Mr Brightside: A Dystopian Nightmare

 

“This ain’t rock and roll
This is genocide” 

“The world has become conservative, and what is happening is horrible.” 

 

 

Before turning to the ongoing car crash that is the Trump administration we look at events in the UK

 

PM Starmer seems to think he had a good 45-minutes chat with Trump. As a result, he is going to the US; sounds more like he has received his summons and is going to receive a patronising lecture and his instructions. So much for taking back control! 

Chancellor Reeves appears to be losing the courage of whatever convictions she may have had and is chasing growth at all, and any costs. Is she now a Truss tribute act?? 

At last week’s World Economic Forum in Davos, she, perhaps, had the opportunity to meet some of the 10,800 millionaires who have supposedly left the country in the past year, after Reeves, full of vigour and vim, said, “we will end the non-dom tax loopholes!”  

4-months on, and clearly in denial, she told the conference that the government was keen to reopen some loopholes. Or, in her words: “We have been listening to the concerns that have been raised by the non-dom community.”  

And it isn’t just non-doms being welcomed back into the fold in the name of growth, it is regulators, too. 
 

‘Reeves appears to be losing the courage of whatever convictions she may have had and is chasing growth at all, and any costs’

 
The business minister Justin Madders has been forced to deny the government was “in the pocket of big tech” after it hired Doug Gurr, a former country manager of Amazon UK and president of Amazon China, to chair the Competition and Markets Authority (“CMA”). The regulator is also culling 100 of its workforce. 

He replaces Marcus Bokkerink, who agreed to stand down on Tuesday after the government demanded ideas from regulators to boost economic growth. 

Amazon is a classic example of how a big business needs to be watched over a by a proper regulator.  

 

• The price of sending a standard parcel via Amazon in the UK has more than doubled since 2017. 

• The income from the advertising fees that independent sellers must pay to stay visible to customers has risen C.17x between 2017 and 2022.  

• International research shows that Amazon uses its stranglehold over sellers to pocket more than half of sellers’ revenues in fees. 

 

The loser, as always, is us, the end-user. 

The CMA has been regarded as one of the world’s most effective regulators against market power. In 2012,  they forced Meta to sell the graphics firm Giphy, the first time any regulator had broken up a big tech firm, a move that had a worldwide effect. 

With hindsight, PM Starmer roadtested this move in October’s investment summit, when, in a hall full of US big tech officials, he warned that the CMA should “take growth as seriously as this room does”. He followed this by appointing Clare Barclay, a top Microsoft official, to chair the Industrial Strategy Advisory Council. 
 

‘Trump is a bully who recognises weakness which he will use to bludgeon open our economy’

 
Whilst the government clearly sees a trade-off between regulatory protections, and economic growth, research shows that deregulation fostering monopolisation reduces growth, harms innovation, undermines resilience, destroys small businesses, and sucks money out of the economy. The book, “Vassal State”, estimates that US firms pay dividends back home from their UK operations equivalent to £2,100 per UK household, much of it as excess profits not from productive activity but from monopolisation. 

Labour, in their desperation to generate growth and ingratiate themselves with the Trump administration, is playing a dangerous game. Trump is a bully who recognises weakness which he will use to bludgeon open our economy, and others. Increasing deregulation will only make it even easier for US firms to exploit us even more.  

And, then there is Elon Musk. 

FT analysis of his tweets in the first week of January found that 225 out of Musk’s 616 tweets and retweets centred on UK politics. One portrayed Britain as a dystopian “police state” run by a “tyrannical government” 

Political and media analysts suggest that the timing of Musk’s political assault isn’t mere opportunism, instead they are intended to put pressure on UK authorities as they seek to put into practise the Online Safety Act (OSA), which became law in 2023. The act, designed to regulate online platforms, is yet to be implemented, with decisions expected by spring. 

Imran Ahmed, a former Labour party adviser who now lives in Washington, where he runs the Center for Countering Digital Hate, has extensive experience of being at the receiving end of Musk’s displeasure for advocating regulation of X’s content. He argues that the furore about northern English “grooming gangs” is a diversion from Musk’s true aims: to fend off tough regulation. 

