Rankings and levers

October 12, 2008

Newspapers have been quoting the survey by the World Economic Forum in which business leaders have been rating the solvency of world banks.

The rankings however were compiled just before the recent £50 billion bail-out by the UK, the nationalisation of the Icelandic banks and the larger US bail-out.

The website has the co-authors interviewed from the 3rd to the 7th of October. The report itself was published on the 8th October.

RANKINGS

1. Canada

2. Sweden

3. Luxembourg

4. Australia

5. Denmark

6. Netherlands

7. Belgium

8. New Zealand

9. Ireland

10. Malta

11. Hong Kong

12. Finland

13. Singapore

14. Norway

15. South Africa

16. Switzerland

17. Namibia

18. Chile

19. France

20. Spain

21. Barbados

22. Bahrain

23. Slovak Republic

24. Brazil

25. Estonia

26. Austria

27. Panama

28. Mauritius

29. Kuwait

30. Qatar

31. United Arab Emirates

32. Trinidad and Tobago

33. Senegal

34. Israel

35. Portugal

36. Iceland

37. Cyprus

38. Botswana

39. Germany

40. United States

41. Lithuania

42. Peru

43. El Salvador

44. United Kingdom

45. Greece

46. Benin

47. Costa Rica

48. Malawi

49. Guyana

50. Malaysia

51. India

52. Puerto Rico

53. The Gambia

54. Montenegro

55. Mexico

56. Croatia

57. Czech Republic

58. Jordan

59. Ghana

60. Suriname

61. Brunei Darussalam

62. Latvia

63. Saudi Arabia

64. Kenya

65. Jamaica

66. Honduras

67. Zambia

68. Burkina Faso

69. Slovenia

70. Sri Lanka

71. Pakistan

72. Philippines

73. Republic of Korea

74. Romania

75. Thailand

76. Madagascar

77. Colombia

78. Cote d’Ivoire

79. Italy

80. Bulgaria

81. Hungary

82. Cameroon

83. Georgia

84. Oman

85. Tunisia

86. Paraguay

87. Nigeria

88. Armenia

89. Morocco

90. Dominican Republic

91. Bolivia

92. Malia

93. Japan

94. Tanzania

95. Moldova

96. Bosnia and Herzegovina

97. Poland

98. Nicaragua

99. Venezuela

100. Uruguay

101. Guatemala

102. FYR Macedonia

103. Syria

104. Albania

105. Nepal

106. Mozambique

107. Russian Federation

108. China

109. Uganda

110. Serbia

111. Egypt

112. Ukraine

113. Vietnam

114. Turkey

115. Bangladesh

116. Azerbaijan

117. Taiwan, China

118. Ecuador

119. Mauritania

120. Mongolia

121. Indonesia

122. Zimbabwe

123. Tajikistan

124. Kazakhstan

125. Cambodia

126. Burundi

127. Chad

128. Ethiopia

129. Argentina

130. East Timor

131. Kyrgyz Republic

132. Lesotho

133. Libya

134. Algeria

Yes. That’s right.

The UK lies behind Peru and El Salvador.

Now given this report was a survey of the world’s economists whose advice our banks were no doubt taking; should we believe it?

Are the UK’s banks really behind Peru, El Salvador and Senegal?

Or is it an accurate representation that is slightly out of date, compiled as it was slightly before the bail-outs?

That must depend on whether you believe the bail-outs will work.

If reports are to be believed the Royal Bank of Scotland is next in line to be nationalised tomorrow. If that happens then there will be further pressure on the remaining UK bank’s to be nationalised too. The banking sector could be picked off one by one by the market and the taxpayer forced to pick up the tab.

On that Iain Dale post there have already been comments about the English taxpayer bailing out the Scottish bank.

It must be a pity, to all those who carp, that Scotland is not already independent.

An independent Scotland with a similar oil fund like our neighbour Norway could be similarly insulated from these turbulent times.

It would also have the economic levers to maintain its economy best, not just for the South-East of England as remains the case today. Remember Eddie George, the former Governor of the Bank of England: Unemployment in the north is a price worth paying for affluence in the South!

Although the credit crunch is global, take a look back at those rankings.

Sweden, Luxembourg, Denmark, Belgium, Netherlands. All small countries lying in the top 10.

Even Ireland, who have recently guaranteed all deposits in their banks, are sitting 9th.

