savings-increase

SAVINGS INCREASE

Here in UK the party Political Conference season has kicked off, the Liberal Democrats being first out of the blocks, holding their shindig in Bournemouth, a seaside resort on the south coast of England. Not a word about savings increase policy, but then none of the parties will whisper a word about it, because none of the politicians realises that it is one of the keys to a wealthier society.

Bournemouth bay vista
This picture courtesy of Bournemouth tourism, and I must say looks inviting. But hey if I turn up, it will be the average British damp winter weather? Even in Summer lol

This is how it works. If the Government give incentives to save, the amount of capital for investment in industry and commerce increases. Yes people also use those savings for things like the deposit on a house, or putting towards a fancier holiday. But we are talking UK macro economics here, so a 1% increase in savings, is £billions in a year. I haven’t worked out a particular figure, because I didn’t specify 1% of what? The point is that industry that is well Capitalised, (and this is an average of course) is also more efficient.

self filling a wine glass, from a regular glass bottle

Let’s take an example, Jane Toper has just decided that her device for self filling a wine glass, from a regular glass bottle, will take the world by storm. She has £10,000 of her own savings, she has had a trial device made, and she can source them from China at £1 per device. Now having the trial item made took £1,000, travelling to China and back just once could say goodbye to £2,000. This leaves her with £7,000, so she toddles along to her bank. Yes they will lend her the money she needs, mainly because she produced a good business plan, and also because she is only asking for a further £14,000, to import the stock.

However, let’s take a different scenario. The UK government has just made some large tax breaks and increased the incentives for the British people in general to save, and they are doing so. Where do their savings increase go, well there would be a number of places, not least the Government’s own National Savings, but also bank savings and shares savings. This is where Industry and Commerce, come into play, they want to see a savings increase, for the simple reason, this gives easier access to Capital, and increased Capital improves efficiency, this in turn raises productivity, and increased productivity increases the number of jobs. Also a knock on effect, is to increase the wages paid, this all comes from a savings increase, by making more money available to Industry and Commerce.

Filtronic design Leeds
Design and manufacture of specialist equipment. Leeds based Filtronic, is one of the Manufacturing companies that has just boosted UK to 8th in the world changing places with France, who are now 9th, despite #Brexit lol?

So let’s go back to our fictional Jane Toper, now her savings are £11,000, as an average there will of course be people who have not saved. More to the point because of a savings increase, the bank now has money, it desperate wants to lend money, as a way of earning interest.

This was the case back in the mid 1990s. I was looking to buy a property in Bury with a view to renovating it, and reselling it. I was lent the money by my bank at around the Bank of England’s Minimum Lending Rate (MLR), so in effect, the bank were not making any extra profit, however they were making a return on their money, greater than some depositors. Banks make their money by working on averages, as long as the average interest return is greater than the interest paid to the depositors, they are in the black.

able to change any faults at short notice

So Jane goes to her bank with £8,000, but this time she has two proposals, the first much as the above example, the second, is more complicated. She wants to borrow £32,000 (three times her capital) to purchase a couple of machines that will help in the final manufacture of her device. This will enable her to keep on top of design and quality, the final device will be £1.20 instead of £1.00 but she is confident that she can still make a profit, but also be able to change any faults at short notice, should there be problems. Also she is asking for more Capital to allow form merchandising and advertising. I will tell you now, the banks would be more interested in the second proposal than the first, because it is reducing chance, and increasing design and advertising.

More to the point, when the banks have the money, because of a savings increase policy, they want to lend, and make more do$h.

So which Political party will have this on the agenda, certainly not the Socialist Labour party, who are intent on trying the fantasy idea of taking money out of society. This only has the effect of impoverishing the masses, allowing the select few at the top of the Political machinery to become rich. The side product of trying to stop the existence of money, results in killing millions, through starvation due to a lack of money in circulation, I will repeat, money is more beneficial to the poor, than to the rich. The rich always have things, whether land, gold, jewellery or whatever.

so intent on impoverishing the Scots?

