Cyberyeti, on 2016-July-05, 17:46, said:
He seems to think it's most important to punish Britain for leaving even if it means doing more harm than is necessary to the rest of Europe.
Does it matter more that Juncker is rude than that Juncker is correct?
This is a critical time in the destiny of the UK, but I wonder if we Brits are ever going to rise above petty squabbles.
- As an example, the consensus of economists is that GBP:USD will reach 1.20 in a few months. And unless the UK does something positive, it could drift lower instead of rebounding. Yet, every day we are told by the media that we broke a 31-year record etc instead of having economists on TV who can tell the audience "get used to it"
- The probability of a recession (be it a shallow or a prolonged one) are quite considerable. And while monetary policy has already stepped up to face the challenge, fiscal loosening is not yet in sight. Although the Chancellor has said all the right things, the news cycles focused on him "breaking the borrowing rule" rather than "making really meaningful announcements". And there is no guarantee that the next Prime Minister/Chancellor will not revert to "zero deficit" goal.
- Regardless of the political merits/demerits of the Chancellor, he and the BoE Governor are a formidable team who can easily do many right things that will help the economy in the long run. However, it is quite possible that the Chancellor will be fired once the next Prime Minister arrives. This, in turn, could lead to the premature departure of the BoE Governor, Mark Carney.
- Most Brits do not track Gilt yields; they are at historical lows. The UK Govt can borrow 10-year funds at <0.8% and 30-year funds at <1.6%!!. This is an outright winning opportunity for the UK Government to borrow heavily in order to invest in infrastructure (and note NHS is not really infrastructure because any rise in NHS costs is typically 'revenue expenditure', not 'capital expenditure')
- However, should the UK Govt decide to launch/approve infrastructure programmes, all sorts of experts will creep out of the woodwork to denounce the specific projects. We will definitely find a way to stop (i) Heathrow Expansion, (ii) HS2, (iii) Hinckley Nuclear Power, etc.
- Any of the following will attract huge objections from the NIMBY crowd: new roads, airports, council housing (to hold), rail networks, offshore oil exploration. But if the Govt recklessly invested in 100,000 more nurses, doctors, school teachers etc. everyone will think it's a great investment?!
- The USA did a "cash-for-clunkers" programme to rid some of the older vehicles off the road. Yesterday, the London Mayor proposed a similar scheme to improve air quality in London. What are the chances of it being adopted by the UK Govt? Zero! Because the idea originated from a Labour guy.
Yes! Juncker may be an idiot, but the substance of his message is not entirely wrong. We don't have a plan to be on our own, and the people who got us here are all running away or are paralysed into inaction.