The EU / UK joint report on Brexit is a fudge. Most glaringly, it has fudged the issue of Ireland, kicking the can down the road yet again. However, unless a way is found to do the impossible of allowing Northern Ireland to be part of single market and outside it at the same time the fudge says:
"In the absence of agreed solutions, the United Kingdom will maintain full alignment with those rules of the Internal Market and the Customs Union which, now or in the future, support North-South cooperation, the all-island economy and the protection of the 1998 Agreement."
It also says: "the United Kingdom will ensure that no new regulatory barriers develop between Northern Ireland and the rest of the United Kingdom..."
In other words, the whole UK will remain bound by EU rules forever.
This is not Brexit: just capitulation by a weak and wobbly Tory government!
Now is the time for Brexiteers to declare that no deal is better than this fudge. But Tory Brexit supporters are too scared of a general election and a Corbyn win to rock the boat. Tory flag waver Jacob Rees-Mogg cravenly concedes defeat:
“Arlene Foster saved the day and the Prime Minister has done well to secure a deal that Brexiteers can live with."
Yet again the Tories have shown that they put their own interests above those of the country. It is time for the rest of us to demand the Brexit we voted for.
This EU / UK joint report on Brexit reads as if the whole lot was drafted in Brussels, which indeed it was. It uses EU jargon to muddy the waters and hide the dangers lurking within.
The consequences of this agreement are frightening. Not only will the UK be bound to the Single Market and the Customs Union forever, but also the financial consequences are probably under estimated.
Take one paragraph: "In particular, the value of the RAL, as audited by the European Court of Auditors, will be adjusted to take into account the actual implementation of the Union’s commitments, taking into account decommitments and assigned revenue. The UK opt-outs leading to non-participation in Union programmes existing at the date of withdrawal will continue to apply in respect of the financial settlement."
What on earth does this mean? The RAL stands for Reste à Liquider which, according to the Huffington Post ( http://www.huffingtonpost.co.uk/adam-hamdy/eu-referendum_b_10625150.html ) is "a fancy monicker for the EU's unfunded future liabilities." According to the HP "The EU commits to expenditure on the assumption that member states will continue to fund it. So it might agree to fund a €100 million infrastructure project over three years, but only receive the money for it over a much longer six-year period. This creates a gap between income and liabilities. The original idea behind the Reste à Liquider was to enable the EU to smoothly manage its commitments and not to be tied to receipts from member states."
"The only problem is that the gap between income and liabilities has kept growing to the point where it now stands at around €220 billion (in 2016). Total unfunded liabilities now equate to approximately 25% of the entire EU budget over the last six-year cycle, or over 140% of the EU's annual budget. The liability gap is so large that the ECR Policy Group has warned that the EU may soon be unable to pay its bills. The liabilities are starting to look a lot like an unapproved overdraft that's getting out of control."
The Court of Auditors is so unreliable that they were recently raided by the fraud squad. The EU's finances have never been properly audited, let alone the RAL. So the commitment for the UK to fund all EU expenditure "Committed" before the withdrawal date (according to the EU sometime in 2021) is basically a blank cheque. There is no way that anyone can actually put a figure on these unfunded future liabilities and who knows what additional financial commitments the EU will agree to before 2021. A European Army? The building of the capital of the United States of Europe?
The estimate of a net cost of £36 - £39bn is just a guess. The UK has no legal obligation to fund any of these " future liabilities", so why should we commit ourselves to pay for an unknown figure just to allow the EU27 continued free access to the UK market?
In the last year the UK trade deficit with the EU27 has been £90bn. This will continue and expand if this dodgy deal is allowed to stand. The UK just cannot afford to finance the incompetence of this Conservative minority administration. The country should rise up and demand that as we voted for Brexit, we should have Brexit and have it without this stitch up by the EU.
Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Sunday 10 December 2017
Thursday 15 December 2016
Brexit and the Kindness of Strangers
Once again we have civil servants and politicians telling us we need ten years to negotiate trade deals with the EU before we can have Brexit. This is what Hitler called the big lie, something obviously untrue, but if you keep saying it then people will begin to believe it.
