Since UK investors currently hold assets overseas worth 420 per cent of UK national income, the country could continue to fund its current account deficit by disposing of foreign assets “for decades”, said the researchers. [Financial Times]
We in the West are proud of our heritage and our Capitalistic laissez-faire attitude to trade. We call our political system, democracy, and are proud of our free speech. But what do you do when our own systems are used worked against us?
When Trump came to power he adopted a whole bunch of measures that were considered anti-Republican. Many of his measures were considered good for the economy and pro-Republican, like lowering taxes. It was hoped that much of the money companies had abroad would come back. So far so good, but then he started adopting strong arm tactics like pressuring companies into investing at home and not abroad, and threatening them if they spent the investment in countries like Mexico. The Republicans reacted - but shut up. Because they knew he was right and it was a war they couldn't win.
Why did he need to do that? Simply because money has no conscience. Money doesn't care about home unemployment and home poverty. All money cares about is its profit margins. Compare this policy to China. A strong-arm regime, their central bank or whatever took a look around last year (2017) and noticed something they didn't like. Too many Chinese were spending too much money on frivolous luxury properties, and promptly shut-off the money taps. Surprise, the London property caught a cold, one unlikely to have a quick cure.
What, if anything, is the difference between Trump's strong-arm and China? As I see it, very little. Notice that the world, and even the home markets had little to say about the tactics that were directed to strengthening one's own economy. My opinion is that world opinion is fundamentally fair. When the Tories lowered corporate tax to boost local investment it never happened. The money that was given back to corporations went abroad, to foreign investments.
What we need is some strong arm tactics, with explanations for the people. Regulators with claws and rules for business (especially the fiance world) that have the nation's welfare at heart. As an example take the lowering of taxes in Britain. OK Mr. businessmen, have back some extra profits, but if you haven't invested it inside of a year, in the following year we will tax you on those unspent profits at any increased rate. Instead, the Tories keep trying to sell us the lie that lower taxes by themselves are a good thing.
Let me explain in laymen's terms. You come up with a vaccine. You administer it and a large proportion of the population, but not everyone remains disease free. But in the case where it doesn't work you can't just up the dose, more and more hoping it will work. Eventually the vaccine will kill you. With EU membership come many rules, but if you look closely you will see that they are directed to protecting its members. With a reduced democratic commission, what you have is stability, something I bet Teresa May would like a little of! With friends like Boris Johnson, Jacob Rees-Mogg and the DUP, who needs enemies?
So what does Britain want that it can't have now in the EU? Frankly, it wants the right to play a dirty game of pool like the US. Freedom from the EU will eventually force the UK to decide who it wants to align with. It is no where big enough to be a world-player and survive on it own. If it chooses America it should beware, because in essence it will become just one more state.
To Labour I would say this. In the old days it was assumed you needed to nationalize to control. In fact what you need is a tough, effective regulator and consistent rules. People for example, that blamed the conductors for months of strikes on Southern Rail, forget that the company had a deal where the company was paid by the government whenever they were on strike. Where's the incentive to negotiate? If the company was hurting it would have been far more pressured to solve the problem. Just look at China.
Recently a news article showed something brand new in China. Something they haven't seen for decades. A blue sky. (A real one with clouds and things). The government woke up one day and said no more coal-fire plants and sent in the authorities to close down factories. No courts, no parliamentary discussions, just close down the problems.
OK many people lost their jobs, and in a caring society we would look to retrain these and find them employment elsewhere. But anyone that compares such actions as corrupt and anti-democratic is nothing more than an opportunist. The sky and the quality of the air is something everybody needs.