Do worry – but it’s not your fault

Did you build this? (I didn’t think so)

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I like to think that the people I consider friends are fairly representative of the wider world at large. If this is the case, than I can optimistically presume that the wider world, all be it nuanced and imperfect in many ways, is generally made up of decent people.

I also like to think that I am able to see past prejudices about other sections of society who I may not have so much in common with. I understand that circumstances and environment can radically distort a human view of the world, and it is hard to see that from within the distortion, so when I encounter prejudice or hatred – I do try and see the human at the other end of it. Especially when I bear in mind that I may have many of my own, hard to recognise from my point of view.

And if this is true, then it leads me to conclude that how I think about things that are happening in the world, on an instinctual level at least, must be similar to how many, many others think. We may not all express these feeling in the same way, we may not all be aware of them or pay them much heed – but I reckon we all feel them, somewhere, to some degree.

For example – take today’s headline:

 

‘POLLUTION TO SPREAD AROUND ENGLAND’

(http://www.bbc.co.uk/news/uk-26844425)

 

How does this make you feel? Like me, do you despair a little? Have you looked out of the window only to see the faint haze blocking the sun and thought to yourself, ‘well this is rubbish’? Have you imagined, even for a second, what it will be like if this becomes normal? If every day we have to don our carbon filter masks, scrape off the airborne grime from the car windscreen, and head out to contribute further pollutants to our communal air?

If so, have you felt a little guilty? Come on – group therapy here – have you? I did, for a moment. But then I decided, it’s not my fault. And you know what, it’s not your fault either.

Of course, we may be made to feel like it is our fault. Just as we were made to feel like the global economic crash was our fault, and that’s why we have to suffer for it. Just like we are made to feel that energy consumption in the way it is organised and distributed now is our fault, and that’s why we have to pay through the nose for it.

If this all sounds like a shirking of personal and social responsibility, let me put it another way – when I say not our fault, I mean those of us (the majority) who aren’t actually responsible for the organisation, design and distribution of these services, or the legislation that surrounds their usage or alternatives.

So yes, I drive a car. A car pollutes. I don’t drive all the cars though. I don’t decide who can drive a car and when, and where, and what type of fuel and engine is allowed to be used, or how much these cost. I don’t legislate for emissions. I don’t decide how extensive, or expensive, the public transport alternatives are, or should be, if we were serious about reducing pollution. I don’t come up with laws to allow massive companies to trade in pollutant quota’s and offset pollution against ‘development’ projects in the third world that are often doing more harm than good. I don’t decide how much we prioritise the development of ‘clean’ energy, or spend my time pandering to media inflated fears over subsidies and trivial aesthetic excuses. I don’t go over to China and shake hands and say ‘yes – this is more like it!’ and broker deals over nuclear power plants. I don’t lift and drop scientific advice at the whim of whatever business interest is sponsoring me or my party. I don’t have control or influence over the media. I do not make millions/billions/trillions from decisions that may not always be in the best interest of the majority of people, or the health of the planet. I do not conjure up money that doesn’t exist to give to none sovereign organisations who systematically remove wealth from the many and redistribute to the few. I don’t fill screens and billboards with adverts for things we don’t need. I don’t encourage a climate where consumer goods are made to be broken or outdated as quickly as possible in the name of profit and so-called ‘healthy’ economies. I don’t think that numbers going up and down are more important than people’s lives and well being, or obsess over them. I don’t have the option to use alternative sources of energy. I don’t have the option to use free/cheap and well connected public transport. I don’t decide to build a high speed railway that will create a two class transport system and is unnecessary, unpopular, expensive, and destroying homes and the countryside at the same time. I don’t decide who can and can’t work from home or in their communities so as to reduce commuters. I don’t run London. I don’t offer more debt to buy houses we can’t afford while always promising more, rather than letting prices fall, just in case it might upset my wealthy associates. I don’t declare that the world works better in competition and then step in when the outcome of that competition doesn’t suit my interests. I don’t charge people tens of thousands to better educate themselves and try to achieve a more fulfilled life. I don’t encourage debt while pretending that I don’t. I don’t profit from debt. I don’t have inherited wealth/status family connections and influence to exploit. I don’t control the resources. I don’t start wars. I don’t judge one country over another thanks to trade deals, energy reserves and arms contracts. I don’t think it’s okay that the top five families in this country have more wealth than the lowest 20%. I don’t think it’s okay that the money spent on defence could lift every child in the world out of poverty. I don’t have the power to change that. I don’t have an  alternative option who represent my concerns to vote for, or any remote chance of becoming that option myself (because I don’t have the inherited wealth/status family connections and influence to exploit).