Ahmed said: “The media and political classes in general are being distracted by his sleight of hand. This is all flim-flam to disguise what he is really up to, and his agenda is purely economic in nature.” 

Another form of deregulation is the burgeoning gig economy, a subject I have considered in “the Blank Generation”. 

Justin Madders, the employment rights minister, last week wrote to “YoungOnes” and “Temper”, which a dark, dark day for people around the globe provide thousands of purportedly self-employed workers to British businesses, to tell them their business practices could be breaching employment law and staffing agency regulations. 

In almost identical letters to the Dutch-owned platforms, Madders states that “bogus self-employment is entirely unacceptable” and he will “not hesitate to ask all relevant authorities to scrutinise employers or agencies whose behaviour appears to be exploitative”. 
 

‘gig shop workers who refused to pay charges to YoungOnes to receive their wages within three days were left waiting for payment over Christmas’

 
Madders is concerned the freelance workers on the platforms are not receiving employment rights. He adds it is unacceptable for businesses to claim people are self-employed “when it does not represent the reality of the relationship”. 

The letters followed reports that gig shop workers who refused to pay charges to YoungOnes to receive their wages within three days were left waiting for payment over Christmas. See “the Blank Generation”. 

It would appear that the government are in awe of Trump and will bend to his will. Previous comments such as those from Foreign Secretary Lammy, who, in 2019, described Trump as “deluded, dishonest, xenophobic, narcissistic” and “no friend of Britain“, are being conveniently forgotten. 

Of course, the Tories and Reform are competing to see who can be Trump’s best buddy. Whilst Farage expected to be the biggest winner he seems to be more of an outsider than previously thought. He wasn’t invited to the inauguration, perhaps due to him falling out with Musk, although he was invited to one of the official balls in Washington. 

The magnitude of Trump’s recovery, will be an inspiration to hard-right Tories and Reform, and could lead to them trying to become more like him. Perhaps, our biggest worry will come if Trump’s second term is seen to be a success? 

Whereas, more moderate Tories they will fret that becoming more like Trump will see their party further alienated and being viewed as Reformlite. 

It was revealing that their representation at the inauguration was  Boris Johnson, and the ever present Liz Truss who just won’t go away. Perhaps Badenoch was right not to go, not that she was actually invited, as, at the end of Trump’s first terms, less than a sixth of British voters said they liked him.  
 

‘the mayor of London, is already issuing warnings that western democracy is at risk from “resurgent fascism”’

 
This just leaves the LibDems: their leader, Sir Ed Davey, has described Trump as “dangerous, destructive demagogue” and greeted his oath-swearing as a “threat to peace and prosperity”. In this, he is joined by the Greens and the independent left. Sir Sadiq Khan, the mayor of London, is already issuing warnings that western democracy is at risk from “resurgent fascism”. 

A poll this month, commissioned by Best for Britain, revealed that every constituency in Britain thinks the Government should prioritise trade with the EU over the USA and other countries. 

Circa 46% of those polled said the EU should be the Government’s top priority when it comes to trade whereas 22% would opt for the US. 4% would think the Government’s focus should be China while 6% would favour another country. 

Before we finish what has been happening in La, La, Land? 

Trump is practising his own form of lebensraum, saying he will seize the Panama Canal, which is part of the sovereign territory of an ally, Panama. 

He is also eyeing up Greenland which, he believes the US will take control of, after details emerged of a “horrendous” call in which he made economic threats to Denmark, which has said the territory is not for sale. 

Speaking onboard Air Force One on Saturday, Trump said: “I think we’re going to have it,” and claimed that the Arctic island’s 57,000 residents “want to be with us”. 

The so-called “horrendous” phone call was with the Danish PM, Mette Frederiksen, during which Trump was said to be aggressive and confrontational in his attempt to take over the island. Five current and former senior European officials told the FT that the call had gone very badly. “It was horrendous,” said one. Another told the paper. “Before, it was hard to take seriously, but I do think it is serious and potentially very dangerous.” 

