Grandad’s Chat

When I first started this blog, I wrote on January 29th 2007 about the high cost of housing and how mortgage regulations had been scrapped. I said at the time it would lead to tears; and so it has.

I’m not a financial guru, just an old geezer who seen economic crises before and know that they occur over shelter and food.

Banks around the world have been reckless and greedy and now we all have to pay the price. Now we’re in a mess the jackals are gathering to make a killing. I’m talking about speculators in currency, stocks and shares.

As in so many other situations the solution is crystal clear; it is to me anyway. Governments around the world must pass legislation to regulate the buying and selling of stocks and shares. The core purpose of Stocks and shares is to fund businesses and enterprises. All it would need is to make it obligatory to hold on to stocks and share for a finite time before selling. Maybe just one hour would be enough, maybe 24 hours. That would need to be decided by a knowledgeable committee.

At the same time they should outlaw trading in “Futures” which is just a form of gambling by speculators and has no place in responsible business activities. Let us remind the Stock Exchange what it’s true function is, or should be.
These regulations would stop extreme speculation and stabilize the markets.

Such a kerfuffle over something that doesn’t really exist. If money was really moved about in trucks, ships and airplanes financial markets would change oh so slowly. As it is, fantastic wealth can be transferred at the touch of a button.

As usual the economic situation is being inflamed by the media. Any statement about it by ever so lowly Government officials, is dissected, altered and magnified out of all proportion, spreading panic.

We need cool heads leading us now. It would help if the media showed a little common sense and presented a balanced and true view of the situation. When it’s all back to normal, maybe the banks will have learned to adopt a more responsible approach.

There is very tight security at the conference and not much is coming out, but one thing I did notice on TV; the absense of any white faces!

When I was a child in London, England, it was rare to see any other than white faces, yet today black folks abound and are treated, quite rightly, as any other UK citizen.

But I’m not sure that racial equality is now part of the African scene. “President” Mgabe said that he would remain in power until all of Zimbabwe is in the hands of the black majority.

This morning I heard a black pop singer holding forth on slavery and apartheid. I’ve got news for him. Both are alive and well in Africa and parts of Asia. Many “citizens” are being treated worse than slaves, particularly women, so maybe he should go and try to discuss this at the African Conference.

I’m sick and tired of do-gooders, most of whom are doing very well in the west, blaming us for history. Let them go to their own roots and try to convince the current leaders - if they dare!

There is an uproar about the Government dropping the 10% category of income tax. Some MPs from all parties are working themselves into a fury over the New Labour Government’s refusal to reconsider this.

I can’t blame them when any sensible reappraisal would be met by media headlines screaming ‘U-TURN’, ‘Labour backs down’ etc.

Naturally, that accomplished band-wagon artist David Cameron was on BBC television today banging his drum about the subject. One of his jibes was “No government has ever cynically targeted a particularly low paid group of workers in this way before”

I don’t claim that they were his exact words, but that was certainly the gist. But I well remember, when Mr Cameron was in knee pants, the Conservative’s fearless leader, Margaret Thatcher, did just that.

She didn’t exactly target low-paid workers, but helpless state pensioners, by cutting the pension’s link to average earnings and replacing it with a link to the Governments fictional rate of inflation.

Over the years this move has led to a steady decline in the value of the state pension and has caused many pensioners, too proud to ask for the means-tested state hand-outs to perish from starvation and/or hypothermia.

Over the last few years the Labour Government has tried to remedy this by introducing ‘Pension credits’ and other measures targeted directly to the older pensioners, like myself, who had no opportunity to build a substantial pension. These measures are no longer assessed by filling in means-testing complicated forms that most pensioners needed help to fill in, but by a sympathetic home visit from a pension’s visitor.

Pensioners on low incomes, even if they have substantial savings can benefit from ‘Pensions Credit’ How do I know? I’m going through the process myself.

