The Artist

An evening outing a couple of days ago for members of the Xorg collective, to the cinema to see 'The Artist', the much-vaunted silent movie (in black and white) that threatens to scoop all the Oscars this year.

I don't know whether or not The Artist is better than all the other nominees in all respects, but it should definitely win an award or two and it is most definitely worth paying money to see.

The story line is simple and straightforward, concerning a silent movie actor's struggle to adapt to the advent of talking pictures combined with the basic plot of 'A Star is Born', where an established star is outshone by his protege. It is a silent movie in that there is no spoken dialogue, but there is a well written musical score and some other sounds. Don't worry about not being able to follow what's going on though as there are occasional screens of dialogue at key points and often you can lip read what's being said.

The strength of the movie lies in how well it is made and the performances of the two leads. And a dog that does tricks. (Maybe they'll invent a special Oscar for the dog.) The point being that they act in the film as silent movie actors used to do, with exaggerated gestures and expressions thus giving a very authentic feel to the movie. But there is also wit and gentle parody of the genre, not least in the leading male character's matinee idol looks and grooming, and his broad Gene Kelly smile. Any road up, five stars!

Note: Minus five stars for Cineworld, however. Prior to the movie, we were bombarded with half an hour of advertisements and trailers at deafening volume, edited together by someone with the attention span of a teenage gnat. Moreover, we could hear the bangs and crashes from the screen next door where they were presumably watching a film about speeding 42-ton trucks being blown up by 15 megaton bombs interspersed with random machine gun fire.

RBS: Hester's Bonus

Any road up so though but. This bloke Stephen Hester has been awarded a bonus of £963K of shares in the Royal Bank of Scotland (RBS) on top of his £1.2 million salary.  So this bonus is only worth something to him if and when he sells the shares. Should he ever claim welfare benefits, they will be counted as an asset nonetheless so his claim would not succeed, £16,000 being the upper limit for means-tested benefits (there's a sliding scale of deductions for savings between £6,000 and £16,000). 

What is not clear, however, is what Hester has done to earn a bonus whether in cash or shares. He's closed some branches; he's selling some to Santander; he's cut staff numbers and reorganised things here and there. But that's just part of his normal everyday job anyway. Surely a bonus should be related to having done something extra, above and beyond what you're being paid £1.2 million in salary to do in any case? *

I suppose now that he has the shares he has an incentive to increase their value or at least maintain it rather than allow the price to fall. So, in a sense, he has an incentive not to screw up - but he till gets his £1.2 million and he never had the £963K in cash anyway so it wouldn't be much of a loss when all's said and done. Hester still has his house in Holland Park, London; his 350 acre estate in Oxfordshire; and a chalet in Verbier, Switzerland so what's £963K?
Meanwhile, of course, we are told that if bankers don't get a bonus they will go elsewhere and deploy their inestimable talents to someone else's benefit. Fair enough, goodbye and good luck! There are 2.8 million unemployed in the UK - I wouldn't mind betting that at least one of them will have some idea how to close branches, reduce staff numbers and sell off assets and who will do the job for half what Heston is getting.

* Since Hester has been in charge, RBS has lost £3.6 billion in 2009 and £1.13 billion in 2010. Meanwhile his total 'remuneration package' has been £35.54m since joining the bank in 2008. That year, when the then Labour government bailed out RBS, Mr Hester was awarded £4.99m in restricted shares, forgoing pay and bonuses. In 2009, his package was worth £6.9m. In 2010, his total package rose to £8.16m. Last year, the total was £8.08m, including a long-term incentive plan (LTIP) worth £4.8m, bonus £1.66m and salary and pension contributions. For 2012, the total figure is £7.38m – including LTIP worth £4.8m, his bonus of £963,000 and £420,000 pension contributions and £1.2m salary. No doubt he'll get a Knighthood as well at some point.
Addendum: Hester has been persuaded by the malodour surrounding this episode to waive his £963K shares bonus. It seems this is more to do with the distraction it is causing for him and his pals than to an acceptance that he hasn't actually done anything very much to deserve the bonus. He will still receive the rest of his 'remuneration package' for the year, £6.42 million.

Margaret Thatcher

I Saw The Light

Another reminder of the existence of Todd Rundgren, here performing with his pal Daryl Hall. Looks like they might be in Hawaii...

Mick Jagger Walks Out

The NME reports that Mick Jagger has withdrawn from a tea party to which he was invited by David Cameron in Davos, Switzerland. Sir Jagger has belatedly realised that Cameron was using him to give himself some 'hip' credibility on the pretext that Jagger would be helping to promote Great Britain. Ole Jumpin' Jack Flash says he has always maintained an apolitical stance publicly and steered well clear of party politics which is true enough but you'd have thought he would have smelled a rat beforehand on receiving an invitation to a tea party from the likes of Cameron. I can't imagine anyone in their right mind wanting to be tainted by such association. But Sir Flash has always been a great one for mixing with those in high places and no doubt his ego felt good to be asked to be part of the gathering of the overblown plutocrats and self-appointed global business elite at the World Economic Forum where this shindig is taking place. Coincidentally, The Stones will be celbrating their 50th Anniversary this year.

Our picture shows Keith Richards' reaction to the news.

The Banker, the Daily Mail reader, and the Benefit Recipient

A correspondent in the Letters Page of today's Independent quotes the following joke to sum up current Government policy:

An investment banker, a Daily Mail reader and a benefit recipient are sitting round a plate with 12 biscuits on it. The banker takes 11 biscuits, then turns to the Daily Mail reader and says: “Watch out – that scrounger is after your biscuit.”

You could replace the words 'Daily Mail reader' with the name David Cameron or any of his jumped-up Tory half-wit colleagues, all of whom seem to be similarly deliberately ignorant and unable or unwilling to see where the problem actually lies. As the letter writer points out, they should be asking where the eleven biscuits went.

