Due to time pressures from other ventures, I have decided to put the regular blog on halt.
I was getting somewhat stale, and any humour was totally lacking.
I shall post on twitter when I resume.
Due to time pressures from other ventures, I have decided to put the regular blog on halt.
I was getting somewhat stale, and any humour was totally lacking.
I shall post on twitter when I resume.
The UK discount retailers are booming, more to the point it is also seriously competitive.
So much so, the UK discount retailers themselves continually have to evolve their strategies, just to keep pace with competition.
These days of course there are two halves to the story, online and bricks and mortar.
Online, the big players are becoming really big. ASOS was recently given a market value on the London Stock Exchange around £5 billion, similar to Marks & Spencer, a FTSE 100 Company.
M & S is bricks and mortar and not a discounter, they have been struggling to maintain market share in these times of online boom, and high street decline.
The day the price was made news, ASOS had just opened a new 290 car overflow car park at their Grimethorpe distribution centre, to cope with the extra staff already recruited and also the extras that will be needed, for the Christmas rush. Their sales are also rather interesting as UK and Europe aside, they are selling into Hong Kong the China mainland, South Korea, Singapore and all points east, plus Australia and USA. Next are also on a roll, although just lately they have struggled to keep the large increases in sales, but this might be just the fact they are aiming more at the UK and European markets. Although that said, Shop Direct owners of Very and Littlewoods have managed to increase sales, however they came mainly from the Very.co.uk site.
Wal Mart would crush its UK opposition
The UK discount retailers are of course dwarfed by Amazon, however it is worth making the note that Wal Mart stormed into the UK retail market by buying an existing supermarket chain, the Leeds based ASDA. At the time reports of doom and gloom came from the States saying that Wal Mart would crush its UK opposition. Well firstly Wal Mart entered UK at just the wrong moment, because WWW was just getting into swing. Plus they underestimated the very competitive nature of UK discount retailers, and also the different way UK does its shopping. In USA people have lots of storage at home, so will buy bulk, in UK it is less so. Yes we do on occasion buy bulk, but most of the time we shop for the week or fortnight. Shopping habits in UK continue to change just to add to this confusion.
Amazon appears to have a total control of online shopping, but as can be seen, this is not written in stone. Personally I might sell through Amazon, but I cannot recall the last time I purchased anything, Ebay is my preference, and it is because I can buy from smaller UK discount retailers, giving cut price bargains. Also although Amazon are big doesn’t make them better, but also the whole nature of retailing has always changed and will continue to do so. Competition forces this, AO.com is another online UK discount retailer that has had a big impact, lowering prices on white goods and big ticket items.
What all this adds up to is a healthy scene via online UK discount retailers.
relied on a limited number of best sellers
Now the bit you might have overlooked, is the so called bricks and mortar retailers. Firstly most are dispersed, they are on the high street, retail parks, or sole supermarket locations. Aldi and Netto were the first foreign supermarket discounters back in 1990 to open in UK, Lidl followed in 1994. At that time UK had Kwik Save which was very similar to Aldi and Netto, they all relied on a limited number of best sellers, the staff had to know the price of every item in the store. Kwik Save was set up on the same basis, the simple reasoning was that no individual item had to be priced, this cut down costs. For younger readers, there were no bar code scanner systems that were cheap enough to install back then, so limiting the number of items, allowed staff to remember the price of everything in the shop, so they could just punch the price into the till or cash register as they are known in US.
Aldi were the ones who took cost cutting to the extreme. If you go into M & S you will never see a pallet or any major delivery packaging on the shop floor. If you worked for M & S and placed a pallet on the shop floor, you would be given a verbal warning.
Go into an Aldi and, the chances are you will probably see a pallet or at least a large box with stock or waste, blocking at least ¾ of the width of an isle. They do not do night work, stocking the shelves. I started using my local Aldi at Sandal in Wakefield, back in 2004, Aldi had a policy of leaving checkouts empty until at least two people were there to be served and often three or four. It was all in the effort to keep down costs and raise efficiency, and efficiency pays wages, and as if to prove that Aldi wages were good, and the products were inexpensive.
