This article is a timely update to one I wrote about the dangers of China in February 2014 China the elephant in the room.
This Tory government has learned nothing from Thatcher’s disastrous reign of myopic, crass decision making or that of New Labour’s 13 incompetent years at the helm. It cannot see beyond Cameraman’s departure two years hence (yes – two) and is making huge errors of mismanagement in three vital areas of Britain’s future.
These are: 1) future electricity generation; 2) food self sufficiency, and 3) basic manufacturing capability.
Embracing China’s mad, humourless, greedy, globalised capitalism is a huge mistake. China’s recent stock market corrections are but a hiccup compared to the real correction required to adjust for the debt mountain based on the empty cities all over China. These property investments are still recorded on the Chinese and the world’s banks as assets. They are anything but!
Ignoring China’s primitive and barbaric attitude to human rights is a crime and denies everything that Britishness should stand for!
Encouraging China to build our, sadly now necessary, nuclear power stations is beyond stupid! The decision is based on the same incompetent logic of New Labour’s disastrous PFI contracts to build new hospitals and schools etc. The decision is based on presentation rather than economic sense.
Why on earth do they keep on making the same mistake?
The answer is, that PFI does not affect current government debt figures, so Osborne looks good and sounds sensible. However, it pushes the real, and hugely inflated cost, way into the future. Today’s decision makers will have retired on their gold plated pensions and cannot be held to account. Those future PFI costs are far higher than they would be if we did the sensible thing and borrowed the cash now at all time low interest rates.
All the current agreement does is guarantee huge future returns for China but dooms our children’s children to higher than necessary energy costs.
Good for China’s long term economics, but so obviously bad for us.
Government should be borrowing cash now, while it is historically cheap to do so, but it will not because of party political ideology. Bonkers, criminally incompetent financial mismanagement unchallenged by Corbyn’s Labour party because they can’t think straight either.
Labour cannot be too critical here because of the Blair / Brown era of financial incompetence.
Meanwhile, Germany’s steel industry thrives because it is being supported by Merkel’s government, completely ignoring the EU’s rules on state subsidy by the way. We can’t do the same because our steel capability is owned by India plus we keep on following the damn silly EU rules that Germany, France and Italy just laugh at.
Cameraman & Osborne are blindly completing Thatcher’s disastrous short term view of manufacturing and finishing off the population of the north east for good.
Our steel industry is now dead after today’s announcement by Tata (You know, those Indian chappies who bought our steel industry some time back ;-( ).
Meanwhile, Germany is investing heavily in alternative technology to generate green electricity while our Tory twits are removing subsidies. Simply beyond stupid!
Germany took that enlightened, long term decision when Japan’s recent nuclear disaster gave us all a taste of what happens when things go wrong when power generation is too centralised! Remember Eric Schumacher’s 1973 book Small is Beautiful?. Germany’s politicians took note while ours went out to lunch.
Milk production is all but destroyed in Britain while food imports continue to rise to support a supermarket model which is failing. This reign of madness is seemingly unchallenged by Labour because of its own past incompetence.
Our membership of the EU is of course to blame too, effectively stopping Britain from taking a long term view of food production and manufacturing.
Long term thinking is completely missing from our governing and political classes.
China is only thinking long term! Germany is thinking long term too …
When will our politicians ever learn?
B.Rich Hedgeye for the Chinese bubble cartoon
Marketwatch.com for the reality of the Chinese economic “miracle”. Please read the comments to this article, they are more realistic than those of the article’s author.