The reality is that we do not need trade deals, as we have our biggest and most profitable trading area right here on our doorstep. It is called the UK.
And the same civil servants and politicians, who oppose Brexit, have spent thirty years actively undermining the UK economy in the name of "free trade". As a result we have an unsustainable trade deficit, which is the biggest challenge facing the UK, not our lack of trade deals.
Earlier in 2016, the Governor of the Bank of England, Mark Carney, called it "the kindness of strangers". This is the willingness of foreign banks and institutions to finance the UK's massive trade deficit .
A dangerous and insecure foundation for any economy.
Yet throughout the debates about Brexit and the UK's position in the world, the trade deficit has not been something that any of the political parties or civil servants discussed. Not even the Green Party, despite the fact that it is a major factor in the sustainability of the UK economy.
Greens should be asking: are EU economic policies sustainable, or should we be striving for a more self-sufficient society? This is the big question that I believe the Green Party leadership failed to ask itself before the EU referendum. Will we get a more sustainable society inside or outside the European Union?
If it is about anything, Brexit is about the long term future of the UK economy. We should be thinking about what sort of society we want to be living in for the remainder of the 21st century. The Green Party in particular should be campaigning for a society that is sustainable in the long term.
This is not just an issue of phasing out fossil fuels, to try to avoid the Armageddon of global warming. It is about whether we want to continue consuming the world's resources at the current rate; a rate not sustainable by two earths, not just the one we inhabit. We are constantly being told that we are consumers, but should we not be striving to become conservers?
The EU has and always will be an advocate for big business. The number one goal of the current EU trade commissioner is to expand international trade by taking the EU into TTIP.
Indeed it was written into her remit by the President of the EU commission himself. The biggest and most effective lobbyists in Brussels come from the multinationals. But most of all, the very essence of the EU is about economic growth, no matter what the cost.
This is why, despite the relative ease of doing so, the EU or any one of its member states have never taken effective measures to curb wholesale tax avoidance by multinationals. Indeed, some countries actually style themselves as tax avoidance facilitators, like Ireland as it struggled to get out of its debt crisis and Luxembourg (championed by a Prime Minister who was later to become the President of the EU Commission).
That is why the UK Chancellor's stated big ambition is to have the lowest corporation tax in the EU. It should be to build a sustainable country, with a priority of protecting and serving its citizens.
The EU cares little about the balance of trade between EU countries; its priority is the furtherance of trade for the EU as a whole. This is why we have the desperate economy of Greece co-existing with the massive wealth of Germany. It is also why the unsustainable trade deficit of the UK is entirely down to the imports from the rest of the EU being far more than our exports to the EU.
In the first quarter of 2016, the trade deficit of the UK with the EU reached £24bn (the equivalent of £96bn a year ). If the UK economy is to survive, then any responsible government must plug this trade gap, before the "kindness of strangers" runs out, as it did in Greece.
In 1957, the then prime minister Harold Macmillan ordered the first big post war economic re-appraisal of the UK economy and, after the shock of the Suez crisis, of the UK's role in the world. The conclusions were clear, a post imperial Britain had to have a trade surplus to survive. So Macmillan and his immediate successors focused on supporting British industry, to replace the trade lost as the empire disappeared.
This "export or die" support for British business continued until Thatcher and her acolytes (Major, Blair, Brown, Cameron, and Clegg) broke the post-Suez consensus around economic sustainability. Blinded by the pseudo-science of the neo-liberal economics sponsored by the multi-nationals, they allowed our domestic economy to stagnate.
Indeed, since Thatcher there has been little economic growth per capita. That means that what economic growth there has been was largely the result of an increased population due to net immigration and price inflation. (Between 2008 and 2014 the economy declined by 0.2% per individual officially resident in the UK).
What there has been is a steadily increasing trade deficit, as UK industries were either deliberately destroyed (like locomotive manufacture, when the Tories refused to buy any new trains for three years before they privatised the railways) or by their transfer to cheaper parts of the world, including other parts of Europe. Thus we had the unedifying sight of British workers (as in Phillips and Cadburys) training their successors before being put out of work.
