Defaulting banks - where will it stop?

[Jan Klimkowski]

Key elements of a good piece of spin are that it be superficially plausible, and able to withstand at least some critical analysis.

Mandy is now speaking such complete and utter bollox that one wonders if he expects anyone to believe him. Or whether he has such contempt for us that he really doesn't care....

His claim that "the borrowing does not worry me" is right up there with the stupidest words ever uttered by a politician.

Ever.

And ever.

Mandelson vows to take on the doomsters
Mark Milner
guardian.co.uk, Friday 20 February 2009 16.33 GMT Article history

Business secretary Lord Mandelson vowed to keep fighting the economic "doomsters", as he explained his vision to make UK a world leader in the low-carbon economy today.

At the end of a week in which he hit the headlines with a remarkable attack on the chief executive of Starbucks, Mandelson reiterated that the British economy was not spiralling downwards.

"There has been a lot of talking Britain down lately, and not only from coffee-shop owners. I understand the severity of our economic circumstances as well as anyone, believe me," Mandelson told business leaders in north-west England.

"But as of today, I'm going to take on the doomsters and only talk Britain up. I do not underestimate the economic difficulties we face in this country. But the UK's open and dynamic economy is a huge asset. We have some of the best-growing small firms in the world and some of the smartest and most skilled workers. Our regulatory environment is efficient and business friendly."

Speaking to the Guardian ahead of the speech, a combative Mandelson outlined plans to make Britain a competitive player in the global low-carbon economy.

It was vital to identify the technologies that would drive future business growth and have the research and development capabilities to give British industry a competitive advantage, he said. "When I talk about a new industrial activism, I mean aligning government policies that have an impact on business, creating a stable framework of policy within which the private sector can take commercial decisions."

That did not mean creating "some Soviet-style national plan" that would replace decisions by companies with those of ministers, and government picking winners and losers, he insisted. "The government can't stand back, it has an essential role to play."

Mandelson said the development of Britain's industrial base was even more important in the light of what had happened in the financial services sector.

"The banks will recover and restore their international standing and the City of London will reclaim its international role but equally we have to rebalance the economy and diversify.

"Britain is the sixth biggest manufacturing economy. We have to maintain our position in international markets ... identifying new technology drivers and emerging markets that will give us a strong industrial future."

The government's role was to provide a stable framework – "It's not about replacing the market or substituting for the private sector," he said.

The government will hold a summit next month where it will explain how the UK can move to a low-carbon future.

Mandelson warned that just creating a market for low-carbon products and services is not enough. The UK must also ensure it has the capacity to supply that demand, with a domestic supply base that could then win business in international markets.

He said Britain would face increasing competition from emerging economies, but could also thrive in that larger global economy. "We have to prepare for that, we have to prepare more actively."

Responding to concerns about the level of public borrowing, Mandelson said Britain was starting from a relatively low base compared to the US or other European countries of a similar size to the UK.

"The borrowing does not worry me … as long as we have made proper provision for what we are spending; as long as we have medium-term plans in place to rebalance public finances and reduce this borrowing over time."

http://www.guardian.co.uk/business/2009/...-doomsters