Well That's Worrying

I watched an interesting podcast last night and at close to an hour long it was a good investment of my time and whilst it reinforces my own views which I understand doesn't give me anything to debate those views it does make me even more concerned at the way we are tracking and how we are probably having our own little car crash where other countries may dodge the bullet.

For my own part I think that there is a global reset coming and a realisation that "the West" has brought upon itself some serious problems.  the BRICs setup is beginning to demonstrate why and the decisions made may years ago in the West are starting to bite (I'd like to say Bigly) as we understand the place in global supply chains.

But that is for another day I guess.  Here, in the UK, things are going to take a turn for the worse.  The podcast looks at the economic situation and of course the political situation too.  Socialist ideology is being applied to a problem of our own making and rather than correcting course it jams the heavy leaden foot onto the accelerator of our impending car crash or train crash or whatever else you want to call it.  I don't know if millionaires and business people are fleeing the country but I did have course to look at the Directors of a company in the UK and I was surprised that their Directors and major shareholders all lived in Dubai - this is a local butchers with an online shop and 10 or more large retail and a big wholesale business outlets.

So maybe those with the money are getting out from the higher taxes we are paying.  People are hunkering down and I am somewhat concerned that increases to corporation and business taxes will start to seriously kill off UK businesses.  A rate reduction down to 4% yesterday when inflation is increasing seems to be a strange way of trying to combat that and it seems that painted into a corner and allegedly, no one really understanding economics either globally or locally,  is going to do for us come October when the Budget is due.  All the indicators are really bad and the Laffer Curve appears to me to be in full play here as the Government spends its way out of trouble.  How on earth the OBR and the Government can get their sums so wrong is worrying and the ONS need to employ people who actually know about, you know, statistics. 

Quite where this leaves us, who knows?  Taxing your way out of a fiscal hole isn't really going to sort it out - I like that they use "Black Hole" as if that makes any difference at all, it is incompetence of the worst kind.  How can you go from £80Bn projected deficit to £121Bn in a few months is ineptitude of the worst kind, surely? (and don't call me Shirley).

Watch the podcast and shudder at what is coming down the line at us and goodness knows how we are going to pick up the pieces.  Finally someone has also talked about the VAT limits and how the vast majority of small trades don't really work beyond February as they approach the VAT Threshold and they don't start work again until 6th April when the new tax year cuts in.  It is blindingly obvious that this happens but as none of these Politicians has done an honest days work in the real world, they don't understand it.  

I suppose I shouldn't be rubbing my hands to see what these clowns do as I do recall the 1976 IMF things and it would be seriously bad to go back there.  If we do we will have something in common with Italy and Greece I suppose!