With the UK part of the EU, economists thought on an EU level. It did not seem to matter that the UK had a massive trade deficit with the rest of the EU. But when the UK voted for Brexit, the economists suddenly had to view the UK as a stand-alone economy. This slap in the face with the reality of the UK's terrible trade deficit is what caused the drop in the pound, not the democratic decision of the British people to leave the EU.
The biggest challenge of Brexit is how to reduce this trade deficit and re-establish the UK as a sustainable economy. What we need is a healthy dose of Keynesian economics, with public and private investment in manufacturing and much needed public services. The Tory and pseudo-Tory government policies of laissez faire of the last thirty years have failed and is time for a UK Government to manage our economy once again, as even the arch-Tory Macmillan realised sixty years ago.
We need a Government that invests in our future, a sustainable future. This means doing away with tax breaks for oil producers and fracking and replacing them with investment in renewable energy, in home and business insulation and community energy schemes. It means public investment in our NHS, cancelling PFI contracts and stopping the leeching of money to private sector providers in the name of market economics.
It means cancelling the dodgy deals to build obsolete nuclear power stations with money supplied by a communist dictatorship and investing instead in reducing our energy consumption.
It means taxing multi-national businesses in the UK on their profits made in the UK and properly policing by HMRC to eliminate fake management, service and commodity charges charged by holding companies in off-shore tax havens.
It means using quantitative easing to invest in our country, instead of increasing the value of bonds held by the richest 5%.
The problem has always been that much of this direct Government involvement in developing UK industries directly contravenes EU directives. Even the purchase of local produce by local authorities has been shown to fall foul of EU competition rules.
But most of all we need to recognise that with 65 million "consumers" the UK is a massive single market on its own. Because every country in the rest of the EU exports far more into the UK than the UK exports into those countries, the UK market is far more valuable to them than the EU market is to the UK. As mentioned £24bn more in the first quarter of 2016 alone.
With Brexit we have two main opportunities, currently not even being discussed by this failed Tory administration nor indeed by the official opposition.
First to reduce our trade deficit by investing in our own economy to reduce and replace the goods and services purchased from the other countries in the EU.
Secondly, to actively engineer our economy away from a throw-away society towards a society based on providing the goods and services that people actually need, like renewable energy and good health and social care. In Sweden for instance, they are giving tax breaks to people who repair goods rather than throw them away.
It is no coincidence that we have not seen a sustainable economy since we abandoned Keynesian economics and replaced it with 'the world's dumbest idea': the economics of Milton Friedman. So I ask everyone who has the best interests of the UK at heart, please stop looking back to challenge Brexit and instead look forward to a resurgent UK investing in itself and its people once again.
The reality is that we do not need trade deals, as we have our biggest and most profitable trading area right here on our doorstep. It is called the UK.
And the same civil servants and politicians, who oppose Brexit, have spent thirty years actively undermining the UK economy in the name of "free trade". As a result we have an unsustainable trade deficit, which is the biggest challenge facing the UK, not our lack of trade deals.
Earlier in 2016, the Governor of the Bank of England, Mark Carney, called it "the kindness of strangers". This is the willingness of foreign banks and institutions to finance the UK's massive trade deficit .
A dangerous and insecure foundation for any economy.
Yet throughout the debates about Brexit and the UK's position in the world, the trade deficit has not been something that any of the political parties or civil servants discussed. Not even the Green Party, despite the fact that it is a major factor in the sustainability of the UK economy.
Greens should be asking: are EU economic policies sustainable, or should we be striving for a more self-sufficient society? This is the big question that I believe the Green Party leadership failed to ask itself before the EU referendum. Will we get a more sustainable society inside or outside the European Union?
If it is about anything, Brexit is about the long term future of the UK economy. We should be thinking about what sort of society we want to be living in for the remainder of the 21st century. The Green Party in particular should be campaigning for a society that is sustainable in the long term.
This is not just an issue of phasing out fossil fuels, to try to avoid the Armageddon of global warming. It is about whether we want to continue consuming the world's resources at the current rate; a rate not sustainable by two earths, not just the one we inhabit. We are constantly being told that we are consumers, but should we not be striving to become conservers?
The EU has and always will be an advocate for big business. The number one goal of the current EU trade commissioner is to expand international trade by taking the EU into TTIP.