The effect on UK supermarket shopping was electric, these foreign discounters soon started to gain market share. For the first eight to ten years they had been a nuisance, now as the new millennium dawned they were starting to gain traction. Also one leading UK supermarket chain Safeway was struggling. Safeway UK went into liquidation, many of the stores were taken by Morrison’s who were primarily a northern concern, this gave them a larger southern foothold. Then came the crash of 2008, the UK big four, Tesco, Sainsbury’s, Asda (WalMart) & Morrison’s, now all looked vulnerable UK discount retailing was in crisis.
they could not cut costs to meet Aldi
The European discounters were in the ascendancy, the Big four were scrambling around looking at ways to compete. In fact the first casualty was one of the discounters, Netto, which dropped out of the market, their model of brand names at low prices had failed. Lidl and Aldi with home brand goods went from strength to strength. Tesco, Asda and Sainsbury’s had been opening ever larger stores, more like hypermarkets, they affected bottom line costs. A large Supermarket open 24 hours has to be lit, heated and staffed, 24 hours, they could not cut costs to meet Aldi and Lidl’s cut throat prices.
Shoppers were looking at ways to cut their weekly bills, and one thing they did was reduce how much they bought in their ‘Big Shop’, bulk buying was out. Subtle changes were happening with UK shopping habits, buying fresh and often was back in and UK discount retailers were looking to cash in.
Tesco were first out of the blocks by buying up chains of filling stations with the potential to stock the necessities like milk and bread, but also very high margin goods, like flowers. So the bloke dashing in on the way home, tops up with fuel, buys his milk and picks up a bunch of flowers for his loved one. Fuel is wafer thin on margin, but that bunch of flowers suddenly made a 1% to 3% gross profit on the fuel, into a 15% net profit for the shop. Result. Tesco put on hold all its large supermarket building programme, likewise so did all the others.
Oddly at the same time, where possible, Aldi was making all their older stores 50% larger, still very small compared to the average ‘Big Four’ supermarket stores
And ten years later there is another change going on, quietly through all this the UK discount retailer scene has been changing again. When all the large chains were grappling with falling sales, there were a number of shops springing up on retail park locations, they were housed in sheds, they had lots of parking, but were also surrounded by other specialist retailers, like Pets at Home, Maplin, or the specialist furniture stores.
B & M is listed in the FTSE 250
So how many of you have shopped at Range, B & M, or Home Bargains, these are the names now coming to the fore, and Aldi and Lidl need to beware, they are as cheap and often even cheaper. I was in Home Bargains the other day, deliberately because there were five or six items I wanted, I had been to a specialist shop nearby, so called in. Kitchen roll less than half the price of Aldi, shampoo that knocked Lidl prices into a cocked hat. While I was there, I checked out the NEW grocery section, they need to improve, but I suspect they will. B & M is listed in the FTSE 250, and its Chairman (he steps down on 31st December 2017) is none other than Terry Leahy former head of Tesco. B & M have a large presence in Germany, and their latest shops are top notch, groceries are given prominence when entering the stores, but it is the sales of other items, that make their profits, UK discount retailers are back. Home Bargains have a philosophy of ‘Luxury shopping experience, with a budget price tag’ it is working.
All in all the UK discount retailers are more competitive than ever before. For those thinking #Brexit is going to be a disaster, it is overseas who are going to have to look to their laurels, UK shopping is on the move, and UK plc is too small to contain it. For all those overseas, you have been warned.
In 1972 there was a special edition of the Ecologist magazine printed, called, “A Blueprint for Survival”, virtually everything it contained, was fantasy, much of this fantasy is now seen as fact. Perhaps a better title would have been “A Blueprint for Serfdom.”
The thesis for A Blueprint for Survival, was the forth coming end of the world, except it forewarned that this booklet was not the end of the world, it merely foretold of one who would come and save you from the end of the world. So just like John the Baptist, it needed a Jesus and Christianity. The Jesus and hence modern Christianity is the Green movement?
Around early 1970s various ‘Scientists’ were forecasting the next Ice age, and this was taken up by the media, who are always on the look out for a sensational story to run, when the real news is thin. So having a real bogeyman in the from of A Blueprint for Survival, was like gold dust, except it was really a Blueprint for Serfdom.
Actually what these Scientists were doing, was furthering their careers, by being alarmist. Some had already published other papers saying CO2 could cause a rise in temperatures, and that pollution was the main problem for the future?
And here we come to the nub of the problem, there is now a total confusion between pollution and global warming.
To make things clear, CO2 is not a pollutant, it is as necessary for life as H2O, water. Yes there is a limit to how much CO2 should be in the atmosphere before it becomes a problem, just like having too much water, can cause flooding or other problems. However the current levels, at around 404 Parts Per Million (PPM) are way too low.
