• Brexit: The ultimate betrayal?

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    Today’s Daily Mail has a report by Hugo Duncan, the paper’s Deputy Finance Editor.

    Mr Duncan writes: “Britain’s colossal debt mountain has cost taxpayers £520 BILLION in interest payments since country last balanced the books…..” Then: “Profligate Chancellors have embarked on a borrowing binge since Britain was last in surplus in 2000-01 – pushing the national debt up nearly six-fold from £317 billion to £1.8 trillion…..” Then: “The national debt rose nearly six-fold from £317 billion to £1.8 trillion since 2000…..” And: “Debt interest payments have cost about £21,000 per household in Britain…..”
    GOTO: http://www.dailymail.co.uk/news/article-5094829/Britain-s-debt-cost-taxpayers-520-BILLION-interest.html
    British Gazette comment:
    In our article of 16th November (http://www.british-gazette.co.uk/2017/11/16/brexit-to-err-is-human-to-forgive-divine/) we delved into the history of an earlier débâcle, the South Sea Bubble and drew comparisons with the present unfolding débâcle that is Brexit.

    Another theme we touched upon and have discoursed at greater length in previous articles is the “Fool or fraud?” question. That is: Are the Tories, such as Messrs. Redwood and Rees-Mogg, who are suggesting that a “no deal” Brexit is not that much of a problem, fools (they genuinely believe that) or frauds (they know they are talking nonsense and are talking nonsense for a reason).

    Now there are certain persons who have suggested that some individuals might be doing this in order to make their fortunes by contriving a crash in the values of property and UK equities and therefore will cash in when these values reach their nadir.

    Let your Editor make this perfectly clear: We DO NOT accuse Messrs. Redwood and Rees-Mogg of this. We would suggest that Messrs. Redwood and Rees-Mogg are honourable and honest MPs and are not corrupt. However, we do suggest that these two MP’s and many others – including most of the membership of UKIP are being used. That they are unwitting pawns in an even darker charade. We believe this to be the case as these two gentlemen have for a long time now been “Eurosceptics” and we have NO reason to believe that this belief is not genuine.

    Of course, at the time of the earlier débâcle in the first part of the 18th Century, the political system was corrupt. Famously so!

    As for the motivation for the unfolding débâcle, we would venture to suggest that it MIGHT have something to do with the enormous problem that Mr Duncan has written about.

    You see, the scale of the UK’s debt is so large that it MIGHT be the case that some politicians MIGHT have reached the conclusion that it cannot be solved democratically.

    At this point, the British Gazette will state something that will be deeply controversial and unpopular. But then, that is the role the British Gazette is there for!

    It is this: That these politicians could have a point!

    There! We have said it!

    You see, when the Unfortunate Hammond presents his Autumn Budget on Wednesday 22nd November 2017 the reaction of his “shadow” Comrade McDonnell is inevitable. It’s essence will be: “Spend more! Borrow more! Tax the rich – more!” In fact, with those EIGHT WORDS your Editor can be said to have written the summary of Comrade McDonnell’s speech! Comrade McDonnell will have to elaborate of course, otherwise folk will not think they are getting their money’s worth!

    Before we condemn Comrade McDonnell, let us not forget that there will be hundreds of thousands, indeed, millions of voters who will be cheering the Comrade on!

    And THAT, Dear Reader is the core of the problem!

    You see, for decades now, Chancellor of the Exchequers have indulged in spending more than they collect in taxes. The difference is made up by borrowing! They are NOT alone. The USA has also indulged in this. However, the UK is NOT the USA. And Sterling is NOT the US Dollar! Which means that since Sterling is NOT the world’s reserve currency then the UK cannot borrow (as a proportion of it’s GNI) on the same scale as the USA!

    These, Dear Reader are FACTS. Unpalatable FACTS. Furthermore, these FACTS cannot be imagined away!

    Now it is also a FACT that the UK economy is dominated by the Financial Services Industry located principally in the City of London. In fact, when he was Business Secretary in the Tory-Lib-Dem coalition, Saint Vince of That Cable drew this over reliance on this one sector of the economy and suggested that something should be done. He was not wrong!

    What the British Gazette is suggesting is this:

    That far from trying to make “loads of money” by embarking on a criminal conspiracy to manipulate markets, certain parties may instead be scheming to put in place a solution to tackling the UK’s debt problem.

    You see, they may well have reached the conclusion that the political reality in the UK means that no elected government can solve the UK’s debt problem as the measures needed would be very unpopular and would therefore only result in the defeat of that government and it’s replacement with a government that would do what the voters will have voted them into power to do:

    “Spend more! Borrow more!”

    As you know, Dear Reader, your Editor lives near the coast in Cornwall. There are in fact individuals who know well this problem. These are those good folk who will rescue oiled sea birds. They have to wear protective gloves for the sea birds will peck at them whilst they attempt to save the bird’s life! In the same way that voters will peck by voting for candidates of other parties who will declare that they will abandon austerity and will spend again.

    These certain parties may have come to the conclusion that they ONLY way the UK can be relieved of it’s massive debt is to transfer the responsibility of solving the problem to another. Namely the European Commission and the European Central Bank!

    These parties may well have come up with an answer to the question that has been asked by none other than Jean-Claude Juncker:

    “We all know what to do, we just don’t know how to get re-elected after we’ve done it!”

    The British Gazette suggests that those certain parties may have invented the following “cunning plan” – one even more cunning than Private Baldrick could come up with!

    It is this:

    - Take the result of the referendum as a democratic mandate to negotiate EXACTLY what Nigel Farage and UKIP were advocating during that campaign. Namely, a Free Trade Agreement or as Madame Mayhem describes it, “a deep and special relationship” that gives the UK the benefits of Single Market membership but without the costs and restrictions of same!

    - This of course is impossible!

    - Following a “no deal Brexit”, blame the ensuing chaos on the EU.

    - Accept the inevitable defeat at the forthcoming General Election caused by the Motion of No Confidence passes by the Commons.

    - Spectate, from either the opposition benches or from outside Parliament, the purgatory that will be imposed upon the UK and it’s unfortunate government led by Comrade, the Unfortunate Corbyn by the EU. This will of course be the result of the EU making an offer of “Emergency Re-entry” into the EU that will come with “Entry into the Eurozone”.

    This of course will be due to the FACT that joining the Eurozone will mean that Comrade Corbyn and his comrades will be forced to impose policies of austerity to get on top of the UK’s debt problem.

    Of course, those politicians who will have been kicked out by the voters will hope to cross the threshold of 10 Downing Street when those voters are given the opportunity to vote Comrade Corbyn out of office.

    Of course these folks are not alone! There are many politicians in Europe who see the undemocratic structure of the Eurozone as the answer to their fundamental problem: that the voters will not sanction policies that will deal with the massive debts of these countries!

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