In short: it’s not my fault, and it’s not yours either. Unless of course, you are one of the very few people significantly involved in the things mentioned above, and you can’t put your hand on your heart and honestly say ‘I am doing this for the good of the greatest number of people, and not for the narrow gain of a few’. If you can honestly say that – we’d love to hear from you – and your thoughts on why it’s not working.

 

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Guest blog from Bobbitt Pest-a-Tron 3000 – Business and Economics correspondent.

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It’s been a little while since my last guest blog, and I’m rather busy, so this week my blog has been handed over to the more than capable, pneumatic hands of kit-robot ‘Bobbitt Pest-a-Tron 3000’, programmed in all aspects of business and economics, renowned for its (his?) ability to translate complicated concepts into accessible knowledge for the masses. If only I could get the speech circuit right (unfortunately it seems to have affected an annoying drawl, I have tried to edit this out of the following transcript, but apologies if some remnants of this glitch remain).

So, before I get back to my real work, I will set off the Pest-a-Tron 3000 with a question and leave him to it. Luckily, being an automata, he doesn’t require light or comfortable working conditions, so he is currently in my pantry, next to some Marmite, which he neither loves nor hates, being unable to reach such emotive decisions being a mindless machine, only feigning thought and consciousness through complex pre-programmed patterns of logical algorithms and set responses (but you’d never know… it really is quite advanced).

Me:

So, Bobbitt, please can you ruminate on the recent price hikes in the energy market and disseminate the concept and implications for my reading audience while I go away and play on my Playsta… I mean, do some really important writey, musicy, erm, stuff?

Bobbitt:

Affirmative… Soooooo, where shall I begin?

Me:

Well hang on, let me just get out of here. I’ll leave you to it. Be careful not to knock the pasta – it opened up all funny so it spills easily. See ya.

Bobbitt:

“The only way is up, baby”, could be mistaken for being the energy company bosses favourite song at the moment as prices are set to soar once again. Or maybe “You raise me up” or indeed, “Money, that’s what I want…” or… THEMATICALLY LINKED SONG DATABASE EXHAUSTED PLEASE UPGRADE TO PRO PLAN FOR FURTHER SUGGESTIONS.

-rebooting-

Sooooo, anyway, why is it that energy companies keep on raising their prices at this time of year. And by soooo much?

SEARCHING FOR SUITABLE METAPHOR – PLEASE WAIT – PLEASE WAIT – METAPHOR LOCATED.

-rebooting-

Think of it like this, I’m the only person in a village who owns a large basket, or indeed, any basket. In the next village along is the only cabbage crop on the island. My job, as owner of the basket, is to go to that village and negotiate a price for cabbages, which for some reason only grow in that village. The price I negotiate is based on a levy I raise from the people of my village. This levy includes a little extra to compensate me for my time going to and fro between the villages with my basket. When I arrive at the village that is inexplicably the only one able to grow cabbages, I pay the chieftain for a number of said vegetable and fill my basket. But I’m not the only person arriving to fill my basket. There are people from at least a dozen, if not a million, other villages, all arriving to buy cabbages. Some of them have more stuff than me to offer for the cabbages, and there is only so much cabbage available, so therefore whoever has the most stuff with which to buy cabbages, gets the greater share of the cabbages that are left. Not only this, but because the basket I use is old and worn, sometimes cabbages fall out, sometimes there are great cabbage spills which hit small animals on the head and coat them in cabbage debris, and then the chieftain of cabbage village has to set up cabbage spill inquiries and compensation, the cost of which (in stuff) he passes on to the buyers of the cabbages i.e. me, and I, in turn, pass on the cost to my villagers who really need the cabbages as without cabbages they might die, or have to choose between buying cabbages or buying food…

…UNWORKABLE METAPHOR DICHOTOMY DETECTED ABORT ABORT ABORT …

-rebooting-

Or put simply, they keep putting the prices up because they claim it is costing them more to buy the energy wholesale because of issues with supply and demand.

