Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Notches Best Month Since 1979 - 12th Aug 20
Silver Shorts Get Squeezed Hard… What’s Next? - 12th Aug 20
A Tale of Two Precious Metal Bulls - 12th Aug 20
Stock Market Melt-Up Continues While Precious Metals Warn of Risks - 12th Aug 20
How Does the Gold Fit the Corona World? - 12th Aug 20
3 (free) ways to ride next big wave in EURUSD, USDJPY, gold, silver and more - 12th Aug 20
A Simple Way to Preserve Your Wealth Amid Uncertainty - 11th Aug 20
Precious Metals Complex Impulse Move : Where Is next Resistance? - 11th Aug 20
Gold Miners Junior Stcks Buying Spree - 11th Aug 20
Has the Fed Let the Inflation Genie Out of the Bottle? - 10th Aug 20
The Strange Food Trend That’s Making Investors Rich - 10th Aug 20
Supply & Demand For Money – The End of Inflation? - 10th Aug 20
Revisiting Our Silver and Gold Predictions – Get Ready For Higher Prices - 10th Aug 20
Storm Clouds Are Gathering for a Major Stock and Commodity Markets Downturn - 10th Aug 20
A 90-Year-Old Stock Market Investment Insight That's Relevant in 2020 - 10th Aug 20
Debt and Dollar Collapse Leading to Potential Stock Market Melt-Up, - 10th Aug 20
Coronavirus: UK Parents Demand ALL Schools OPEN September, 7 Million Children Abandoned by Teachers - 9th Aug 20
Computer GPU Fans Not Spinning Quick FIX - Sticky Fans Solution - 9th Aug 20
Find the Best Speech Converter for You - 9th Aug 20
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Political Impasse in Britain in the Wake of the General Election

ElectionOracle / UK General Election May 10, 2010 - 07:50 AM GMT

By: William_Bowles

ElectionOracle

Best Financial Markets Analysis Article“The public and markets want…to see a “government in place”” — Alistair Darling

You didn't need a visit to the Delphic Oracle in order to figure out what would happen, in any case I doubt that many want to visit Greece these days. So, on 8 May the carve-up began with Nick Clegg, leader of the Liberal Democrats meeting a team of Tory advisors in order to strike a deal to try and form a ‘coalition’ government. So much for ‘first past the post’ electoral system, designed in pre-historic times to maintain the hegemony of the ruling class. And if a deal can’t be struck with the Tories the next stop will be the Labour Party, though a deal with Labour is unlikely as it would require every party, aside from the Tories that is, to vote with the Lib-Dem/Labour coalition on the substantive policy issues.


Perhaps an analysis of the vote is in order or the ‘first past the post’ system as it is called. As you can see from the stats on the vote tally, there is actually very little between them, so how come seats in Parliament doesn't reflect the three-way split?

Conservative 306 seats 36.1%
Labour 258 seats 29.0%
Liberal Democrat 57 seats 23.0%

The turnout averaged around 65%, the highest it’s been for decades, a reflection of two things: 1, an unprecedented media onslaught exhorting the punters to vote and 2, an electorate who do want change. But in real terms the numbers above represents much less than two-thirds of the electorate so the Tories actually got about 25% of the potential vote, Labour 20% and the Lib-Dems around 16%, a clear case of a ‘plague on all your houses’ even though it was the highest turnout since the 1970s when turnout was in the 70+ percentile range.

The low number of Liberal Democrat seats, although they got 23% of the total, is down to the fact that they came second in a lot of constituencies, thus whilst their total vote is high, the ‘first past the past’ system means that it is not reflected in seats in Parliament. Anecdotal evidence suggests that many voted Liberal Democrat in the hope that it would keep out the Tories through a Lib-Dem/Labour alliance and as we are witnessing, the ‘progressive’ wing of the Liberal Democrats fear that Clegg is in the process of negotiating a deal with the Tories (as of writing the haggling continues). The newly formed (like last Friday) Take Back Parliament organization reveals that there are a lot of very angry Liberal Democrat supporters (and no doubt others) as this video demonstrates.


Fundamentally of course there is very little difference between the three parties, thus it’ll be a haggle over things like ‘reforming’ the electoral system, education and perhaps scrapping the ID card. But the buzzword is ‘the national interest’, something the three parties and the media are all agreed on. But with the electorate almost equally divided, what does the term ‘national interest’ mean? Perhaps a visit to Greece is in order after all? The bottom line is that all three parties are agreed that some ‘painful’ decisions are going to have to be made, the only difference being when and who is going to need a shot of morphine and a side order of Valium.

This is ‘consensus’ politics; the media and the political class are all agreed on this. The divide between us and them is plain for all to see with the media punting the line ‘the national interest’ ad infinitum. This is how the Independent put it:

“City economists and business leaders yesterday urged all three parties to resolve political uncertainties quickly as the election result prompted a sell-off in the financial markets.

“The pound slipped sharply against the dollar, falling almost three cents to $1.45, the lowest level for a year, as currency markets were unnerved by concerns about a hung Parliament. Investors fear there will be little progress made on setting out clear plans for reducing Britain's borrowing, which is on target to be higher than Greece's this year. The value of gilts – the bonds issued by the UK Government to fund its borrowing requirements – was also hit by the election result. As prices fell, the yields on 10-year gilts, the effective interest rate for the Government, rose by around 0.2 percentage points to 3.96 per cent.

“The political uncertainty also hit the stock market which opened around 90 points, or 1.5 per cent, down. While all the market setbacks also reflected continuing nervousness about the debt crisis in Greece and the extent to which it is spreading around Europe, Ian Spreadbury, a fund manager at Fidelity, said the two issues were inextricably linked. — ‘Investors shun sterling after election result’,The Independent, 8 May, 2010

So this is what is meant by ‘national interest’. As I pointed out earlier, the ‘national interest’ is newsspeak for preserving the rule of capital and making us pay for it.

“What is most striking, and highly relevant to the assessment of this week's IFS intervention, is that at no point did the monetarist economists – or their neoliberal successors – explain why any particular limit to public deficits and debt was economically necessary. Instead we are offered, then as now, an entirely circular argument. We are told that deficit cuts are necessary because international bond markets require them. So why do international bond markets require them? Because they think that cuts are necessary. And why is that? Because the economic experts say so!” — ‘Cutting Public Debt: Economic Science or Class War?’ By Hugo Radice, The Bullet, 4 May, 2010

So the haggling continues with the public being fed a diet of media pablum echoing the business class’ call for a deal in the ‘national interest’ or else we are told that British capitalism will collapse.

The emergence of Take Back Parliament and Power2010 is a clear reflection of the electorate’s frustration with the existing order, an order that regardless of what ‘backroom’ deal is struck will ensure the continued hegemony of the 2.5 major political parties.

But it’s a ‘deal’ that none of us have been invited to participate in reflecting the fundamentally undemocratic nature of capitalist ‘democracy’. No doubt some time today (10 May) or perhaps tomorrow, we will be presented with a ‘democratic’ fait accomplis, one that will satisfy no one except a shaken, not stirred, political class.

Creative-i

William Bowles is a frequent contributor to Global Research.  Global Research Articles by William Bowles

© Copyright William Bowles, Global Research, 2010

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules