Highly competent Neil Wilson has a nice systemic technocratic analysis up this morning (EST) of the Corbynomics over there.
This is a good one, exhibits his larger systemic understanding:
....you can build universities and hospitals, but you can't staff them..... eventually you run out of stuff to build.
Corbynomics and the Current Budget Balance http://t.co/pOgAWvqXCL
— Neil Wilson (@neilwilson) September 15, 2015
2 comments:
The inescapable problem for UK is that Europe is pursuing an extreme form of mercantilism. No matter how large the UK budget deficit, all financial benefits are flowing to Europe while UK private debt continues to grow faster than inflation and the UK owes more EUR to Europe than ever. Boosting the fiscal deficit further creates even more difference between labor markets in Europe and UK, and immigration pressures grow more severe. I think capital controls make the most sense while fiscal spending is increased, clamp down on mortgage lending standards, and require trade for European manufactured goods be settled in GBP. That forces European banks to hold the risk rather than forcing UK to become indebted in Euros as it is now, and we all know how Germans act when they are owed money.
As long as the UK government does not issue Euro-denominated debt, or peg to the Euro, "imaginary" is the correct word for such "problems", not "inescapable". Mercantilism = being really nice. I wish I were surrounded by mercantilists!
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