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Timak

What Would You Do Then?

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There are a lot of threads on this site highlighting the numerous problems with society, the economy and politics.

My question to you is what 3 things would you change to make this country better?

My 3:

1. Nationalise money creation and introduce limited pupose private banking - Announce a 2 year period after which the only government guranteed deposits are those held with the national bank, other banks can exist they will just not have the government guarantee. The only bank allowed to engage in fractional reserve banking is the national bank, the others may only invest the deposits they hold. The nationalised bank will engage in limited purpose banking, only making loans for homes and business ventures and offering low risk rates of interest. The private banks are completely unregulated and can engage in whatever activities they like - however - this is entirely at the risk of investors.

2. Tax system to encourage mutualism and collectivism in business - Any firm wholely owned by it's workforce with a John Lewis partnership type approach to pay lower taxes. This recongnises that the more equal distribution of profits throughout society benefits everybody and reduces the burden on the tax payer of combating poverty.

3. Reducing capital requirements for construction of housing and relaxing planning laws - The only people capable of developing housing under the current conditions are large multi-national corporations. Instead local authorities should relax the plans for building developments down to an individual plot basis. New developments need not be rows of faux-period houses with tiny gardens. Instead the infrastucure should be put in and then people should be free to build whatever they like on their plot. This would benefit architects, builders and result in *shock* new styles of buildings reflecting individuals tastes and needs.

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1. Relax planning laws, so we can build more houses where people need them

2. Encourage business / enterprise in areas with low housing demand by using tax brakes. Will introduce employment to those areas, gets people there and therefore reduces demand in overheated areas.

3. Law that mortgages can only be lent to people based on 1/3 proven income for a repayment mortgage at 6% interest. If they can't meet that criteria then no mortgage. This law is to protect people against repossession.

4. Tough penalties (prison) for liar loans for both the lender and the buyer.

5. Break up the banks like Vince Cable promised into (A) Casino and (B) Personal/Business banking.

6. Higher taxes on second homes, BTL profits etc.

7. Invest in manufacturing in the UK so that people have something else to aspire to other than BTL.

8. More rights for tennants, such as lifetime guarantee of tenure and wage-inflation-tracked rent reviews, with tax-free investment vehicles especially for tenants to build up a nest egg in the absence of home equity. These two things will make renting more attractive and reduce demand for buying.

9. Get a grip on immigration.

10. It's time to raise interest rates!

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There are a lot of threads on this site highlighting the numerous problems with society, the economy and politics.

My question to you is what 3 things would you change to make this country better?

My 3:

1. Nationalise money creation and introduce limited pupose private banking - Announce a 2 year period after which the only government guranteed deposits are those held with the national bank, other banks can exist they will just not have the government guarantee. The only bank allowed to engage in fractional reserve banking is the national bank, the others may only invest the deposits they hold. The nationalised bank will engage in limited purpose banking, only making loans for homes and business ventures and offering low risk rates of interest. The private banks are completely unregulated and can engage in whatever activities they like - however - this is entirely at the risk of investors.

2. Tax system to encourage mutualism and collectivism in business - Any firm wholely owned by it's workforce with a John Lewis partnership type approach to pay lower taxes. This recongnises that the more equal distribution of profits throughout society benefits everybody and reduces the burden on the tax payer of combating poverty.

3. Reducing capital requirements for construction of housing and relaxing planning laws - The only people capable of developing housing under the current conditions are large multi-national corporations. Instead local authorities should relax the plans for building developments down to an individual plot basis. New developments need not be rows of faux-period houses with tiny gardens. Instead the infrastucure should be put in and then people should be free to build whatever they like on their plot. This would benefit architects, builders and result in *shock* new styles of buildings reflecting individuals tastes and needs.

Sounds mostly quite agreeable, I would do the banking a bit differently but number 2 and 3 sound good to me.

For number 3 I would look closely at German regulations since in Germany it's completely normal for a family to buy a plot of land and then get a house built on it according to their own budget and wishes (not rows of identical houses like in the UK).

Edited by wise_eagle

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After reading the Telegraph comment section for the first time ever today I have another one too.

4. Investing in shares - profits made in investing in "Initial Public Offerings" or "Share Issues" should be free of all taxation providing the company pays their full share of corporation tax in the UK. Trades in already listed trades to attract a tax to reflect the fact it is a transfer of wealth between individuals and is not involved in the creation of new economic activity.

Honestly the number of them who have bought shares in Tesco and think they are supporting our economy. All you have done is bought the right to an income stream from Tesco customers.

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1. Euthanize all idealists.

2. Pause.

3. Goto 1.

Am I being idealist in asking you to adopt the British spelling of "Euthanize"?

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There are a lot of threads on this site highlighting the numerous problems with society, the economy and politics.

My question to you is what 3 things would you change to make this country better?

