Corbynomics: A Dystopia

cells

Generali wrote: »

I suspect that a pound in the pound wouldn't scratch the surface of Mr Corbyn's plans.

why would it not be a profitable venture for the state?

they can push out short term gilts at 1% and buy companies yielding 4-5%. The national debt would be higher but the deficit lower.

If he was to go ahead he should start with the national grid not the big six. National grid is a company with effectively mandated profits (regulator sets the price they can charge). Purchasing that would be a reasonable move for UK PLC

Generali

cells wrote: »

why would it not be a profitable venture for the state?

they can push out short term gilts at 1% and buy companies yielding 4-5%. The national debt would be higher but the deficit lower.

If he was to go ahead he should start with the national grid not the big six. National grid is a company with effectively mandated profits (regulator sets the price they can charge). Purchasing that would be a reasonable move for UK PLC

Only working on the basis that the state can:

1. Continue to borrow at 1% with Mr Corbyn in charge
2. Continue to a ROEE of 10%+ required to return a net yield of 4-5% when a bunch of politicians is in charge
3. Buy the company at the current market price

Given our experiences since the end of WW2, I can't think of a single reason why any of the three postulates should be met let alone all of them.

Thrugelmir

antrobus wrote: »

That's not a problem. Mr Corbyn will simply print some money to make up the difference. Call it QE and no one will notice.:)

BOE is independent of the Government.

Generali

Thrugelmir wrote: »

BOE is independent of the Government.

BoE is required to support Government policy.

michaels

Generali wrote: »

Only working on the basis that the state can:

1. Continue to borrow at 1% with Mr Corbyn in charge
2. Continue to a ROEE of 10%+ required to return a net yield of 4-5% when a bunch of politicians is in charge
3. Buy the company at the current market price

Given our experiences since the end of WW2, I can't think of a single reason why any of the three postulates should be met let alone all of them.

Agreed. It is much harder to make a return on capital when like tfl you pay drivers 50k plus for very few annual hours than it is for the bus companies who pay mid 20s k for many more hours....

Thrugelmir

Generali wrote: »

BoE is required to support Government policy.

Support doesn't mean obey. Would make the BOE's Independence meaningless.

Generali

Thrugelmir wrote: »

Support doesn't mean obey. Would make the BOE's Independence meaningless.

It's interesting to think about how the difference would play out if required. Would the MPC cut interest rates into stagflation in order to satisfy the Cabinet or does the CPI count for more.

CLAPTON

Thrugelmir wrote: »

Support doesn't mean obey. Would make the BOE's Independence meaningless.

clearly, the BoE can only stay independent as long as it obeys the government of the day

michaels

Generali wrote: »

It's interesting to think about how the difference would play out if required. Would the MPC cut interest rates into stagflation in order to satisfy the Cabinet or does the CPI count for more.

The bank is only independent in how is chooses to try and achieve the targets set by the politicians just as the judiciary interpret the laws voted by parliament. It would be very easy to add a full employment target to the banks remit.

CLAPTON

padington wrote: »

Young, fit, migrants make us richer. They always have.

True refugee who's home land has been totally torn apart by idiots do even better, they identify with their new home with zeal and purpose.

My only issue is how do we find the ISIS nutters in the mix.

presumably that is why Jordon is the richest country in the world

and why many of the economic migrants are displaying banners in English about their 'rights'