, and the increased inequality they have caused wherever used around the world.

It says a lot about the incipient madness of these policies – and the apathy of the publics involved – that half a decade after it became obvious QE does nothing except pump up the markets and ‘financialised’ profits of multinationals, not only are legislatures debating whether it’s a good idea, there is also still a debate about its effect on material inequality.

I’m aware of a tendency on my part to at times overuse the word ‘madness’, but on this occasion I have as my star witness perhaps the brightest man who ever lived, Albrecht Einstein. He said “the definition of insanity beyond the sub-atomic zone is doing the same experiment over and over again in the expectation of getting a different result”.

From the point of view of the average citizens’ wellbeing (and as a Benthamite, I recognise no other measure as equally worthy of consideration) QE has been a total and utter waste of money. It has also led to the further electronic creation of fiat money, and thus stored up yet more conditions for the hyper-inflation we now all face.

“Ah but,” say the pointy-heads, “imagine how ghastly it would’ve been without QE”. I hadn’t noticed it being plain sailing with it: my pension slashed by 60% and investment income by 90% isn’t what I’d call a result. It neutered the spending power of the Baby Boomers, and thus exacerbated the recession we’ve all been in since 2009. (The final insult has been to refuse to recognise that recession by including QE in the total of ‘economic activity’- a scam straight from the pages of Jonathan Swift.)

In a logic-defying bid to exacerbate this situation further, both the EU and the UK embarked on austerity policies, neither of which had even a mathematical possibility of reducing debt. From Athens to London via Rome and Madrid, economic recovery has been squashed by an ideology insisting that cutting services could reduce debt when falling trade activity was increasing deficits….and thus building up the existing national debt further still.

For their role in this farrago of f**kwitted behaviour, there is a reasonable case for the summary execution of George Osborne, David Cameron, Wolfgang Schäuble, Mariano Rajoy, Jeroan Dijesslbleom, Yanis Stournaras, Evangelos Venizelos and Mario Draghi.

Wait a minute (you ask) how did Draghi slip in there? With enormous ease actually, because he has been the architect of eurozone QE, a three-times tried policy currently in the middle of yet another disastrous inability to live up to the ludicrous hype that preceded it.

But ultimately, I’d be happy to commute all their sentences to hard labour for life if it meant we might see the public executions of Iain Duncan-Smith and that brief Blimp on the UK political radar, Stephen Crabb. Because these two have led the ultimately idiotic movement now declaring that – thanks to the amateur fiscal management imposed upon the UK since 2008 – it is “unfair to raise the hopes of 1950s women with delayed State pensions, because there simply is no money left in the budget”.

Not only has this breathtaking example  of mendacious cheek taken hold, it has also been actively supported by self-styled experts…. the leading members of whom include the smug comedian John Ralfe, and the ethically muddled Frances Coppola – the latter of whom sees SPA victims as inflexible because they refuse to be means tested about whether they should get their own money back. As the tabloid hacks are wont to remark – and the naysayers against WASPI aims have rarely lifted their ‘logic’ above that risible level – ‘you couldn’t make it up’.

We would all do well to stay with the ‘logic’ of those who call for compromise, and interrogate their motives a little more closely.

What the government would like to do is gradually persuade everyone that the Government can “no longer afford”to give State pensions. Jeremy Hunt is at the same game at the Department of Health, as were Tory predecessors when it came to rail, water and electricity provision. A small group of people in the private pensions sector will make aircraft hangars full of money if and when that nonsense becomes received wisdom. So there is clearly an agenda going on: soi-disant ‘financial advisors’ have everything to gain and nothing to lose in trying to rubbish the Waspi case….and position the ‘No Compromise’ group as unreasonable extremists on a par with the Jihadists of Daeth. Laugh if you like: it’s a natural reaction, because the anti-Waspi arguments are profoundly laughable.

This agenda does not, I hasten to add, apply to groups like Waspi Voice: their desire for ‘a practical Ask’ is based on approaching destitution and the weakness of their financial positions. Both the Government and private sector pension suppliers are fully aware of this, and it is at Waspi Voice et al that the be reasonable/compromise/no money left message is aimed: it’s a classic case of divide and conquer, and it is working extremely well.

But from base camp upwards, the agended argument is misleading, hypocritical and a complete falsification of the real position.

Ask yourselves this: the Government has so far “saved” £32billion by breaking its promise to 1950s born female SPAR victims. If RBS needed £32 billion to avoid bankruptcy next week, do you think the Treasury would say “Sorry, no money left”? The very idea is beyond idiocy.

Today’s Commons debate is about Government use of QE over the last eight years. Not counting the £780billion used to bail out our banking system – that’s more than the US spent on theirs – QE has cost the Exchequer, it is estimated, in the region of £875 billion.

To honour a promise made 60 years ago, the Government needs £32billion.

Now here’s an interesting statistic: between March 2009 and mid 2011 alone, QE cost the taxpayer £450billion. In late 2011, Osborne hastily sent out letters (most of them to WASPIs who had not been contacted about the 1995 Reform) informing them of their intention to rob them of even more money. I can’t imagine why….can you?

