Cameron, China, the dragon in the room …

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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.

China's propery apocalypse
China’s looming property apocalypse.The empty flats that nobody can afford.

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!

Ignore the bubble at your (yellow) peril ;-)
Ignore the bubble at your (yellow) peril ūüėČ

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?

Acknowledgements:

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.

Manufacturing is good for Britain …blimey, at last!

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There was a discussion on the BBC Radio 4 ‘Today’ program this morning which is probably the most important issue for Britain today and probably the world. (Blimey – pompous or what?)

A conference exploring ways to develop British manufacturing will be held at Cranfield University today. Sir Alan Rudge, chairman of the ERA Foundation which funds and advises technology research, and Justin Urquhart Stewart of Seven Investment Management, debate whether more manufacturing would heal our economy or simply serve to denigrate the UK‘s world-leading financial services sector.”

Making stuff is important¬†and financial services¬†are¬†not.’ I paraphrase, but that is really what it is all about.

My point is that¬†this “story”¬†won’t be¬†published by most of¬†our media or indeed heard the British population as a whole because, I suspect, that it is seen to be a bit difficult to grasp. I suppose that might be¬†actually true, BUT that is no reason to bury it – it is bloody vital!¬†¬†And here’s the thing, “Money does not really exist”.

The invention of¬†‚Äômoney‚Äô was one of humanity’s most important “light bulb” moments and has enabled mankind to trade, progress and develop;¬†but it has been corrupted out of all recognition, to the point where its real purpose has lost, and has become a mystical thing in itself.

Money, in its purest and most useful sense, is simply a means of exchange between the man who has some goat’s milk for sale and the woman who wants to buy some bread.

Investment, in its purest and most useful sense, is the link between the woman who invents a technology to make a  better battery and needs money to market and develop that battery (and boy is she going to be rich!) and the man who has some money he does not need just now for his living costs. 

Real stuff is the work people do when they dig the ground for vegetables or iron ore; 

Fantasy is the world of the hedge funds that make money from betting that such and such a venture will fail, or betting on the future price of coffee falling. Now come on Рwhat is the benefit, to you and me, of that? 

Sadly, financial services, are not services at all Рbut simply and sadly a conduit, a means to transfer value from a gullible cash holder to the exploiters of same., and remember, money does not really exist Рpeople, ideas and the useful work they might do does.

The sense of self worth a person gains for being paid and appreciated for doing something “worthwhile” is real and priceless but China digging holes all over Africa, poisoning Africans (and its own population)¬†¬†in the process, just¬†to make iPads is not.

Discuss.