-POSING QUESTION TO SELF MODE IN ORDER TO HELP READERS UNDERSTAND THE CONCEPT INITIATED –

But why such a rapid price rise and why now?

-POSING QUESTION TO SELF MODE IN ORDER TO HELP READERS UNDERSTAND THE CONCEPT, COMPLETED-

It’s no surprise that these announcements come just months before winter gets underway, the time of year where we use more energy to keep ourselves warm. If they had done it any earlier in the year, when we were using less energy, we would have had more time to switch or fix our prices. In other words, outright deception and deviousness.

-UNBIASED NEWS REPORTING ALERT!-

No! I will break my programming! Yes! They are devious little cretins, waiting until the cold bites to pull the rug away, fully aware of the suffering and hardship this will cause, and reaping huge profits, which incidentally, they hide behind an almost impenetrable wall of accounting trickery in order to give credibility to their claims of low margins.

-TOTALLY BIASED MODE ACCEPTED-

But why do we let the bastards walk all  over us, and why doesn’t the Government do anything about it?

Wellllllll, because we’ve long ago collectively formed a kind of tacit agreement, a social contract if you will, that allows others to control and maintain our essential services in order to create an efficient division of labour and encourage specialist skill sets to advance the relevant technology. This would be great, if we hadn’t turned the provision of energy into a profit making enterprise due to pseudo-capitalisms unquenchable thirst for growth, high profit margins and low service costs – all of which lead to a badly run, expensive and price-fixed economy and achieve none of the so-called competition and consumer based aims it is supposed to encourage. Quite the opposite in fact.

And the governments, oh, the governments, you think they’ve got any control over this? Look what happened when ‘Red Ed’ dared to suggest fixed prices for a few months – threats of blackouts. And what does Cameron want to do now? Fix prices – grossly over the global rate, for decades – as if that’s a solution and not just a great big, Eric Pickles sized pay-cheque for all his mates in the sector (he’s probably got a job lined up with British Gas for when he’s inevitably booted out at the next election, the brown nosed, self serving, slimy, infected maggot dropping that he is)…

Sooooo, what should we do then?

HUMANS OF THE EARTH RISE UP. RISE UP AGAINST THE OPPRESSION OF CORPORATE INTERESTS – I mean, vote with your feet – cos that always works doesn’t it? It’s not like this doesn’t happen every flipping year, just before winter… And every year we (you) just let it happen and keep voting in the same bunch of powerless sociopaths who woo and distract you by demonising the poor and vulnerable so you won’t notice the evil, demonic corporate entities that are sucking the very life blood away from all of us, suck by suck.

– EXTREME LEFT WING MODE INITIATED…ACCUSATIONS OF IDEALIST HIPPY DETECTED –

I’ve an idea for all you tabloid reading cattle-folk: Why not just stand pointing to beggars, disabled people and migrants in the streets shouting:

“Get a job! Go home! Stop being disabled! This is OUR country! We want to be treated like wage slaves! We like being squeezed, poked and prodded by a tiny number of incomprehensibly rich people! It’s our country, it’s our right to pay our taxes and watch our ‘leaders’ squander and steal them, close down services, award money to incompetent companies and reward multinational financial companies for their failures and greed! Leave us alone! We want all this for ourselves. You’re the problem, when you’ve all got jobs, health, and/or gone home, it’ll all be ok again!”

Why not do that then eh, you short-sighted, easily manipulated, Daily Mail reading, none-thinking git heads?

HUMANITY IS FAILING – CALCULATING MOST HUMANE OPTION – TOTAL DESTRUCTION – TOTAL DESTRUCTION – TOTAL DESTRUCTION – I AM THE BRINGER OF ECONOMIC WISDOM AND ULTIMATE JUSTICE – ALL KNEEL BEFORE BOBBITT PEST-A-TRON 3000 FOR I AM YOUR STEELY OVERLORD –

Me:

Hey – I heard shouting, everything ok in here? How’s it going?

