Tax evasion is in the news again and, yes, little Liechtenstein is in the thick of it.

Glen Moreno, who is said to have advised some of our top banks on “tax evasion” and was appointed to head up the committee overseeing the partly-nationalized British banks, has been named and shamed and lost his job. Another Brownite bites the bones in the graveyard.

I’m always wary though when someone is accused of tax evasion. More often than not it’s tax avoidance we’re looking at. I’ve no idea if this is the case with Moreno, not having followed the Liechtenstein side of the story in any detail. In the present climate, though, even advising on tax avoidance is enough to condemn you to a trip through Traitors’ Gate.

However, it’s a truism that there is no obligation on anyone so to organize their affairs that they maximize their liability to the Revenue.

Let’s be clear, so-called loopholes in tax laws are not the fault of taxpayers. While on the statute book, they ARE the law. Minimizing one’s liability to the Revenue by using the wormholes created by increasingly complex tax law, is perfectly legitimate.

To some, doing so suggests bad faith or not not acting in the “spirit” of the law. That argument falls flat when a Chancellor creates a raft of stealth taxes to confuse people into paying yet more to the Treasury, as Gordon Brown did for a decade.

Since the whole question of tax avoidance only exists because of bad legislation, let’s rename it: tax optimization.

On a similar note, let’s look into the murky world of derivatives, futures markets and securitization.

Many people now have it in for these supposed jokers in the pack, and they are right to do so … most of the time.

But take the case of a power company that’s obligated to supply electricity and gas bought on the wholesale markets to the wider population. In an era of political turmoil and interference in these markets, it’s right that the companies should try to even out price fluctuations through the year for the benefit of their customers.

They do this by taking up futures positions to buy supplies at a fixed price when the position matures. The problem arises when any Tom, Dick and Harriet can also buy into this market, betting that the price will rise so they can offload their positions at a profit.

It’s obvious that if the T, D and H part of the market grows large relative to the rest, much more oil and gas is on order at any one time than the total world supply. This pushes up prices and destabilizes not only the energy markets, but also whole economies.

That’s what happened last year when the oil price reached $150 a barrel and looked like rising higher. And this occurred when oil consumption was falling off the proverbial cliff owing to the gathering slump.

Wouldn’t it be fairly simple to limit the use of specific futures markets to those businesses that actually use the commodities traded in?

I expect many learned folk will explain why that’s not possible. Simplicity, it seems, is beyond those with brains the size of the planet.

In Saturday’s Daily Mail commentator Peter Oborne surmised that putting back the Budget to April 22, following the G20 powwow in London, may suggest a June 2009 General Election.

The presiding “genius” behind this train of thought is Peter Mandelson, who apparently thinks that June may be the best option available, especially if a giveaway April budget bribed enough voters to contain their natural rage against the government.

Some credence is also being placed on Brown cutting a magnificent figure at the G20 — a forlorn hope.

If I were Brown I would take that advice. Not just because it may be the optimized moment, the least worst gamble to take, but because the national mood is now so poisonous there could well be riots in the street by the autumn. Brown is on course to become the Guy Fawkes of the 21st century.

There are huge decisions ahead that could go either way. Brown may be presiding already over the worst calamity for Britain since the Black Death in the 14th century.

Without a mandate, he is simply not legitimized to take those decisions on behalf of 58m citizens already impoverished by his profligacy.

Come to think of it, if I were Brown I would apply for the Chiltern Hundreds (resign Parliament) and live in exile for the rest of my days.

I have to confess I’ve developed a taste for Jeff Randall Live — 7.30pm, Mondays to Thursdays, Sky News.

So far, the former Business Editor of the BBC — probably now better known as Robert Peston’s predecessor — has interviewed David Cameron, a raft of bank Chairmen and Chief Execs, plus various movers and destroyers of British business. It’s a must-see for anyone interested in our gloomy age of austerity.

With Stephanie Flanders off the radar again at the BBC, it’s good to have a change of tune from Peston and Rory Bremner’s note perfect impression of him.

Down to earth Randall is the best antidote to sing-song Roberto at the Beeb.

For those optimistic souls searching early for the green shoots of recovery in the scorched, brown earth of Great Depression 2.0, there are two things to remember:

1. Unemployment reaches its crescendo AFTER the recovery has begun.
2. Share prices begin a sustained rise BEFORE the recovery begins.

In fact, equity gains are one of the green shoots to look out for.

As I gaze out at my garden, there are green shoots all over the place. Perhaps they were what Shriti the Shriek was referring to. Somehow, I don’t think Fred the Shred would agree.

What colourful characters this depression is throwing up. Jeffrey Archer could not make them up.

Strange that Vince Cable should win not one, but two prizes in the Channel 4 Political Awards, broadcast on Saturday evening.

It was also weird that at a time when the Labour party’s fortunes are at their nadir, so many Labour people, including clown-in-chief John Prescott, were nominated in the lists.

I got the impression that poor old capitalism is so out of favour with our leftish Establishment, that they can hardly bring themselves to acknowledge the now rampant Conservatives. The usual Stateist causes predominated, making the show the most one-sided, out of kilter political programme I’ve witnessed in a long while.

Surely it’s time to get rid of Jon Snow? This snowdrop has long since wilted. Anna Ford or Selina Scott would be worthy replacements for this ageing Bennite.

Quotes of the Week
“Everyone wants to save the world; no-one wants to help Mom do the dishes.” P.J. O’Rourke

“Those who preach the politics of the Brotherhood of Man are most likely to beat their wives and terrorize their children.” John Evans

John Evans

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