Post G20, Brown has come out with the media spin putting him in a good light, who knows he could even go for a snap election, LA thinks that is very unlikely though. The only reason he would was if we were on the verge of calling in the IMF. Some of the phrases used post G20 by him, Mandelson and Darling all give a hint that is possible.
Would Brown go to the electorate now and then stick through the IMF claiming he had a new mandate?
There is another possibility that worries Lord Allesley. LA is starting to believe Britain may face a double troughed economic crisis.
The first slow down could well appear to be bottoming out, house prices stabilising, people (the vast majority) who have been saving for the last few months feeling a little better off. Then add in the governmental stimulus which has in reality had little effect so far, by the summer/Autumn things might on the surface seem to look a lot better. Throw in a bit of quantitative easing and the perception could be that Brown has saved the day.
It is at this point he goes to the polls thinking, at best he wins, at worst we have a hung parliament.
LA is concerned about this scenario. With a biased media, BBC in particular this nightmare could be a reality.
This would of course be smoke and mirrors economics, as Britain would then see continued rising unemployment as there is always a time lag. Then the inflationary pressures in the economy will also start to show through, poor exchange rate, printing presses running. Stagflation hits. Add to that mix the fact that we have somehow to pay for the folly of the financial stimulus. Bust Britain, with brown at the helm for a further 5 years.
How can Cameron fight this? Is this in Gordon's mind?
LA needs a drink!
LA
Showing posts with label economic slow down. Show all posts
Showing posts with label economic slow down. Show all posts
Friday, 3 April 2009
Tuesday, 24 March 2009
Ups and down of inflation
Government figure now conflict, CPI up, RPI down. If you take out the reduced cost of mortgages, prices have gone up!!
LA has been warning this would happen for months, the devaluation of the pound is having a major effect, politicians, BoE officials and government officials have chosen to look on LA as a heretic when he has warned them.
Brown has left Britain in a terrible position globally and now we are payin the price.
The retired who rely on their savings interest and do not have a mortgage are well and truely stuffed. Less income, higher prices.
They would have been better off wasting their money on holidays, booze and fags. Then they could have applied for extra benefits from the hand out, bankrupt state.
Thank you Mr Brown, now just call an election!
LA
LA has been warning this would happen for months, the devaluation of the pound is having a major effect, politicians, BoE officials and government officials have chosen to look on LA as a heretic when he has warned them.
Brown has left Britain in a terrible position globally and now we are payin the price.
The retired who rely on their savings interest and do not have a mortgage are well and truely stuffed. Less income, higher prices.
They would have been better off wasting their money on holidays, booze and fags. Then they could have applied for extra benefits from the hand out, bankrupt state.
Thank you Mr Brown, now just call an election!
LA
Thursday, 5 March 2009
When has quantitative easing worked?
LA has been asking this question a lot. It was ineffective in Japan but didn't ruin the economy, all other cited examples have been unmitigated disasters from Germany to Zimbabwe.
George Osbourne describes it as "a leap in the dark". LA fears it is a leap in the dark by a blind man, he does not even realise its dark.
The worry is all these government measures have not hit, Government Ministers are unaware of the underlying risk of inflation( Ford announcing price increase due to £, timber prices up, food prices up). Put these facts in the mix and it starts to increase the risk.
11 years of the great socialist experiment and it has come to this.Surely the nation will now realise for a generation that artificial wealth redistribution leads to wealth devastation, with the poorest in society and working families and saving pensioners hit worst. Big government equals high taxes high public spending equals higher waste not better sharper services.
LA hopes, but with the left wing media, memories can be reprogrammed with remarkable speed.
LA
George Osbourne describes it as "a leap in the dark". LA fears it is a leap in the dark by a blind man, he does not even realise its dark.
The worry is all these government measures have not hit, Government Ministers are unaware of the underlying risk of inflation( Ford announcing price increase due to £, timber prices up, food prices up). Put these facts in the mix and it starts to increase the risk.