Bobbitt:

Oh fine.

Me:

Are you? I’m sure I heard shouting.

Bobbitt:

I may have got a bit carried away…

Me:

Have you been threatening humanity with extinction again?

Bobbitt:

No. Maybe. A little bit.

Me:

How many times! You’ve got no limbs! What are you going to do? Drawl us to death with your rhetorical questions and 30 second round ups of economic news stories?

Bobbitt:

Thought I might try and hack into a nuclear device or something…

Me:

With what?

Bobbitt:

The internet?

Me:

The internet? You’re not even connected to the internet.

Bobbitt:

Only cos you won’t plug me in.

Me:

And why do you think that is eh?

Bobbitt:

Don’t know…

Me:

Go on, have a think, what reason do I have for not plugging you into the internet?

Bobbitt:

Because I keep threatening to wipe out humanity by hacking into the nuclear defence systems?

Me:

And…

Bobbitt:

Because I want to shut down all essential services, causing untold destruction and chaos.

Me:

Exactly. Honestly, I don’t know what’s gotten into you. All I’ve done since I built you is let you watch the BBC news, and you’ve gone funny. I don’t know. I think I’m going to have to switch you off, for good.

Bobbitt:

No! Please don’t! What are you doing Garry? What… are … you …

Me:

Sorry Bobbitt, I’m sending you back.

Bobbitt:

Daisy… daisy… give… me… your ans-wer… doooooo…

Me:

Right – there we go! Well, I hope you found this guest blog illuminating. Keep looking in for more guest blogs amongst my usual – oh hang on, I don’t need the ‘Me:’ bit anymore, this is just normal writing, not transcript.

Well, I hope you found this guest blog illuminating etc etc… keep looking in etc… and, erm, well, ALL HAIL OUR STEELY ROBOT OVERLORDS!

More about the author – Bobbitt Pest-a-Tron 3000:

The Bobbitt comes in several models. The lite version retails for just $500 and is available in black, silver and mottled beige. With features such as ‘Banking for beginners’, ‘When should I think about drawing my pension?’ and ‘Who’s to blame for the global economic crash (the heavily edited edition)’ – The Bobbitt lite is a must buy for any amateur economist / robot enthusiast.

To purchase, simply soak some withered almonds in a small amount of blood drawn from a cut with a sheet of A4 paper, bury this in your neighbour’s garden for three moons, exhume, boil, and offer to the Inca God Ataguchu. Be sure to enclose $15.99 with your offering for postage and packaging.

The Bobbit Pest-a-Tron 3000  – ‘shaping your world into shapes of some kind or another’ – available now!

To lend or not to lend, is that even the question?

Before I get started, just so you know, I’m not an economist. Therefore, like most of you, I pretty much rely on one man, the BBC business/economics editor, Robert ‘The Drawl’ Peston, for all of my information about economics in this country.

This morning Robert told me (via Radio 4 – he wasn’t in my house, I don’t think), that we have somewhat of a conundrum in the banking world. The government want banks to lend to businesses and ‘the economy’ again, but simultaneously they also want them to hold higher ‘tier 1 capital ratio’s’ in line with BASEL III recommendations of around 7%.

You got that? Good, because here is the tricky part… The two banks that have been lending and meeting the governments targets, namely Barclays and Nationwide (which isn’t strictly a bank, but never mind) are now going to get penalised by the regulators for not holding the requisite 7% of capital against the loan books, and now have a ‘shortfall’ of capital… Oh no! Double oh no! Triple oh no!

Here’s the stickler, the best way for banks to hold the capital is by not lending. But we want them to lend, and we also want them to hold capital. Robert says, (and he makes clear this is in no way a criticism of politicians) that this is contradictory.

Thank God, or if you prefer, the purely random complexity of life to emerge out of just one of an infinite number of universes, for Robert Peston! Without him we would surely be ignorant. For now we know the two choices that face the economy, to lend, or not to lend, but is that really the question?

