So the question is how Labour will pay for nationalisation.
Remembering the fact that labour left a note for incoming Tories stating .....
There is No Money Left
This is the same question, as asking how the banks were bailed out and how £435 billion was found for QE which, among other things, boosted the price of the companies to be renationalised.
The answer is neither directly cost the taxpayer a penny.
The money was created to achieve both out of thin air.
So renationalisation could be done in the same way.
Issue bonds for fair value. Make them redeemable in not less than thirty years, and maybe longer.
Make the interest rate the very low ones on offer now. In net terms these are likely to be negative throughout that thirty year period.
What is the net cost of re-nationalisation?
Next to nothing. Or less.
Look forward to hearing comments as to why finding invisible money to save the Banksters can't be found to re-nationalisation the Utilities!!
In particular David A with your knowledge in banking your comments would be most welcome
As I said in my previous response to your post - sounds good to me. I have very little faith in economists as they seems to get it wrong all the time. I watch Max Keiser on RT and various American bloggers and financial 'wizards' - interesting points are made but obviously these are simply a point of view. I,also, listen to Carney, again I think he has made a huge mistake encouraging a housing boom - did the same in Canada - not a good way to run an economy it has damaged so many opportunities for so many people young and old. Many foreign buyers have raised the prices in London and the South East to unsustainable prices. His predictions have been consistently incorrect. I had read about the Chicago School also and they are free market advocates which has been disastrous in my experience - Thatcher was a avid admirer of Milton Friedman and we have suffered as a consequence, and continue to do so. I wonder if we need a mixed economy - some nationalised utilities, a good NHS and system of social care, appropriate taxation more up-front not through stealth like VAT and other sneaky ways of taxation. We should also invest in and encourage industry and innovation - I think it has been problematic putting all our eggs into one basket - namely to much reliance on the city and banking. Obviously private industry has to be part of our economy. We should clamp down on tax avoidance if companies want to trade in this country they must pay their way. The rich need to also pay their way and the everyone be paid a decent wage. We should not be sustaining companies who pay staff badly by giving the workers tax credits. The tax system should be straight forward - income tax for the treasury and national insurance which is for welfare, NHS etc and not the treasury pot. I am sure there are easier and better ways to raise money through reasonable taxes.
I will reply to your ingenious post very briefly. Lenin had much the same idea! Trouble is, he had the potential work force to make it happen, and he didn't have the threat of terrorists disrupting the process of the new Russian mobilisation post revolution! I see with sadness, the effects of this terrorist plague sweeping the world at the Ariana concert this evening. So, briefly, in answer to your wonderful idea Peter, the bankers won't wear it unless there IS a revolution, and then they'll have to think how to get on the right side of that! I speak truthfully, my friend. Right now the world is in chaos while we witness Wall Street backing Trump all the way, and Congress seemingly trying to sink him! This makes markets jittery. Housing bubbles can pop at any time, interest rates can shoot up, and then all the political leaders are left gasping for breath as the domino effect occurs ad infinitum, and as a currency dealer, I've seen it all. Mrs May's boat could sink fast, or people could try to keep it afloat! If you don't understand what I mean by the domino, let me illustrate briefly on the currency front alone with the surrounding ensuing chaos round the world, plagued with famine and a refugee crisis of proportions never previously encountered on this earth. Let's envisage the unwelcome prospect of Trump being impeached. US $ dives, Canadian $ dives money pours out of these countries to safe havens - Middle East turmoil - US$ raises interest rates, Canada to survive their drain raises their rate a little higher, Britain goes higher still, Euro goes higher than Britain, huge drain ensues in India and Far East plus Australia and NZ - commodities go through the roof! - result inflation totally out of control and we are back to Jim Callaghan and Co in the 70s, but this time massive worldwide frictions to cope with as well. I'm not ecstatic about Mrs May, but she is the best bet we have to save the British boat. European union too are convinced they are impregnable as the waters rise and their lights go out too courtesy of Putin!
My fear is that not just housing bubbles are about to burst, but overblown stock markets worldwide too - and what do we all do, if the internet suddenly disappears without trace? Don't say it couldn't happen. Believe me, when I say it could! This world is becoming a very scary place, and right now, I think Donald Trump is the best bet it has on our roulette wheel that is miraculously still going round in 2017!
Sorry to be a killjoy, but you did ask, and I haven't even mentioned North Korea till now!
Just posted this in The Times:
Mr D Akenhead 2 minutes ago
U turns are perfectly acceptable in my book when our leader's conscience tells her "this just isn't right." that takes courage, and as an oldie, myself, my respect for her is undiminished. I truly hope she gets a thumping majority, because in the current sick climate with our neighbours and terrorist chaos afflicting all of us, she is by far the best bet we have for a secure and independent Britain.
I thank you for your extensive reply and explaining the domino affect.
Then Revolution it must be as we cannot allow Banksters to continue to ride roughsod over us.
All it takes is for government to withdraw the license which they grant these Banksters to be allowed to print money and charge interest on basically thin air, the only cost in producing money is the paper and ink and machinery to print money.
What is to stop any government from offering better reformed and regulated banker's the license and withdraw from these Banksters.
Yes what is to stop them - Thatcher deregulated so why can that not be reversed. I think the housing bubble will burst as it was based on a false premise, to encourage growth and all it did was to raise prices, allow foreigners to buy up everything, thus reducing housing stock.Globalisation is in a fix and it will all fall about our ears and this time it will be worse that 2008 as the Tories will try to control it by further austerity and printing money - it failed in 2010 onwards and will fail again! If they continue to print more money why not invest it on infrastructure - it seems obvious.
You are missing my point a bit. The bankers are not interested in the politics, they will go where the money is, switch sides, and sell their own grandmothers if they have to. My next play could well be The Merchant of Venice - seems it's suddenly become very modern!
P.S. If you enjoy crosswords, why not check out my new website www.akenheadcrosswords.com - it encapsulates my own philosophy, sharing a bit of oneself with the entire world for free!
I agree that Bankers and the city have no interest in anything other than themselves and making money. It is possible that they are only interested in the politics that suit them and if they don't then, as with the establishment, they will do their utmost to denigrate and destroy any resistance that is likely to stop them lining their own pockets - we saw that very clearly during the crisis in 2008. I suspect they are hoarding all the money they can, albeit worthless, and will not invest in anything especially given the appalling state of the world economy. Hoarding money will be of no benefit when inflation starts roaring away which is what I expected when the money printing started - but unusually it hasn't in fact nothing has happened as it has previously, perhaps this another reason why all the predictions have not been met? Inflation in an economy automatically lowers debt but not this time.