Indeed it was written into her remit by the President of the EU commission himself. The biggest and most effective lobbyists in Brussels come from the multinationals. But most of all, the very essence of the EU is about economic growth, no matter what the cost.
This is why, despite the relative ease of doing so, the EU or any one of its member states have never taken effective measures to curb wholesale tax avoidance by multinationals. Indeed, some countries actually style themselves as tax avoidance facilitators, like Ireland as it struggled to get out of its debt crisis and Luxembourg (championed by a Prime Minister who was later to become the President of the EU Commission).
That is why the UK Chancellor's stated big ambition is to have the lowest corporation tax in the EU. It should be to build a sustainable country, with a priority of protecting and serving its citizens.
The EU cares little about the balance of trade between EU countries; its priority is the furtherance of trade for the EU as a whole. This is why we have the desperate economy of Greece co-existing with the massive wealth of Germany. It is also why the unsustainable trade deficit of the UK is entirely down to the imports from the rest of the EU being far more than our exports to the EU.
In the first quarter of 2016, the trade deficit of the UK with the EU reached £24bn (the equivalent of £96bn a year ). If the UK economy is to survive, then any responsible government must plug this trade gap, before the "kindness of strangers" runs out, as it did in Greece.
In 1957, the then prime minister Harold Macmillan ordered the first big post war economic re-appraisal of the UK economy and, after the shock of the Suez crisis, of the UK's role in the world. The conclusions were clear, a post imperial Britain had to have a trade surplus to survive. So Macmillan and his immediate successors focused on supporting British industry, to replace the trade lost as the empire disappeared.
This "export or die" support for British business continued until Thatcher and her acolytes (Major, Blair, Brown, Cameron, and Clegg) broke the post-Suez consensus around economic sustainability. Blinded by the pseudo-science of the neo-liberal economics sponsored by the multi-nationals, they allowed our domestic economy to stagnate.
Indeed, since Thatcher there has been little economic growth per capita. That means that what economic growth there has been was largely the result of an increased population due to net immigration and price inflation. (Between 2008 and 2014 the economy declined by 0.2% per individual officially resident in the UK).
What there has been is a steadily increasing trade deficit, as UK industries were either deliberately destroyed (like locomotive manufacture, when the Tories refused to buy any new trains for three years before they privatised the railways) or by their transfer to cheaper parts of the world, including other parts of Europe. Thus we had the unedifying sight of British workers (as in Phillips and Cadburys) training their successors before being put out of work.
With the UK part of the EU, economists thought on an EU level. It did not seem to matter that the UK had a massive trade deficit with the rest of the EU. But when the UK voted for Brexit, the economists suddenly had to view the UK as a stand-alone economy. This slap in the face with the reality of the UK's terrible trade deficit is what caused the drop in the pound, not the democratic decision of the British people to leave the EU.
The biggest challenge of Brexit is how to reduce this trade deficit and re-establish the UK as a sustainable economy. What we need is a healthy dose of Keynesian economics, with public and private investment in manufacturing and much needed public services. The Tory and pseudo-Tory government policies of laissez faire of the last thirty years have failed and is time for a UK Government to manage our economy once again, as even the arch-Tory Macmillan realised sixty years ago.
We need a Government that invests in our future, a sustainable future. This means doing away with tax breaks for oil producers and fracking and replacing them with investment in renewable energy, in home and business insulation and community energy schemes. It means public investment in our NHS, cancelling PFI contracts and stopping the leeching of money to private sector providers in the name of market economics.
It means cancelling the dodgy deals to build obsolete nuclear power stations with money supplied by a communist dictatorship and investing instead in reducing our energy consumption.
It means taxing multi-national businesses in the UK on their profits made in the UK and properly policing by HMRC to eliminate fake management, service and commodity charges charged by holding companies in off-shore tax havens.
It means using quantitative easing to invest in our country, instead of increasing the value of bonds held by the richest 5%.
The problem has always been that much of this direct Government involvement in developing UK industries directly contravenes EU directives. Even the purchase of local produce by local authorities has been shown to fall foul of EU competition rules.