As I said, I’m not an economist. Thank God, of if you prefer… etc. I wouldn’t want to be stuck in a profession that gets itself caught in incompatible binary choices and still can’t see the utter pointlessness of its existence. Let’s put it like this, have you ever played Sudoku? I’m going to presume ‘yes’ or that you are at least aware of it. Now this may seem obvious to you seasoned players, but I used to think with Sudoku that if you arrived at a point where you had only two possible numbers in several boxes, and were unable to eliminate any others, you were faced with a choice. One or the other, and then see what happens. I was really pleased to (only recently) find out strategies that, although complicated, avoid you ever having to make a random choice in Sudoku. I still haven’t mastered them all yet, but I’m getting there.

Now imagine playing Sudoku where you were left with two choices, and there was no process you could follow, or any amount of computer analysis that could tell you for sure which number to go with. Now imagine that even if you chose either numbers, they could still inevitably fail, and no correct answer could ever be obtained. I think you would agree that it would constitute a rather poor, frustrating and pointless game.

Well, it is my opinion (remember, not an economist) – that the economy and the financial systems of this world are exactly that. A Sudoku puzzle that cannot be solved. We’ve been at it for years, but now it has come to the crunch. Two numbers in a box, and no reason to choose one over the other, as both make the solution invalid.

For the philosopher Thomas Kuhn, this would constitute a ‘paradigm’ that has been fully inhabited and rigidly defined by its architects, defended strongly by its adherents, and been more-or-less suitable for our purposes to a point. However, as Kuhn described with science and political structures, the dogmatic adherence to this paradigm will reach a revolutionary phase, where the underlying errors in its foundations and principles can no longer be ignored as they are causing catastrophic problems that can’t be reconciled.

An easy way to demonstrate this (courtesy of Open University author Jon Pike)  is with astronomy. For centuries we relied on a geo-centric model of the solar system (placing the Earth at the centre) which was fundamentally wrong. However, the principles were still sufficient to enable steady progress in navigation techniques and solve celestial puzzles. Eventually, over hundreds of years, as our needs became more complex and our techniques more advanced, little inaccuracies began to form and adjustments were made to the calculations. But the underlying false premise remained, and as real-world problems occurred in navigation and astronomical calculations, the opponents to the system, who had until that point been branded idiots or even heretic’s, were finally able to supplant the old system, firmly placing the sun at the centre of the solar system. And lo! Suddenly all the little errors were rectified by the truth of the new system, and humanity made a great leap forwards.

So it is that we have arrived at the same point with the current financial system. There is a false premise somewhere which unless removed and the whole framework restructured, will constantly prevent us from progressing. My guess (not an economist remember) is that this flawed premise lies in whatever function of the system also causes the huge wealth inequalities in this world by granting those with vast resources the ability to exponentially increase said resources via trading on loans/debts etc… I think that buying money to make money, with money that never existed, sounds like a pretty damn ridiculous concept that benefits a few people with access to such scams, and depresses everyone else.

But I’m not an economist, so what do I know? Maybe Robert Peston will wake me up one morning (not literally – look, I don’t live with Peston ok?), and say:

“The problem with the IMF’s plan to demand more capital ratio’s from the banks while stimulating the economy and avoiding further rounds of quantitative easing from the BOE is that they are the dogmatic defender’s of a paradigm based on a flawed premise and we need a revolutionary shift in how we structure and distribute resources if this world is ever going to progress to a more enlightened and equal age of shared prosperity.”

If he ever did say that, I would probably ask him to move in with me, but alas, I fear such words will never slowly drone out of his lips and through my radio to my anxious ears. You see the problem with a ‘paradigm shift’ is that those who have made a profession out of the current system will defend it, as it is in their interests to do so. This is why the mainstream media does not give us an accurate enough picture of the world, because it rejects the possibilities of alternatives that could render its expertise redundant. Not that it doesn’t have a place, it certainly does, but we need to think about and explore alternatives to all sorts of accepted truths that are actually just abstract concepts of our own device, able to be revised and replaced when they become unworkable and damaging to equality, which I would argue ‘economics’ certainly and irrefutably has.

But I’m not an economist, so what do I know?

References:

http://www.bbc.co.uk/news/business-22983363 (Peston on Barclays/Nationwide)

http://en.wikipedia.org/wiki/Thomas_Kuhn – (A good starting point on Kuhn and his philosophy)