Indeed back in the Triassic period they went to around 3,000 PPM, CO2 levels in Triassic period
and sub mariners sometimes breathe air with CO2 levels in the region of 15,000 PPM. Greenhouses are usually around 1,200 PPM which is quite favourable, because this allows greater crop yields.
Here is one of the problems, the so called greenhouse effect is so named, because greenhouses have higher amounts of CO2 than the natural atmosphere. The higher CO2 levels, thus provide a better environment in which to grow plants.
Now one of the arguments the so called ‘Green’ movement use is that, CO2 levels going up will be disastrous to life? Except history and science says otherwise, during the 10th to 12th centuries England grew its own grapes for wine, okay according to the French it was not very good wine, but none the less England produced its own wines, all through from the Saxon King Aethelstan to Plantagenet Henry II. Why because of what is known as, the Medieval Warm Period. MWP
There is also another problem for the so called Greens, CO2 levels don’t always follow temperature changes.
Why Clarkson upsets the greens, he’s done a little research?
More to the point, higher CO2 levels result in higher crop yields, which is why people grow Tomatoes and such like in Greenhouses? The book, Blueprint for Survival is looking increasingly shaky, which is why the so called Greens are shrieking ever louder. Hence the Bonn Climate Change Conference, virtually screaming at the world the end is nigh. No it isn’t, this Conference is just a bunch of Socialists and hence fantasists. They long for a Blueprint for Serfdom, so they can claim Capitalism is the evil baddie. The only evil baddies are the so called Greens, a nasty set of fascists, who want to starve the world.
One of the other positives of higher global temperatures, is the fact that more water is evaporated from the seas, and higher temperatures means the atmosphere can hold more water, which falls as rain.
Now let’s not get carried away with the idea everything will be rosy, the downside of higher water content in the atmosphere, is floods, and also hurricanes and typhoons. The Hurricanes and Typhoons are hard to combat, indeed the best way is just to batten down while they happen. But concrete is a wonderful product, as the Romans knew, and building concrete houses and places of safety is a realistic approach.
Flooding can usually be obviated, but guess what, the most flood prone places, are also the most corrupt, so will anything be done. No. Nothing to do with Democracy or Capitalism, but the so called Greens will blame Capitalism and Democracy just the same.
Corruption is the major reason for poverty, followed by Socialism, as witnessed by Venezuela, which has both. Meanwhile Bangladesh which has a totally corrupt Government and Institutions, is one of the countries most prone to being flooded
Also there is much confusion over pollution, this is usually obfuscated by blaming Capitalism for all waste? And waste is destroying the planet, this last is not quite accurate, waste is messing up the planet, yes, but destroying it, no. Having been brought up in a household where my Mother believed the WWII slogan, ~waste not want not~ was enshrined in Law, (I’m fairly certain she till thinks it is?) I have always been one for recycling where possible, and certainly I hate wastage.
Wastage is inefficient, and so to be avoided at all costs, because efficiency pays wages, so inefficiency reduces profit, and that is bad for incomes.
As a child, the chap who started Micron Corporation, the Chip manufacturer, bought some pigs and fed them on waste from local restaurants. His feed came free, and he was able to resell the fatted pigs at a handsome profit, because his overheads were nearly nil? He was saving the restaurants money by reducing their refuse removal charges, so they let him have the waste food free.
The Green movement have commandeered the idea of ‘waste not want not’ a WWII slogan used to help the UK get through its darkest hour. Energy saving was already on the agenda in the mid 1970s due to the Unions continually going out on strike, and the oil crisis, which was merely Free trade working its magic, and distributing wealth to poor nations. But also the need for efficiency, or productivity as it is more generally called. So the Greens make themselves appear on the surface to be correct, in all they say, to such an extent, they vilify any none Socialist groups as being against recycling or green policies, even when those people introduced them and fully endorse them. I am avoiding using the term left and right because that is French Politics and doesn’t translate, to UK politics in the same way. Namely Socialists are extreme right wing and left wing at the same time.
Is there a way out of all this, yes ignore Socialist and Green parties and just get on with life, and hope the CO2 levels do rise. Certainly a rise to 500PPM or even 600PPM will, on the whole, be beneficial.
The Blueprint for Serfdom won’t materialise as fact, but that won’t stop people damaging the world trying to make other people see it is true.
In the Medieval Period, the vast majority of the populace believed that God would destroy the world. Today it is merely human activity which is being blamed but still the belief is strong, and that dear reader is all it is, belief, there is no Scientific evidence that holds up to scrutiny.