But most of all we need to recognise that with 65 million "consumers" the UK is a massive single market on its own. Because every country in the rest of the EU exports far more into the UK than the UK exports into those countries, the UK market is far more valuable to them than the EU market is to the UK. As mentioned £24bn more in the first quarter of 2016 alone.
With Brexit we have two main opportunities, currently not even being discussed by this failed Tory administration nor indeed by the official opposition.
First to reduce our trade deficit by investing in our own economy to reduce and replace the goods and services purchased from the other countries in the EU.
Secondly, to actively engineer our economy away from a throw-away society towards a society based on providing the goods and services that people actually need, like renewable energy and good health and social care. In Sweden for instance, they are giving tax breaks to people who repair goods rather than throw them away.
It is no coincidence that we have not seen a sustainable economy since we abandoned Keynesian economics and replaced it with 'the world's dumbest idea': the economics of Milton Friedman. So I ask everyone who has the best interests of the UK at heart, please stop looking back to challenge Brexit and instead look forward to a resurgent UK investing in itself and its people once again.
Saturday 23 April 2016
Here is the Evidence that the UK WILL be better off after BREXIT
Over the last few weeks we have heard a cacophony of vested interests telling us that it was not in THEIR best interests for the UK to leave the EU. From the US President and US treasury, the IMF, the Bank of England and George Osbourne's minions, there has been an orchestrated message of dire warnings about perceived threats to the personal wealth of every man, woman and child in the UK.
But all of these warnings have been predicated on one hypothesis: that if the UK leave the EU, the UK's trade will reduce. This is not a fact, it is a forecast, a prediction, basically a guess. And lo and behold, what is the outcome of this hypothetical scenario? Why we all get poorer.
A reasonable hypothesis you might think, but is it? It is based on us losing, as we are repeated told, an export market of 500 million people. That, of course, is a lie. Nearly 66 million of that 500 million are in the UK market, so we are actually talking about are exports to a market of 430 million people. What the hypothetical models do not take account of is the dynamic between the UK market of 66 million and the other 430 million in the EU.
So let us look at that dynamic: something the EU does not do, because it is only concerned with the whole market, not with the individual members, and least of all individual people like you and me. That is why the EU forces poverty and unemployment on vast swathes of the EU, from Greece to Portugal, young people in particular are suffering from this emphasis on the EU market as a whole, not the wealth of individual countries.
When we joined the EU, in the days of Ted Heath and Harold Wilson, the most important UK national statistic was the Balance of Payments. The difference between what we, the UK, as a nation export in goods and services and what we import. Indeed for many of the post war years, as we struggled to pay off the biggest debts of any nation after WW2 (any nation that actually paid its debts that is), we had import controls, because as a nation, we decided that we could not afford imports.
You rarely hear of the balance of payments these days. Yes, it was mentioned by the Bank of England as the Financial Policy Committee (29/3/16) dutifully trotted out its carefully worded support for REMAIN and the interests of international bankers. But only as a footnote: it merely said it had "concerns" about the UK's balance of payments deficit(1).
Yes, deficit. Because ever since we joined the Common Market, we have had a deficit with the rest of the EU. And as the EU has got bigger and bigger, so too has our deficit with the rest of the EU.
So here's the rub. Here is the evidence that yes, we would be better off if we LEAVE the EU.
In the last three years alone (2013-2015), according to the UK Office of National Statistics(2) , we have had a balance of payments deficit with the rest of the world of £267 billion. Within that, our trade deficit with the rest of the EU has been a staggering £303 billion. Yes, we actually had a modest SURPLUS of trade with the rest of the world outside the EU, of £36 billion.
And that deficit with the rest of the EU is going up, from £89 billion in 2013 to £107 billion in 2015. If we REMAIN, and the status quo does not change, then over the next ten years, based on these figures, we will have a net deficit with the rest of the EU of over ONE TRILLION POUNDS (£1,000 billion).
