Saturday 18 July 2009

Secrecy for Success

War has always been as much about propaganda as it has about fighting. In the end, success is only achieved when you have won the hearts and minds of the vast majority on both sides. We are continuing to engage in a war in Afghanistan, a country that has been in continuous civil war since the late 1970s. This war started with Operation Enduring Freedom, a campaign to destroy the Al-Qaeda terrorist training camps inside Afghanistan, following the September 11th US attacks in 2001. The Taliban government refused George W Bush's demand to turn over all resident Al-Qaeda members to the US and close all the terrorist training camps. Let us remember that the Taliban were overthrown in 2001 and a democratic government led by Hamid Karzi put in place. The freely elected National Assembly of Islamic Republic of Afghanistan includes women as voters, candidates and elected members. We have come a long way.

Afghanistan is a poor country, plagued with landmines, a massive illegal poppy cultivation and opium trade and new to the concept of democracy. The Western troops are now faced with an increasing Taliban presence, fighting back at the changes we have brought about. They continue to see a threat from the few remaining elements of Al-Qaeda. Recently, attacks on our troops have seen many casualties from road side bombs. This is very regrettable, but there is still a job to be done. If Western support was withdrawn at this stage, it would have only one consequence. All the bloodshed and sacrifice needed to achieve the toehold of democracy established in Afghanistan would be in vain.

Frank Skinner writes (in the Times): "It's not just about helicopters and the right kind of armoured car, is it? The problem is that we, as a nation, can't really do war any more." Our democratically elected government acting on our behalf embarked on this war. The least we can do is support them in the propaganda war that surrounds the whole affair. What I find almost unbelievable is why senior military personnel express publically any view on the adequacy of our helicopters and armoured cars. To question our capability is to question our ability to continue in Afghanistan, when popular opinion has withdrawal on the agenda. Whatever happened to secrecy and any awareness of the propaganda war involved here. Sitting in my Al-Qaeda bunker at the edge of my Taliban supported terrorist training camp, I am greatly encouraged to browse the internet via my satellite link and learn that Sir Jock Stirrup and Sir Richard Dannatt both find our helicopter fleet inadequate. Why do we even see reports on the success of the roadside bombs – surely that information itself should be kept secret.

Contrast this with another age: The Enigma code-breakers of Bletchley Park are finally to be honoured with commemorative badges. Crucial to our success in World War II and the continued establishment of democracy in Europe, this was an operation which depended on absolute secrecy. Indeed the identities of those involved have been kept secret for all this time. There is a lesson to learn there, it seems to me.

Wednesday 25 February 2009

Security Barclaycard Style

Trust is a fragile thing. I count myself as fortunate not to have knowingly been defrauded on the internet, but from all that I hear it is only a matter of time before it is my turn. Extra transactions on my credit card statement, a large transfer out of my current account or a complete identity theft. The spectrum of possibilities makes one edgy to say the least.

I am always aware of the dangers and whenever I do an on-line purchase, I pride myself that I might know enough about the methods of internet fraudsters not to be easily caught out. Today I was making an on-line purchase at work, using my company credit card. The personal risk is somewhat less, I suppose, but this did not make me any less wary. Having entered the card details and clicked the confirm button there was a very brief display saying transaction confirmed, or words to that effect, then the whole browser window was taken up by a "Verified by Visa" page (see below). So now I am being asked to enter my credit card details again, into what looks like a pop-up window. And this is for my own security? How am supposed to know if this is genuine or not? Why would they ask for the credit card details again?

So either this is a scam or, it seems to me that Barclaycard have got it very wrong!


The Darling Buds may not

Alistair Darling is to offer guarantees of up to £600 billion to RBS and Lloyds Banking Group. He is asking them to lend out £40B to re-start the economy. Now let me get this right. UK GDP = £2800B, so that is more than a fifth of our gross domestic product that the Chancellor is gambling on our two biggest banks. To put it another way, that is nearly £10,000 for every man, woman and child in the UK. Hmmmm!

All this to promote the new buds of economic growth.

Welcome Communism

In a mixed economy such as the UK or the USA, there are laws, such as the UK Companies Acts (most recent 2006), which protect shareholders, limiting their liability provided a company is run according to certain rules. This legislation is designed to encourage the investment of capital in businesses so that they will thrive, creating employment, goods and services and wealth for the shareholders. This is the capitalist system. The stability of the system depends on a fine balance between risk and reward. The board of directors is appointed by the shareholders and is responsible for running each company. Shareholders risk their money, based on the information provided by the directors. Directors are responsible for filing company accounts annually and for ensuring that the company is trading legally at all times, usually this means having assets that are equal to or more than liabilities at any one moment in time. Assets include cash, capital investments such as property, stock, machinery. The money for these is raised by selling shares to shareholders or from the profits made by the business. If the business in which they invest does not succeed (i.e. at any time liabilities exceed assets) then shareholders stand to loose their investment, but, under company law they are protected from being pursued by creditors of the business, provided that the company ceases trading the moment it is no longer solvent.

Banking is not an ailing industry for the UK. It has been badly managed recently and it has taken risks beyond what is reasonable (alongside banks the world over). Whilst the banks may deserve to go bankrupt, it is not really in anyone's interest to let this happen. It's not the Government's money being used, of course, but the UK tax payer's money or money being borrowed on our behalf. Actually, the tax payer stands to gain when the banks are sold back to the private sector in a few years time.

Now that we are bailing out other industries, the risks may be higher to the tax payer. Giving the motor industry £2.3B may not save it and certainly won't create a greener motor industry into the bargain. But what is now clear is that the threat that always hung over the shareholder, that he would loose all his money if the business he invested in failed, is no longer a threat. Fail and the government will bail you out.

Does this mean a turning point in the Western capitalist system? The work ethic, the motivation to succeed, may have dried up. The great criticism of communism was that motivation was poor. With no capitalist reward, under communism the state will always struggle to grow an economy, maybe even struggle to provide the basics for it population. Isn't this where we are heading in a system that no longer punishes the investors of a failing business and therefore takes away a sizable part of the motivation?