manifestos

MANIFESTOS GE2017

So the Labour and Lib Dems have published their GE2017 manifestos.

Labour have gone for quantity, and covering all base points, however the major flaw the Labour party suffers is, costing, or lack of it. Typically it is unashamedly Socialist, so has no basis in reality. It is high on ideals, and unfortunately the ideals, are basically fantasy that leads to disorder. Anyone doubting this only has to look at events in Venezuela, where there are currently riots. Venezuela has a Socialist constitution, all 350 articles, some of which contradict each other, so average Socialist nonsense. The Labour party in the UK has elected an out and out Socialist, this was done in the belief, and I’m using the word belief in its religious sense, of not based in an Earthly reality, that a truly Socialist party has a real chance of winning a British election. Even the Biased Broadcasting Corporation, hasn’t gone for that one.

There is a ~grass roots~ Socialist movement called Momentum, who backed the extremist MP Jeremy Corbyn, for the party leadership. There is however a joke hidden here, before the election of a new leader, the Labour party had changed the rules for joining, and being able to vote for a leader. The intention of this rule change, was to encourage a younger, fresher membership, but the trouble was, it was numpty Socialists dreamt it up, and naïve half-wit Socialists implemented it, result an own goal.

So let’s put you in this position, you are a Conservative party member or long time Conservative party follower, and suddenly the main opposition party to yours, namely the Labour party, gives you a chance of voting for the worst possible candidate to represent them as leader, are you going to take it, you bet your little cotton socks you are. The changes in the Labour leadership voting rules, allowed anyone who registered as a Labour Member in January 2016, to vote in the next leadership election, the cost £3.92 (about $5.57 at the time) in fact if you were a student you could vote for £1 (or $1.42), and thousands did, all intent on voting the un-electable Jeremy Corbyn as Labour party Leader. The biggest joke is, that the Socialist pressure group Momentum are so stupid, they still they voted @jeremycorbynmp in as leader, well many did, but equally as many Conservative voters did, Jeremy Corbyn is un-electable. Momentum believe the only reason the current polls are not showing Jermy Corbyn higher in the ratings, is the BBC and all the media show their leader in a poor light.

No one needs to show the wretched man in a bad light, he is quite capable of doing that himself. Equally, the Labour policies in the manifesto are based on a magic money tree, the Labour shadow chancellor is so ignorant of Economic basics, he truly believes the fantasy of the rich getting richer as the poor become poorer, which is obviously untrue, because we are all richer than previous generations. A cornerstone of the Labour manifesto is re-nationalising the Railways, Water and other utilities, along with investing more in the NHS, a total oxymoron.

The Pre natilised railways produced the finest example of steam locomotives in the world, this is the Class A4

Steam Locomotive Sir Nigel Gresley A4
Class A4 LNER Sir Nigel Gresley the Locomotive named after its designer

The 1st time the Railways were nationalised, they were starved of funding, because the money was ALWAYS spent on the NHS, John McDonnell, is obviously as ignorant of basic Economic as he is of basic Politics, look after health and education and have a strong military. We’ll gloss over Labour’s spending plans on defence, to save them embarrassment, they boil down to being crap, and would leave UK in a more parlous state than it already is.

Meanwhile the Lib Dems have at least admitted they won’t win the next General Election, that’s a good part of the Manifesto, de-criminalising marijuana, is nearly in the right direction, but it is a faint bleat in what could have been the start of something decent.

After that it is unfortunately either barking up the wrong tree, or simply chasing phantoms that are already dead. Barking up the wrong tree, is subsidising loans for first time home buyers. Nearly, but not quite hitting a bullseye, is ensuring 300,000 homes are built by having local Councils build them. Where does the money come from? Money aside, it is a good point in the Lib Dems manifesto 300,000 homes, is a step in the right direction, and having local Councils build them might just work. But this doesn’t address a fundamental, of getting rid of the Town and Country planning Act 1947, to enable these homes to be built in Towns and Cities. One is left to presume the Lib Dems are going to rape the open Countryside further, by either building new towns. Or just expanding all the Villages and Towns throughout the Country. There are certainly no where near enough brown field sites, to build 50,000 homes, let alone 300,000. This policy would still leave a housing shortage of between 1,500,000 to 2,500,000 houses. Although it is better than no policy at all.

The Lib Dems are also going out on a limb, by suggesting an extra penny on income tax, will be enough to fund its promises, and that people won’t mind, a single penny. It doesn’t work like that, a single penny does raise a lot of money, however, it is counter productive, and this is where the Lib Dems come across as being a bit tired, if not outright lame. There are no major ideas, on how to boost trade post #Brexit, especially outside the EU as well as within. This is due to the Lib Dems absolute faith in EU, a faith that has always resulted in failure.

Another good point badly done is having a multi billion Pound increase in infrastructure spending. This is one of a number of good ideas, which should have more prominence, and the promise of more money. Forget another referendum, look at boosting industry and commerce, a Government can do this by increasing efficiency, and efficiency pays wages. Higher efficiency pays higher wages, so spending on infrastructure projects increases employment, and with it higher wages, this is only a half hearted idea from the Lib Dems, it should be being given a higher profile.

The main plank of the Liberal Democrat GE2017 Manifesto is another vote on leaving the EU, this is a plain embarrassment, we have already voted to leave, we are leaving, suggesting a further vote is un-Democratic, the people have voted, the results are in, we are leaving.

Brexit jubilation
The Democratic Revolution is here. Socialists were given a metaphorical kick in the teeth, when Britain voted #Brexit

Here though we have a failure of the Lib Dems leader Tim Farron, he has missed a trick, big time. Namely admitting we are leaving, but then suggesting better Economic tactics in dealing with EU. Here is the problem, Tim Farron is convinced the majority of British people are aggrieved with the #Brexit result. Well they ain’t. I have had various chats and listened to lots of people, those still aggrieved are so far and few apart as to not worth bothering about. My wife voted #Remain, and her view is, the people voted, we are leaving, let’s get on do it and get the best deal possible when dealing with the duplicitous un-elected EU Eurocrats. She voted #Remain purely on Economic factors, in that we were doing most of our trade within the EU, leaving would be disruptive. She was not impressed when informed by the BBC, that a second referendum was in the Lib Dem Manifesto.

Even I am surprised that the #Brexit vote is proving more beneficial in the short term than I predicted. I didn’t expect any melt down, I did expect exports to increase due to the lower Pound, I didn’t expect that the Stock market would reach new heights, this far down the line.

But the Lib Dem manifesto by saying we should have another vote, is the wrong side of History, and although it will gain some marginal votes, the losses of people who are looking to move on from the Referendum will be a lot greater. The gains will be by the Conservatives, whose Manifesto is released later today.

Negotiations

NEGOTIATIONS

Mannekin pis
All dressed up and doing the same to other Europeans, as they do to Brits, piss on us all.

There are lots of people getting their knickers in a twist over the opening shots, in the negotiations for Brexit, with Brussels meddling in the UK General Election 2017 (GE17).

Theresa May is, quite rightly, being given a hard time, the problem is, most of the brickbats thrown at her, are over her telling Brussels to sod off. Now were this merely that she was making a hash of the handling of the Brexit negotiations, it would be fair comment. The trouble is, the negotiations proper haven’t started, and already Brussels is as leaky as a sieve. Making things worse for EU was the fact, the first leak was via Frankfurter Allgemeine Zeitung (or FAZ) newspaper, which as the name suggests is a rag produced in Frankfurt am Main. The City that, via its bankers, controls the Euro.

The News story in FAZ was about a meeting between Jean-Claude Juncker EU President, and Theresa May UK Prime Minister held at 10 Downing Street.

Juncker climbed the EU greasy pole

Oddly neither of the two participants in this reported exchange, is directly elected to their respective posts. Juncker climbed the EU greasy pole and was voted through EU Parliament, so hadn’t been elected by any system that allowed the citizens of EU to have a say, making his position as President of European Commission, not very Democratic.

The 5 Candidates for Conservative Leadership election. May, Fox, Gove, Crabb, Leadsom courtesy Guardian Newspapers

Theresa May became Prime Minister of UK, was elected into her position, by the Ruling Conservative party. This post became vacant, due to David Cameron standing down, because of the result of the Referendum last year. The position is not directly voted for by the Electorate, it is usually held by the person who can command the largest backing in Westminster, after a General Election has been called. In Theresa May’s case, there had been the Referendum deciding Britain should Exit from EU, Cameron was sure Britain would vote to stay in the Union, he made the wrong call, and Theresa May was then voted in by her fellow Conservative MPs.

There was no Constitutional reason

In my blogs back then I suggested she would go to the Country in October or November last year. My reasoning was simple, Theresa May MP really needed the backing of the Country, to help in her negotiations with Brussels. There was no Constitutional reason she needed an election. As it turned out, she chose not to bother, however in many ways her hand was eventually going to be forced. From a Political point of view it is better to call an election earlier, rather than when she was trapped by events.

This she has done, with the intention of winning the Election and so getting a clear Democratic mandate from the British people, over the Brexit negotiations.

A remarkably sober looking President of the EU Commission.

Which brings us back to the Champagne swilling Jean-Claude Juncker, and the alleged fissure that opened up during meeting with Theresa May in Downing Street. Initially Jean-Claude Juncker had said the talks were friendly and constructive, the usual diplomatic speak, for uneventful but worth having, and none of his negotiating team present, made any suggestions that differed from this.

Then the bombshell from FAZ, that the talks were far from friendly. The meeting was initially seen by all, as part of the humdrum ongoing talks. So when FAZ prints a report that the chat in Downing street didn’t go well, it gets into all the world’s media. But here is a rather curious thing, FAZ didn’t publish the whole account online, only edited highlights of the worst bits, which were likely to negatively effect the £? That sounds a lot like Frankfurt bankers at work, perhaps I should have swapped a w for a b there, because Sterling going down, is good for British Trade, and helps strengthen the balance of payments, having the opposite effect of strengthening Britain’s trade, oops.

Byzantine way EU is set up

What becomes clear from the FAZ article is that Brussels Eurocrats are determined to have reams of detailed rules concerning the UK break with EU,. However UK doesn’t need them, Brussels needs lots of rules laid out in detail, because of the Byzantine way EU is set up.

One of the so called stumbling blocks in these negotiations is about EU Citizens living in Britain, and ensuring their rights are protected, and here is highlighted the gaping chasm between EU Law and English Law. Let’s just pretend it is the day after UK officially splits from EU, there are a few millions Poles, Czechs, Slovaks, Baltic States etc living in UK, what is their legal position. Well here is what few on either side of the argument seem to have got their heads around, the legal position of all these foreign nationals hasn’t changed, they have the same status before the break as after the break, their health care cover is the same, they are entitled to the same welfare, they pay the same taxes.

A Looky Looky girl selling her wares in Marbella. Spain has serious economic problems due to the Euro. Unemployment is high and imported from Germany, due to the Euro. Hence why Frankfurt has vested interest in UK doing badly.

The problems start to kick in, only when or if, these Foreign nationals choose to travel abroad and return to UK. Even here it is unclear that they would ~not~ have a right to return to a job. Certainly the Courts would defend any EU National who had gained a job legally, return to that job. It is how English Law works, once it enters the Law Courts, if there is no Law banning something, then it is allowed. Try telling that to Brussels Eurocrats, but hey they are so used to inferior European Laws it would possibly short circuit their brains?

the Labour party can be ignored

Jeremy Corbyn is being less than useless, and the Labour party can be ignored, even though under the UK voting system, they will return as Her Majesty’s Official Opposition.

Tim Farron the Liberal Democrat leader is shooting himself in the foot. His stance has been fairly clear, Lib Dems wanted to #Remain in European Union. That’s fair enough, however, once the people have spoken, trying to get the genie back in the bottle ain’t going to be possible. So Farron should be concentrating on trying to stay friends with Brussels, so that UK gets the best deal in the talks.

Farron is throwing his chances away

Tim Farron isn’t doing this, he is continually siding with Brussels, and then saying we shouldn’t be leaving. Political suicide, especially as Lib Dems have the best chance of regaining lost seats, Farron is throwing his chances away. He needs to change his strategy to one of, let’s get the best deal for UK, by staying friends with Brussels. Friends have a quiet word in someone’s ear, when they cock up, and attempt to pour oil on troubled waters. Often this will mean keeping dialogue with both sides. In Farron’s case, he should be saying that Brussels is being less than satisfactory in its leaking stories to the press. And Theresa May should be attempting to keep the dialogue as open as is possible without disclosing all the cards in their hand. May’s megaphone diplomacy is only palying to the #Brexit camp, not to both sides. Farron probably isn’t up to it, but he should try.

The talks will be complex. This is the continuous cry from Brussels, why? Yes there will be complexities, especially with regards to trade, but they don’t need to be needlessly complex, the devil is in the detail, only where people decide there needs to be exact detail, again look at how English Law works. Parliament sets out a Law, but then the Courts decide much of the detail, and if the Law doesn’t work, it is changed, at a later date, but most Laws are basic outlines, it is then for the Judiciary to battle over the detail. In Europe, the un-elected Eurocrats attempt to work out the detail in advance.

It isn’t how Democracies work, it is a prime reason UK voted Brexit.

GE2017

GE2017

Theresa May
Theresa May UK Prime Minister

 
Prime Minister Theresa May, has called a General Election for the UK, 8th June 2017, or GE2017 in Politico speak.

I published my blog as normal back on Bastille day 2016, for those who don’t know Bastille day is 14th July, and celebrates France’s break with a Monarchy and becoming a Republic. In fact the French so love the idea of becoming a Republic, they are now on their Fifth one? My blog for that day, pointed out that in my humble opinion, Theresa May should have called an Election between October or November 2016. She didn’t of course, and I had pointed out I was surprised, because this would give her a proper mandate.

Over the Easter Holidays she revised her opinion, to come in line with mine, so GE2017 was on, as long as Parliament agreed, it did, 13 MPs voting against and 100 abstaining.

Her reasoning is that she needs the whole of Westminster singing from the same hymn sheet, two hopes there. Bob Hope and no hope, and I don’t see anyone resurrecting Bob Hope anytime soon.

Jeremy Corbyn
Jeremy Corbyn Labour party of UK leader

Jeremy Corbyn has said he welcomed GE2017 allowing the people of Britain to have their voice heard. It will, but the voice or more correctly voices, will not be of a Socialist fantasy that Corbyn and his Labour party far left sub group Momentum envisage. There will be two voices in England, Wales and Northern Ireland, #Remain and #Brexit there could well be three voices in Scotland, perhaps even four?

Nicola Sturgeon, the Scottish First Minister will be wailing and doing her impression of Wee Jimmy Krankie, that Scotland needs another once in a lifetime Referendum, on top of the GE2017. In fact she will continue to call for a once in a lifetime referendum, until the people of Scotland, vote as she wishes them to vote. She might just get a surprise, namely a resurgent Liberal Democrat party winning some seats back from the Scottish Nationals.

my brother calls the fishwife

Nicola Sturgeon, who my brother calls the fishwife lol, has a severe problem, namely she has only one song to sing, and whilst there are undoubtedly many Scots who are quite happy with the tune, there are also many who know that the world does not revolve around Scotland, and that there is a time and place for everything, this is not the time.

Alex Salmond the Scottish Nationalist MP, will be hoping he can keep a lid on Sturgeon, as she will not actually be standing as an MP in Westminster, so is only a party worker with regards to the June 8th 2017 General Election. This will not stop her from alienating, the majority of Scots who are intelligent enough to realise they need representing in the #Brexit negotiations, as a #Remain stronghold.

Nicola Sturgeon a wee Jimmy Krankie deadringer
Scotland’s First Minister Nicola Sturgeon on Left and Janette Tough who plays Wee Jimmy Krankie on the right

The Scottish National Party, under Nicola Sturgeon is too busy banging on about a second Referendum, to do the people of Scotland justice over, their genuine concerns about Britain leaving the EU, to many this will be a waste, so will not support SNP in GE2017.

Which gives the Liberal Democrats, a good chance of winning back some seats, they previously lost in Scotland, to the SNP. Their leader Tim Farron however lacks charisma or presence, he is unassuming, is light weight and lacks punch. There are though waiting in the wings to support the party, two big hitters, namely Sir Vince Cable, and Sir Simon Hughes. Sir Vince is one of the few Political people, who actually understands the mechanism and fundamentals of Macro Economics and Money.

Alex Salmond of the SNP has a degree in Economics and is totally ignorant about the subject, so much so, during the Scottish Independence referendum, he lost many votes by refusing to admit Scotland would need a separate Central Bank and Currency, could we have our money back for the Degree course you took Alex?

Cable being on the hustings will add sound Economics to the voice of #Remain and certainly bolster Lib Dems cause, there are lots of votes to be gained with some savvy politicking north of the border.

voters want to be treated fairly, Socialism excludes that

Jeremy Corbyn could hold some ground in places like London, and the old industrial heartlands, that are staunch Labour. However many of the voters want to be treated fairly, Socialism excludes that, North Korea, Venezuela and Cuba all prove it. Labour party in UK will not come out of this Election well, however the fatal wound will not happen this time, it will continue to struggle on under the bearded leader, in much the same way as the Fat Boy holds power in North Korea.

Theresa May will see an increase, in the number of Conservative MPs, Labour will lose a few, the Lib Dems will gain because they have stuck to their guns and stayed true to their policy of voicing that they think UK should have stayed in EU.

And the BBC will continue to spout its claptrap and tell us what we should be thinking, happy days.

Savings

SAVINGS

Articulated Tractor units
Keeping the wheels of Industry moving

The savings ratio in UK drops again, and promptly HM Government does ~nowt~. There is an ideal window of opportunity being allowed to pass by. Currently £ pound sterling, is down due to the Brexit upheaval, so raising interest rates would not cause too much distress to exports.

However interest rates are only part of a savings strategy, the main thrust needs to come from the Treasury, via the Budget, and there are no signs of any commitment to increasing the savings ratio and thus changing the direction of the UK Economy to a higher savings mentality. The figures compared to Japan are startling. Here’s some figures from http://www.tradingeconomics.com/united-kingdom/personal-savings It shows the highest UK quarterly savings since 1955 was 15.5%, now a word of warning the Japanese figures are Monthly, nevertheless 49.7% is blooming high. That meant in one particular month, the Japanese saved 49.7% of their disposable income. The lowest Japanese savings was -9.9%, so even if we add the 49.7% to -9.9% and let’s say the lowest figure was duplicated so add another -9.9% it still leaves a figure of 29.9% savings in one quarter. Compared to UK’s best at 15.5% which is pasty looking at best?

The reason I bang on about savings, is because it is one of the primers towards increasing productivity. There are other factors of course, infrastructure and lack of corruption are two main components. Infrastructure is high on Donald Trump’s to do list, he realises that having good transport links, and excellent communications connectivity boost the output per person, of an Economy. Corruption in the G20 Countries is not a serious debilitating problem, whilst it can always be improved, a separate Police and Judiciary are capable of keeping corruption in check.

Cars for sale
More cars for sale at the side of the A61 into Sheffield

Transport improvements are sorely needed in the UK, I suspect 95% of people in UK reading this will have their own stories of hold-ups or bottlenecks in getting oneself or goods, from one place to another. I have been working in Sheffield, this last week, and from Wakefield the shortest route into Sheffield City Centre is to come off the M1 at junction 36 and take the A61. This is the northern access into Sheffield, and so any trucks wagons coming down from Leeds, Newcastle etc it is potentially the most efficient route, except it is a single carriageway, and includes its own local bottlenecks, like traffic lights, sharp corners buses stopping and starting?

In other words, it’s a pain, and the alternative approach is to go a further 20Kms (about 12 miles) south and trundle down a dual carriageway called the Parkway, an appropriate name three weeks ago when I was effectively parked on it for over 40 minutes, making me 20 minutes late for work?

Meanwhile, on a visit to Manchester in March I was stuck for three hours getting from Wilmslow to Hyde, a distance of about 25 Kms (16 Miles). M25 anyone, but even the M25 pales compared to M6 between Junction 3 and 11. A Nightmare. Plus all the Villages without a by-pass, and all the major Town and Cities can become car parks in their own right, just by an inconvenient breakdown?

But the biggest increase to productivity comes from high investment, and high investment can only happen with high savings, the Government needs to act. Will it, no because it isn’t on the Political agenda.

Democracy continues

DEMOCRACY CONTINUES.

Martin McGuinness and handgun
Martin McGiunness turned from violence to peace

Martin McGuinness, the one time terrorist turned peace negotiator and peace advocate, has died aged 66, after an illness. He had resigned his post as Northern Ireland’s Deputy 1st Minister, back in January due to ill health. As a Youth McGuinness had risen through the ranks of the Provisional Irish Republican Army, (Provisional IRA) and become its Quartermaster, in other words the person who dispensed the guns, bullets and bombs to kill UK nationals. Much of this was indiscriminate, hence many casualties of ordinary people (Children included) going about their daily lives, Democracy continued unabated through all this.

killing arm of Sinn Fein

He was brought into peace talks back in the 1980s, when Willie Whitelaw started secret negotiations with the Provisional IRA, which was the armed and killing arm of Sinn Fein, the Republican movement in Ireland that tried bringing Northern Ireland into the whole of the Irish Republic. Later when the great Mo Mowlam was conducting peace talks, McGuinness appears to have started to change his attitude towards peace talks and taken them up with vigour.

Mo Mowlam Northern Ireland peace broker
Mo Mowlam Northern Ireland Secretary of State who did more than any others to bring peace in Northern Ireland

As time progressed and age along with it wisdom, started to show him talking was a better way to advance his Politics, than killing people, he came over to the talks side with full vigour. Michael McGuinness, was a person who started out hating, and learnt that talking and listening to ones opponents had superior attributes, than killing people, unfortunately he was directly responsible for many people, children included, being killed, in his last years he learnt that talking, peace and Democracy were superior. In fact part of that seems to have come home to him with his relationship with his one time foe Ian Paisely, the two were renowned for their banter, so much so they became nicknamed ~The Chuckle Brothers~. Unfortunately there will be many victims families not having a smile on their faces, however to his credit, in the end he did show remorse, and backed talking, over bullets to the full.

the deafening silence from the many prominent Muslims in the UK

Terrorist attack

There has been a in Westminster, one lone person, four victims. Worse has happened, Britain will continue to prosper, Islam will be the worse for it. One thing to note is the deafening silence from the many prominent Muslims in the UK. It doesn’t wash and it doesn’t go unnoticed, if Islam wants to become mainstream in UK, it needs to change its stance. There is a line by Richard Burton as the eponymous hero in the 1956 film, Alexander the Great, ~Greece isn’t a place it’s an Idea~. Islam doesn’t seem to understand that the same could be said about Britain, it isn’t just a place, it’s an idea, Britain continues despite having had the greatest Empire the world has seen, but gave it up voluntarily, because the time had come to change. Britain was built on a vague idea of fairness, whatever that means, but it adapts, it accommodates, Britain built the modern world, and continues to help shape the World, Islam just seems intent on taking it backwards, the flow of History has passed it by.

Terroist held Westminster Bridge
Courtesy Metro Newspaper
A policeman points a gun at a man on the floor as emergency services attend the scene outside the Palace of Westminster, London, after policeman has been stabbed and his apparent attacker shot by officers in a major security incident at the Houses of Parliament. PRESS ASSOCIATION Photo. Picture date: Wednesday March 22, 2017. See PA story POLICE Westminster. Photo credit should read: Stefan Rousseau/PA Wire

Islam needs to understand, ~English Common Law~ has been around longer than Islam, (It was 1st written down by St. Augustine in 600 ad, and predates that) it has survived as an adaptable idea, and Britain gave most of the world its idea of Modern Democracy in 18th Century, and then Industrialised the world in 19th Century. The world has changed, Britain has changed and along with Democracy, continues to be a world leader, in a world it has created. Islam is in a civil war with itself, many Muslims choose the texts that are based on hate, and then try to preach peace, it can’t have it both ways, it needs to learn, and pick and choose, until it does, it will always lose, and remaining silent while people die, doesn’t endear itself to people who take time out to contemplate the results of needless deaths.

The EU is doomed, to failure

Triggering Article 50

So March 29th 2017 sees the triggering of Article 50 and Britain’s rise from member State of a none Democratic Economic Union that wants a Political Union of all its member States based on a Fascist/Communist idea Statehood. The EU is doomed, to failure, Democracy continues to flourish and as a consequence Britain is exiting. I suspect there will be no short term fallout, within the rest of the Member EU States, until the proper negations start. Then there will be a drip, drip, drip of opposition, as it becomes clear, Britain is not doomed, but quietly prospers.

Who will be the first EU member to apply to become a Commonwealth member?

The Queen meets Martin McGuinness
The Queen is still head of State of many Commionweatlh Countries, when she met martin McGuinness, he politely asked how she was, her reply was gold dust ~Well I’m still alive~ lol

I’m being serious, once out of, EU, the Commonwealth will become more important, its stature within Westminster will rise up the agenda, with MPs becoming more fervent of its possibilities and the opportunities it brings. As the EU Member States hit the first economic troublesome hurdles, and Britain makes a deal with say, India, Malaysia, Singapore or wherever, the Baltic States, Balkan States, Portugal, Spain, Cyprus, already a member but could that draw Greece in, may look with envy, that Britain has NOT turned into a backwater and just the opposite, has prospered where they are just meandering along, more surprising things have happened in History.

My money would be on one of the Baltic States making the first overtures?

For those from abroad, William Wordsworth (Poet Laureate 1813-1843) wrote one of the most famous English Poems, about Westminster Bridge where the Terrorist attack took place.

Earth has not anything to show more fair:
Dull would he be of soul who could pass by
A sight so touching in its majesty:
This City now doth, like a garment, wear
The beauty of the morning; silent, bare,
Ships, towers, domes, theatres, and temples lie
Open unto the fields, and to the sky;
All bright and glittering in the smokeless air.
Never did sun more beautifully steep
In his first splendour, valley, rock, or hill;
Ne’er saw I, never felt, a calm so deep!
The river glideth at his own sweet will:
Dear God! the very houses seem asleep;
And all that mighty heart is lying still!

Canaletto Westminster Bridge
The Artist Canaletto was a Venetian who painted luxurious fictional riverscapes of Venice and England, using factual backgrounds. This is Westminster Bridge, a purely fictional scene.

budget that never was

The Budget that never was

Daffodils
A sign of Spring, The daffodils bringing a ray of sunshine into our lives.

With Labour in disarray, Article 50 still to be actioned, the Liberal Democrats harmless, UKIP looking like a one trick pony, the Chancellor’s 1st and last Spring Budget was never going to be spectacular. No one was expecting ~The Budget that never was~.

Back in the 1950s, one of the best selling war books, made into a film, was written by Lt Commander Ewan Montagu, and called ~The Man who never was~, the book was still a steady seller into the early 1970s, long after the Dambusters and Reach for the Sky had stalled.

German (not so secret) secret agent

Basically the book is a spy story, without a spy, and the hero was a vagrant, who was already dead, when he was hired for the job? Ewan Montagu worked for the Intelligence service, MI17 (in the days when MI numbered around twenty?) and came up with the idea of a fictitious courier whose plane had crashed in the Atlantic, near Spain, carrying secret plans for the coming invasion of Greece by the Allied forces, with the expectation that the body would be washed up on the shoreline close to where a known German (not so secret) secret agent was active. The body was released from a submarine, and with the tide, washed up where they had predicted. And just as predicted, the Spanish Police informed the German agent, before the British Embassy was informed.

Glyndwr Michael
Glyndwr Michael, did more in death than most of us will do in life. Technically M17 (MI17) broke the Law, however the surviving relatives think it was justified.
The old adage, rules are made for the obedience of fools, and the guidance of wise people, springs to mind.

Chancellor Hammond came up with a similar plan, last November at the Autumn statement, he announced that this March would be his 1st Budget and last Spring Budget. Actually during his speech last Autumn, I was so taken by what he announced was going to be in this ~Budget~, and that no further major announcements would be made, until more details over Brexit were known, that I got it into my head, the Spring Budget would be just a statement.

So much so, I was barracking the BBC on Twitter over using the term ~Budget~? Oops.

But on reflection I was correct. It turned out to be ~The Budget that never was~. Apart from the announcement over Class 2 NIC rates for the Self Employed, and where the Treasury would allocate the monies, namely Social care, it was really a statement on how the UK Economy has to be set fair so that it can meet the battering of the coming Brexit storm. Hammond had dressed up the old Autumn Statement into the Budget in the way a vagrant, Glyndwr Michael, who had died from Pneumonia, so that it looked as though he was, a drowned Major, named William Martin.

just a pleasant jaunt

A statement, that is being made in the Spring no longer in Autumn. So no big shocks, no hike in alcohol or Tobacco that wasn’t previously known about, or change in petrol prices, just a pleasant jaunt, telling us that Hammond is keeping a tight rein on spending.

And all the opposition parties were set to get their responses wrong, Corbyn was bound to fail, he is so out of touch with working people, it beggars belief, Tim Farron is ineffectual, pleasant man though he seems to be, but also doesn’t give off the air of someone who is quietly dangerous. He also lacks a point of attack. The Scottish National Party will bang on about independence, and so be totally irrelevant.

In fact Chancellor Hammond is not a difficult target, just go for his jugular, savings, or in his case his lack of incentives for the Citizens of UK to start saving at least twice to three times our current levels, and with it, reduce consumer spending.

Danny Blanchflower oil painting
Northern Ireland Footballer not to be confused with David Blanchflower lol

There is an argument against this idea, Danny (David) Blanchflower points to the danger, that the reduction in consumer spending might not be balanced in any manner by investment in Industry and Commerce, on that point we disagree, but at least the former member Bank of England Monetary Policy Committee knows what he is talking about. Not so, most of the Politicians, the Labour Shadow Chancellor, John McDonnell is Economically an ignoramus, but that stems from having a belief that Marx actually knew what he was writing about, he didn’t, it was fantasy with no basis in reality. As the rich get richer the poor become poorer, stop it, we are not poorer than our forbears, by any stretch of the imagination. And for those saying their parents and grandparents are much better off. Stop it, they are rich today, not back in the 80s, 70s and before. Not one of them could buy a Computer pre 1979, they didn’t have the money, and food took up a much larger % of their income.

ended up saving countless allied lives

Just a note on the book ~The Man who never was~ by Ewan Montagu is a cracking read, and part of its charm is the fact that, a man who was a vagrant, had few chances in life, and found it difficult to cope with life, ended up saving countless allied lives. And in death was treated with care and when put into the sea, had a prayer said for him. Plus when he was eventually buried, albeit with a fictitious name, his grave was for many years tended and fresh flowers placed on it, it is now attended by the War graves commission.

So the House of Lords thinks it can block or derail Brexit, Prime Minister Theresa May, needs to just inform them they will be abolished if they try?

UK Plc

UK Plc

HSBC high street
HSBC has disappointed big style,

So HSBC shares take a big hit, while Lloyds posted better than expected results, Unilver shakes off a takeover attempt. UK plc continues onwards and upwards. Lloyds Bank Plc have put a final £1 billion in PPI repayments aside, topping them out, at over £17 billion in payments to the UK public. Also the bank has seen its profits soar £4.2 billion before tax. The annual report makes interesting reading.

OK interesting for those interested, Lloyds highlights include, lending £39 billion in mortgages, to UK homeowners. Plus £1.2 billion in lending to manufacturing, which is listed in their annual report separately, I take it that is they lent other monies to industry and commerce as well, even so this is down on 2015, which was £1.4 billion to manufacturing. This is not a criticism of Lloyds per se, but I’m noting that monies being saved by the British public, is not rising.

not good for UK Plc

It should be, but the impetus must come from H.M. Treasury, a bank can only reflect what the Government intends. Lloyds Bank motor finances roared ahead, which was good for Lloyds and Lloyds shareholders, but not good for UK Plc, which saw large imports of cars, and they are a retail good, just like batteries or toothpaste from a pound shop?

Lloyds high street bank
Lloyds delivered good trading results with increased profits

Although UK builds and exports more cars than it imports, those cars are not the expensive Mercs, Porsches, Beemers etc. One could buy five or more Honda Civics, for the price of certain German luxury cars. One of the problems here is the price of the Euro, which should be at least 20% higher than it is, to bring Germany inline with the Pound, in fact 30% wouldn’t be an unrealistic figure. But Germany via the Euro, exports its un-employment to Portugal, Italy, Greece and Spain, the so called PIGS countries, and the Euro continues so low, which gives Germany a competitive edge for exporting to the rest of the World, USA included. As a consequence it can also export its luxury cars to UK at knock down prices.

Lloyds Bank meanwhile has cut back its staffing levels, introduced more technology to help improve efficiency, and finally it is seeing the light at the end of the dark tunnel that is the PPI mis-selling scandal. The share price on the FTSE 100 however, was still shy of 70p at close of trade Wednesday 22nd Feb 2017, it had been trading just short of 74p last may. The price took a big hit on 24th June last, when the results of the #Brexit vote came through, but Lloyds has delivered a dividend increase. 1.7p is the final payment bringing the year’s total to 2.55p, thus making the future dividends look bright.

friendly Mexican drug barons

suitcases full of cash.

HSBC Bank Plc, weathered the 2007/08 credit crunch very well, and was not one of the banks that needed bailing out, neither was it hit very hard by the PPI mis-selling. It has though had its own scandal, wich has knocked its branding image, namely money laundering on a large scale. All those nice friendly Mexican drug barons who only murder when it suits them, not every day, needed to wash their money somewhere, and where better than the largest bank outside the USA. HSBC really should have cleared out its own Augean stables, in the form of Money Laundering, and it didn’t need some modern day Hercules to do so. Just good housekeeping and watching who walks through the doors with suitcases full of cash. HSBC being a bank, means it uses different language, poor branding, is called goodwill impairment, same result, it givees a bad image of the company.

PInguino ice cream logo
Walls Ice cream here in UK, Pinguino in Ecuador. Out with the Sash, Dance floor filler of that Countries name lol

Basically it thought it could get away with the Money laundering scam, well HSBC, you couldn’t and the authorities have caught up.

There is also the case of the missing Chinese customers, namely why has HSBC such low numbers for China. Its full title is ‘Hong Kong and Shanghai Banking Corporation Bank Plc’. Having the word Bank twice is overkill but hey everyone refers to it as HSBC, so I suppose it doesn’t matter that much. So China is where it’s supposed to be strong. As far as I can make out, in China, it’s a tiddler in the Peoples Republic of that ilk. Fair enough it was based in Hong Kong, which was a British former colony, but that should have given it a head start when looking for new business in the whole of the former Middle Kingdom.

loans to industry and commerce

HSBC’s decision to keep its headquarters in London will have helped reduce its costs in the last year, because it is Sterling based, these have become more competitive with the fall of the pound post #Brexit. But its reduced overheads have still not been enough to keep its profits up. A helping hand from the UK Chancellor in the form of increasing interest rates, wouldn’t go amiss here. Plus from a UK Plc perspective, it gives the added bonus to all UK banks of increasing deposits so raising the number of loans to industry and commerce. This automatically gives all the banks a chance to increase their profits while boosting UK trade, even if fewer people buy expensive German cars and invest their do$h in UK businesses, via their Bank deposits.

Chancellor Hammond please note?

Selecta Logo Unilever plc
Selecta is Unilever’s name for Walls Ice cream in many Countries around the world. Superb branding, tells you it is the heart logo for Ice cream. All rights to all the pics I use are owned by the respective Corporations.

This blog was originally to be about Kraft Heinz takeover of Unilever Plc, and how it was not a good deal. The takeover fell through, so 500 words already written out of the window.

But Unilever was given a slight price boost, even after the takeover was aborted and it fell back, the price was higher. It also made me take a closer look, at Unilever as a company, and also the Directors of Unilever took a closer look, at why they were not bringing in the profits that this upstart behometh Heinz Kraft could manage. I hadn’t run the old slide rule over its performance in years, and I was pleasantly surprised to find that what I thought was a rickety juggernaut, turns out to be a fairly nifty giant, able to keep pace with some more fleet footed mid sized competitors, on growth, but needed to sharpen up its act on profits, it will only do that by being more efficient, and efficiency pays wages, as well as increased dividends, Unilever is looking like a long term buy proposition.

Kibon walls ice cream logo
Yet another incarnation of Walls Ice cream, but one glance and you know what it is, branding of the highest calibre.

The FTSE 100 is still hovering around 7,300 with UK plc, bringing home the dividends. The FTSE 100 will fall at some point, but #Brexit still has not brought the tears that were foretold by the #Remain camp. Ex P.M. Tony Blair weighing in with his lies, hardly helps the #Remoaners, but gives the #Brexit camp something to laugh about, when he obviously falls flat.

the standard of debate was unusually high

We now just await the House of Lords decision, the standard of debate was unusually high, with many of the 191 Baronesses and Lordships who wished to speak, conceding that they must not block Article 50 bill and the will of the people, but make sure it is fit for purpose, to support in the best way the UK Citizens vote for the exit door from EU, going as smoothly as possible.

UK plc is onwards and upwards.

Dunderheads

DUNDERHEADS

Bercow, Speaker, dunderhead
Dunderhead, 1st class

John Bercow MP and Speaker in the House of Commons, raised himself to the dizzying heights of dunderhead, plus half wit hypocrite, by unilaterally declaring President Trump Persona non grata, in the Palace of Westminster. Thus raising interest on social media, especially Twitter. The block on Trump came as a surprise to Lord Norman Fowler, speaker of the House of Lords, as he had not been consulted on the subject, which is the normal constitutional procedure on these occasions?

much like a performing dog on two legs

Indeed Bercow has made himself look foolish in the extreme. The first point is, the Speaker is supposedly apolitical, and traditionally remains neutral, so as to be above the politicking of the Commons. Another main point is that any comments about Foreign dignitaries visiting Westminster, especially with a view to speaking in Westminster Hall, is done after consulting with the Speaker of the House of Lords, in this instance, the former Conservative Cabinet Minister, Norman Fowler. Bercow got on his hind legs and spouted his gob off, much like a performing dog on two legs, in this case also doing the neat trick, of making himself look like a clown, from a down market Circus.

In the process the clown Bercow, has made Westminster, sound like a Circus.

Radio sounded better when it was the Wireless

The first Speaker of the House of Commons I knew about, was George Thomas, later ennobled to Lord Tonypandy. This was in the days when Parliament was only Broadcast on the Wireless, not Television. I found the Radio sounded better when it was the Wireless, I often caught Prime Minister’s Questions, while I was driving, certainly when Speaker Thomas called ‘Order, order’ one sat to attention, his voice had ‘Authority’.

House of Commons
UK Parliament, the House of Commons

From the beginning, dunderhead Bercow has had difficulties keeping the House in order, George Thomas had no such problems, he cut any disorder with a handful of well aimed words. The point being, one knew he could be deadly and he was not a person to be trifled. This made Speaker Thomas popular, he could easily have been unpopular, but George Thomas was consistent, so MPs knew their position, stay orderly and they would be fine. Step out of order and they would face the Speaker’s wrath, and he could devastate, indeed all Speakers can, they hold the keys to MPs being able to speak in the House, upset the Speaker and an MP has no voice in the House.

It is clear that dunderhead Bercow has never been able to convey that same authority. He has improved his performance in recent years, but even at his best Speaker Bercow, is a poor imitation of what a ‘good’ Speaker should be.

put himself in the dunderhead class

John Bercow has just put himself in the elite dunderhead class, and nailed some partisan political colours to the mast, he is the one out of order. Should he go, that is not a consideration of one miscalculation on his part, but it does cast a shadow on his ability to command enough respect, to stay longer than the nine years he has flagged, he would like to reside in the position of Speaker?

Bank of England Interest Rate

Bank of England
The Bank of England, Threadneedle Street, London
Pic courtesy of Bank of England

On the subject of dunderheads, Mark Carney at the Bank of England has, is placing himself in the running, as predicted, the BoE via the Monetary Policy Committee (MPC) kept interest rates at 0.25%, utter madness. There is every opportunity by the Government to change savings and investment culture in UK, Bank deposits are too low.

Currently Sterling is languishing, a splendid situation for H.M. Treasury to signal to BoE that it is a good time to raise interest rates, as part of a wider strategy to increase savings in UK. This would have the effect of raising business investment, after all if people are saving, they want to see their hard earned do$h sweating hard, and where better, than being invested in hard working trade and commerce. Actually this is precisely what Macro Economic theory makes happen, hence why Japan after over 20 years of being in the doldrums of economic stagnation, still has high industrial output, high industrial investment, high employment and a trade surplus, supplying the Japanese Government with tax income to service the domestic budget deficit.

Lexus Honda cars
Japanese Luxury cars, many still made in Japan and exported.

the Japanese were obsessed with savings

Japan has slow growth, but Japan still has a vibrant economy, purely because from the 1950s right through to the 1990s, the Japanese were obsessed with savings, as a consequence, industry has the borrowing capacity, because the Banks have the liquid assets to lend to new and old Industries. The Japanese people themselves have high liquid assets, unlike UK they do not have a high percentage of their wealth tied up in housing.

All UK Governments since 1945 have been on a spending spree, but worse, have encouraged the British people to do a Viv Nicholson and ‘Spend, Spend, Spend’.

The point of this succession of Government policies, has been to prop up high street spending, with a view to stopping the next recession, it clearly fails. Recessions still happen, but worse, it has meant the Balance of Trade has run a continual deficit since the 1980s, hence all the British companies flogged off cheap to Foreign concerns.

The BoE follows Government Policy, but it is disconcerting that the most Political Governor of my recollection, has no concerns over British Industry, and UK future investment. The Monetary Policy Committee has given no signs it would like to see higher savings by the UK populace, it should, if only to make H.M.Treasury consider the better alternative. On that moot point I suspect Mark Carney and the majority of the MPC, will disagree, that is their prerogative, but they will be wrong.

HSBC Park Row Leeds
HSBC 1 of many high street banks who would lend more if people saved more

And as if to prove it, 8th February 2017, Sir Jon Cunliffe, Deputy Governor Financial Stability, Member of the MPC, gave a speech in Birmingham on the subject of Business investment. The speech is available online here. Sir John Cunliffe speech But makes sad reading, because it is full of what amounts to platitudes and doesn’t address the core problem, savings with which to lend to Business.

UK doesn’t need platitudes, it needs higher commercial investment, to reduce imports, increase business efficiency, raise productivity, and so increase the number of jobs. Sod the so called next recession, it will happen soon enough, what is more important is, that British Industry is in a position to fight it with better tools, namely Efficiency and Productivity. That ensures a shorter recession, and higher job numbers when we come out of it.

nor alas in his remit

For this it needs higher savings and less consumer spending, H.M Treasury are the people to make this happen, but putting up interest rates so that people can get a return on their savings would be a start, will this happen? Not any time soon, and the Bank of England under Mark Carney won’t make it happen, it’s not in his Politics, nor in the mindset of the MPC, nor alas in Governor Carney’s remit, which is the most important point.

line of trucks
How long do I need to bang on this theme, Efficiency is what pays our wages.

H.M Treasury is focused on #Brexit, and will not change savings policy, which is odd, considering, it is future investment, requiring a higher savings culture, that is part of what will make or break the outcomes of any #Brexit deal.

Wealth Creation Pt2

WEALTH CREATION PT2

How wealth creation came into being.

In part 2 I am developing the ideas from part 1.

11th Century English Agriculture
Agriculture in the 11th Century

A point to keep in mind is that those very first farmers, had no idea they had money. To them it would have been just a surplus product, there is no evidence they would have had any concept of money as we perceive it, merely they would have extra food with which to exchange goods or services.

With no real concept of money, there would be no word for it, nor to start with any ideas of worth.
In historical terms, farming is what predominantly marks out the Neolithic period, yes there are also improved designs to stone tools, but these also occur in the Mesolithic period, and are not in economic terms revolutionary, farming most definitely is.

