Tag Archives: Kwasi Kwarteng

The deal

There is a deal out there, at least in the UK. There are all kind of deals out there, the consideration is all in the eye of the beholder, yet what is the deal?

The independent has a few views, the first one is ‘Labour and the Tories are both desperate for a taxpayer-funded spending spree – I don’t trust either of them‘ (at https://www.independent.co.uk/independentpremium/labour-conservatives-general-election-spending-plans-economy-a9195736.html), yet its by-line has an interesting thought ‘makes me wonder who is actually monitoring the books? Who is in charge of the economy?‘ Yet that is he issue and it has been n issue for close to a decade. Another article is focussing on ‘Which chancellor would you prefer to ruin your life? Sajid Javid or John McDonnell?‘ (at https://www.independent.co.uk/voices/sajid-javid-john-mcdonnell-general-election-chancellor-brexit-labour-a9192161.html), yet in the guardian we see: ‘Labour derides £1.2tn Tory costing claims as ‘work of fiction’‘ (at https://www.theguardian.com/politics/2019/nov/10/labour-derides-12tn-tory-costing-claims-as-work-of-fiction-corbyn) there is a larger issue at play, there is no doubt that both sides have parts that make sense, yet both are as the Guardian states ‘Both parties have promised significant increases in public investment, funded by government borrowing‘, this is however not a great time.

The dangers that are out there is the fact that Austerity is a path that is slow and cannot be fast, there is still a decade of austerity at the very minimum and this spending spree will add half a decade. The Guardian also gives us “The independent Institute for Fiscal Studies (IFS) has said the Conservatives’ investment plans would amount to an extra £20bn a year, and Labour’s to £55bn a year” whilst tempering this with “Javid declined to say whether the Conservatives would implement promises made by Boris Johnson during his campaign to become leader, which included an increase in the threshold for higher-rate tax to £80,000 a year“, the problem with that part can be seen through the numbers giving by the government (at https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/theeffectsoftaxesandbenefitsonhouseholdincome/financialyearending2017), and that is merely two years ago, so when we look at the chart, how much of that collected money will give any kind of relief towards austerity?

The problem is that the people are sick and tired of austerity, but that was going to be the controlling majority to deal with debt, we can call it ‘austerity’ or we can call it ‘debt control’ the UK cannot continue the spending it had done for the longest case, not if they do not want to be vassals of banks, and the problem is that the largest collection of banks are those out of the UK, the only way is to fall below that spending spree and that is not a popular solution to listen to. Yet the numbers are clear and I get to laugh out loud for almost a year as Labour made these promises whilst the budget just didn’t allow for it, and the funnier part was that the proper taxation was key, not merely the richer people all people and more important corporations, yet Labour did not really give any of us the view that corporations were to properly taxed, were they? And the one chart I gave you shows that taxing the right will not give us anywhere near the funds required, so why is Labour connecting to its members with fairy tales and a conundrum of stories that could be minimised to a level that gives them the reality of a magical roundabout (the one with Eric Thompson doing the narration). The situation is that bad and we are just not catching on, why is that?

In that case the Libdems get closest to it by “The Liberal Democrats’ central spending pledge is a radical increase in childcare, which they said would be free for all working parents from when their child turns nine months old, at a cost of almost £15bn a year. They said they would fund it by reversing corporation tax cuts and increasing capital gains tax“, I wonder how much you can tax capital gains tax, and I have questions on how you will ‘reversing corporation tax cuts‘ but they do have the right idea in part, as I see it ‘reversing corporation tax cuts‘ is the better stage, and what do you think will happen? Apple will suddenly decide to reduce new locations from 15 to 10 (no great loss there) and others will follow suit, when the going is less profitable they will all vacate towards ‘bonus share’ percentages and all of it out of the UK, I personally believe that it is time to stop giving into the need of corporations, but that is just me. And the most important part remains, you cannot do any of the spending until taxation is clearly established, All parties need to learn that inescapable truth, because it is already too late for alternatives, the UK, the US, Japan and the EU have been playing the spend card for too long and whilst collections have been delayed and outstanding the world has no reserves left, this generation is the first one handing out money that was means for the grandchildren, and we all let them do it. And whilst we read ‘Javid has adopted a considerably more relaxed approach to balancing the books‘ with empty persuasion we forget that they already ended up spending the money that was meant for our children and now they are busy spending the funds meant for the grandchildren and I wonder what excuse they will use to let that continue?

There is a larger inequality and that inequality is not addressed, why is that?

And when it comes to excuses “The Brexit minister Kwasi Kwarteng also sought to defend the Conservatives’ calculations on Sunday, but refused to give an equivalent for his own party’s spending plans. “I’m not going to bandy around figures,”” The question is what is worse, not being into the act of bandy, or giving us fairy tale figures? I honestly cannot decide, omission or denial, both seem to be keeping the voters away from having a judged informed decision and as far as I can tell, none have any idea of where they will get the money from to fund whatever they need to get elected. At present the UK has a debt that amounts to 86% of GDP, whilst Germany has one that is a mere 62% of GDP, now there is an additional side, Germany has a much larger GDP as they are supplying for the need of many, the UK does not have that option, As such it amounts to £2.265 trillion and that amount grows well over £5,000 per second, as such the debt might seem a mere £62,500 per taxpayer, but when we look at a debt of £36,400 per citizen do you think I was kidding when we are currently spending the money that was meant for the grandchildren? With a debt of £2.265 trillion, the interest cannot be below £225 billion a year, so when you look at the total collected taxation, did you think that the previous chart gets anywhere near that amount? Oh and for Germany (in comparison) €1,990 trillion Euro, yet their debt is diminishing, it has been that case from 2010 onward when it was at €2.035 trillion Euro. Germany is ahead of the UK there, and for now it might be €48,000 per taxpayer and €24,000 per person they are merely seemingly in a worse place, yet their total debt is still going down every second, the UK debt is still increasing and until that comes around the UK has no cause for cheering or for some debatable spending spree.

The rich cannot fill that gap, anyone who says differently is lying to you, it is time to fill the gaps, reversion tax gaps is one part and making corporations accountable for whatever scheme they have next is another part, it is time to let corporations pay for their mistakes, as we need to hold the ruling parties accountable, the clear path seen is the fact that whatever is available for your grandchildren is diminishing and your vote is a clear path in stopping that. So make sure you follow the right party, I’ll let you figure out who that is.

Oh and one small consideration, when the entire EU, the UK, the US and Japan, Russia and China all have debts in the trillions, where do you believe the wealth of the world is?

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