Under the State Pensions legislation, anyone who has paid in to a State Pension is eligible for a pension, even though they be a millionaire. The Pensions Credit benefits only those people struggling to pay their way in today’s erratic financial climate. In this way it’s far better than reimposing the link to average earnings.

In my opinion the main problem with New Labour is that they’re useless in banging their own drum, explaining just how much it has accomplished during the time they’ve been in power.

Just in case you think I’m a Labour Party Member, I’m not; I just like to see fair play, unlike the corupted media we have in the UK. In fact, come the next General Election, I shall vote, as always, for our local Conservative MP, Sir George Younger. Sir George is a great guy who works incredibly hard for us.

Please, why can’t we kick out these New Conservative whipper-snappers and put Sir George forwared for the post of Prime Minister?

Mr Darling presented his first budget on Wednesday 12^th March and, as usual, the Government praised it to the skies whilst the opposition rubbished it completely.Most budgets are a bore, simply moving cash from one pile to another and this budget was no exception. The only thing that came out of it was we’re strapped for cash, thanks to the banks who have crashed through being too greedy. Now we, the innocent, have to pay the price.Of more interest to me was the demand that came through the post yesterday for Council tax. I see that the police charge is raised by the highest amount 8.1%. This got me thinking about a subject that I have returned to time and again.

Do you want to spend another fortune on a referendum about the EU? I don’t. I pay Members of Parliament to deal with these issues.

When people in the street were asked by the BBC “Do you want a referendum on the EU” many said they did. When asked what they knew about the EU it became obvious that they knew less about it than the average  parrot in the local zoo.
It’s easy to vote at a referendum along party lines. Or more likely as your newspaper tells you to vote. Understanding what you’re voting for is a lot more difficult and not many people will bother to find out.

If people had to answer a questionaire about the EU to prove their competence to vote only about 5% would qualify.

How much longer must this farce go on? It must be harrowing for her sons and other loved ones, and what’s it all about? Nothing new has emerged and the whole thing seems designed for gossip-mongers.

Let’s end it now!

Just now there’s much weeping, wailing and gnashing of teeth about the present financial crisis that seems to have taken everybody by surprise. But not Grandad!.

Several times over the last few years I’ve warned about the risks of allowing the housing market to get out of control. Leaving it to market forces doesn’t work. There’s a post on this blog dated January 29th, 2007 titled “The High Cost of Housing”. Since I wrote that things have got worse, much worse, because of the bad practices of banks lending money to people who couldn’t afford to pay it back.

Much of it has been mortgage funding. Combined with a shortage of housing this has forced the price of accommodation beyond reasonable levels.

Gordon Brown is belatedly trying to bring in legislation regarding people owning more than one home, but the government should have made itself involved many years ago to regulate housing.

As it is the inflated price of housing is now affecting us all. People are striking or talking about striking to get more cash. Forget red herrings like the price of oil, gas or crop failures. Housing is the greatest hidden reason why the cost of living is soaring.

My wife and I live in a flat in sheltered accommodation with controlled rent. Even so the rent will increase from April 1st by 6.5% well over the governments figure for inflation that controls our pension. The increase has more than swallowed up our combined pension increases and there are large increases due for Council Tax, gas, electricity and water. Also food prices increase weekly.

I maintain that it all started with the government’s failure to control housing. Over my long life I’ve seen the cycle repeated several times. Accommodation is a major staple of life and should be protected

“What is sheltered accommodation?”
There is a lot of misconception about what is meant by sheltered accommodation. When sheltered accommodation is mentioned people usually think it’s some sort of nursing home for the elderly. Nothing could be further from the truth.

Sheltered accommodation can spell a new kind of freedom for retired people who find it difficult or time-consuming to maintain a house and garden properly. It usually comprises a flat which may be rented or owned by the occupant(s). The occupant is responsible only for the internal decoration; maintenance of the buildings and gardens is taken care of by a service charge.

“Security”
As well as this security is offered. There is often a security system in operation which keeps intruders out. Although selected personnel such as the postman, the milkman and keyholders (family) can gain admittance, others have to ask the flatholder to let them in. This is done by an intercom system and an electronic lock. This means no hassle from door to door salesmen.

