Wednesday, 24 March 2010

More Labour Destruction

Now the Budget is over let's not forget this:


Thanks to Scunnert

7 comments:

13th Spitfire said...

I note that they did not mention that TATA are building a new plant in the Netherlands...

subrosa said...

I noticed that too Spitfire and wondered if the deal had been signed after this video was made.

Alex said...

Been reading some other popular blogs about the budget and not found much of interest.

You rightly highlight the loss of manufacturing. The reason is low interest rates. You need money to save in order to then invest in capital like building a factory to make things.

Economic policy was all geared towards speculation and driving up house prices. And so debt has piled up and industry has been taxed. The consequence? Exporting manufacturing jobs. So, now that the bubble has burst and only debt is left how does a country pay its foreign debts? By selling manufactured goods. The problem is there's no manufacturing left. So, no way out of the debt and those interest payments keep going up and up..

And with all that debt and no way to pay it back no-one is going to lend you anything. So, you can't buy products from abroad.

So, you go hungry and the debt gets worse. The government then prints more money to pay the debts. People stop lending completely and you get massive inflation.

At this point you need factories to make things for your own population. You have to drive up interest rates to encourage savings but the government owes so much money and so does the population that those interest rates criple everyone.

The result? A massive drop in living standards lasting 2 to 3 generations.

That's Labour's legacy.

subrosa said...

What an accurate assessment of the situation Alex. Many will agree with you.

Isn't it sad that a labour government has lost as much of our manufacturing as Maggie Thatcher? Now I can't find the link for the comparison but I read that on a reliable site.

Alex said...

It's a big mess. The only asset holding up the UK economy is oil. You can borrow against guaranteed oil income.

That's still important but not gonnie save team UK. It certainly would be a massive asset for an independent Scotland..

They never tell you that Britain has been a petroeconomy for 30 years. Oil was the asset behind London City. They just told us The Ciy was a money spinner.

As we can see now, it was all fraud. The government though is trying to put the genie back in the bottle. That'll destroy the economy for sure.

Alex said...

It's a big mess. The only asset holding up the UK economy is oil. You can borrow against guaranteed oil income.

That's still important but not gonnie save team UK. It certainly would be a massive asset for an independent Scotland..

They never tell you that Britain has been a petroeconomy for 30 years. Oil was the asset behind London City. They just told us The Ciy was a money spinner.

As we can see now, it was all fraud. The government though is trying to put the genie back in the bottle. That'll destroy the economy for sure.

subrosa said...

Unfortunately Alex most Scots don't mind those south of our borders calling them scroungers and subsidised by England.

If only many would waken up and see what's been paid into keeping the union alive.

Scots are as bad as the English at putting their heads in the sand regarding the well being of their country. It's a sake of 'I'm all right Jack'.

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