The Beach Boys Soulful Old Man Sunshine

I discovered this rare Beach Boys song via The Guardian's blog about 'old music'. It was recorded in 1969 but didn't surface until 1998 as an album track on the soundtrack for the 'Endless Harmony' documentary. You can tell why it wasn't released at the time as it shows all the signs of the backing track having been recorded by session musicians in a different place and different time from when the vocals were recorded. Plus there are a couple of fluffs, and the mix ain't right. If only they'd gone back to it and recorded a polished up version! Lead vocals are by Carl Wilson and show why it might be better for the remaining Beach Boys not to be planning a 50th Anniversary album and tour. It won't sound anywhere near as good or vibrant.

Return of the Son of Entanglification Runs Amok

Maxwell's Demons have been up to their old tricks again. I'm sure there were only two things plugged in last night.

Grimshaw v. Earth

Yer man Atkinson Grimshaw is good but sometimes the Earth does its thing and some lucky chap with a camera is there to record it. Picture taken in Yosemite in the Autumn via the Los Angeles Times, where there's zillions more snaps of nature's wondrousness. If it weren't for all those flipping Americans it would be perfect.

Let's hope they don't discover oil.

Tom Braggins Band: Live at the Spice of Life

Last Saturday evening saw The Tom Braggins Band topping the bill at The Spice of Life pub/music venue in Soho, featuring our Phil on the drums and making it sound right. Mr Braggins on guitar and vocal and the inestimable Chris Eldred on keyboards.  Here's a picture of them setting up (taken by Phil hence he's not in the photo). A full house and they went down a storm!

The album Simple Things (produced, engineered and made possible by Phil) is available at iTunes for  £6.99. A solo acoustic album by Mr Braggins is in the pipeline. Also on Spotify, Facebook, MySpace, and so forth.

Mr Eldred is also a member of The National Youth Jazz Orchestra and is available for weddings, bar mitzvahs etc. He too can be found on MySpace.

Politics: New Words

The Coalition Government has been 'in power' for 21 months now and in that time we have learned some new words to describe what they are up to. Here's half a dozen:

• Mispledge - Anything Nick Clegg, Deputy Prime Minister, might have said prior to a minute ago.
• Undeforestationageness - The somewhat embarrassing state in which Caroline Spelman, Secretary of State for the Environment, Food and Rural Affairs, found herself having belatedly realised what a chump she was to propose selling off publicly owned forests and woodlands without first checking whether anyone else thought it was a good idea.
• Futtock - The shape of the imprint left in the sofa after Eric Pickles, Secretary of State for Communities and Local Government, has been sitting on it.
• Gove - A 'Big Idea' that some pranny or other (usually Michael Gove), mysteriously elevated beyond his level of competence, comes up with and to which everyone responds with disbelief, speechlessness and a frown before then setting out in some detail why it is a load of old cobblers and inviting the proposer to 'Shut up you twit'.
• Vacuosity - A statement of policy, spouted forth from David Cameron, in which he says that something or other is a problem and he is going to do something about it but he doesn't say what exactly that might be, nor does anything subsequently materialise.
• Dysastatistificated - The misleading use and manipulation of statistics in order to substantiate a prejudged position. Particularly popular with immigration Ministers, employment Ministers and other bigots.

Further contributions welcome.

Credit Default Swaps

The Greek 'Government' is currently negotiating with its creditors in the financial sector for a writ-off of part of its debts. The Eurozone (i.e. Germany and France) suggested this should be 50% but the creditors are trying to reduce this and the Greeks are trying to increase it, hence the delay. But agreement has to be reached before the cash bailout from the Eurozone can be released. So there's a bit of brinkmanship going on. If Greece doesn't get the cash bailout, then Greece will default on its loans and the creditors lose, but the creditors don't want to give up more than they have to. The deadline is the end of next week sometime. The idea is that Greece gives its creditors new bonds which are worth less than the existing ones, and the bailout money buys them back.

But an ironic twist in this little fandango is that much of the Greek debt has been bought up by so-called hedge funds at a discount and the hedge funds have taken out Credit Default Swaps (CDS) to cover themselves in case Greece does default. What the hedge funds are doing is insuring themselves against a loss, although a CDS isn't exactly insurance. The buyer has to pay for them (single premium or a series of payments) but the seller carries out no actuarial risk calculation and the payout is not related to actual losses but is for the amount initially negotiated. So if you are a hedge fund with a CDS against a debt owed by Greece you get your money back - and perhaps more - whatever happens. So they are negotiating to see how much more than the original debt they can screw out of the situation. 

Now comes the weird bit. What the seller of a CDS does is hedge his bets by buying a CDS (or several) against his prospective loss, from someone else. And that person does likewise so that we end up with a chain of CDS arrangements that payout if Greece defaults or pays back less than it owes. Moreover, anyone else can buy a CDS against the Greece debt even if they are not a creditor (i.e. they don't actually own the debt). I fail to see how this can be a good thing. Everybody is betting against themselves and each other until eventually one financial institution or another gets lumbered with the bill - and I wouldn't mind betting that it will be the European Central Bank or IMF which are ultimately funded by.... you and me. And that's (amongst other things) how the credit crunch happened. And Greece gets off scot free.

It's all a bit like something from Alice's Adventures in Wonderland. As the Duchess said to Alice:

“... never imagine yourself not to be otherwise than what it might appear to others that what you were or might have been was not otherwise than what you had been would have appeared to them to be otherwise." The financial sector is indeed 'being what it seems'.

But never mind. David Cameron assures us that he and his chums in the Conservative Party understand all this and so he's best placed to fix it.