Trump was reported to have threatened Denmark, a Nato ally, with targeted tariffs, essentially taxes on Danish exports to the US. 

Writing on X on Saturday, the chair of the Danish parliament’s defence committee, Conservative MP Rasmus Jarlov, said: “We understand that the US is a powerful country. We are not. It is up to the US how far they will go. But come what may. We are still going to say no.” 
 

‘Trump also reiterated his view that Canada should become a US state. “I view it as, honestly, a country that should be a state.”’ 

 
Oh, and then there is Canada. Trump also reiterated his view that Canada should become a US state. “I view it as, honestly, a country that should be a state.” 

Turning to the Middle East, Trump said he would like hundreds of thousands Palestinians should leave Gaza and to move to neighbouring countries, either “temporarily or could be long-term”. Destinations could include Jordan, which already hosts more than 2.7 million Palestinian refugees, and Egypt. 

This plan to “just clean out” the whole strip has been rejected by US allies in the region and attacked as dangerous, illegal and unworkable, and “call for ethnic cleansing” that echoed calls from extremist Israeli politicians and public figures dating to the start of the war. 

“I’d rather get involved with some of the Arab nations and build housing at a different location where they can maybe live in peace for a change,” Trump told reporters on Air Force One. “You’re talking about probably a million and a half people, and we just clean out that whole thing and say: ‘You know, it’s over.’” 

Finally, there’s his plan to end the right, enshrined in the constitution, to automatic citizenship of those born in the US, a display of raw power and an attempt to exercise it without limit. In part, this is the perennial dream of all ultranationalists – seeking to define who belongs to the nation and who is shut out  – but it is also about flexing muscle. His administration knows that the 14th amendment to the US constitution says: “All persons born or naturalized in the United States … are citizens of the United States,” and that the supreme court is duty bound to strike down any measure that contradicts that principle. 

Perhaps he wants to pit the MAGA masses about the judiciary? Or, perhaps he thinks a supreme court shaped in his image, with three of the nine judges appointed by him, will not refuse him entirely, that it will meet him halfway. And if it doesn’t, maybe he’ll just defy it as VP Vance has already suggested. 

It’s just…… 

 

“Madness, madness, they call it madness
I’m about to explain
A-That someone is losing their brain”’ 

 

Notes: 

1. Miuccia Prada 

1. By the entrepreneur and investor Angus Hanton 

 

This might be described as a tale of two countries, or, more accurately, one jumping when it’s told to.

Labour’s first 6-months in government has been a mess. A tale of bad politics and communication.

Even though the electorate feels that we should look to Europe, it appears the spectre of Brexit still hangs over Starmer. Coupled to that is the fear of alienating the special relationship. Although, quite how you can have a special relationship with a bully hell-bent on doing and taking what he wants mystifies me. Still….

Along with buddying up with Donald and his tech buddies, there is growth. Maybe it should be growth, baby, growth? Anyway, we are chasing it in as determined a manner as Liz Truss did some fatefully.

AI is, of course, the word. Although news that the Chinese business “DeepSeek” might be the one has amused me greatly. Expect sanction on China imminently.

In the US, Trump is challenging the constitution and reshaping the world. He wants the Panama Canal, Greenland, and Canada. Does that mean we lose our titles as the 51^st state?

People always say that politicians never do what they promise. Trump has and we don’t like it….be careful what you wish for!!!!

Musically, we start this dystopian  story with Bowie’s “Diamond Dogs”. The Diamond Dogs album was set in a dystopian post-apocalyptic world called Hunger City. The album’s themes include the fragility of democracy, the threat of energy scarcity, and the devastation of urban life.

We finish with “Madness” by Madness, because it is sheer bloody madness!

Enjoy, if you can??

Philip.

 

@coldwarsteve

 

 

Philip Gilbert is a city-based corporate financier, and former investment banker.

Philip is a great believer in meritocracy, and in the belief that if you want something enough you can make it happen. These beliefs were formed in his formative years, of the late 1970s and 80s

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