So, how will we pay for this trillion pound spending spree? Well, the Bank of England told us. As a nation, there are only two ways to pay for this massive trade deficit. Either by flogging off our capital, or, by increasing our debt. Well, our national assets have gone to pay for the profligacy of the past. Margaret Thatcher started it by selling off our North Sea Oil too cheaply, such that last year whilst Shell paid Norway over $4billion, the UK actually paid Shell $123 million in tax rebates(3). Since then the railways, water, utilities and many other public and private assets have been sold and are now owned by overseas, particularly EU interests. The profits from which are, no doubt, squirreled away in Luxembourg tax avoidance schemes set up under the now EU Commission president, Jean Claude Juncker, when he was president of Luxembourg (free the "LuxLeaks" whistle blowers now under arrest in Luxembourg!)
So, as the BoE pointed out, the only way to pay for the £trillion pound balance of payments deficit with the EU expected over the next ten years is by debt. A debt that is frankly, unsustainable.
Yes, if the UK remain in the EU, within ten years the UK will be bankrupt.
So, what is the Brexit alternative? Well one alternative is to stop importing this stuff we don't need and start making ourselves the stuff we do need. We could stop importing quite so much and invest in our own economy instead; in steel, manufacturing, the NHS, local farming etc.. We can say good riddance to all these trade deals like TTIP whose primary purpose is to allow multi-nationals free rein to satisfy their greed for a privatised NHS, schools and other public works.
Another alternative is to stop worshiping consumerism and embrace conservation. We have the opportunity to be world leaders in sensible technology like renewable energy and home insulation.
Investing in the UK will cost us far less than the Trillion pounds the UK will have to find in the next ten years to feed our addiction to EU imports. That is why the world's vested interests are united in spending so much time and money on persuading us that our addiction to EU imports must continue, no matter what the cost to the British people. That Trillion pounds goes into the coffers of those same vested interests and further increases the servitude of debt into which every UK citizen is daily encouraged to fall.
The reality is that, after BREXIT, we will continue to trade with the EU, but on our terms, not theirs. The EU will still want its Scotch and other UK products, but more importantly, the EU cannot afford to lose all of that Trillion Pound bonanza it is expecting over the next ten years. The EU will be falling over itself to strike a trade deal with the UK, because it cannot afford to lose its largest export market. We just need to have faith in ourselves, in our country and have the courage to say NO to membership of the EU and stand on our own feet again.
References:
(1) www.bankofengland.co.uk/publications/Documents/news/2016/032.pdf point 11
(2)www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/balanceofpayments/octtodecandannual2015 & previous periods
(3)http://www.standard.co.uk/business/nick-goodway-why-do-we-pay-shell-to-extract-our-oil-assets-a3228751.html
But all of these warnings have been predicated on one hypothesis: that if the UK leave the EU, the UK's trade will reduce. This is not a fact, it is a forecast, a prediction, basically a guess. And lo and behold, what is the outcome of this hypothetical scenario? Why we all get poorer.
A reasonable hypothesis you might think, but is it? It is based on us losing, as we are repeated told, an export market of 500 million people. That, of course, is a lie. Nearly 66 million of that 500 million are in the UK market, so we are actually talking about are exports to a market of 430 million people. What the hypothetical models do not take account of is the dynamic between the UK market of 66 million and the other 430 million in the EU.
So let us look at that dynamic: something the EU does not do, because it is only concerned with the whole market, not with the individual members, and least of all individual people like you and me. That is why the EU forces poverty and unemployment on vast swathes of the EU, from Greece to Portugal, young people in particular are suffering from this emphasis on the EU market as a whole, not the wealth of individual countries.
When we joined the EU, in the days of Ted Heath and Harold Wilson, the most important UK national statistic was the Balance of Payments. The difference between what we, the UK, as a nation export in goods and services and what we import. Indeed for many of the post war years, as we struggled to pay off the biggest debts of any nation after WW2 (any nation that actually paid its debts that is), we had import controls, because as a nation, we decided that we could not afford imports.
You rarely hear of the balance of payments these days. Yes, it was mentioned by the Bank of England as the Financial Policy Committee (29/3/16) dutifully trotted out its carefully worded support for REMAIN and the interests of international bankers. But only as a footnote: it merely said it had "concerns" about the UK's balance of payments deficit(1).
Yes, deficit. Because ever since we joined the Common Market, we have had a deficit with the rest of the EU. And as the EU has got bigger and bigger, so too has our deficit with the rest of the EU.
