Corbynomics: A Dystopia

cells

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.

the only thing you can argue is that the state might pay too much to buy it.

If they buy it at a good price even those other things not being perfect would probably be ok

PS could he not swap the company for say a perpetual (or long term 30 year) gilt?

So for arguments sake if the company is worth £10B swap it for £10B of gilts

Thrugelmir

CLAPTON wrote: »

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

???????????????

Thrugelmir

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.

Financial stability is one key mandate.

Thrugelmir

CLAPTON wrote: »

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

The Bank of England operates under The Bank of England Act 1998. One of Mr Brown's better acts. Which does give the BOE power of independence. As the law stands above Government policy. Likelihood of repeal. Zero.

CLAPTON

Thrugelmir wrote: »

???????????????

Jordon is flooded with young fit migrants, so if it is indeed true that young fit migrants makes a country rich, then they should be doing very well indeed.

CLAPTON

Thrugelmir wrote: »

The Bank of England operates under The Bank of England Act 1998. One of Mr Brown's better acts. Which does give the BOE power of independence. As the law stands above Government policy. Likelihood of repeal. Zero.

You have answered a proposition that I didn't propose.

Thrugelmir

CLAPTON wrote: »

Jordon is flooded with young fit migrants, so if it is indeed true that young fit migrants makes a country rich, then they should be doing very well indeed.

Ever been there? I doubt it judging by your comments. Not very much commerce bar tourism and that's been impacted badly. Imports most of what it consumes as a very inhospitable terrain.

michaels

Thrugelmir wrote: »

The Bank of England operates under The Bank of England Act 1998. One of Mr Brown's better acts. Which does give the BOE power of independence. As the law stands above Government policy. Likelihood of repeal. Zero.

Like I said the boe is independent in its actions that are taken to meet its mandate of price and economic stability. The mandate could easily be changed.

michaels

martinsurrey wrote: »

so on one hand you're saying they are feeling rape and murder surely any welcome would be true relief...

I feel that the true people who need our help are the ones without the means to flee, and by concentrating our efforts on the one's who've made it, the ones who cant leave will be forgotten.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/455330/DFID_Syria_Crisis_Response_Summary__2015.08.20_.pdf

The UK has provided £440m in aid to Syria in the last 3 years, providing over 12 million food rations (that's 30 days supply for 12 million people).

While I agree the sight of a drowned boy is terrible, don't forget that there are millions of Syrians who cant flee, who need even more support, they might not be on the front pages of the papers, but is their suffering any less deserving?

Taking refugees from the camps in bordering countries seems to make a lot of sense in terms of nudge politics, encouraging people to stay locally for a much easier and safer trip to Europe away from people smugglers and giving the chance to vet for terrorists.

I wonder if it would make sense to allow people in on limited stay visas that could be revoked if Syria and Iraq became stable again?

Thrugelmir

michaels wrote: »

The mandate could easily be changed.

Be interesting to see the impact on the UK's credit rating. In essence electoral suicide. Which is why Corbyn has never been in the mainstream or carried any great media interest previously. While some may feel there's a revolution brewing. Corbyn will be restrained by the establishment.