“Maintenance”
All maintenance is done by the book. Gas boilers and smoke alarms are tested at prescribed intervals. Water leaks, fuses etc. are repaired on demand at no cost to the residents. (for rented accommodation at least)

“Charges”
As well as the rent and service charge residents are responsible for rates, electricity, gas and ‘phone bills, although for residents on low income these may be met in part by the local council or Government.

“Management”
The day to day running of the establishment is the responsibilty of the Warden or Manager. Sometimes the Manager has a flat in the building, at other times it may be administrated by external managers. Overall, however, there is a Lifeline call service that operates 24 hours a day on every day throughout the year. The service can be alerted by pulls which hang down nearly to floor level in each flat in case somebody has fallen. There are also, for frail residents, devices which hang around the neck which fulfil the same purpose. The service will also help with other problems such as failure of equipment.

“Who can benefit?”
Sheltered accommodation caters for couples and single people alike. It is of the greatest benefit to older people on their own as the system acts as a safety net, giving elderly people that bit of support and confidence. It is not suitable for anyone who needs nursing care; residents must be able to function on their own, although they may need a little help, for example, if they’ve had a stroke.

“Checklist”
If you are considering sheltered accommodation, you should consider, apart from the obvious suitability of the flat in terms of size, location etc. , the following points.

• Is there a resident Manager?
• Does the Manager live on the premises?
• Is the Manager married/ have family? In my experience married Managers do better for residents.
• Is there a flourishing social side?
• Is the scheme recognised and supported by the local council?
• What provision is there for telephone and TV connections.
• Does a cheaper rate for TV apply?
• What other benefits are there; e.g. communal kitchen equipment, clothes washing and drying facilities, lift, guest room.

It’s best to get a full rundown on life at your proposed residence before signing. Have a good look round, talk to the Manager and other residents if possible. Some can cater for people who have to use wheelchairs on a regular basis but not all.

“Final Comments”
Living in sheltered accommodation will not suit everybody. Flats are usually quite small and storage space is scarce. If you don’t mind this there are many positive aspects.

If you are interested in finding out more about Sheltered Housing you could contact your local Council or your local Age Concern. They will know which schemes operate locally; or if you want to move nearer your family in another part of the country ask them to find out for you. Some private schemes run with cooperation from the local council; others retain their independence. Most are non-profit making.

These days it’s rare to see a child without a huge dummy stuck in its gob. If a small child grows up with something constantly in its mouth then it’s going to see that as the norm. The dummy will be replaced by constant grazing or smoking.

My wife never used a dummy for our children; nor were they ever allowed to eat in pushchair or pram. Whenever possible we sat down as a family to eat together and they learned to eat a wide variety of foods. Sweets, crisps and the like were occasional treats, not an hourly feast.

Our children have done the same service for our grandchildren. No dummies, a few treats only - outside of mealtimes - and they’ve grown up the same. No eating fads; it’s a pleasure to meet them for a family meal.

So, new mums; don’t start your baby with a dummy. You’ll probably have to be insistent because most nurses and midwives seem to think they’re a good thing. Not true. Nature has provided the only dummy your baby will ever need. Ever seen lion cubs rolling about with dummies in their mouths?

Every time a new Education Minister is appointed he or she seems to think they have to come up with a new vision for education. Therefore education has suffered by being forced to change direction constantly and we’ve had so many starts, restarts and u-turns that the whole education system is in disarray.

The new Minister Alan Johnson has come up with the idea that private schools should loan out their teachers to state schools, presumably because he thinks that the best teachers are to be found in the private sector.

Not true; private teachers may appear to be better because they have classes half the size and don’t have the same discipline problems. Private schools can bar trouble-makers.

Mr Johnson shouldn’t expect the private sector to help him out, but concentrate on making the state sector at least equal to the private. He can do this by solving the discipline problem that wastes hours a week, simplifying administration and creating smaller classes.