11 years of the great socialist experiment and it has come to this.Surely the nation will now realise for a generation that artificial wealth redistribution leads to wealth devastation, with the poorest in society and working families and saving pensioners hit worst. Big government equals high taxes high public spending equals higher waste not better sharper services.
LA hopes, but with the left wing media, memories can be reprogrammed with remarkable speed.
LA
Wednesday, 4 March 2009
The "NYLon" recession
LA met with a representative of the Bank of England yesterday, obviously the discussion was around the recession and its solution.
The Bank of England is still forecasting a "V" shaped recession, on what basis never became clear.
There was a reticence to enter into the argument of where the thing started, although there was recognition that it started on both sides of the Atlantic, not as Gordon says "it started in America".
LA has now coined this the NYLon recession, it started and was produced by the banks and institutions of New York and London, and as with Nylon the more you have the more shocks you get.
Obviously in parallel to this was the two most useless administrations in living memory, Bush Washington and Blair-Brown Britain. There was nothing inevitable about the current crash, it was produced over years, it was not natural, like Nylon.
When will Brown admit to this, more importantly, when will he finally go.
LA.
The Bank of England is still forecasting a "V" shaped recession, on what basis never became clear.
There was a reticence to enter into the argument of where the thing started, although there was recognition that it started on both sides of the Atlantic, not as Gordon says "it started in America".
LA has now coined this the NYLon recession, it started and was produced by the banks and institutions of New York and London, and as with Nylon the more you have the more shocks you get.
Obviously in parallel to this was the two most useless administrations in living memory, Bush Washington and Blair-Brown Britain. There was nothing inevitable about the current crash, it was produced over years, it was not natural, like Nylon.
When will Brown admit to this, more importantly, when will he finally go.
LA.
Saturday, 28 February 2009
"It started in Britain"
As the Lame duck PM keeps repeating his "it started in America" mantra, LA has a different perspective.
LA has been on the Continent for a couple of days on business, he has met people from almost all EU country's. LA took the opportunity to find out what they thought of the current situation. LA was astonished to hear, from many mouths, "It started in Britain".
He even heard on more than a couple of occasions, Europeans blaming Mr Brown personally for dragging Europe into this.
Aside from blame, it is obvious that Mr Brown is not the man to get us out of the mess.
Election now!!!!!!
LA
LA has been on the Continent for a couple of days on business, he has met people from almost all EU country's. LA took the opportunity to find out what they thought of the current situation. LA was astonished to hear, from many mouths, "It started in Britain".
He even heard on more than a couple of occasions, Europeans blaming Mr Brown personally for dragging Europe into this.
Aside from blame, it is obvious that Mr Brown is not the man to get us out of the mess.
Election now!!!!!!
LA
Tuesday, 3 February 2009
Motor giants first big warning of inflation risk
LA has not been alone in warning that the biggest threat to our economy is long term hyperinflation. The risk is fairly low, the consequences massive.
Today GM & Ford have raised prices 5% due to the incredibly weak £.
Government said this would not happen as low demand would prevent inflation being an issue, there again they also claim Britain is best placed to deal with recession. Obviously currency dealers disagree, as do sane people.
Companies cannot just sell at a loss, they have to regulate their prices by supply and demand but also by cost.
So far we have seen wood suppliers raise prices in the UK, paper prices up around 5% and now Automotive manufacturers.
Is there anything Darling and the treasury can predict.
The only way the £ will strengthen is when the markets feel national debt and spending are realistic. this is going to take strong leadership, tough decisions and firm action.
If David Cameron is the next PM, there may be times when he is more like an Administrator than a PM as we have to settle our debts.
Today GM & Ford have raised prices 5% due to the incredibly weak £.
Government said this would not happen as low demand would prevent inflation being an issue, there again they also claim Britain is best placed to deal with recession. Obviously currency dealers disagree, as do sane people.
Companies cannot just sell at a loss, they have to regulate their prices by supply and demand but also by cost.
So far we have seen wood suppliers raise prices in the UK, paper prices up around 5% and now Automotive manufacturers.