You only have to look at Australia

Until this first farmer, any drought, or increase in population above what the land could support, led immediately to starvation. You only have to look at Australia, it was occupied for 30,000 years when the British first set up their colony at Botany Bay. Britain had been occupied continuously only since the last Ice age had ended, about 8,000 BC. The Australian Aborigine population was between 250,000 and 400,000, it was Palaeolithic or old stone age, and strictly hunter gatherer. The population in Britain was 14.1 million, and had already past the Agricultural stage and was into the Industrial era.

This highlights the difference, pre farming people starved when the food ran out, whether through a rise in population, or a shortage of food through a natural downturn ii the weather or perhaps even a disease in the staple food of the area in which a community lived.

Stonehenge
Stonehenge

Palaeolithic peoples didn’t even have domesticated animals, like cows, goats, sheep or the like, by the time of the Mesolithic period domestication had started, however, the animals were still dependent, like their human companions, on what the land could provide.

this leads to ownership

Farming changed everything. That it came into being is no real surprise, people lived so close to the land, it is easy for some bright spark to see that there were some areas that had better food supplies than others, the leap of imagination was realising that if one planted the grain, it grew.
The first farmer has found some suitable area of land, cleared the existing plants, and sowed his seed. He has tended his crops, and this leads to ownership, it also leads to wealth creation. After all, he is the one who has done the work. So along comes Ug who asks if he can help, and reap some of the rewards.

This immediately leads to challenging questions, is Ug given a share of the food, does Ug have his own piece of land, if not what is his relationship to the first farmer, is he a worker and paid or a slave and becomes part of the famer’s tools. Remember there is no word for money, no concept of money, and the idea of ownership may well have come into being, before these other concepts have words.

Indeed, it is money in the form of tokens, that dislocates commodity money from fiat currency. Once the idea of abstract value becomes grasped, then there is value of things. Until this point, people, products, services have no value, not because they are valueless, but because there is nothing that acts as an independent token with which to measure the value.

It is the independent token (=Money) being dislocated from actual services or goods, that makes money such a vital measure, so no money, means or equates to, no value.

he can give value to items or services

It is advancing technology that has given items and services value. Once the farmer has surplus product, he can give value to items or services he wishes to acquire.

Whilst the axe head maker was making ‘things’ of value. Those axe heads had no value, until there was the money there, with which to exchange a good or service.

This idea also has great consequences for modern Economies. During the ninth and tenth centuries in England, there was particularly in the reign of Eathelraed the Unready, a draining of fiat currency from England abroad, in the form of what was called the Danegeld. These were extortion payments made to the raiding ‘Vikings’ or ‘Danes’ in an attempt to keep the peace.

But here is a conundrum, while the last payment was so huge it took two years taxes to raise, this left the Vikings super rich. But had it made the people of England have any less value, no. OK they had less money and less disposable wealth, but all the knowledge and ability to create wealth through technology was still in place, so they were only poorer in what they could purchase with cash. If there was no famine, they were still as rich as the years before.

Note to confuse the issue there were a couple of famines, but this only meant the Danes or Vikings choose your own name, stayed away from the coast of England, until they had the spare food, so as to travel, and to raid the English again?

a modest three or four fold increase would bring astounding benefits

In the mean-time let us return to the idea of the first farmer. The result of just clearing an area of land, probably just unwooded land, and digging with perhaps an antler horn, or a sharpened length of wood, to plough a rough furrow, plant and weed the area would increase the crop yield anything between five and ten fold. Even a modest three or four fold increase would bring astounding benefits, however such a low figure is unlikely. Once you have proved that the idea works, the first thing would be to ensure you had enough for the next year plus some, and a natural eye to security would mean, that the maximum amount of land was cultivated, the amount of grain needed to grow from it would be kept.

In other words, the farmer’s own self-interest and that of his family or community would ensure there was excess food to that which was essential.

All the evidence of Mesolithic people in what is now eastern Europe, down turkey Iraq and out towards India, shows that the movement of tribes of hunter gatherers was not extensive, they tended to build a shelter and use it as a base for the surrounding area, only once the resources were used up di the tribe relocate, they would then return or do a circular tour, but all the time having a dwelling place to work from.

This is vital to understanding what happens next. Initially the extra food would be probably saved, a society that is forever on the brink of starvation could be expected to be cautious over how it used a resource.

Now comes the next step, at some point goods were exchanged, for what reason can only be guessed at, and the actual need is not important, it is the transaction that is. Perhaps the farmer needs an axe head, or some useful animal skin or extra spearheads.

thus increasing the amount of land he can farm

Wealth creation stems from both efficiency, the farmer realising, he can get cattle to pull the plough, thus increasing the amount of land he can farm, or technological advance, adding a wheel to the plough or indeed having two wheels on a cart and moving more goods, which is both a technological advance and efficiency gains.

Once you have a farmer, they are going to stop anyone from stealing their goods, this is a concept that is alien to hunter gatherers. Here language intervenes, and the concept of ownership, and with it land ownership, and with that comes the Laws relating to ownership.

With Laws come Lawyers, or at least people who understand the Law, or ensure the Law is enforced, this usually is some kind of rulers, whether head of the family, King, elected representative, or other person in charge. This has just increased the number of jobs.

But just stop a moment, let’s go over to the Economic correspondent of the ‘Neolithic Times’ and ask his opinion of the effect of farming.

Empty shop Closing down
Things are always changing, as jobs are lost more jobs are created.

Neolithic expert on Economics, “well in the future, now farming has arrived you will see hunters going out of business, as their jobs will no longer be needed, that will put the axe head makers and spear makers, out of work. In the future I see a lot of people with no work, and mass redundancies”
And if you think that sounds familiar, next time you see some person banging on about Robots taking our jobs, and making mass unemployment, ask who is paying this idiot. The Luddites, could not foresee you getting a flat tyre and calling out a breakdown company.

The future is bright the future is technologically driven, and wealth creation through efficiency will only increase.

Wealth creation

WEALTH CREATION

Wealth creation, a beginner’s guide.

This article is partly prompted by a, line in a ‘Twitter’ post, ~NHS, put people before profit~. So in other words forget Wealth creation, run the NHS as inefficiently as possible, and spend more money than the entire economy has.
That is basically what the person who thought up the line said.
The person didn’t mean that of course, but then, in UK the majority of people have no idea where profit stems from, or indeed many don’t know what the word means, and that wealth creation and profit are intertwined.

Mesolithic tools
Illustration from 1 of my favourite books, ‘Hunters, Fishers and Farmers of Eastern Europe 6000 – 3000 B.C. If you think I’m joking it rates alongside, J R Green’s Short History of English People, Principles of Log measurement, by C.F. Laver & 500 years of Printing by S.H. Steinberg ??

Let’s start at the beginning, Palaeolithic Man, these were hunter gatherers, which means, that when the locally available food was exhausted, as the population rose, they died through starvation. They had discovered fire, which meant they could cook food, which releases more nutrition, which in turn helped to raise the population above that possible before fire. This, along with some minor food processing, such as grinding cereal, led to a higher calorific value available but was limited by what nature provided.

In the film Avatar, they live in a world without money, they are hunter gatherers, however what they don’t show in that film, is what happens when the population reaches saturation point, people die, infants are still born and more mothers die in childbirth.

Period, end of.

Bloated stomachs excruciating slow death

Bloated stomachs excruciating slow death, it is why the population of Australia was so low, around 250,000 when Europeans arrived, (The UK in 1841 was 17 millions) and the larger Australian mammals like the giant Kangaroo had been wiped out for food.