Those believing in God, had and probably still do have, a much stronger argument, than the so called Greens about the destruction of life on Earth, don’t hold your breath awaiting the Blueprint for Serfdom, it ain’t going to happen anytime soon.
The Bank of England Monetary Policy Committee will be meeting later today. It will also be releasing the quarterly Inflation report. The general expectation is, that the Bank will raise Interest rates, by a quarter of one percent, to half a percentage point. Let’s hope it does, but don’t hold your breath. They don’t like the idea that the poor have a nest egg to fall back on, and to increase the interest rates would encourage savings, and the poor having a nest egg.
H.M Treasury isn’t against a little bit of inflation, it reduces the National Debt, without the need for the Treasury to do anything, either positive or negative. H.M. Treasury has deliberately encouraged the Interest Rate to remain low, in the belief that raising it, would hit investment.
what a load of Balderdash
I’m afraid I shall have to get technical here and say, what a load of Balderdash. I have continually banged on about the fact that raising interest rates, and more substantially encouraging savings, would increase investment into trade and commerce. It would be especially beneficial to home grown UK businesses, many of which are short of cash when they first start out, individuals don’t have that large nest egg, the Japanese and many other foreigners have.
This has a knock on effect later, as a business tries to expand. It can either remain smaller than it would like and build its own Capital reserves, or try and raise funds for expansion, relative to its current situation, which was probably from a low point to begin with, a small nest egg, means small savings.
At some point there will be a recession, especially if there is a hard #Brexit. This can be made easier, if savings ratios are higher than at present.
people of Britain lack that Nest egg
One of the problems is perception, the perception that recession is always just a hair’s breadth away. It is a load of nonsense of course. And the low savings ratio is due to the UKs continual short term vision, so the people of Britain lack that Nest egg, to fall back on. There is this perception with Politicians that any recession is bad. Well yes it is, so why exacerbate a bad situation by having low savings. Like a larger nest egg, in the form of money, this benefits the poor more than the rich. Past a certain point and high amounts of savings do not really achieve much. But no nest egg, can be devastating, so if a person or family has the cushion of money in the bank, when the real hard times hit, they can get through it, better than those without any savings.
Charles Dickens sums it up succinctly with Mr. Micawber, “Annual income twenty pounds, annual expenditure nineteen pounds nineteen shillings and six pence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six pence, result misery.”
Those who continually spend everything they earn, are those hardest hit when a downturn in the economy hits, or more important, when a downturn in their own circumstances hits, they have no nest egg to fall back on.
Savings as an institutional idea are loathed by Labour, they are like the late Pools winner, Viv Nicholson, who famously said she was going to Spend, Spend, Spend. And then did precisely that. However there is a little known back story to her life, before she spent a penny of her winnings, she set up a trust fund for her children to get the best education they could. All four of her children, did very well in life. Indeed in a local documentary made in the 1990s, One of her daughter’s rocked up in a top end Mercedes Benz, one of her sons drove a similar car. Viv may have spent, but her kids all saved, and as a result could rejoice.
I have scanned a print I have in my Office, hats cut off alas, but it depicts two Liverpool Cotton traders, and it does sum up very neatly, the effects of lack of a nest egg.
The Chancellor of the Exchequer will shortly be getting on his hind legs and giving his Budget speech.
Japan has lower unemployment
You can be sure savings will be low on the list, it is a disgrace in the UK, that saving is viewed with such contempt. In Japan, they have had 25 years of low and negative growth. Yet despite this, most Japanese have savings, that could see them through at least six months with no income. Many have two to five years of savings, and although the Japanese economy has suffered a severe blow with the earthquake in 2011, which devastated production, they still export more than they import. Japanese setups, still invest in high technology like Robots and Artificial Intelligence, and as a consequence, Japan has lower unemployment then most of the rest of the world. Japan has a very high cost of living, and yet they sell more to the rest of the world than they buy. Why, because they all have a nest egg to fall back on, and so when companies are starting up, there are lots of people falling over themselves to invest a small amount of this nest egg in, a new venture.
Here is the key, because they have such high savings, individuals, even the poor, can spread the risk of their investments. So they have bank savings, they have shares, they have Bonds, and foreign investments. They have the safety net of a nest egg, built up from when they start working.