Is there anything Darling and the treasury can predict.
The only way the £ will strengthen is when the markets feel national debt and spending are realistic. this is going to take strong leadership, tough decisions and firm action.
If David Cameron is the next PM, there may be times when he is more like an Administrator than a PM as we have to settle our debts.
Friday, 30 January 2009
Will labour support turn to the BNP
LA looks on at the growing numbers of "Union" members walking out of oil refineries and worries.
"British jobs for British people" placards are on display.Nick Griffin will surely be rubbing his hands.
LA has real concern as this escalates as to where it ends.
The poor immigration controls of this administration over the years are now turning against them. It was the 30's that ,through economic depression, the far right in Germany prospered. Hatred and turning on others because of their nationality could devastate our nation.
Mr Brown and his cabinet are to blame for the recessions severity, lets us not turn to the weakest in society as scapegoats. Let the blame lie where it should.
Forget demonsrations, let us not have riots. Give us an election. We are the mother of modern democracy and freedom, we should continue in that vein.
There must never be a kristallnacht in Britain.
"British jobs for British people" placards are on display.Nick Griffin will surely be rubbing his hands.
LA has real concern as this escalates as to where it ends.
The poor immigration controls of this administration over the years are now turning against them. It was the 30's that ,through economic depression, the far right in Germany prospered. Hatred and turning on others because of their nationality could devastate our nation.
Mr Brown and his cabinet are to blame for the recessions severity, lets us not turn to the weakest in society as scapegoats. Let the blame lie where it should.
Forget demonsrations, let us not have riots. Give us an election. We are the mother of modern democracy and freedom, we should continue in that vein.
There must never be a kristallnacht in Britain.
Smoke and Mirrors job cuts
The more LA asks around and digs the more he finds evidence of job cuts that have little or nothing to do with the recession.
Eon announce 450 job cuts for their retail division, it hasn't made a profit in 2 years that means it was losing during the good times.
LA is aware of a major manufacturer who has been looking for an excuse to scale back UK operations for years but couldn't get it past the unions, they have shinny new plants overseas that were nowhere near capacity.
If this is the case it would suggest that the recession could be more V Shaped, deeper but shorter. LA sincerely hopes this is the case. If not David Cameron will be more like and administrator than a Prime Minister when he gets elected.
LA
Eon announce 450 job cuts for their retail division, it hasn't made a profit in 2 years that means it was losing during the good times.
LA is aware of a major manufacturer who has been looking for an excuse to scale back UK operations for years but couldn't get it past the unions, they have shinny new plants overseas that were nowhere near capacity.
If this is the case it would suggest that the recession could be more V Shaped, deeper but shorter. LA sincerely hopes this is the case. If not David Cameron will be more like and administrator than a Prime Minister when he gets elected.
LA
Wednesday, 28 January 2009
UK "Best Placed" lunacy.
How many times have we heard the Prime Minister say Britain is best placed in the current Global slowdown. Time and time again he and his puppet Chancellor have repeated this fallacy.
Today the IMF has issued its predictions for 2009. Global growth of 0.5%, The Eurozones economy to shrink by 2%, US economy to shrink by 1.6%, and wait for it…. UK economy to shrink by 2.8%.
That is the UK economy to shrink 40% more than the Eurozone decline.
How can anyone seriously call this “Best Placed”.
LA knows the only thing best placed to get us out of this is the British fighting spirit. The macro management of the economy over the last 11 years has been steadily worsening, which is why our statistics are far more stark than our competitor nations.
One thing is for sure, delusional Leadership that is in denial will surely condemn Britain to a deeper and longer recession than most.
Should the British people really be subjected to an unelected Prime Minister stumbling through the next 18 months just to massage his own ego? Is it right that UK citizens weather the worst of the storm just to keep a dysfunctional and failed cabinet in position?
Why Mr Brown will you not let the people decide? Why does your arrogance make you believe you know better than them?
Call an election now, let the people speak, and then at their behest just go!
