Time to raise interest rates, time to stop false BRICK economy

SuperV

Thrugelmir wrote: »

Only that clinical trials were not completed until 1943 for mass production.

So, what is a problem? Penicillin is a life saver = wealth creation tool. Do we need to let blood flow to do something good?

Please calculate the whole amount of all military budgets plus bank saving packages and think what if they were invested in something to create wealth.

Package for GM and Chrysler was minuscules comparing to the one for banks, but they do create wealth now.

So, there is enough money to be invested in wealth creation industries.

Thrugelmir

SuperV wrote: »

Package for GM and Chrysler was minuscules comparing to the one for banks, but they do create wealth now.

These are US companies where the culture is different to the UK on several levels.

British Leyland was bailed out for decades and hopelessly failed. With it died the UK's own motor industry.

OptionARMAGEDDON

We didnt deserve our own motor industry.

SuperV

Thrugelmir wrote: »

These are US companies where the culture is different to the UK on several levels.

British Leyland was bailed out for decades and hopelessly failed. With it died the UK's own motor industry.

Sorry??? No comment really.

SuperV

Wealth Creation Industry against Wealth Haircut Industry

Wealth Creation Industry creates new wealth in a form of new material value, new art or extended human life. Motto of Wealth Creation Industry is win-win.

Wealth Haircut Industry is a zero sum game with a game keeper taking a cut. Motto of Wealth Haircut industry is win-lose.

For some Return on Investment in Wealth Haircut Industry is much bigger than ROI in Wealth Creation Industry. The bigger reward in Wealth Haircut Industry, the more participants move away from Wealth Creation industry. Wealth Creation Industry is very risky and not all gains were monetised.

On Pay

Pay can be monetised or in ideals. If the whole pay is monetised, Wealth Haircut Industry becomes even more attractive as Wealth Creation Industry becomes even less attractive. Hence, ROI in Wealth Haircut Industry grows even faster,while ROI in Wealth Creation Industry declines.

For how long such a system can be sustainable?

For Wealth Haircut Industry to exist Wealth Creation Industry must produce enough to sustain not only participants in its own game, but also participants in Wealth Haircut Industry.

If there is not enough Wealth produced, the taken Haircut will strangle economy as it is doing today.

The main Wealth Creation Industry nation today is China. China doesn't allow Wealth Haircut Industries free access to its markets, hence the economy in the rest of the world declines.

On Sustainable Role of Wealth Haircut Industry

Wealth Haircut Industry's sustainable role is to support Wealth Creation Industry. Currently the system is broken and Wealth Creation Industry doesn't have a support from Wealth Haircut Industry, but a hindrance.

Solution

To rectify the problem, Wealth Haircut Industry ROI has to get smaller even for the best players. Governments are introducing Fat Tax in Food producing Industry, why not introduce Fat (Cats) Tax in Wealth Haircut Industries? Not a Tobin tax on transactions, but an additional company/personal tax on participants.

Linton

Thrugelmir wrote: »

These are US companies where the culture is different to the UK on several levels.

British Leyland was bailed out for decades and hopelessly failed. With it died the UK's own motor industry.

Car production in UK

1972 - 1.92M
1982 - 888000
2010 - 1.27M

Hardly dead.

SuperV

http://www.bbc.co.uk/news/magazine-15619946

"A hundred and fifty years ago, around 1861, China and Japan both collapsed as Western gunships and financiers pushed into East Asia. Nothing Japan or China could have done would have stopped the rise of Western wealth and power. How they reacted to that rise, however, made all the difference between triumph and tragedy. China's rulers borrowed heavily from overseas, squandered the capital, and fell into dependency. Japan's rulers bought time, raised huge amounts of local capital and financed an indigenous industrial revolution. By 1911, Japan was a great power and China was the sick man of Asia.
A century and a half later, the EU faces the same choices. Nothing it can do will stop the rise of the Eastern wealth and power - in 100 years, Asia will be the world's economic powerhouse - but how it reacts matters very much indeed."

Simple choice, isn't it?

Thrugelmir

Linton wrote: »

Car production in UK

1972 - 1.92M
1982 - 888000
2010 - 1.27M

Hardly dead.

And where are the components made?

OptionARMAGEDDON

Increasingly looking like a rate cut rather than rise is going to be the next move.

andybenw

OptionARMAGEDDON wrote: »

Increasingly looking like a rate cut rather than rise is going to be the next move.

Where are you getting that font of knowledge from???

And an open question to everyone. As we are not ever going to see close to the BOE rate in new mortgages would that last little sliver cut off make any difference.