The Conservatives are being led by Theresa May, she has little imagination, and is concentrating on #Brexit, and a Chancellor with even less imagination. The other parties don’t count, but even so a savings increase is not on the agenda. The Scottish Nationalists are Socialists like UK Labour, so intent on impoverishing the Scots?

bathroom decorating
Just some tiling, grouting and then adding the finishing touches, all in chrome.

A short blog this week, I was going to say, due to the fact I had my head stuck down a toilet? However this is not quite true, but I have had my head at the back, side and above the toilet pan, a brand new one, which has just been fitted. I am just finishing redecorating the bathroom, another couple of days and it will be ready.

Toilet redocarating.
This is the old bog seat, it will have been replaced by the time you are reading this with a lovely white square seat, with soft closing. Also there will be the new oblong wash basin, with chrome fittings.

Just a technical note on the decorating, the corner tile is deliberately not over half a tile, because if you look in the other picture, the tiles around the window are over half a tile. I had to decide whether to have the corner tiles each side with only a 60/70mm or so cut off, this led to the tiles around the window all being, about 60mm, so I moved the centre of the tiling 300mm to one side. The tiles are 600mm wide, so those around the window are 360mm, while those in the corners are 240mm. This will hopefully look more professional?

Corruption Kills

CORRUPTION KILLS

Monsoon floods devastate Bangladesh, made worse by lack of infrastructure to deal with the situation.

During the last fortnight, there have been two devastating weather events, one is annual and is the Monsoon, which waters the Indian sub-Continent in a deluge of precipitation spread out over three months??? This hit the Himalayas as usual but was more severe than most years, the result was flooding in Nepal and unusually high flooding in Bangladesh. The high number of deaths in Bangladesh, shows corruption kills. The other was hurricane Harvey, which made landfall as a storm, but poured two and a half feet of water, over Texas in general, and Houston in particular. The downpour and winds lasted only a matter of hours, but resulted in a state of emergency being announced. Hurricane Irma is currently sweeping up the Caribbean, having just passed the Leeward Islands.

Both events left a scene of carnage, death and destruction. Both areas will see stories of communities pulling together, and people helping each other in an unselfish manner. It is the aftermath that will be different, in the US the Federal Government has already allocated $billions to relief, which will, delays allowed for, eventually reach the people affected.

looking to line their pockets

In Bangladesh there are already stories of corruption, amid the devastation. The International Red Cross will swing into action, and all the other International None Government Organisations will come to the aid of Bangladesh, some of the aid will eventually get to the people. In the meantime there will be so many people, looking to line their pockets, the majority of the aid will not get to where and to whom it is needed, the result will be unnecessary deaths, showing corruption kills.

Hurricane Harvey
Hurricane Harvey took a high toll of devastation, due to its ferocity and the amount of rain in such a short time.

Endemic corruption always starts at the top, that is why it is imperative, that no one is above the Law. Corruption is the main reason for poverty, it is why all the so called Socialist countries end up being poor, Socialism breeds corruption. Corruption stems from people being above the Law, but also is fed when situations arise, where some people are included into a system and others are excluded. Any State where there is a necessity to belong to a certain group, before one can get a job, or to earn a living, creates a climate for corruption to thrive.

Hence why Countries where one Political class is in power and being a part of that particualr class, is required to get the best jobs, is headed for corruption. Hence it being part and parcel of Socialism. In Venezuela it is written into the Constitution. One of the sections is on workers’ rights, and that no matter how small the company there must be workers represented on the board. Also before a person can start trading, they must present themselves to be assessed as to whether the business, will succeed, and whether there are already enough other companies doing the same business? Straight from the Karl Marx book of comedy politics.

3 Hurricanes Irma, Jose, Katia
Currently brewing as this blog is written, 2 further hurricanes in the Caribbean, plus Irma.