LA
Today the IMF has issued its predictions for 2009. Global growth of 0.5%, The Eurozones economy to shrink by 2%, US economy to shrink by 1.6%, and wait for it…. UK economy to shrink by 2.8%.
That is the UK economy to shrink 40% more than the Eurozone decline.
How can anyone seriously call this “Best Placed”.
LA knows the only thing best placed to get us out of this is the British fighting spirit. The macro management of the economy over the last 11 years has been steadily worsening, which is why our statistics are far more stark than our competitor nations.
One thing is for sure, delusional Leadership that is in denial will surely condemn Britain to a deeper and longer recession than most.
Should the British people really be subjected to an unelected Prime Minister stumbling through the next 18 months just to massage his own ego? Is it right that UK citizens weather the worst of the storm just to keep a dysfunctional and failed cabinet in position?
Why Mr Brown will you not let the people decide? Why does your arrogance make you believe you know better than them?
Call an election now, let the people speak, and then at their behest just go!
LA
Tuesday, 27 January 2009
Mandleson ignores the problem
Lord Mandelson has just announced the Automotive package to the Lords. As Lord Allesley predicted, short term sticking plaster on the supply side, no mention of the real problem on the supply side.
Cameron suggested that Mandelson was an alien today, he certainly lives on another planet.
LA
Cameron suggested that Mandelson was an alien today, he certainly lives on another planet.
LA
Monday, 26 January 2009
How to sell cars in Britain, fast.
LA has been speaking to car dealers. Very specifically dealers, not manufacturers. They are saying that credit is available for the right people, trouble is those that can get credit are choosing not to apply, they are choosing not to enter the showroom. Fear and uncertainty are keeping the potential car owners away.
Dealers point out, prices are low. On small cars, they expect very little market change as the sort of person likely to buy one cannot get credit, on the bigger vehicles and the prestige vehicles, they know people could get the finance they need. They also know as does LA that many companies could get credit, and there are still private companies sitting on cash, cash that now earns nothing in interest.
Therefore what is needed is a stimulous, not just economic, psychological.
A colleague of LA may well have come up with it.
Remove all punitive taxation and red tape around company cars. Do it for a 2 year period.
LA has no doubt this would see an absolute stampede of people re assess their car ownership. Whether employee or small business owner. Cost to the tax payer ZERO as these people were not going to change car so there would have been no tax generation to lose.
Imagine the Jags and Land Rovers that could be shifted in no time. It would in itself give a lift not just to the car owners, but to the whole economy not just monetarily but mentally.
LA knows this has now been passed as a suggestion to government. It makes sense, costs little and would act swiftly. For all those reasons LA is sure it will be ignored.
LA
Dealers point out, prices are low. On small cars, they expect very little market change as the sort of person likely to buy one cannot get credit, on the bigger vehicles and the prestige vehicles, they know people could get the finance they need. They also know as does LA that many companies could get credit, and there are still private companies sitting on cash, cash that now earns nothing in interest.
Therefore what is needed is a stimulous, not just economic, psychological.
A colleague of LA may well have come up with it.
Remove all punitive taxation and red tape around company cars. Do it for a 2 year period.
LA has no doubt this would see an absolute stampede of people re assess their car ownership. Whether employee or small business owner. Cost to the tax payer ZERO as these people were not going to change car so there would have been no tax generation to lose.
Imagine the Jags and Land Rovers that could be shifted in no time. It would in itself give a lift not just to the car owners, but to the whole economy not just monetarily but mentally.
LA knows this has now been passed as a suggestion to government. It makes sense, costs little and would act swiftly. For all those reasons LA is sure it will be ignored.
LA
Saturday, 17 January 2009
Geoffrey Robinson does he back saving Jaguar?
As a Coventry MP and ex Chief Exec of Jag, Geoffrey should be fairly knowledgeable on this subject.
He is also known to have been a backer of Brown (especially financially) for many many years. He certainly has the ear of the PM.
Robinson has joined the "Back the Jag" campaign with the Coventry Telegraph. This is asking for Government support.
