Bank Robbers don't needs masks and guns

As the few remaining Chinooks available for training RAF crew have been reduced to royal taxis it is worth briefly considering how strapped the MOD has been for cash ...

Throwing money at helicopters

In 1995 the UK MOD ordered 8 Chinook HC3 helicopters from Boeing, especially equipped for Special Services (SAS / SBS) SAS and Special Boat Service, with satellite communications technology, extra fuel tanks and in-flight refuelling probes for long flights at a cost of £260 (£32.5Mn each).

As a cost saving measure the MInistry decided not to have them equipped with a fully digital display.

Since they were delivered in 2001 they ahve sat in a warehouse in St. Asaph, North wales. "Because" as Edward Leigh Chairman of the Public Accouts Committee explained , "of a massively botched job, they cannot be flown when there is a cloud in the sky. The MoD might as well have bought eight turkeys.''

Viz … Select Committee on Public Accounts Minutes of Evidence 25 OCTOBER 2004 -

Q133 Chairman: Thank you very much. But the fact remains, Air Vice Marshal, that for safety reasons you cannot fly this helicopter when it is cloudy; is that correct?
Air Vice Marshal Luker: That is also correct.

Des Browne the part time Minister of Defence announced last year (2007) that the MOD had at last found (or squeezed from the Treasury AKA Gordon Brown) £60-70 Mn to retrofit the machines which might see action in late 2009. In fact he is so delighted to have found the money he has announced it three times.

Throwing money out of helicopters

Now today the Bank of England has been rummaging in the drawers and found £50 Bn. (at least) because ... " banks have on their balance sheets an ‘overhang’ of these assets, which they cannot sell or pledge as security to raise funds. " ... these assets which they cannot sell or
pledge are mysteriously also " high quality mortgage-backed and other securities" (elsewhere
in the statement described as " illiquid assets ") which the BOE are going to swap for UK Treasury Bills.

The fundamental pinciple of preparing financial accounts in the UK is that they present a "true and fair view " (The US GAAP standard is "present fairly"). If the mortgage backed securities held by these banks cannot be traded or cannot be accepted as a pledge they have no value.

The Bank of England in accepting them as security (even with a "haircut" , the bankers quaint description of a discount) is accepting what no-one else will. They are doing it on behalf of the issuers of the bonds which they are swapping them for - the UK Treasury.

1.The banks have shown they can produce fraudulent balance sheets (Northern Rock - on which the Directors colluded to offer dividends in a criminal conspiracy. Ther is every reason to believe that other balance sheets have not similarly included such dishonest valuations of MBS and SIV's derived from them - which have boosted profits, dividends and bonuses. The Big "5" UK banks declared proffits of £37 Billion last year.

2. It has just been shown that in calculating LIBOR, the figures have been manipulated, altered, adjusted, fudged , deliberately to conceal the unwillingness of lenders / borrowers to undertake normal business - because, simply they cannot trust each other as they know the mutual and agreed frauds they have all jointly and severally committed.

3. The parties to these common frauds are still in place , the taxpayer through the BOE / Treasury are now willing to find £50Bn now and as far as can be ascertained unlimited funds in the future - which is at least of 3 years duration. ("Usage of the scheme will depend on market conditions. Discussions with banks suggest that use of the scheme is initially likely to be around £50bn. )

That the Treasury, which could not find £60 Mn for absolutely essential work on Chinooks for over 5 years could find £57 Bn (at the lasta ccounting ) for Northern Rock alone and now £50Bn is a fraud of immense proportions.

Literally worthless bits of paper are being offered by the same crooks that got us into this hole and accepted by the fools and incompetents in the Treasury / BOE and FSI who sat and watched it happen.

Finally today the 2 appealing Royal funsters have been meeting the victims of the ill judged, badly trained and badly supplied forces in Afghanistan and Iraq. They will shortly be sponsoring a fun charity event to raise money for a swimming pool to aid their recovery - many as a result forecast here Friday, January 27, 2006 Reid sends ill equipped troops to certain deaths in S Afghanistan

Regardless of the futilityor the illegality of any actions UK trooops may be involved in, we have, as a society a moral responsibility to equip and train our troops in the best way possible.

Instead we have been saving candle ends, de-pauperating the poorest with ill designed and heartless tax demands. Why ? So we can throw our money at the bankers.

21.04.08 BOE News Release Special Liquidity Scheme
21.04.08 BOE Special Liquidity Scheme: Information (22k) PDF
21.04.08 BOE Special Liquidity Scheme: Market Notice (31k) PDF

RBOS's CEO Fred Goodwin , 49 (£8Mn plus a year) issues his accounts for 2007 on Wednesday - Churchill and Direct Line are on the block £4-6Bn write offs are due to be disclosed, and a £10 Bn cash call on shareholders is expected, plus a savage cut in the divvy. The wunderkind's days are over.

Barclays is next ... do you want to lend them any money ?

PS to put £50Bn into perspective - Exxon Mobil last year posted the largest annual profit by a U.S. company -- $40.6 billion. = £20.3 Bn.