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Tuesday, November 04, 2008
Who Do You Think You Are Fooling, Mr Brown?
This is brilliant. Alex Masterley has decided to send a video message to Gordon Brown about the level of public debt. Apparently he has asked for it. In more ways than one.
Devastatingly effective. But doubtless that Macavity won't be asked to answer something like that. He'll most likely be asked more pressing questions - such as what his favourite colour is, or what cereal he eats in the morning.
Where are the liabilities for the State Pension and the State second pension?
If you take money from people and promise to pay them back when you retire, it is a liability. It's not on the books.
It passes the duck test. If it walks, quacks and looks like a duck, its a duck.
If a bank takes a deposit and has to pay it back in 20 years, then it is a liability, and it has to match it with assets. In Brown's accounting world, its income, and its spends it.
The fact that you can ring up the government and find out how many years you are entitled to of state pension, means that its a liability.
The only question, is to how much. You can reduce the effect by making the state pension 1p a week.
Is it my imagination or does the music (the guitar sol in particular) fit the words, particularly on the last slide. I found it had an almost hypnotic effect. Very subtle.
Where are the liabilities for the State Pension and the State second pension?"
True, but unlike the civil service pensions, there is actually no contractual obligation on the government to pay the state pension. They could simply cut it at any time.
You might think "I have paid my NI all my working life. This sounds like a Ponzi scheme."
8 comments:
Devastatingly effective. But doubtless that Macavity won't be asked to answer something like that. He'll most likely be asked more pressing questions - such as what his favourite colour is, or what cereal he eats in the morning.
You're fooling nobody, Gordon.
You do know that Alex msterley is a fictional character, don't you?
"Anonymous said...
You do know that Alex msterley is a fictional character, don't you?"
Indeed I am, but that doesn't stop me having my own blog: The Financial Crimes at http://alexmasterley.blogspot.com/
"Indeed I am, but that doesn't stop me having my own blog: The Financial Crimes at http://alexmasterley.blogspot.com/"
I've looked. It's distinctly two-dimensional.
How come a fictional character talks more sense than our fairly real PM? I am confused.
The fact remains, Blair is a war criminal and Brown has committed fraud on an Enron scale.
And we just sit here moaning about it.
It still ignores the elephant in the room.
Where are the liabilities for the State Pension and the State second pension?
If you take money from people and promise to pay them back when you retire, it is a liability. It's not on the books.
It passes the duck test. If it walks, quacks and looks like a duck, its a duck.
If a bank takes a deposit and has to pay it back in 20 years, then it is a liability, and it has to match it with assets. In Brown's accounting world, its income, and its spends it.
The fact that you can ring up the government and find out how many years you are entitled to of state pension, means that its a liability.
The only question, is to how much. You can reduce the effect by making the state pension 1p a week.
Nick
Is it my imagination or does the music (the guitar sol in particular) fit the words, particularly on the last slide. I found it had an almost hypnotic effect. Very subtle.
nick:
"It still ignores the elephant in the room.
Where are the liabilities for the State Pension and the State second pension?"
True, but unlike the civil service pensions, there is actually no contractual obligation on the government to pay the state pension. They could simply cut it at any time.
You might think "I have paid my NI all my working life. This sounds like a Ponzi scheme."
And you know what? You would be absolutely right.
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