However LA has discovered an interview on the Today program made on November 19th last year where this Coventry MP in a debate with SMMT says that the UK automotive company should not receive government assistance!!
He is adamant that as most manufacturers in the UK are foreign owned and they should sort themselves out.
If such an influential MP as Robinson is saying one thing on one day, and another the next,is it any wonder we are getting no decision or guidance.
It is also one of the greatest U turns and pieces of cynical politicking LA has ever witnessed. LA wonders if his constituents are aware.
LA
He is also known to have been a backer of Brown (especially financially) for many many years. He certainly has the ear of the PM.
Robinson has joined the "Back the Jag" campaign with the Coventry Telegraph. This is asking for Government support.
However LA has discovered an interview on the Today program made on November 19th last year where this Coventry MP in a debate with SMMT says that the UK automotive company should not receive government assistance!!
He is adamant that as most manufacturers in the UK are foreign owned and they should sort themselves out.
If such an influential MP as Robinson is saying one thing on one day, and another the next,is it any wonder we are getting no decision or guidance.
It is also one of the greatest U turns and pieces of cynical politicking LA has ever witnessed. LA wonders if his constituents are aware.
LA
Tuesday, 13 January 2009
No wonder they do not understand efficiency!
LA has noticed an article by Peter Oborne in today's Mail that pretty much sums up why it is not the actions of Government that will save us from recession, they may however send us into a depression.
LA
http://www.dailymail.co.uk/debate/article-1113700/PETER-OBORNE-If-want-know-whats-wrong-Gordon-Browns-masterplan-remind-man-did-Britain.html
LA
http://www.dailymail.co.uk/debate/article-1113700/PETER-OBORNE-If-want-know-whats-wrong-Gordon-Browns-masterplan-remind-man-did-Britain.html
Monday, 12 January 2009
Quantitative Easing- There are other less risk options
Quantitative Easing (QE) the creation of more money in the money supply appears to be on the way. LA believes there are other less dangerous options to use first. QE is and should be seen as a very risky last resort.
Many politicians, bankers and business people are pedaling the idea at present.
LA will, like a stuck record, come back to an alternative, it creates cash but from real assets not from the printing presses.
Most of the big companies in the companies in the UK pay their suppliers on somwhere between 40 and 60 days, in some cases more, this is real money not available to the majority of the businesses. This is £billions.
If the top 100 companies in this country were told they over the next 60 days they had to sort out all of their credit payments to on UK invoices to be settled on 30 days, and from then on all payments would be 30 days. £billions would be pushed into the system.
All 100 would have to meet their financiers and work out how to do this, where there are difficulties, government could step in to guarantee some of this amount.
This is not new made up money. This is money that by rights should have gone down the supply chain already, this is money due and owed.
Instead of guaranteeing hundreds of thousands of little loans, government will be looking at less than 100.
When this money hits suppliers it will for many of them be the first time ever they have had no overdraft, for others they will be well within their limit. This will lead to confidence and hence investment. This will kick start the economy.
Unlike plans to grow the small loans guarantee scheme, business will not have to go cap in hand to the banks, it will be able to make its own decisions.
This method is less risky than quantitative easing which, if overcooked, will lead to hyper-inflation, if undercooked, will be pointless. It is less bureaucratic and faster to deliver than small loan guarantees.
If it works it should be rolled out to the top 250 companies and then the to 500. That would be its maximum due to the cost of administering the scheme. If it fails, the taxpayer cost will have been minimal, the risk to the economy is all but nil.
LA begs that this is considered.
Many politicians, bankers and business people are pedaling the idea at present.
LA will, like a stuck record, come back to an alternative, it creates cash but from real assets not from the printing presses.
Most of the big companies in the companies in the UK pay their suppliers on somwhere between 40 and 60 days, in some cases more, this is real money not available to the majority of the businesses. This is £billions.
If the top 100 companies in this country were told they over the next 60 days they had to sort out all of their credit payments to on UK invoices to be settled on 30 days, and from then on all payments would be 30 days. £billions would be pushed into the system.
All 100 would have to meet their financiers and work out how to do this, where there are difficulties, government could step in to guarantee some of this amount.
This is not new made up money. This is money that by rights should have gone down the supply chain already, this is money due and owed.
Instead of guaranteeing hundreds of thousands of little loans, government will be looking at less than 100.
When this money hits suppliers it will for many of them be the first time ever they have had no overdraft, for others they will be well within their limit. This will lead to confidence and hence investment. This will kick start the economy.
Unlike plans to grow the small loans guarantee scheme, business will not have to go cap in hand to the banks, it will be able to make its own decisions.
This method is less risky than quantitative easing which, if overcooked, will lead to hyper-inflation, if undercooked, will be pointless. It is less bureaucratic and faster to deliver than small loan guarantees.
If it works it should be rolled out to the top 250 companies and then the to 500. That would be its maximum due to the cost of administering the scheme. If it fails, the taxpayer cost will have been minimal, the risk to the economy is all but nil.
LA begs that this is considered.
Friday, 9 January 2009
Nissan Missed Opportunity
Back on December 13th Lord Allesley posted that bail outs should only be offered to industrys in a way that saw the tax payer get something back.
Yesterday Nissan announced over 1000 job loses. The impact of this on the tax payer is 1000 dole cheques per month. The impact on Nissan is lost skills.
Is their not something more productive that can be done in the short term.
On the basis that in 12 months many of these people could A) find new employment, B) be retrained C)be needed by Nissan surely a joint Government / Nissan initiative could be put in place.
If the Government gave Nissan the equivilant of the Dole Money & the income tax, by the time Nissan have saved the redundancy money they would have very little expense and could retain the skills for 12 months.
In return the government could insist they get to use their project managers, trainers and some staff in the public sector.
Imagine the benefits that they could bring.
Government could also insist that Nissan people go into their British supply chain and work on efficiency training the staff and building the processes to make them world beating. They could also use them for other companies that are having difficulties. Even the track workers at Nissan know how to for a quality circle and an impovement cell. Inaluble skills.
This approach would make much more sense than throwing tax payers money to have these people on the scrap heap, and then throwing another load of money at Business Link and the Learning and Skills council to help other businesses.
LA points out that due to the fact that this is common sense, it is very unlikely to happen.
LA
Yesterday Nissan announced over 1000 job loses. The impact of this on the tax payer is 1000 dole cheques per month. The impact on Nissan is lost skills.
Is their not something more productive that can be done in the short term.
On the basis that in 12 months many of these people could A) find new employment, B) be retrained C)be needed by Nissan surely a joint Government / Nissan initiative could be put in place.
If the Government gave Nissan the equivilant of the Dole Money & the income tax, by the time Nissan have saved the redundancy money they would have very little expense and could retain the skills for 12 months.
In return the government could insist they get to use their project managers, trainers and some staff in the public sector.
Imagine the benefits that they could bring.
Government could also insist that Nissan people go into their British supply chain and work on efficiency training the staff and building the processes to make them world beating. They could also use them for other companies that are having difficulties. Even the track workers at Nissan know how to for a quality circle and an impovement cell. Inaluble skills.
This approach would make much more sense than throwing tax payers money to have these people on the scrap heap, and then throwing another load of money at Business Link and the Learning and Skills council to help other businesses.
LA points out that due to the fact that this is common sense, it is very unlikely to happen.
LA
Wednesday, 7 January 2009
Another day another empty brown promise.
On Sunday 100,000 jobs were to be created by the PM, today Its 35,000 apprenticeships.
These are empty promises, Lord Allesley has failed today to find anyone who finds them credible. There is no real measure for sucess, also a feeling that as with government investment, the same number job is counted several times over and re announced and re announced.
The country and business faces a credit crisis, money is not flowing, this is effecting investment spending confidence etc etc. LA does not recall anyone in the last 3 months or so saying "We need more apprentices you know!". We need the markets to begin to move again, that is the important job.