The argument that Scotland is too small to be financially unstable is farcical! I don’t hear anyone saying that Denmark is too small and should be run from Berlin. (Not since the days of Adolf Hitler and the Second World War anyway!)

As countries large and small struggle with the credit credit crunch from the U.S. and Russia down to Iceland with its 300 000 population, this population argument of independence must be seen to be invalid. Iceland, with a population slightly smaller than North Lanarkshire, isn’t exactly Miramont Gardens in Pimlico!

Passport to Pimlico

What matters now is that we take the right decisions to get out this mess.

Those decisions may be different for each country. They may even be different for England, Scotland, Wales and Northern Ireland.

That’s why its important key economic levers are devolved away from Westminster.

Otherwise the Eddie George syndrome will hamper ‘the North’ recovering for years.

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Back to the Future

October 4, 2008

So Gordon Brown has took a trip back in time in his new cabinet reshuffle.

Back to the Future

And the shock recall has been the EU trade commissioner Peter Mandelson as Business Secretary.

Peter Mandelson, a serial resigner from Cabinet in the past, will become a Lord to take the role.

Just how desperate is Gordon Brown? Appointing a controversial arch-Blairite with a history of trouble to his cabinet. Why??

Is Mandelson to become the new fall guy in the Cabinet, taking the heat from the Prime Minister?

How long will he last this time? And how will the public react?

Hill Valley Headline

Jim Murphy is appointed the new Scottish Secretary, taking over from Des Browne who was also relieved of his Defence portfolio. Des Browne was offered the Scottish Secretary job after sacked from Defence but felt the job was an ‘insult’.

So once again the Scottish Secretary is a full time job, as it was in the past.

Although it had been rumoured that the job was to be merged with the Northern Ireland and Wales job, as I hinted at in a previous article it would have been better for the Unionists to keep the jobs separate to try and thwart the nationalist advance in Scotland and Wales.

Definitely a case of the Labour Cabinet’s man in Scotland, not Scotland’s man in the Labour Cabinet.

Just in time to preside over the Glenrothes by-election and Motherwell and Wishaw by-election then.

To me, Jim Murphy’s voice just sounds like the Rev I.M. Jolly; especially when the minister had been partaking on the whisky. Its not what I would call upbeat!

So I look forward to hearing him explaining away the forthcoming by-election results.

Rev. I. M. Jolly
“Ah’ve had a helluva year!”

Even if Labour somehow manage to win them both, his voice would send Labour activists jumping off the Erskine Bridge.

In another reshuffle, Alistair Campbell, former Press Officer for Tony Blair, returns to the Labour Government as external advisor.

So its back with Campbell and Mandelson then. The only person missing is Tony Blair and we’d be right back in the Nineties again. Of course, regular readers will recall I pointed out that Labour activists were calling for his return only just recently.

Re-elect Goldie Wilson

We couldn’t get any more ‘Back to the Future’ if Gordon Brown had arrived at 10 Downing Street in a De Lorean.

He must feel like Marty McFly fading away on stage, awaiting for the public to embrace the New Labour message.

Its a pity for him that we’re on the same trip as he is. Lightning won’t strike that clock tower twice!

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Plausible denial

August 15, 2008

As the Russian army is still in Georgian territory, south of South Ossetia, causing havoc, it seems a bad day for Boeing to announce their successful testing of their new laser gunship.

In the latest test, Boeing fitted their laser technology to an existing C-310 Hercules to try out its new laser technology.

Boeing Laser Gunship

Instead of carrying bombs and missiles, planes are fitted with a laser turret that can destroy any targets expertly. The technology could be utilised on a range of planes.

In fact, this technology has people searching for Star Wars comparisons.

A pity for science fiction buffs that the current stand off over Georgia between America and Russia jeopardises both their space programs and NASA’s involvement with the International Space Station. Star Wars type battles remain in the future.

X-wing fighter

But the thing that is getting most military analysts excited is the possibility of ‘plausible denial of air strikes’.

In other words, because there is no sign of a bomb where the target has been hit, it may be possible to deny that your aircraft – which may be a distance away – had any involvement in destroying the target site.

Absolutely scary.

I’m just glad that the Americans are supposed to be on our side.

Imagine if the Russians had this technology, would there be anything of Georgia left standing?