The UK is heading to lower investment, because we have lower savings. Neither Chancellor Hammond nor the Bank of England Governor Mark Carney, have any intention of helping the poor, by encouraging the idea of the nest egg. And as for Labour they are despicable, they not only despise people saving, they positively demand people spend other peoples money as well, it’s called Socialism.
The UK Government is reviewing its Mergers and Acquisitions ( M&A ) policy. This is to try and ensure that companies that are strategically necessary to the countries defence are no bought by companies or countries that that we may find ourselves in conflict with.
There is a simpler way to ensure this is unlikely to happen, get the balance of trade into the black on a permanent basis. Japan is, and there are few Japanese companies owned by foreign firms. The track record for Japanese M&A is one of Japanese companies acquiring other Japanese companies, or Japanese Corporations, acquiring foreign assets. Like the recent Softbank takeover of ARM plc. Arm is UKs leading chip designer, it is now owned by the Japanese. This M&A came about because the UKs balance of payments is still well in the red.
It has been for the best part of 25 years. The much maligned Norman Lamont was the person who in 1992 floated the pound for the last time and it has been allowed to find its own level ever since. However it was Nigel Lawson who really ensured the topic of the Balance of payments disappeared from the Political agenda. He allowed the pound to find its own level for much of the time, and would then peg it, by adjusting the interest rates.
Whilst a low pound can lead to inflation, this inflation only lasts just over a year, in fact the actual inflationary effects happen over a short three to six months period.
What happens is this, let’s say Sterling drops 2% in a single month, this means anything being purchased from overseas by UK people, is now 2% more expensive. However this only happens the once, if say it is September and company A is just in the process of buying goods from a foreign company, those goods are now 2% more expensive, any adjustment in price will come into effect in October when the goods are received. However any further goods bought in the following months are already, being sold at the higher price, so there will be no further rises. The Government when it compiles its inflation rates, will note the 2% increase in October and these will stay there, but in the following October will drop out, because the inflation is only measured each month, and the comparison is with the previous year.
Back to the balance of payments, and M&A activity in the UK. Basically any country has to balance the value of its imports with the value of its exports, The UK has been importing a higher value of goods and services than it has been exporting, and this has been happening since the beginning of the 1960s. When Harold Wilson got on his hind legs back in November 1967, and declared that Britain was devaluing the Pound, he also added the disingenuous, this doesn’t mean the pound in your pocket or purse will be worth less. Well actually Harold as you knew full well, it did with regards to any imported goods.
The trouble was in 1967, the Unions were just getting up to full steam in helping to destroy British Industry. In fact it was largely due to the actions and stance of the Unions that Britain was not selling more goods abroad. Any company that wished to be efficient, and make a good fat profit, was vilified by idiot Union leaders with no understanding of where profits actually came from and why they happened. Namely efficiency, or in other words productivity.
The waters in the UK are muddied with respects to profits, because there is not a culture of savings and investment in efficiency and productivity. In Japan, they automatically save, it’s part of there culture built into their language. If one wishes to buy something today, you must first save, because any purchase tomorrow will be for the day after. IN UK (and US for that matter) we look for immediate returns. This can be all well and good. However the Japanese model obviously works even better than the UK/USA model, because it doesn’t just give quick returns, it also gives long term returns. This is why when it comes to M&A the Japanese are the ones doing the acquiring.
The Japanese have just been through over twenty years of stagnation with regards to their economy. And over the last six years have seen their efficiency decimated by the earthquake in 2011 which registered 9 on the Richter scale. And yet Japan still exports more than it imports, and is still being involved in M&A. The personal wealth of most Japanese is higher than the average in UK or USA. Quite simply put, they save more so can invest in better equipment, namely Robots. Because they employ so many robots, they actually employ more people, one goes hand in hand with the other.
UK needs to increase its savings ratio this in turn would increase investment in Industry. More robots would be used, creating more jobs to supply the less expensive goods, built to a higher quality. With higher productivity, there would be more robots and machinery employed, increasing the productivity. This in turn would reduce the balance of payments deficit, where at some point it should go back into surplus. Then UK would start the M&A of foreign companies, not the other way around.
So Theresa May is proposing to cap energy prices, why not provide cheap energy instead?
Oh of course we can’t upset the liars in the Green Lobby, and actually improve the world. We must kow tow to the fiction that CO2 levels rising, is bad for the Planet and for Humanity, no it isn’t. CO2 levels are historically low, and an increase would result in higher crop yields. The result of higher crop yields is more food, so the world would be able to feed more people.
Currently the CO2 levels are 404 Parts Per Million or ppm. Now the lying Green lobby argument is that rising CO2 levels are man made, and apparently anything man made is bad. Why any dead head cretin should think this, merely reflects their stupidity. Nature is random, so any good or bad, is also random, why random cooling of the Earth is good and controlled cooling or warming by humans is bad, is left unanswered. It is left unanswered because the stupid half wits who thought this all up are? Oops I am repeating myself, they are stupid half wits? According to these people allowing people to have cheap energy, is bad for the Planet?
This is their argument, since the Industrial Revolution, humans have been burning fossil fuels, and these fossil fuels have released excess Carbon Dioxide (CO2) into the atmosphere. This in turn has increased the greenhouse effect within Earth’s Atmosphere, artificially pushing up global temperatures. This general view is very possibly correct, we don’t know for certain, but it may well be true. The ‘Greens’ follow on argument from this is, that if we keep putting CO2 into the atmosphere then in the not too distant future it will have a runaway effect, and the temperatures will be out of control and zoom up killing all life on the planet. Meanwhile in this scenario, the Greens maintain that Gandalf won’t be there to help, James Bond won’t come to the rescue, and a pink fluffy haired androgynous new race won’t be born.
Never fear, because the ‘Greens’ have their heads firmly where the sun doesn’t shine, the whole scenario of runaway greenhouse gasses is all hot air and fantasy.
Back in the real world, the current CO2 levels at 404ppm are too low. The argument that if they increase by 10% or 20% in too short a time this will cause a runaway effect is against the Scientific evidence.
The problem with all this noise from the Greens is, that we now have records of the levels of CO2 in the atmosphere, in previous times, and they don’t make good reading for the Greens. Let’s start with the Little Ice Age or lia, CO2 levels were about 330ppm html Source Nature Now historically this is low, but prior to that had been the Medieval Warm Period or mwp, this is pre industrial, so there are not a few million humans burning coal at an excessive rate, so no increase in CO2 levels, indeed they are similar to the lia. And here is a big problem, the temperatures were much warmer, than the lia and warmer even than today? Medieval Warm Period analysis During King John’s reign (1199-1216) we know there were extensive vineyards all around England. So here we have one problem, CO2 levels are not directly attributable to the temperature. If you check out the graph from a student at Oslo in the replies section of this article, it shows no correlation between temperatures and CO2 levels? Skeptical Science
It gets worse, from an historical perspective, CO2 levels are way below what they were in previous eras. Live Science Indeed during the Triassic period they reached 3,000ppm seven and a half times their current levels, or put another way a 750% rise, and some numpties predict runaway effect with a rise of just 20% to 50%, scientifically how does that work?
The current high energy prices in UK has more than one cause, but they can all be taken directly back to the nasty idea perpetrated by the Greens that anything manmade is bad. So they wish to keep the CO2 levels at their current unnaturally low levels, despite the fact that higher CO2 levels, give higher crop yields, that allow a higher population to be fed properly. Are these people inherently odious, no they are just deluded into thinking that human activity is somehow harmful to nature. It is part of the problem of modern living, that many of the so called greens are totally out of touch with the natural world, hence people going vegan, a more un-natural, immoral idea one is unlikely to find. Humans are natural omnivores, yet these people are so out of touch with nature, they see eating a natural product as bad? Meanwhile as these Vegans chat away on their Apple iPhones, many of their fellow humans are going cold, because they are struggling with high energy prices. This could easily be solved by building more power stations, scrapping all those stupid subsidised eyesores that are wind farms, and producing cheap coal, oil fired AND Bio-mass electricity. There is a shortage of cheap energy in Britain, purely because none scientists, haven’t take the time to look at what science has to say on the subject of the climate.
So Theresa May will look at putting a price cap on energy, because previous Governments of all colours, have cowered away from the onslaught of lies, peddled by some fantasy half wits who thin the world is going to end? No it isn’t, well not by increased CO2 levels, which would be a good thing. A price cap on energy won’t help the less well off, it will just mean May’s Government has given out some kind of virtue signal, that they think will appease the cretins in the Green movement. It won’t appease them because they are cretins, and they will then move onto their next item on their agenda.
Yes Britain needs cheap energy, but it won’t get it with price caps. It would get cheaper electricity if there were more energy companies with spare capacity wanting to lure you to their product, and away from the rival companies.
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.
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.
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?
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.
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?
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.
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.
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.
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.