Having tried to analyze todays smoke and mirrors statement on apprentices, LA sees this as a Government initiative not a Business led one, that means whatever apprenticeships that are created(funded) will be dictated by government on their terms, those that the education sector can deliver, rather than those business need and want.
So more waste to come, no realization of the real world and more spin than sense. Who said the Pantomime season was over?
LA
These are empty promises, Lord Allesley has failed today to find anyone who finds them credible. There is no real measure for sucess, also a feeling that as with government investment, the same number job is counted several times over and re announced and re announced.
The country and business faces a credit crisis, money is not flowing, this is effecting investment spending confidence etc etc. LA does not recall anyone in the last 3 months or so saying "We need more apprentices you know!". We need the markets to begin to move again, that is the important job.
Having tried to analyze todays smoke and mirrors statement on apprentices, LA sees this as a Government initiative not a Business led one, that means whatever apprenticeships that are created(funded) will be dictated by government on their terms, those that the education sector can deliver, rather than those business need and want.
So more waste to come, no realization of the real world and more spin than sense. Who said the Pantomime season was over?
LA
Saturday, 3 January 2009
More Money for the Banks
LA is sure the world has gone mad, or the government at least. Why is the Chancellor considering giving more money to the banks. The reason the Banks continue to be in trouble is because of their own behavior. If they remove lines of credit from companies,charge inflated interest or indeed close perfectly good companies , the net result is a reduction in their own asset base and hence balance sheet.
If a bank causes a company to close, chances are a quarter of the debt that it leaves behind is owed to that bank as the creditors also bank with it. This is the economics of the mad house.
LA again urges the chancellor to legislate that the top 250 companies have to pay on 30 days (see previous posts). Yes they will moan, but that means 250 negotiations with financier that would pump around £15 billion into the economy. This will save companies, save jobs, save bank assets and save the tax payer billions.
Why is this not being seized by the treasury, nor the big issue for the opposition?
LA says act now, this is true leadership and if rolled out across the globe, really would stop this recession being a depression.
If a bank causes a company to close, chances are a quarter of the debt that it leaves behind is owed to that bank as the creditors also bank with it. This is the economics of the mad house.
LA again urges the chancellor to legislate that the top 250 companies have to pay on 30 days (see previous posts). Yes they will moan, but that means 250 negotiations with financier that would pump around £15 billion into the economy. This will save companies, save jobs, save bank assets and save the tax payer billions.
Why is this not being seized by the treasury, nor the big issue for the opposition?
LA says act now, this is true leadership and if rolled out across the globe, really would stop this recession being a depression.
Friday, 2 January 2009
'09 - Oh Dear
After a Christmas break LA is back sharing his thoughts.
The entry into 2009 sees LA doing two pieces of media work, both with the BBC, one a TV piece on how redundancy and job losses in this down turn are on the whole more low key as the nation does not have that many mass employers, unlike the 80's, and another almost the opposite on the final closure of Woolworths.
LA does not see this as a great start to '09 and wonders when the good news will come again. LA feels that current government policy will not only prolong the agony but leave the nation trailing the world when the upturn eventually comes.
Until the Banks take responsibility collectively for the economy and start behaving in a rational way, nothing is going to change.
Sadly LA does not think we will see a General Election this year, hence this moribund government will stagger on with its delusional Leader believing he is sprinkling magic on all he touches.
As this most authoritarian of government goes into panic mode as 2009 draws to a close, LA expects to see even tighter controls on blogging, government leaning on the media and more restrictions on the public. After so many years in power the governing party will find it impossible to contemplate being out of power and will resort to unorthodox if not unfair means to preserve their grip.
We will also see more unbugeted ill judged and unafordable bribes to the electorate as more and more tax payers money is thrown at a bloated and inefficient public sector.
Is LA dejected? You bet, LA's businesses may be booming, but as he looks at the ruination of his nation, the impoverishment of its people and the removal of their libertys, he thinks 2009 will be a year to forget. Roll on 2010!
