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Thursday, December 31, 2009

Brown's Banking Losses Not in 2009 Accounts


In the December Treasury UK Government Spending Outturn Reports, there are some detailed accounting tables, which I am about to comment on. The figures in the Treasury Tables are very similar to the figures given by the previous report I detailed a week ago. But this time, there is a new element added which at least gets the totals to relate to each other correctly. The new element is called mysteriously 'Accounting Adjustments'. See HERE.

In the previous report, the sub-totals did not equal the grand total, and the reader with a calculator to hand, adding them up, was just left hanging.

I blogged the effect as 'UK Government Spending 58% of GDP', which the sub-totals added up to before the bringing in of these unexplained 'accounting adjustments'.

The accounting adjustments noted in the Tables are not chicken feed, either, one of them being GBP 99.5 billion. See Table 1, Total Capital AME . The largest previous such accounting adjustment in previous years was GBP 10 billion. So GBP 100 billion is quite a jump.

There are no details provided as to what this adjustment might consist of. This adjustment alone is 15% of the spending totals declared. It should have been itemised I would have thought, and provided with an explanatory note. It is not.

The effect is to reduce the 2009 totals of government spending to fit The Chancellor's forecasts, which would otherwise have been out by the same amount, GBP 100 billion - no less than 8% of GDP.

This is surely the biggest unexplained 'accounting adjustment' on record in the history of the world. Britain again under Gordon Brown finds herself at the very top, leading the field for the size of its unexplained '√°ccounting adjustments'. I bet the French have never had an unexplained 'accounting adjustment' of anything approaching this size, or the Germans, or even the Italians. It should really get the recognition it deserves, but as yet no one (apart from me) has even mentioned it.

I would have thought that the government should be responsible to its citizens and explain what this accounting adjustment consists of.

This however is not even the only one in this year's PBR accounts from H.M.Treasury. There is indeed another unexplained 'accounting adjustment' in the accounts, again of no small significance. The second unexplained 'accounting adjustment' you can find has no less a value than GBP 85 billion, not as big as Britain's all-time record GBP 100 billion shocker unexplained 'accounting adjustment', but a very close second, and worthy of its place in the Hall Of Fame. See RESOURCE AME in Table 1. And they both appear in one year's set of accounts. Quite remarkable.

It's obviously a very great effort that's been put in by The Treasury to accommodate The Chancellor's forecasts and to fit them to the spending that has actually made. But there is a problem.

It leaves me feeling that government spending is probably far higher than is being admitted to, as why otherwise would the figures appear like this, and why would a GBP 185 billion value of account 'adjustment' not be explained in a way which an observer of the accounts could fathom?

It's not something to do with bank takeovers is it?

Maybe someone from the news media could ask of HM Treasury why there is a total of GBP 185 billion of 'accounting adjustment' included in the 2009 Spending Outturn figures, reducing a spend of GBP 800 billion to a declared total GBP 615 billion or so. The accounting adjustments are three times bigger than any in previous years. What are they, and why are the figures so big?

Surely accounting 'adjustments' of this size warrant a note in the accounts, being 30% of the total declared value of government spending in 2009. These are not small figures, that seem are being slipped through without explanation.

Are expenses being reclassified as assets, for example? If so, have the relevant assets been valued at cost of purchase or at current market value, or by what method of valuation?

If these, by chance, happened to be the purchases of bank shares, a historic cost valuation method could currently be covering up a major market loss.

Take the shares bought by the government in Royal Bank Of Scotland as an example. These were bought at 65p. The shares are now valued at 29.5p and are consistently falling despite the general rise in other share prices. On this share alone the government has lost over GBP 10 billion on its 70% holding.

These share losses do not appear in government spending figures for 2009. Perhaps this explains the strange way that money s being accounted for.

See RBS share price chart HERE.

Morten Moreland, The Times.



Not quite right, Morten. He could just have the decency to come clean as to how big the mess really is.

The losses on the share prices could only be the half of it. The toxic debts owned by the banks could yet wipe them out and require further large infusions.

But at least we could be given a current valuation of the assets purchased on our behalf by the government, declaring all losses or gains if any, and the net position. Losses should be added to the GDP % figure as expenditure, or negative expenditure if a gain (there are none to my knowledge). At the very least a provision for anticipated future losses might be made for such a large accounting item. Otherwise the accounts start to stray too far away from reality to be meaningful.

10 comments:

tapestry said...

From Bean Counter on Guido Comments.

Mmm, interesting. Certainly demands clear and unquivocal explanation from Darling, Brown and the Treasury bods. I’m used to reading accounts but this set seems full of pseudo-techno babble – always a bad sign, in blinding with science mode, trying to confuse and not illuminate. To report financial adjustments of such financial magnitude without any proper explanatory notes is well iffy.

Twig said...

A decent opposition be nailing the govt on these issues, but there lies the problem; we don't have a decent opposition.

tapestry said...

Your point about not wanting to be the ones to push the crisis into being was a good one, I thought.