So here's the rub. Here is the evidence that yes, we would be better off if we LEAVE the EU.
In the last three years alone (2013-2015), according to the UK Office of National Statistics(2) , we have had a balance of payments deficit with the rest of the world of £267 billion. Within that, our trade deficit with the rest of the EU has been a staggering £303 billion. Yes, we actually had a modest SURPLUS of trade with the rest of the world outside the EU, of £36 billion.
And that deficit with the rest of the EU is going up, from £89 billion in 2013 to £107 billion in 2015. If we REMAIN, and the status quo does not change, then over the next ten years, based on these figures, we will have a net deficit with the rest of the EU of over ONE TRILLION POUNDS (£1,000 billion).
So, how will we pay for this trillion pound spending spree? Well, the Bank of England told us. As a nation, there are only two ways to pay for this massive trade deficit. Either by flogging off our capital, or, by increasing our debt. Well, our national assets have gone to pay for the profligacy of the past. Margaret Thatcher started it by selling off our North Sea Oil too cheaply, such that last year whilst Shell paid Norway over $4billion, the UK actually paid Shell $123 million in tax rebates(3). Since then the railways, water, utilities and many other public and private assets have been sold and are now owned by overseas, particularly EU interests. The profits from which are, no doubt, squirreled away in Luxembourg tax avoidance schemes set up under the now EU Commission president, Jean Claude Juncker, when he was president of Luxembourg (free the "LuxLeaks" whistle blowers now under arrest in Luxembourg!)
So, as the BoE pointed out, the only way to pay for the £trillion pound balance of payments deficit with the EU expected over the next ten years is by debt. A debt that is frankly, unsustainable.
Yes, if the UK remain in the EU, within ten years the UK will be bankrupt.
So, what is the Brexit alternative? Well one alternative is to stop importing this stuff we don't need and start making ourselves the stuff we do need. We could stop importing quite so much and invest in our own economy instead; in steel, manufacturing, the NHS, local farming etc.. We can say good riddance to all these trade deals like TTIP whose primary purpose is to allow multi-nationals free rein to satisfy their greed for a privatised NHS, schools and other public works.
Another alternative is to stop worshiping consumerism and embrace conservation. We have the opportunity to be world leaders in sensible technology like renewable energy and home insulation.
Investing in the UK will cost us far less than the Trillion pounds the UK will have to find in the next ten years to feed our addiction to EU imports. That is why the world's vested interests are united in spending so much time and money on persuading us that our addiction to EU imports must continue, no matter what the cost to the British people. That Trillion pounds goes into the coffers of those same vested interests and further increases the servitude of debt into which every UK citizen is daily encouraged to fall.
The reality is that, after BREXIT, we will continue to trade with the EU, but on our terms, not theirs. The EU will still want its Scotch and other UK products, but more importantly, the EU cannot afford to lose all of that Trillion Pound bonanza it is expecting over the next ten years. The EU will be falling over itself to strike a trade deal with the UK, because it cannot afford to lose its largest export market. We just need to have faith in ourselves, in our country and have the courage to say NO to membership of the EU and stand on our own feet again.
References:
(1) www.bankofengland.co.uk/publications/Documents/news/2016/032.pdf point 11
(2)www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/balanceofpayments/octtodecandannual2015 & previous periods
(3)http://www.standard.co.uk/business/nick-goodway-why-do-we-pay-shell-to-extract-our-oil-assets-a3228751.html
Monday 16 February 2015
Towards a Citizen’s Income
A Citizen’s Income is an unconditional, non-withdrawable income paid to every individual as a right of citizenship.
The Green Party have called for the statutory minimum wage to be immediately lifted to Living Wage levels and for a £10 per hour minimum wage for all by 2020. But longer term our target is a Citizen’s Income.
As a party committed to social justice, measures such as the Citizen’s Income that redistribute wealth are central to our economic policy.
Our creaking welfare system gets ever more complex, yet it often fails to provide security to those who need it most. In the longer run, a fundamental reform is needed where most of the complicated benefits, means tests and qualifying contributions are swept away, and all citizens receive, as of right, a universal basic income, or ‘Citizen’s Income’.