The entry into 2009 sees LA doing two pieces of media work, both with the BBC, one a TV piece on how redundancy and job losses in this down turn are on the whole more low key as the nation does not have that many mass employers, unlike the 80's, and another almost the opposite on the final closure of Woolworths.
LA does not see this as a great start to '09 and wonders when the good news will come again. LA feels that current government policy will not only prolong the agony but leave the nation trailing the world when the upturn eventually comes.
Until the Banks take responsibility collectively for the economy and start behaving in a rational way, nothing is going to change.
Sadly LA does not think we will see a General Election this year, hence this moribund government will stagger on with its delusional Leader believing he is sprinkling magic on all he touches.
As this most authoritarian of government goes into panic mode as 2009 draws to a close, LA expects to see even tighter controls on blogging, government leaning on the media and more restrictions on the public. After so many years in power the governing party will find it impossible to contemplate being out of power and will resort to unorthodox if not unfair means to preserve their grip.
We will also see more unbugeted ill judged and unafordable bribes to the electorate as more and more tax payers money is thrown at a bloated and inefficient public sector.
Is LA dejected? You bet, LA's businesses may be booming, but as he looks at the ruination of his nation, the impoverishment of its people and the removal of their libertys, he thinks 2009 will be a year to forget. Roll on 2010!
Tuesday, 23 December 2008
IMF rubbish VAT cut
The Chief Economist for the IMF has said the VAT cut is a waste of time. It will not have the desired effect and will be hugely expensive.
LA has now narrowed down to 2 people the moves proponents, a Mr Darling and a Mr Brown , both of Downing Street London. It appears no one else in the world believes it to be a good idea. Lord Allesley can confirm he has spoken to Labour front bencher's who disagree with it. One described it as "crackers" and a "massive waste of money".
So whilst our PM and Chancellor live in their world of delusion, the nation will pick up the bill.
LA
LA has now narrowed down to 2 people the moves proponents, a Mr Darling and a Mr Brown , both of Downing Street London. It appears no one else in the world believes it to be a good idea. Lord Allesley can confirm he has spoken to Labour front bencher's who disagree with it. One described it as "crackers" and a "massive waste of money".
So whilst our PM and Chancellor live in their world of delusion, the nation will pick up the bill.
LA
Saturday, 13 December 2008
Dont just dish out cash in bail outs!!!
As the Government eyes up a bail out for automotive, following the failed bailout of the banks, LA ponders the missed opportunity.
LA knows the public sector is useless at investing its money, projects over run and come in over budget.
Here is an opportunity to change that. Offer the banks and the automotive industry money on condition that their staff and senior management work in the public sector. So if Jaguar needs half a billion, buy its peoples time. It could go on factory shut down for 6 months, its factory workers will be working for the public during that time, its project managers would be getting some commercial sense hammered into the public sector, and the bailout would then not be just a give away. Government wins, tax payer wins, workers keep their jobs and Jaguar maintains its skilled workforce. This has got to be better than just handing them cash, as we have done with the banks. It also beats putting the staff on benefits, for which the nation will see nothing in return. It also helps the government get on top of its woefully managed public sector contracts.
LA is trying to work out why this is not a good idea, why it wasn't done with the banks and why the government will not do it now. Any suggestions?
LA knows the public sector is useless at investing its money, projects over run and come in over budget.
Here is an opportunity to change that. Offer the banks and the automotive industry money on condition that their staff and senior management work in the public sector. So if Jaguar needs half a billion, buy its peoples time. It could go on factory shut down for 6 months, its factory workers will be working for the public during that time, its project managers would be getting some commercial sense hammered into the public sector, and the bailout would then not be just a give away. Government wins, tax payer wins, workers keep their jobs and Jaguar maintains its skilled workforce. This has got to be better than just handing them cash, as we have done with the banks. It also beats putting the staff on benefits, for which the nation will see nothing in return. It also helps the government get on top of its woefully managed public sector contracts.
LA is trying to work out why this is not a good idea, why it wasn't done with the banks and why the government will not do it now. Any suggestions?
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