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Economy

UK Banks still vulnerable

Bank failure

Ten years on from the global banking meltdown, UK banks are still vulnerable according to Martin Wolf in the Financial Times: “Senior officials argue that capital requirements have increased 10-fold. Yet this is true only if one relies on the alchemy of risk-weighting. In the UK, actual leverage has merely …

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The £27bn EV tax giveaway the media ignored

The £27bn EV tax giveaway

Given the government’s self-inflicted struggle to ‘cut the deficit’ and, ultimately to ‘balance the books,’ announcing an unfunded £27.6bn tax give away is something you might assume that they would not want to do.  Moreover, even in the so-called ‘silly season’ (when our MPs are on holiday) we might expect …

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Britain faces dangerous deflation

Deflation

In addition to his famous ‘hierarchy of needs,’ psychologist Abraham Maslow had a hammer: “I suppose it is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail.” In central banking, that hammer is the rate of interest on overnight lending …

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More than a flood disaster

Flooded oil installations

While most of the world’s media were focused on the impact of more than a metre of rain pouring down on Houston, Texas, the financial journalists had other matters on their minds.  In particular, as Harvey approached, the consensus seemed to be that the one silver lining was the inevitable …

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UK faces years of depression

Economic stagnation

The apparent resilience of the UK economy in the face of last year’s Brexit vote has confounded economists and pundits.  The Remain Campaign’s dire ‘project fear’ predictions simply failed to materialise.  The sharp fall in the stock market – more a reaction to the surprise result than to its economic …

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Neoliberal training policy comes home to roost

Unemployed

The impact of migration on jobs is believed to lie at the heart of last year’s Brexit vote.  Free movement of people, it was argued, was responsible for depriving indigenous workers of the employment they need.  Halting free movement, then, was supposed to result in more and better jobs for …

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Ten years on and we’re still repeating the big lie

2007 banking crash

As media outlets wheel out the political and economic luminaries who supposedly “saved the world” a decade ago, journalists are still repeating the biggest lie of all: that there was a “credit crunch.” The official story goes something like this: wicked mortgage lenders in the USA had been making loans …

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Confidence: why it matters and why it shouldn’t

Business confidence

Business confidence is a big deal for the news editors… particularly when it slumps.  This is because – it is widely believed – a fall in business confidence reflects an economic slowdown at best or, worse still, the onset of a new recession.   With this in mind, the latest round …

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Hard Brexit is the best option for Remainers

Brexit economy

The gut response of many Remainers is to support the softest of soft Brexits as the best alternative to remaining within the European Union.  In similar vein, hardcore Leave voters are determined that the only choice on offer should be a hard Brexit or no deal at all; with Britain …

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Burning £50 notes in front of the poor

Burning £50 notes in front of the poor

The cognitive dissonance is palpable among Tory supporters today.  Having spent the last eight weeks spouting the economically illiterate mantra that there is no #magicmoneytree, they have discovered that when it comes to buying the votes of the political wing of the Old Testament there really is a magic money …

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