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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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Science ‘v’ Economics criticisms work both ways

Fish counter

These days it is almost a given that economics is not grounded in reality.  As the old joke has it: Q: What do you call an economist who makes a prediction? A: Wrong. The failure of thousands of extremely well-paid economists to see the 2008 crash coming did irrevocable harm …

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How the Tories’ magic money tree works

Tory #magicmoneytree

As the British general election enters its final week social media users have been bombarded by Tory trolls using #magicmoneytree to imply that Labour cannot be trusted on the economy.  The irony here is that the majority of Tory MPs and almost all of their non-banking supporters are entirely ignorant …

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Car finance – the next sub-prime crisis?


Most people think of the 2008 crash as a subprime mortgage crisis.  This is only partially true – and misleadingly so.  The real crisis was in the unregulated “shadow banking” sector where “securitised investment vehicles” (SIVs) are traded.  A SIV is created by repackaging the income from loans (including mortgages) …

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Is the UK economy plunging into recession?

UK recession 2017

The problem with recessions is that you don’t know you’re in one until it is too late.  That is because nobody actually knows what the economy is doing right now.  We have to wait until government and corporate statisticians compile and analyse the data – a process that can take …

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The choice you won’t be offered on 8 June

Democratic Money

Between now and June 8th, the most common question posed by politicians, journalists and drunk men down the pub will be some variant of “how are you going to pay for it?”  From defence spending to international aid and from energy price caps to social care, every electoral promise will …

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British banking collapse predates Brexit

City of London

Forget Brexit, it’s much worse than that according to Paul J. Davies at the Wall Street Journal: “Banks in Britain are still languishing in the doldrums brought on by the financial crisis of 2008. Weak banking activity and low investment returns have caused revenue to shrink, leading to widespread cost-cutting …

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The gig economy is eating Britain from the inside

Gig economy

Believe it or not, the UK is currently experiencing ‘full-employment.’  That is, while 4.7 percent of working age people are officially unemployed, most are what economists used to call ‘frictional’ – they are moving between jobs or moving between work and education. At face value, this is good news.  Indeed, …

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