Gordon said...

Well,Well,Well.

You ALL are a bit thick, following the biggest bunch of Thieves.

You really have got a nerve, calling the other plonker Poor Gordon Brown and the LABOUR PARTY.

YOU, The Conservatives, of all people should know what happened to the Assets of RBS.
SIR STEVE ROBSON and the SECRET HANDSHAKE BRIGADE along with his fellow directors, Stripped RBS, moving "Billions" to SMOKE and MIRROR FRAUD FRONT CASH SHELLS registered on the Unaudited, Unregulated AIM L.S.E. and you call them "TOXIC ASSETS"
Over 300 mainly FRAUD FRONT, OIL,GOLD,URAMIUM, PLATINUM, ZINC,COAL, inter-connected FRAUD companies with a close network of the same "MUSICAL CHAIRS DIRECTORS" operated out of a London Address
22 ARLINGTON STREET, LONDON SW1A1RD
and given CONSERVATIVE security cover by their 4 VIP Directors, affiliates of SIR MARK THATCHER, ALI CALIL
and ex SAS Commanders
SIMON MANN. JUSTIN LONGLEY, TIM SPICER, RUPERT BOWEN,TONY BUCKINGHAM, GEN SIR M WILKES,
The financial COVERT cover companies for
ROBERT MUGABE, MOHAMED ADNAN KHASHOGGI, SHEIHK KHALIFA AL THANI, N.M ROTHSCHILD, THAMER AL SHANFARI.
You will find, the lost assets of RBS went into the "toxic FRAUD Companies" operated out of this address and their International accomplice addresses as per.
34 PARLIAMENT PLACE. PERTH. AUSTRALIA.

But then, Sir STEVE ROBSON has had many years of working with the same network of crooks.

Using Government PUBLIC Funds to cover-up Conservative ORGANISED CRIME.

SLATER WALKER SECURITY AUSTRALIA LTD with his Criminal cohorts.
JONATHAN AITKEN
IAN WATSON
JAMES DERRICK SLATER
PETER STORMONTH DARLING
SIR JAMES MELLON
LORD FRAZER
VISCOUNT ASQUITH
HOWARD FLIGHT
LORD NORMAN LAMONT
LORD RENWICK
CHARLES HAMBRO
VISCOUNT RUNCIMAN
DAVID NICOLSON
LORD WOLFSON
SIR MALCOLM FIELD
LORD GUTHRIE OF GRAIGIEBANK
SIR RODERIC LYNE
LORD PETER TRUSCOTT
RT HON JACOB ROTHSCHILD.

Mind you, they did a far better job doing exactly the same with NORTHERN ROCK, ABN AMRO, LLOYDS, BARCLAYS CAPITAL, along with our other defrauded Financial Institutions.

Robbed from the INSIDE, By= BANKERS.

Then the PUBLIC are asked to refill the coffers of the Treasury that gave Financial support to prevent Collapse.
SIR STEVE ROBSON knows exactly how its done, I mean HE and the others CONTROLLED the TREASURY not to long ago.

REMEMBER.

SLATER WALKER SECURITY AUSTRALIA LTD.

I also take note the IRAQ Inquiry BOARD has a few AFFILIATED names of Distinction, so nice to know the TRUTH will be uncovered, a lot like the BAE SCANDAL.
Mind you, same people covering -up the same people.
I would be very interested to learn if SIR JOHN CHILCOTT is related in anyway to: DAVID CHILCOTT or R PAGE CHILCOTT or COLETTE CHILCOTT.

Hasan Afzal said...

Is it not true that if a bank makes a loss, it can carry that loss on to the next fiscal year without tax?

tapestry said...

Gordon...there's possibly an element of truth in that diatribe.

If there is, then it is clearly no responsibility of Gordon Brown, who dismantled banking supervision in Britain with his genius plan to break up The Bank Of England's supervisory role in 1997.

Hasan, there is no tax to pay on losses. Losses can be carried forward and offset against future profits.

Gordon said...

HENRY CURTEIS
"POSSIBLE ELEMENT of TRUTH."
you know "JACK"
Let me give you a "LITTLE" History Lesson.
These over 300 Fraud Front Companies operating on the UNAUDITED, UNREGULATED AIM are from and out of
22 Arlington Street. London SW1A1RD and
34 Parliament Place. Perth.
ARLINGTON ASSOCIATES
Are and were formed back in 1960's and originate to the "OLD" Australian SONS OF GWALIA Mine.
To get a grasp of HOW this interconnected ORGANISED POLITICAL CRIMINAL NETWORK Operate,You would do better to download and watch from Broadband ABC 4 CORNERS "BAD COMPANY"
Of special Interest the comment made to the reporter by JOHN STRATTON
"THIS IS A HUGELY POLITICALLY DRIVEN EVENT"
Oh, How very true.
YOU HAVE NO IDEA HOW POLITICAL.
You can follow their COMMON DIRECTORSHIP Company Collapse History from the 60's
EXACTLY the same format fraud as the JCI, DRD RAWAS MINE Fraud (US$ 400Million)and EXACTLY the same network of Directors.
Initially on the ASX
1965
GREAT PANTHER RESOURCES LTD
to
MASMINDO MINING CORPORATION NL
to
LAVERTON GOLD NL
to
KIMBERLY RESOURCES NL
to
CANGOLD LIMITED

But then they got smart, because they listed same on the UNAUDITED, UNREGULATED TSX-V
The success expanded to HUNDREDS of "EXPLORATION, OIL, GOLD, URANIUM, TITANIUM, ZINC, TIN, SILVER,
COAL, DIAMONDS, anything really.
Mark Twain got it right, what do you call a MINE, "A HOLE" WITH A BUNCH OF LIARS ON TOP"
But affiliated with "BOILER ROOM" Specialists RAKESH SAXENA, ANDRE AGAPOV, GEORGE SALAMIS, FRANK GIUSTRA, GORDON KEEP, JAY SUJIR, VASILE FRANK TIMIS.
The rest is History, "PASS THE MONEY HONEY"
and there they are, over and over again.
So, the Chief Financial Officer of JCI and DRD who moved the STOLEN ASSETS of JCI and DRD
Guess WHO ?
non other than ex BARRICK GOLD CORP (GEORGE BUSH covert company)
CHARLES PHILIP MOSTERT
Working in the same office as JUSTIN LONGLEY, (DIAMONDWORKS "OLD" LTD, nephew of MI6 Sir Richard Dearlove, THAMER AL SHANFARI and MOHAMED ADNAN KHASHOGGI
Just resigned from: LONRHO MINING PLC
Address: 22 ARLINGTON STREET. LONDON. SW1A1RD
Previous Directorships, 28 including
CONTINENTAL GOLDFIELDS LTD
with,
PETER NEIL LANDAU
DR RICHARD NAPIER
and this charming FRENCHMAN
CHARLES DE CHEZELLES

Gordon said...

Located at 34 PARLIAMENT PLACE. PERTH
So
For reference to WESTERN INTELLIGENCE and 34 PARLIAMENT PLACE and frontman,
SIR SAMUEL ESSON JONAH
read the Australian article on this Australian GOVERNMENT INTELLIGENCE Address "GUNS and GOLD"

and you might recognise a few SENIOR instigators from GALAHAD GOLD Ltd or URAMIN INC
With LORD ROTHSCHILD
NEIL LINDSEY HERBERT
IAN WATSON
PETER STORMONTH DARLING
MORRIS BEATTIE
LORD DAVID WOLFSON
JAMES DERRICK SLATER
all affiliated to
SLATER WALKER SECURITIES AUSTRALIA LTD and JONATHAN AITKEN.
So How do you ensure Complete COVER and the expanding network.
Well, LORD NORMAN LAMONT = RAB CAPITAL PLC

Mmmmmmm Yes you better remember the IRAQ, OIL for FOOD Scandal and MR MP GEORGE GALLOWAY and IRISH PRIME MINISTER , ALBERT REYNOLDS. BULA RESOURCES HOLDINGS LTD and TONY PEART, JEREMY ASHER.

LORD ANTHONY ST JOHN = REGAL PETROLEUM
LORD CRICKHOWELL =ANGLESEY MINING
SIR BILL GAMMELL = CAIRN ENERGY PLC
DR MIKE WATTS = SHELL, BURMA OIL, SOCO, CAIRN ENERGY PLC
SIR MICHAEL FIELD = HOCHSCHILD MINING PLC
and
SIR STEVE ROBSON = UK TREASURY, RBS among others.

The 100's of Inter-Linked FRAUD, FRONT, CANADIAN TSX -V Companies originate from 3 common SPONSORS
HAYWOOD SECURITIES INC
CANNACORD CAPITAL CORP
and
MACQUARIE CAPITAL MARKETS CANADA LTD
Which when you check who the main EMPLOYEE is turns out to be:
FRANK GIUSTRA
The main financial supporter for the PRESIDENTIAL CAMPAIGNS of
GEORGE BUSH and BILL CLINTON
Just Remember , ABC 4 CORNERS "BAD COMPANY"
QUOTE by JOHN STRATTON
"THIS IS A HUGELY POLITICALLY DRIVEN EVENT"
"TOXIC ASSETS" My @rse
It's very easy to prove who's right.
ASK THE GOVERNMENT TO PRINT A LIST OF THE "TOXIC ASSETS" of
RBS
ABN AMRO
LLOYDS
BARCLAYS CAPITAL
NORTHERN ROCK

YOUR OTHER BLOG "WHERE DID ALL THE MONEY GO"

I will show you, company by company, director by director.

Then you'll see WHO STOLE our Financial Institutions Assets

I'M 100% Right.

CHECK.

tapestry said...

Gordon, give us some links so we can read your theories please.

Anonymous said...

Gordan,
What else do you know about Dr. Richard Napier?