In fear of the future

As elections draw near, we see an everlasting image of what was, what could be and what is. The last of the issues is then rejected in two directions. As the Tories will go from what is into what could be, we will see labour into the mesh of what was and what did not happen. They are elements we saw coming a mile away (at http://www.theguardian.com/politics/2015/mar/14/osborne-budget-speech-economy-growth-deficit).

War is constant!
The political face of warfare never changes!

Both true, both unconditionally an issue in this day and age.

You see, the one trillion in debt is bogging down the UK and the Commonwealth as a whole. We need to bring it down, yet when we see the more likely response as it is given in the Guardian: “Deficit reduction has been much slower than Osborne forecast five years ago. In his first budget, in June 2010, the chancellor predicted that he would need to borrow £37bn in 2014-5” and “that tax receipts would cover day-to-day government spending. The actual figure will be almost three times that“. Both are right, both are staring down the wrong rabbit hole! If we accept the generic statement that the UK faces a £43 billion interest bill every year, which is more than the spending of Defence, are we catching on? Bankers end up with a 43 billion payout, which is certain money, no risk and all very much fuelling a banking bonus. The interest is just a little shy of 50% of the allowance for Education. Getting rid of the debt must remain the highest priority. Apart from most of us regarding the interest bill as an issue, it is nothing compared to what happens if the budget is not properly managed. Yes, it sounds so nice that we see the quote “Vince Cable has warned that George Osborne has no room in next Wednesday’s budget for a substantial pre-election giveaway, but acknowledged that there was some headroom in the public finances for modest tax cuts or an increase in public spending” (at http://www.theguardian.com/politics/2015/mar/13/vince-cable-osborne-budget-no-room-pre-election-bonanza), but regard the Guardian image (at http://www.theguardian.com/news/datablog/2014/mar/21/budget-2014-tax-spending-visualised#img-1). Here we see that borrowing was still needed, at the amount of £84 billion, which means that the debt is not diminishing. At the same time, the Eurozone decided to go on a one trillion spending spree, which will hit the UK (as part of the EU) sooner rather than later, which is part of the problem too, because these spending sprees are only working for a drive of the people towards Ukip. To be honest, I am not sure if the premise has changed. I remained on the fence considering that leaving the EEC was too dangerous, but as we see irresponsibility and non-accountability (the sad comedy of a threesome involving a Greek, a credit card and a banker) is now fuelling a stronger drive towards Ukip, Whilst political Europe is wording bad management clauses and whilst they have no real solution, we see deeper dive into debt. The UK MUST AT ALL COST prevent this nightmare. It seems all too clear that Germany is now also ready to leave the Eurozone. Perhaps not the politicians in an outspoken way, but the German people seem to have had enough. Of all the crazy rock bands that Europe has, the Greek one, with at the microphone Alexis Tsipras, the drums are played by Panos Kammenos and as ever in style of Greek theatrics, the Bass is played by Yanis Varoufakis. The name of this band is Aite and it remains to be seen how long the band will remain in existence. You see, instead of addressing failures, the players of this band entered the blame game. A game played by many, yet always only illustrating their own lack of commitment.

In that we see a link to the UK, the UK, its MP’s and those in charge with a title of that what is (like Chancellor of the Exchequer), this person cannot relax, because if it was needed to borrow £84 billion, that means that the words of Vince Cable were poorly chosen, because there was never any headroom. Even if there had been no borrowing, the headroom was not there, the debt must go down, the faster it goes down, the better everyone will feel and the more the government can do for the People of the United Kingdom.

It is just that simple and yes, we will all feel the pain for many more years, because previous governments had not taken control of its spending. Now that the invoice is way past due, the bulk of politicians are all about pushing it forward about pushing away that what should have been dealt with by a responsible person (read a person elected into office). The Tories are trying to get that done and they have also faced backlashes and setbacks. No one can deny that, but the debt must be dealt with.

The issue is seen here: “The Lib Dems have been pressing for a further rise in the £10,000 a year personal tax allowance – the sum before which any income tax is paid – in an effort to press home his party’s ownership of the single biggest tax reform of the parliament. The allowance is already projected to rise to £10,600 from April. Every £100 annual increase in the personal allowance costs £500m. The alternative will be to align national insurance with the personal tax allowance, a measure favoured in the past by Cable as doing more to help those on low pay“. In view, I am willing to consider this as an essential option, but if we are to move forward, it should only be allowed in a balanced budget approach. So, helping those on low pay is fine, but only if we change Basic rate to 21% and higher rate to 42%, which means that above the £10,600, the basic income goes up by a maximum of £318 and in addition, high income get an additional maximum of £836. This allows us a balanced budget. If you wonder why not the highest toll? Well, they also get the 1% of the base and the 2% of high anyway, that group is dwindling down and to seek even more to that smaller group seems a little unfair (the non-bankers that is). The second premise here is that this extra collected fee can ONLY be used to balance out the lost revenue from the basic rate group that had their annual income between £10,000 and £13,000 per annum. The rest of the collected tax MUST go towards lowering the debt. If we can believe the 2014 article by the Guardian, this will hit 6000 people, which means that it only raise a few millions, so taxing the rich has always seemed like and always remains a hilarious act of pointlessness. It is the 1% from the basic rate that will truly make a difference. It will drive the debt down faster, it will lower the interest bill which will help lower the debt even more.