A commitment to introducing a Citizen’s Income in the long term will be part of the Green Party’s manifesto for the 2015 General Election. Citizen’s Income represents a major structural change to the welfare system and requires wide and thorough consultation and input from stakeholders. Our manifesto working group is currently working on figures as a basis for that consultation, which will be available by the time of the manifesto release in late March 2015.
Monday 22 March 2010
Turning over a new Leaf or perhaps the End is Nigh?
I am very excited about the first mass-produced electric car for the European market being made in the North East. Hopefully this will be the first of many such vehicles. I will be saving up for one.
Of course I would not need a new car if the Grey Parties had invested properly in Public Transport. Here in rural North Yorkshire it is near impossible to hold down a job without a car. We should be cancelling all the big ticket road-building programmes and investing in public transport, especially in rural areas. Even the High Speed rail link between London and Birmingham, welcomed by many in the South East, in my view should take second place behind a massive expansion of ordinary railway services across Britain.
But if you are a motorist, one of the big mysteries of life is how the price of petrol always goes up significantly BEFORE the Chancellor's budget. Every year it is the same. Garages across the country all raise their prices at the same time. This year it has increased between 5p and 10p a litre in a matter of days. Then when the extra tax is put on petrol at the budget, the oil companies pretend the price hike had nothing to do with them.
Mind you, the value of the pound dropping has not not helped, pushing up the price of oil in Sterling. This is the direct result of "Quantitative Easing": the Government euphemism for printing money. Any GCSE Economics student knows that if you print money, you devalue the currency, causing inflation in the economy. We have not yet seen that inflation fully impact on the economy, but it is coming. Linked with the dip in the economy during the bad weather, with the VAT increase and the cessation of the scrappage scheme to come, I predict that worst of all possible worlds, stagflation (stagnant economy linked with inflation). Then of course, if, God forbid, the Tories form the next Government we will have massive cuts in public expenditure, deepening the recession even further! The End is Nigh!
Looks like I will not be able to afford my new Nissan Leaf after all. Unless of course, Sanity prevails and the country votes for the Green Party. We need Government investment in things that will create jobs in a sustainable economy. The Green Party are fighting for an immediate £44bn investment package, to create over a million new jobs that will start building the 21st Century infrastructure that Britain needs, with public transport that works and with warm, cheap to run homes. So, don't panic: just vote Green!
Of course I would not need a new car if the Grey Parties had invested properly in Public Transport. Here in rural North Yorkshire it is near impossible to hold down a job without a car. We should be cancelling all the big ticket road-building programmes and investing in public transport, especially in rural areas. Even the High Speed rail link between London and Birmingham, welcomed by many in the South East, in my view should take second place behind a massive expansion of ordinary railway services across Britain.
But if you are a motorist, one of the big mysteries of life is how the price of petrol always goes up significantly BEFORE the Chancellor's budget. Every year it is the same. Garages across the country all raise their prices at the same time. This year it has increased between 5p and 10p a litre in a matter of days. Then when the extra tax is put on petrol at the budget, the oil companies pretend the price hike had nothing to do with them.
Mind you, the value of the pound dropping has not not helped, pushing up the price of oil in Sterling. This is the direct result of "Quantitative Easing": the Government euphemism for printing money. Any GCSE Economics student knows that if you print money, you devalue the currency, causing inflation in the economy. We have not yet seen that inflation fully impact on the economy, but it is coming. Linked with the dip in the economy during the bad weather, with the VAT increase and the cessation of the scrappage scheme to come, I predict that worst of all possible worlds, stagflation (stagnant economy linked with inflation). Then of course, if, God forbid, the Tories form the next Government we will have massive cuts in public expenditure, deepening the recession even further! The End is Nigh!
Looks like I will not be able to afford my new Nissan Leaf after all. Unless of course, Sanity prevails and the country votes for the Green Party. We need Government investment in things that will create jobs in a sustainable economy. The Green Party are fighting for an immediate £44bn investment package, to create over a million new jobs that will start building the 21st Century infrastructure that Britain needs, with public transport that works and with warm, cheap to run homes. So, don't panic: just vote Green!
Subscribe to:
Posts (Atom)