Spending Review - the future of Government finances
Discussion
Looks like this is set to be unveiled next week.
Pretty surprised at the big defence increase in the last few days but could not help but notice there was no indication of how this would be paid for.
There is then the suggested pay freeze for public sector workers (sans NHS frontline staff).
We should get an indication of the extent of the fiscal tightening that is looming as well...
It will be interesting to see the reaction to this. We are headed for £100bn+ deficits for three to four years. The question is whether the markets will continue to accept QE as a form of deficit financing for that long. If not, Sterling is heading for the toilet again. If everyone else is doing it the answer is "probably" but no one can as of yet explain to me why we can print that quantity of money without apparent consequence. Maybe MMT is correct and that the state can create money provided there is no inflation.
If nothing else, we live in interesting times...
Pretty surprised at the big defence increase in the last few days but could not help but notice there was no indication of how this would be paid for.
There is then the suggested pay freeze for public sector workers (sans NHS frontline staff).
We should get an indication of the extent of the fiscal tightening that is looming as well...
It will be interesting to see the reaction to this. We are headed for £100bn+ deficits for three to four years. The question is whether the markets will continue to accept QE as a form of deficit financing for that long. If not, Sterling is heading for the toilet again. If everyone else is doing it the answer is "probably" but no one can as of yet explain to me why we can print that quantity of money without apparent consequence. Maybe MMT is correct and that the state can create money provided there is no inflation.
If nothing else, we live in interesting times...
LordGrover said:
I get the desire to spend money on defence, a lot of jobs will be created.
The rush for all-electric cars a decade earlier than planned less so; surely that's going to cost a lot of UK jobs in manufacturing?
Manufacturing and how many petrol stations will close within the following 10 years as petrol cars become obsolete. Horrible idea.The rush for all-electric cars a decade earlier than planned less so; surely that's going to cost a lot of UK jobs in manufacturing?
hotchy said:
LordGrover said:
I get the desire to spend money on defence, a lot of jobs will be created.
The rush for all-electric cars a decade earlier than planned less so; surely that's going to cost a lot of UK jobs in manufacturing?
Manufacturing and how many petrol stations will close within the following 10 years as petrol cars become obsolete. Horrible idea.The rush for all-electric cars a decade earlier than planned less so; surely that's going to cost a lot of UK jobs in manufacturing?
What we need to be doing is ensuring there's a pathway to other jobs.
The areas they've said defence money will be spent on seem sensible to me, assuming the money isn't already spent (which people are saying it is).
Electric cars could present opportunities if we invest in the higher end tech involved in that industry.
There needs to be some really strategic thinking, and I'm not convinced this government can do that, and especially not at the moment. Now is a time to be bold, but it must have structured purpose.
Must be a repost but worth it for anyone who hasn't seen it.
https://dominicfrisby.com/films/debt-bomb-2
https://dominicfrisby.com/films/debt-bomb-2
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff