THUS Magazine

. . . in fact, they are implying that Gordon is a Moron after all.

By John J. Kelly

In a move unprecedented in Europe since Martin Luther said the Pope wasn’t a Catholic, German Finance Minister Peter Steinbrueck called Gordon Brown’s “crass Keynesianism” breathtaking – but not in a good way. Following the rude absence of Mrs Merkel, the German Chancellor who couldn’t be bothered to turn up to Gordon’s Coalition of the Borrowers last Monday (Thus passim) another Hun, this time Steffen Kampeter, wee-weed on the recovery plans by stating that Brown’s audacious Micawber Plan (Thus Passim) showed a “failure of Labour Policy.” Sarkozy, meanwhile, dapper Neo-Liberal French footie friend of Gordon, is erring on the side of financial incaution. The issues are well summarised here in a Bloomberg Special Report.

I hold in my hand a message from the German Chancellor

Conservative Shadow Chancellor George Osborne – who nobody cares about anyway after his boating misadventures – piped up that “there is a growing international consensus that Brown’s borrowing binge will make the recession worse, the recovery more difficult and burden future generations with a mountain of debt.” Labour Foreign Secretary David Miliband – who nobody cared about after he failed to unseat Brown and was pictured with a banana last October but is now rehabilitated as Mandelson’s hopfrog – said on the BBC Today Programme that it was all a German internal spat (unrelated to Eton footwear). Mrs Merkel was behind Brown’s Micawber Plan to urge Europe to splurge a quarter trillion Euros on tax cuts and public spending, funded, presumably, from the Planet Zanussi. He didn’t say just how far behind it she was, though.

Exactly what part of Schadenfreude don't you understand, Herr Bleistift Schwanz?

Mrs Merkel announced earlier that no big decisions would be taken about the level of state intervention in the German banking crisis until January, estimated subvention at around Eur 32 billion over two years and ruled out tax cuts. The world money markets, clearly in awe of Brown even if the Valkyrie was resisting his charm, signalled their ringing endorsement. Sterling plunged to a record low against the Euro, which was hailed as a triumph by the madly spinning Miliband who declared that a weak pound would help exports. True, if the UK had anything left to export apart from bankrupt Woolworths Pick ‘n Mix boiled sweets and old MFI furniture (THUS passim). It will be very bad for UK imports of just about everything else, but crucially of energy, denominated in dollars, which the UK, like everyone else, sort of needs in order to keep the lights on and the printing presses rolling at the Royal Mint.

It's Mr Micawber again, vying for EU Finance Minister's post

European insiders recall that during his time as UK Chancellor, Brown’s modus operandi was to turn up at EU Finance Meetings, read a prepared speech then take off his headphones and ignore the debate as he got on with his homework. He’d put on the phones for the closing speech and exit, assuming consensus around the UK position. This endearing trait has not been forgotten. Brown, meanwhile, reiterated this week that he had no intention of considering Britain’s entry into the European currency, a peculiar message from the self-appointed leader of Europe’s latter day Marshall Plan. As a worrying postscript, BBC Economics Editor Robert Peston reported that HBOS, which the UK government bailed out in September, has incurred an extra £3 billion in losses against unsecured loans in the past three months. Santander, Spanish owner of Bradford and Bingley and Abbey, two more UK financial sector strugglers, also announced huge job cuts in the UK as of January.

Meanwhile the UK credit card companies, who are gleefully charging an average of 14.9% interest on purchases and 23.9% on cash advances, and who are mainly owned by the banks, ruled out passing on Bank of England interest rate cuts to their customers, though they did say they would give distressed borrowers 100 yards head start before sending the attack dogs after them. Stick to your guns, Missus Merkel. Alles is far from Klaar. We really don’t want another Weimar. Look what happened last time.