Neolithic Storage Pit Yugoslavia
Pic showing a storage pit, in what was N.E. Yugoslavia, once people had grasped the need for planning, storage was essential.

After Palaeolithic times was a fascinating era, called the Mesolithic period, between 12,000 and 8,000 years ago, or 9,600 BC and nearer, depending whereabouts in the world you are looking, 1800 AD in some parts of Africa? This was a transitional time before Neolithic man. The Mesolithic period saw the introduction of semi domesticated animals, as these lived on food sources humans didn’t, they could extend the calorie intake of a group, when drought or other changes in weather occurred.

However the big change came with the Neolithic period, and it introduced ‘profit’ otherwise known as ‘wealth creation’ and ‘value’ these all result from ‘efficiency’, this was due to the biggest revolution to date, namely ‘Farming’.

FIRST FARMERS

The example I like to give is these first farmers, realised the hunter gatherer way of life isn’t efficient, so they stop and live in one place and mark out their fields, sow their seed and gather their grain and voila, find they have more food than their immediate needs for the year, the following year as there may well be a drought, so they save what they can for the next year. But as it turns out, no drought occurs, so the next year one of them decides he wants a new axe head, but not any old axe head, he wants the best to flaunt in front of his pals.

So he goes off to the top axe head maker and says, I want a super deluxe axe head, can you make one and I’ll give you 3 months grain for your whole family in exchange for it. At this point I will note, the very first recorded money, was the Shekel a measure of grain, it was in the Fertile Crescent of Mesopotamia, and is long after this story happened. The axe head maker agrees, thinking to himself I’ve got a good deal here and it will only take me a week to fashion the axe head.

Marx and the Socialists cannot accept this reality

Now there are some points worth noting, no one is poorer, in fact because one person found a more efficient way to work, more people are richer, Marx and the Socialists cannot accept this reality, but then Marx like most Socialists was a parasite who after less than a year’s work, around the age of 25 never did another day’s paid work in his life.

Once you had farmers with a fairly regular surplus of food, they could support Cities. Today we would probably label them Towns, they supported at most a few thousand people, some only hundreds. The Sumerian City of Ur in Mesopotamia is one of the most famous. However with Cities you had a class of people able to employ others due to wealth creation and to do menial tasks, this led to leisure time.

Part of this is due to more efficiencies, that come with Cities, people in close linked contact, able to exchange views and also efficiently exchange goods and services, this all adds to wealth creation.
Profits result from efficiency, so saying “people above profits” is just a silly uneducated statement.

Sumer Boats
River Transport in Mesopotamia

Also because of the geography of Mesopotamia, there were the two rivers the Tigris and Euphrates, traders could make money within a few days travel from one to the other, plus water can carry huge amounts of goods compared to land travel, which leads to more efficiency and wealth creation, hence increased profits. Trade also led to Writing and Arithmetic.
The Sumerians or Mesopotamians (it depends on which era you look at), arose because of a number of factors that were right. But the geography led to good infrastructure, namely rivers to transport goods, and decent road connections due again to geography, between Cities. These all help efficiency, which results in increased profits.

Sumerian numbers
Sumerians or Babylonians to you, used base 60 for their counting, we use base 10 denary or base 2, binary and base 8 octal for computing.

With farming came money, as pointed out the first recorded money was the Shekel a measure of grain, this was in Mesopotamia. However prior to this, money would exist, without there being either a concept of money, nor a word for it.

In fact farming was definitely revolutionary in the economic sense, because it increased productivity multiple times, in one leap. Even the simple act of ensuring there is seed planted, weeds removed, and making sure the area is adequately watered, will have boosted productivity by five to ten fold, don’t believe me, go out and do a little gardening one day?

Such a jump in the amount of food production, would ensure that the current family were well fed, and that in itself would increase the likelihood of any children surviving, thus boosting the population but also leading to more leisure time, and thus more time to think and contemplate.

I realised this was not covered in any Economics books I’ve come across, and indeed the introduction and why money exists is not adequately covered?

Going back to the very first farmers, they merely produced more food than they could use, due to technological advances, some of this would just be wasted, but why waste something so precious, as food, one would save as much as possible to try and prevent a shortage in future years. But in the mean time one has a surplus of a resource, you might as well use it.

fairly miffed, if some lazy hunter gatherer came along

Also worth considering is the idea of ownership would come into existence, a farmer who had worked his/her knuckles to the bone, ensuring their crops were well tended and ready to produce a good harvest, I’m sure would be fairly miffed, if some lazy hunter gatherer came along, and started taking their hard worked grain, and using it for themselves.

But also remember no idea of the concept of money has emerged, so any surplus would be exchanged, and bargained over without there being a regular exchange agreed, or even any word for money.
This idea seems to emerge with the Cities, where you get a number of people, comparing trades. And hence measurement comes into being, in other words more technological improvements, and once you have a measurement of corn, you have an exchange of that measurement with other items.

Actually the Sumerians left lots of info because they wrote on clay tablets, another technological advance, so we have all sorts of Historic artefacts, that lead to how ideas progressed, not least Arithmetic, and even the first recorded joke?

One Sumerian to another.
1st Sumerian, “I say, I say, I say, what’s guaranteed, when a beautiful woman sits on your lap?”
2nd Sumerian, “I don’t know, what is guaranteed when a beautiful woman sits on your lap?”
1st Sumerian, “She farts!”
I thank you, lol. PS if anyone says about another joke “It’s the oldest joke in the book”, you can now be a pub bore, and tell them what is the oldest joke in the book? Babylon Circa 1900 BC.

Back to the plot, efficiency and technological advance is of course what Adam Smith noted was happening, when he related the story of the pin makers and division of labour. But by his time we had various ways of measuring, efficiency, and multiple ways of relating one item in ‘value’ to another. Value of course is not always related to cost, so two items can be the same price, but have different values, and the similar items can have different prices but the same value. These can of course differ from person to person.

Colgate
Colgate brand items, courtesy Colgate Palmolive.

A tube of toothpaste purchased for £1 in a Pound shop, can have multiple values to multiple people buying it. To the poorest it might be bought at that shop because it gives the best value, to another it may be ease of location of the shop, and the actual value of no consequence.

consider the science and technology

But pause and consider the science and technology that is required to make that toothpaste, most of these advances were nothing to do with making a product to clean your teeth. Many efficiencies were the by product of other manufactures, but they all lead to an increase in dental hygiene?

These concepts are way outside any Socialist dogma, because Socialism deals in fantasy worlds, where there are only two types, the rich and the poor, balderdash of course, but it persists.

Efficiency creates wealth, and wealth results from profits, I note that President elect Trump, is going to emphasize infrastructure improvements by increasing the road building and other communications services. This in itself will result in increased employment, nad wealth creation, but done correctly will increase the USA’s GDP per head. Merely by increasing efficiency, he will increase profits and so boost wealth creation.

Technological and scientific advances lead to wealth creation, along with lowly ideas on how to increase an individuals output. I was on a production line, and noted instantly, that the most efficient people, with the largest output, did the least movement, and appeared to be the ones doing the least work?

That was people with mundane jobs, no degrees, but making improvements in their own working environment, just like those first farmers, they applied the technology they had to hand, in the most efficient way possible.

As a result they will still be in employment next year, even if the price of imported pistachio nuts has risen, the price in Tesco will probably be unchanged, wealth creation at work.