The runaway inconsistencies of the Labour government’s handling of the economic crisis in Britain are truly terrifying.

Last week, they began printing money to buy back debt they themselves have issued, a process I described as like a snake eating its own tail.

Technically, this is considered a triumph of good judgement in the circumstances. Logically, it’s voodoo without a witch doctor.

Now, having added Lloyds HBoS to its list of (virtually) wholly owned banks, they are offering hugely expensive insurance policies against these bank’s toxic assets. As John Redwood writes in his blog today: “I asked what was the point of taxpayers ‘insuring themselves’ in RBS and Lloyds.”

The contradictions involved in eating one’s tail and insuring oneself against loss with one’s own resources are derangement-inducing. We could all go mad just thinking about them.

We’re told that economics is a funny business. Things are not always what they seem. The bad guys are often the goodies in disguise, and the reverse is also true. If you’re not a member of the Initiati, you must take it on trust. You have to see it in the round.

But when the snake gets to its stomach, what then? And if taxpayers have to pay out on dodgy loans — as much as £50 billion, some say — does that money go round in circles and end up back in taxpayers’ pockets?

Like hell it does! It will more than likely find its way into the bonus packages of jubilant bankers, or back in the Treasury where they will find some excuse for spending it on social programmes that fritter it away. That’s suspiciously handy with major elections in the offing.

This is high deception and makes a mockery of the idea that “our government” is actually on our side.

Many have also noted that these trillion pound operations have been undertaken without proper Parliamentary approval or scrutiny. Perfunctory best describes their response to curious MPs, like John Redwood.

In the handling of this crisis, as in other areas, they have become the enemy within.

John Evans

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