My 3:

1. Nationalise money creation and introduce limited pupose private banking - Announce a 2 year period after which the only government guranteed deposits are those held with the national bank, other banks can exist they will just not have the government guarantee. The only bank allowed to engage in fractional reserve banking is the national bank, the others may only invest the deposits they hold. The nationalised bank will engage in limited purpose banking, only making loans for homes and business ventures and offering low risk rates of interest. The private banks are completely unregulated and can engage in whatever activities they like - however - this is entirely at the risk of investors.

2. Tax system to encourage mutualism and collectivism in business - Any firm wholely owned by it's workforce with a John Lewis partnership type approach to pay lower taxes. This recongnises that the more equal distribution of profits throughout society benefits everybody and reduces the burden on the tax payer of combating poverty.

3. Reducing capital requirements for construction of housing and relaxing planning laws - The only people capable of developing housing under the current conditions are large multi-national corporations. Instead local authorities should relax the plans for building developments down to an individual plot basis. New developments need not be rows of faux-period houses with tiny gardens. Instead the infrastucure should be put in and then people should be free to build whatever they like on their plot. This would benefit architects, builders and result in *shock* new styles of buildings reflecting individuals tastes and needs.

I think your first two ideas are very good - nationalise the banking system and outlawing the creation of money by private institutions would be my number one priority,.

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1. Stop inflation/interest rate targeting, just fix the amount of base money and leave it at that.

2. Cut public spending as quickly as possible with 10% cuts across the board and deeper cuts for the most obviously unnecessary spending e.g. Bloo Loo-style staggered cuts for public sector wages over £25k, PFI contracts, housing benefit to private landlords, withdraw from Afghanistan, stop paying people's mortgages for them, Beeching-style cuts to the universities.

3. Sell off the government stake in the financial sector, remove bailout and guarantee money, push for mark to market and institute a William K. Black style policy of audits and criminal prosecutions. Be prepared to pay out for deposits in failed institutions, but only after the share and bondholders have taken as much of the losses as possible. (This is not an arbitrary measure, these are supposed to be the rules.)

4. To deal with the Depression-style fallout of the above, guarantee basic free rental/council housing for all and cut cash benefits but entitle those who are on them to 1940s-style food rations scaled to the number of people in the household but limited to basic cooking ingredients like raw vegetables, fruit, meat/nuts/soy protein, butter/margarine/milk/oil/salt, rice/flour/pasta/lentils/beans, and certain tinned foods (e.g. kidney beans/tomatoes etc). Introduce a stickering policy in supermarkets and corner shops so people know which foods qualify for the food stamps. After Depression 2.0 is over, withdraw these policies.

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After reading the Telegraph comment section for the first time ever today I have another one too.

4. Investing in shares - profits made in investing in "Initial Public Offerings" or "Share Issues" should be free of all taxation providing the company pays their full share of corporation tax in the UK. Trades in already listed trades to attract a tax to reflect the fact it is a transfer of wealth between individuals and is not involved in the creation of new economic activity.

Honestly the number of them who have bought shares in Tesco and think they are supporting our economy. All you have done is bought the right to an income stream from Tesco customers.

When you buy tesco shares are you putting up capital for tesco to use for further investment? Essentially you are further contributing to tescos growth, whilst risking your capital.

In a capitalist society, this is potentially productive investment and your funds are being more actively used that if they are under your bed.

Should such investment not be encouraged?

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When you buy tesco shares are you putting up capital for tesco to use for further investment? Essentially you are further contributing to tescos growth, whilst risking your capital.

In a capitalist society, this is potentially productive investment and your funds are being more actively used that if they are under your bed.

Should such investment not be encouraged?

It is already encouraged by the profit motive. Profits (dividends and capital gains) should be taxed at the same rate(s) as wages.

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It is already encouraged by the profit motive. Profits (dividends and capital gains) should be taxed at the same rate(s) as wages.

PM is talking about taxing actual trades (presumably as well as income tax on dividends and capital gains on sale)

The effect would be to discourage active trading and also investment - the latter I am questioning

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When you buy tesco shares are you putting up capital for tesco to use for further investment? Essentially you are further contributing to tescos growth, whilst risking your capital.

In a capitalist society, this is potentially productive investment and your funds are being more actively used that if they are under your bed.

Should such investment not be encouraged?

Indeed they should - but the only time Tesco see that money is when they issue shares. I'd make any gains from that tax free - investing in new companies is a risk that should be rewarded.

It is subsequent transactions I would tax at income tax levels. If I buy £10k of Tesco shares off you Tesco sees no further money, this is a purchase with no benefit to the wider economy.

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Indeed they should - but the only time Tesco see that money is when they issue shares. I'd make any gains from that tax free - investing in new companies is a risk that should be rewarded.

It is subsequent transactions I would tax at income tax levels. If I buy £10k of Tesco shares off you Tesco sees no further money, this is a purchase with no benefit to the wider economy.

But you just buying the rights to what the original investor bought - so you are taking over their original investment - in principle it is not different to the original investment.

Like saying buying a new house is different from buying one that has been lived in and treating that differently for tax.

Your share purchase may boast the price which as you rightly say will allow tesco to raise further capital in future at a better rate.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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