If a person sets themselves up in business, and puts everyone else out of business, then, the wrong people were previously running those other companies, and probably giving poor service into the bargain. Socialism and indeed the poorly educated hate this idea. But the most obvious thing is, how do people who have never run a business, know what will succeed or fail. The answer is simple, they don’t, hence Venezuela being so poor, when it should be one of the richest in the World. How does one circumvent this type of nonsense, well simple, they bribe themselves in, so those with money become richer, while those without starve. Good Socialist motivation for corruption.

some little piece of kindness

As the days proceed, and hurricane Harvey recedes, there will be stories coming from Texas, that some place or other, or some person or family, still has not received the help that it needs. This will be due largely, to either bureaucratic incompetence, or just being overlooked. At some point unrelated to incompetence, some Government employee will be praised for going above and beyond the call of duty, and will be slightly embarrassed to find themselves either trending on social media, or in the news headlines. Various unassuming people will find that, some little piece of kindness, is suddenly being used as inspiration for others.

In a couple of months news stories will start to appear from Texas, that some people are still struggling more than they should be, due to the devastation caused by hurricane Harvey, and there will be a furore over what the State Government is doing, to ensure that people are being helped in the most efficient way possible. There are unlikely to be stories of corrupt officials, suddenly becoming rich on the proceeds of any aid directed at the victims of hurricane Harvey. If any of the aid does go missing, the most likely culprit will be Mr. Incompetence, not the dude who was elected to ensure that the boating lake in the City Park had adequate water in the summer?

In Bangladesh corruption is endemic, why? Simple it is not set up as a fully functioning Democracy. Bangladesh was born out of East Pakistan, long after the British had left. Pakistan was born out of the partition, that was insisted on by many Muslims, and quickly descended into a Military Dictatorship, where the Judiciary became an arm of the Government. Whenever the Judiciary is answerable to a Government body there is scope for corruption, and in the end that corruption kills.

Also Islam has a problem with secular Law, many Muslims see ‘the Laws of Islam’ as above secular Law, but also take this to mean, they can ignore these Laws, and invoke Taqiya with regards to secular Laws. Also many Government officials can go about their business, without the threat of the Law being used against them. This in effect makes them above the Law.

Prime Minister Gaston Browne
Gaston Browne, Antigua & Barbuda Prime Minister, eloquently spoke about the preparations for a hurricane, enough buildings to withstand 200mph winds, on the Island of Barbuda.

In all the rich Democratic Countries no one, Monarch or President included is above the Law, hence President Nixon found himself leaving Office for sanctioning the breaking of the Law. In UK the Princess Royal, daughter of the Queen, found herself up before the Beak, for not keeping her dog under proper control. Basically her dog bit someone, so the Law bit back, ouch.

India is currently booming, and many people are becoming wealthy, and this is happening on the back of a crackdown on corruption. Just in the last few days, some Yogi and head of a cult, was jailed, for 20 years for rape. Not so long ago, this would not have happened, someone would have been paid, another would have turned a blind eye for a decent wodge of money, and this nasty excuse for a human being would have been set free. Go back enough years, in India and it was basically Socialist, hence why it stayed so poor after Partition.

corruption is being fought in the courts

A new mood took over India, it saw its old rival China, dump Socialism in 1979, and copy the Capitalist Hong Kong. Boom, nearly 40 years later and India is now starting to fight corruption on all fronts. And the wealth of the Nation is the better for it, India is now booming, and doesn’t look set to stop doing so. Because the corruption is being fought in the courts, when the Monsoons arrive in India it kills fewer people. For the simple reason that when the Federal Government allocates money to help with flood defences, most of the money, has a reasonable chance of doing the job it was intended to.
India has a long way to go, there are certain States especially in the north of the country, where corruption is still a big problem. However even here, it is being fought, hence why India, is starting to make waves on the international stage.

Bangladesh has many problems, but most are of its own making, add in the exceptional monsoon rains and it is overwhelmed. Many people have died in Bangladesh, just because it cannot put its own Governmental house in order. Will this happen, no, because it will kow tow to some clerics, reading from a book that can be interpreted, to despise anything new. The problem is for Muslims to sort out?

In the meantime hurricane Irma has devastated Barbuda, and is heading north. Barbuda itself got a direct hit, but the Island was prepared, and had buildings built to withstand 200 mph (320KPH) winds, so the people had somewhere to go, sadly so far reported is one death, of a child.

Will there be many more deaths, from hurricane Irma, yes. Will most be avoidable, no, hurricanes take no hostages, and can change route unpredictably, certainly any deaths won’t be the result of endemic corruption.