£450bn given to stock market traders and bankers, who continued to pay themselves obscene bonuses, and which contributed nothing whatsoever to the non-financialised economy. And £32billion taken off pensioners living on a fraction of those salaries having paid NI subscriptions during four decades.

No money left? Oh per-leeeze, do shut up.

I’m saddened that the black propaganda of these disgusting gargoyles has split a Waspi organisation already weakened by secretive leadership and amateur publicity approaches. But I do not wish the compromisers ill. I remain firmly of the view that, when faced with such a sociopathic and ruthless enemy, the worst thing you can do is weaken your hand before you start. But if that’s the tack they’re driven to through desperation well, I do understand. Many of us have, at various points in our lives, stared ruination in the face. It is not conducive to rational thought.

The carpetbaggers I detest are those who arrive on Twitter with a script that never changes and a self-interested agenda designed to enrich them and pauperise innocent female citizens. Some are, I and others suspect, employed by this DWP that has no money. Some are  collaborators bringing forward the day when they can clean up at the expense of the poor. And others still simply suffer from low emotional intelligence and an ‘I’m alright Jack’ superiority complex.

I would urge ALL those involved in this what-to-do debate in relation to The Great Pension Heist to watch the debate today on BBC Parliament. And I will take anyone’s money at 4-1 that State Pension victims will not get a mention.


28 thoughts on “STATE PENSION REFORM: demolishing the ‘no money’ nonsense once and for all

  1. Thin end of the wedge I’m afraid, get away with this one, who’s next in line?
    What’s that old saying? First they came for the….
    Now, interstingly, Martin Lewis of moneysavingsexpert fame has started a group of energy users who will use their overwhelming size to influence energy providers to offer better deals.
    Why can’t the WASPI’s do something similar with their voting choice? Or are they not a large enough group to influence?

    Liked by 1 person

  2. Superb article JW. At root of this swindle is the interest paid to private banks on the public debt.

    Just to be picky re. Einstein. I cannot believe that someone who spent his life having his theoretical models tested by experiment could have made such a statement. The reason that multiple repeats of any experiment are performed and the fact that uncertainty analysis is such a key part of the experimental process is precisely because every experimentalist expects a slightly different result every time the same experiment is run.


  3. If it were possible to enforce moral bankruptcy, the entire govt. and opposition would be in receivership; logic, common sense, and integrity have left the building.

    Liked by 2 people

  4. That is the point about QE those with the most to lose and with all the power have used it to preserve their own position.
    Sad reality is if we all had a printing press all elites become worthless and powerless and why the serfs are not allowed one.

    OT – but there are so many topics nowadays = too many issues / f%^k ups to discuss.
    Tomorrow the hidden EU agenda starts to get revealed actually as I have reittereated many times if the EU was democratic no big deal it can be changed from the inside. (it ain’t – for all those idiots that believe it can be changed from the inside, the mechanism to change it does not exist on the inside it was not created that way – what fools.)

    Declaration of the EU army … far more surprising another article hits the track running though … no not Article 50, the use of Article 44 for the first time, a fast track process of appointed to deal with an issue … this undemocratic process and zero accountability and so the formation of the tyrant takes shape. For defence, you mean boot stomping heads on those nations that may try to leave. The EU executive order if you will so not just the loss of veto you could have used in the best interests of the UK population, QMV waste of time if your are in the serf league to outright do as your are told Article 44.

    I would comment on the crimminal act the past 40 years of the UK parliament to cede sovereignty to the EU superstate knowng full well in the end our form of governance would be destroyed – but that would require a rope.

    Liked by 1 person

  5. The UK government is practising the economic equivalent of Hari-kari, which Europe calls “austerity”, where the more the UK government cuts spending,  the worse its deficits get.
    As a matter of simple logic & arithmetic; there is a 0% probability of this policy fixing the economy, and a 100% probability it will lead to bankruptcy (exactly as it did in Greece).
    Indeed, UK austerity has been so self-destructive that as the government savagely cuts with its fiscal policy, we have the Bank of England simultaneously engaging in quantitative easing with monetary policy. The analogy is obvious. It’s like driving a car with one foot jamming the brake pedal to the floor, while the other foot jams the gas pedal to the floor.
    Note that the UK’s dismal economic performance (and the dismal economic performance of all Western economies) comes despite permanent, near-zero interest rates. This is the economic equivalent of a defibrillator: a measure so extreme on a patient, that it’s only intended to be used briefly – and only in the most dire emergencies.
    Yet here we have the West’s ‘economic quack doctors’ perpetually frying all of these economies with this high-voltage emergency measure.
    Years of such reckless, mindless, shock-treatment has done nothing but bring all of these economies to the brink of total collapse (with Greece already past that point).
    The UK economy is out of kilter, with too much emphasis on the Financial sector. The financial sector does not create wealth, it creates funny money. Finance is not the Economy and does not create wealth but inflationary money.
    It has been a net negative input to the economy over 10 years,( see Andy Haldane ,BoE)
    Until the BoE invests directly in real wealth creating Productive Industry and employment, we will never escape from this downward spiral to poverty ,chaos and civil unrest.
    Industry creates wealth and employment, the taxes accrued will cancel this investment over time.
    The basis of all our financial and social problems is money. Specifically the means by how that money is created. The UK Govt, via the Bank of England only creates approx. 3% of our money, by the issuance of currency in paper and coin, ( QE is a very rare and desperate measure and is a form of welfare for banks).
    The private banking system creates the remaining 97% by issuing loans with interest attached. That mortgage on a house was money created by the bank , and guaranteed by the borrowers deposit repayments. That credit card in your wallet is money created by your guaranteed repayments.
    There is confusion about money. Money is a means of exchange, a token, a tool to enable trade and industry, in itself it is not wealth. It is given its worth, because the Govt accepts it as taxes and enforces, using the powers of the Law.
    Money is a weapon when issued as debt, enabling confiscation of property or plant, if a debt is not paid.
    Too much money in an economy,drives up the price of assets. Asset price ,rises and money de-values.When asset prices get beyond the point that loans cannot be repayed, we have a financial crisis. This is the point we have now reached as is painfully obvious in our housing and rental sectors.

