Thursday, May 9, 2019

Investment, Investment, Investment Leave the European Union the Poorest will be Richer

The UK Government have failed to invest in our Economy since Major.

Yesterday I talked about imbalances in our economy and how it affects our demographics, regions and social fabric. The UK reinvests 16% of its national income on balance improvements, this is spent throughout the UK, it includes Intellectual property, software etc, which in effect reduces our spend to around 12% of GDP. To compound our poor investment record, the 12% is roughly equivalent to the depreciation on existing assets. Which means we are effectively standing still, which is a shocking place to be. 

We can not all be Bankers. Not all of us have trust funds.

We can not all be Bankers, many of us are Engineers, Doctors, Nurses etc. It is here where we spend too little, on the mix of skills. Why is this? The cynical side to me believes, that our MPs, leaders have focused on their trust funds, but in reality the EU have not focused on the UK for manufacturing. Our leaders have focussed selling assets, Brown and Blair did by selling our gold, and at a bargain price. They will say, it was the market at the time when in reality gold had started its ascension, the sale of the UK reserve in fact depressed the price.  It is this easy road that Blair and Brown followed that masked our rapid decline. Whilst they looked great in their NHS investments they left with the cupboard bare. But, it was great for spin at the time, and on reflection good for a future campaigns, except they've been rumbled. 

Leave won, and if project fear had not been played then leave would have been even greater.

The Brexit Party and Questiontime.

I watched Question time, admittedly I dislike Anna Sourby as I believe she is illegitimate as an MP, she was elected on a conservative ticket, on a leave manifesto. As she is anti both she therefore holds her seat through what mandate? This is a serious issue. But, that aside, it was and is always disappointing  particularly to hear from a labour MP Jonathan Reynolds, the words the people did not vote to be poorer, Mr Reynolds they are already poorer! The Labour MP claims the poor in our society will be the hardest hit. To that I say look to the youth unemployed along the Med countries. Look to our investment levels they're pathetic, the EU since the 70s are complicit in our manufacturing decline, this is in favour of Germany, and the richer northern countries. In addition, France and Germany have tried for many a year to dismantle the city of London, our one jewel, and they have tried to do this long before the referendum. 

The Poor are screwed in the EU.

To say to Labour voters that they will be poorer is poppycock, if the vested Remainer MPs did their job they would be richer. Sadly I'm not sure, if any MP really knows what their job is? Maths and Fraud are clearly a forte of theirs as we are seeing with yet another expenses’ scandal, twenty years after the duck pond scandal. Fact, within the EU German companies have less competition, French farmers less competition, how is that good for UK workers and consumers, we levy under EU rules a 50% tariff on dairy products.  How is that good for your labour voters?

Source: Data from International Monetary Statistics Yearbooks, Washington: IMF and 100 Years of Economic Statistics by Thelma Liesner.

In real terms the UK spend only 2.6% on productive investments, even that number is 25% lower than 2008. The bulk of our investments are spent on returns that give less than the interest payments on our loans.  Countries such as China, Singapore etc, grow much faster than we, they spend far more on higher-powered investment which give greater rates of return: machinery, technology and power. Source ONS, (Office For National Statistics) under the heading "Other Machinery and Equipment".

Too little investment too late.

Currently, our investment is heavily skewed towards public buildings, shopping centres, restaurants, road and rail, HS2 a casing point. They give little to what is known as a good ‘social rate of return’. There is no value in a new shopping centre if the public can not afford to shop there! 

To return to Question time last night. It was for me disappointing in many respects. Nigel Farage was ganged up on, but I guess that can only be accepted as he is the greatest threat to the corrupt parliament that we have today, in Ann Widdercombe’s words the worst since Oliver Cromwell. The gentlemen who lambasted Nigel for not answering the question to name one country who trades on WTO. This Sir is irrelevant, it is not our intention to trade for ever on WTO we will strike free trade deals. However, let's be mindful here the USA trade with Europe on WTO alone there are no issues here.  So his barking at Nigel was unfair and somewhat stupid. 

Investment, sensible investment is required, but we have to stop toeing the EU destructive line which has existed since the 70s. We have to stop the £39B payment, we have to invest and diversify our industries, this is not a nice to do it is imperative. This Parliament is inept as every Parliament has been since Thatcher! Labour, Conservative, even Liberal are not fit for purpose. Sad to say this country needs a Trump, otherwise in or out of Europe we will become a banana republic. 

We need to return to honest democratic government that works for all.

An odd title because we can no longer say a government that works for all and not just the few. This government doesn't even work for the few they work only for themselves! 

It's difficult to call for change when the change party who call for no change have hijacked the name.

I hope I'm clear on my notes the facts are self-evident our manufacturing has declined our investment in technology is  not sufficient, there is so much more we can easily do. We must now do it! The country has been neglected since Mrs Thatcher left office.

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