It is basic calculus, an abacus can give you the information and politicians at large have just been skimming the sidelines towards the premise of confusion. If you doubt these words (always a fair notion), than ask Vince Cable to clearly explain where he found the headroom to manoeuvre!

The only big issue I have with George Osborne at this point is the voiced idea “We will ease back on austerity while sticking to our deficit-cutting target“. The article states against this “Even after a trim, Osborne’s cuts programme will still look drastic. Labour will argue that he is taking too much of a risk with economic growth and jeopardising essential public services“, in my view, easing austerity remains dangerous, the fact that the interest bill exceeds defence spending should be a massive red flag over everyone’s budget. On a global scale, bankers grow rich whilst sleeping through the bad cycle, how is this ever a good idea? Sticking to deficit cutting remains a goal, but you endanger this premise by ‘easing’. That is not a premise or a guess, it is a mathematical certainty. Whomever is telling you a different story is (as I see it) lying to you. My evidence? The 1 trillion debt, which resulted in total into £43 billion in annual interest bills and still there were £84 billion in additional loans. Total fo5r last year would be £127 billion in money going somewhere else.

The final issue is the crackdown on tax evasion, these politicians all talk and talk, but this could have been settled in the simplest of ways 2 years ago, perhaps even longer. It only requires one simple change to be accepted ALL OVER EUROPE, in all EEC nations. That one line is: “A company is taxable at the point of purchase by the consumer“, the buyer is the point of purchase, he/she buys an item, it does not matter WHERE the sales server is, by forcing locality in taxation we now see a fair dinkum approach; where the consumer spends that nation also sees taxation. I wonder how quick the Americans will now protest. They have played a long game of possum and now as we act, they will suddenly fear a drop in economic revenue as it all shifts in the true directions of where the money had gone. The change is so simple, is it not weird that those European Big Wigs could not, or would not consider such implementation? It will not make friendly faces in Ireland, but at least many will see a fair adjusted sales taxation approach.

Now we get back to the linked items, Germany is at the centre of changes that will impact the UK. I kept an eye on Bernd Lucke in the past as he was trying to drive Germany out of the Euro and the Eurozone. It was laughed of as a non-issue on more than one occasion. Now we see that Hamburg 2015 is a game changer, you might think that +6.1% is nothing, it seems low against the SPD with 45%, but the AFD now has seats where it did not have them before, also as the SPD is no longer a majority party, the game now changes in Germany for many people. The German people have had enough, the events of last month whilst a nation with a mere 2% of the Eurozone GDP is an affront to many people, especially as Greece is not cleaning up its act. This matter will soon shift in stronger ways. Linked to this is the victory Front National booked in 2015. They won the first round in the by-election. Something also quite unheard of, but not by me as I have seen the premise change all over Europe. Now as we see escalations, whilst the damage that uncertainty brings in regards to the UK total debt is seen in the growth of Ukip (at http://www.theguardian.com/uk-news/2015/mar/07/ukip-100-second-places-may-election-nigel-farage). Now we see the title ‘Ukip on track for 100-plus second places across England‘. I believe the Greek issues will drive a walk towards the Nigel Farage party even stronger. And to more than a lesser degree it can be seen a result through the actions of Greece. Bringing up WW2 reparations was (as I see it) the worst they could have done. You see, we all have issues in that regard, but they are counterproductive. As I see it, the Germans still owe my grandfather a Bicycle (Dutch cultural joke), but that device will not do anything for any economy, now even my own and I guarantee you, the bike did not cost anywhere near €162B, even as special a bike as my grandfather had in 1943.

So I am in fear of future, because these escalations are mostly all due to non-accountability. As Greece shows the self-confidence and pride that seems to be self-destructive, we see this element of Aite the Greek band I mentioned earlier, named after the Greek goddess of folly, ruin and delusion, leading to the downfall of all Greeks in the end. Feel free to doubt my words, but only today did we see this in Reuters (at http://www.reuters.com/article/2015/03/14/eurozone-greece-italy-idUSL6N0WG08S20150314), Italy is now making clear that Grexit will not represent a risk for Italy. The Greeks allowed for a game of chance once too often, now we see: “a Greek exit would be ‘very negative’ but he was confident a solution would be found. EU executives warned on Friday that Greece abandoning the euro could lead to ‘catastrophe’“. One dark cloud does not make for Grexit, but Europe at large seems to have its fill of Greece and not facing consequences of THEIR actions. Does the Greek population realise the dangers and the hardship the Drachma will bring? The rich of Greece will get by, I reckon the rest as all savings are diminished by exchange rates a lot less so.

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One response to “In fear of the future

  1. Pingback: The moment UKIP was waiting for | Lawrence van Rijn - Law Lord to be

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