Tag Archives: budget deficit
This week on Facebook: Just before Christmas I commented on an article posted on Facebook [see Facebook — The Nation] — not something that I do very often as comments on the election that resulted in Donald Trump being nominated President of the USA and the outcome of the Brexit referendum are for the most part simply (to my mind) the ravings of the disaffected. In this case I did listen to the related podcast giving rise to the leader by Robert Reich: Why Republicans Are Wrong About Taxes, commenting that Robert Reich may well be wrong. Read more of this post
This week on Facebook: Being somewhat surprised by the scale of the political incompetence (although political connivance would fit equally well) that I came across in last week’s article on pensions, I decided that this week I would look a little deeper. I found that the sorry saga continues with perhaps the only positive slant that could be put on it would be that of politicians caring for their own stipends. Read more of this post
This week on Facebook: Sees me return to economics, yet more history and the despair of an old man who — like all old men before me — thinks that the world is going to hell in a handcart. My first instinct was to ignore articles on helicopter money as it being something that I was incapable of having an influence on (which is true) and finding myself totally confused by the rationales offered by economists and politicians. Nevertheless, the notion of helicopter money made me think of some historic precedents that I believe are valid allusions to its use. Read more of this post
This week on Facebook: The media are full of self-righteous indiction about Sir Philip Green and the BHS scandal, particularly when taking some moral high ground on the issue. Successive governments have always use other people’s money to fund their fiscal profligacy be it financiers or taxpayers, while those in government remain financially immune from their own ineptitude. Their financial consequences are avoided by governments, their financial advisors and bankers placing an ever increasing burden on the taxpayer. Governments run budget deficits that can never be large enough to repay the national debt but large enough to cover interest payments on monies borrowed (at least at the moment — countries do default). This borrowing includes the issue of gilts, the government’s legal Ponzi scheme, where future interest is guaranteed by yet another burden on the taxpayer. Read more of this post
The role that economic theory plays in the creation of money — even if understood by a government — is ignored in favour of economic manipulation for the purpose of a fiscal policy. Self interested post war governments have little interest in the social responsibility that Peter Drucker applied to a private enterprise.
“The first responsibility of business is to make enough profit to cover the costs for the future. If this social responsibility is not met, no other social responsibility can be met.”
Thomas Gresham had served three Tudor monarchs as their Royal Merchant¹ in Antwerp and had grown rich acting on their behalf. However, his success in arranging England’s financial transactions with bankers and money lenders was not always favourably received. It had also made him enemies in both financial and political circles. Some believed that he would often quite deliberately manipulate the money markets — cleverly duping them in his games of thimblerig² — disadvantaging them financially and often politically. Knowing that his activities in Antwerp and elsewhere had made him these enemies, Gresham had an awareness of danger when confronted by it. This was obviously no chance encounter with a stranger who called himself Frances Walsingham. Not only had he identified Gresham in the crowded Antwerp bourse, he had addressed him by name and acknowledged by name his two factors Clough and Spritwell. The significance of this was not lost on Gresham nor was Walsingham’s demeanour, which was that of a dangerous man who it would be unwise to cross. Hoping that his alarm was not apparent, Gresham enquired if he could be of any assistance. Speaking in a low voice, almost a whisper, Walsingham told Gresham that he was under instructions to deliver a message to him only and that they should find somewhere quiet where they be could be certain of privacy. Read more of this post