    Liked by 3 people

  6. On the basis that I believe our interference in Afganistan ,Iraq and Lybia have conspired to make the world less safe ,not safer, I would add the cost of those to the 870 billion,whatever 875 billion looks like.

    Liked by 2 people

  7. Iain

    Accurate scientific testing has been frustrated by the difficulty in collecting sufficient viable samples for evaluation in each sub-species as they are either too oily, or too venomous. It is almost certain, however, that any distinctions are so infinitesimally small that they can safely be disregarded. Extermination is highly recommended.

    Liked by 2 people

  8. @ Mark Deacon. Re EU Army, it already has a base at RAF St Mawgan, French armoured vehicles with Euro markings, on Brit soil.
    Their arrival was by civvy ferry….. trouble is, nobody told UK Port Officials, UK Plod, Military Police, Customs, Boder agency…. so the debark chaos was pure “Carry On… ” So much for GCHQ, Menwith Hill, or HMG tipping a wink!!!!
    Finally a brave Plod was assigned to lead the flying column down the M4, at 20mph max. More chaos. Not much MSM coverage, probably had a D Notice ….. for Dunce. Bet the St Mawgan chippy stayed open all night., with a wink from Plod.

    Liked by 2 people

  9. @Iain,
    There is none, all are trying to convince the uninformed that what they have is valuable, when it is nothing of the sort.


  10. This is the logical progression, having already softened up the MSM and it’s readership that all “benefit scroungers” are beneath contempt for being destitute and needing a safety net. Next, defraud the 1950’s women and all SP recipients by moving the SPA qualifying age and paying only the totally mis-named “flat rate pension benefit”, being told the previous promised pensions are unaffordable.

    The very year the WASPIs are due to get their SP (which is now we are being told is a “benefit”) the SPA is due to be revised up to 70. No wonder so many women affected know they will not live to see any pension.

    Liked by 2 people

  11. Actually scientists repeat experiments because there is inherent variability, but one doesn’t ever expect a different outcome of repeated experiments. One expects the same result within statistical limits of variance. Scientists repeat experiments to provide proof of stability of the result. In the philosophy of science, any evidence for a phenomena cannot be considered to have been established as proving a fact until others, the world over, repeat the same experiment and indeed get the same result.

    Liked by 2 people

  12. JW that is two posts now vanished into the ether and I am wondering why.

    Lets see, commended both you and Salford Lad, critisized QE and the creation of money as debt by banks, highlighted the role of in starting the petitions to get these matters debated.


  13. Well that is three posts now gone into the ether. I must be upsetting someone and your site must be compromised in some way John.


  14. @ JW Add former DWP junior minister and allround bought & paid for spivrat Justin Tomlinson to your execution list re dealings with the execrable Wonga.


  15. The madness inQE is that taxation could do the same without creating the same amount of inflation because it uses the money already created to reset the dynamo of industry going once more!QE only means that values are more & more distorted & that means more & more money to solve the problem & therefore greater & greater cost & price rises to do so! or the inevitable collapse because we have run out of trees & raise Earth core temperature to dangerous levels!


  16. Getting scary now. “Our New Unhappy Lords” seem to be able to pull any post they don’t like. I wasn’t impolite or racist and didn’t even mention ropes and lamposts because there are simply not enough lamposts.


  17. @waldg
    I thought that it was the subject matter, but some of my rejected posts have been so anodyne that I honestly think the blocking of posts is random. If anything, this makes it even more frustrating as we cannot use euphemisms or coded references to bypass the blocking. I share your pain :-)

    Liked by 1 person

  18. As state pensions are unfunded ,there is no money to be paid out. National insurance is like road tax. There isn’t actually a shoe box with the money allocated in it. As has been posted here before the pensions black hole is greater than the national debt. It’s a con like road tax.


  19. When there has never been so much money,it hard to believe their isn’t any,their is plenty,too much!! but in all in the wrong peoples hands!


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