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Cameron: We Can No Longer Expect Wealth From Doing Nothing

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http://www.telegraph.co.uk/news/newstopics/politics/david-cameron/7859562/David-Cameron-The-world-doesnt-owe-us-a-living.html

David Cameron: 'The world doesn't owe us a living
Britain has no automatic right to prosperity, David Cameron has said, declaring: “The world doesn’t owe us a living.”
..../
He said: “I think too many people in this country are living under the delusion that a prosperous past guarantees a prosperous future. But it isn’t written anywhere that this country deserves a place at the top table..../

For at least the past 20 years we have sat back and allowed productive industries to decline and disappear overseas while living at an ever high standard of living. 40%-50% of UK Plc is attributed to HPI (See government blue book stats-ONS). Cameron says we are delusional if we think our standard of living will continue. What he will not say, but probably understands, is that inflation in a non-productive asset class ain't going to cut it for us any more. The "miracle economy" delusion must be broken because there are no such things as miracle economies that promise wealth from inflating house prices.

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http://www.telegraph...s-a-living.html

David Cameron: 'The world doesn't owe us a living
Britain has no automatic right to prosperity, David Cameron has said, declaring: "The world doesn't owe us a living."
..../
He said: "I think too many people in this country are living under the delusion that a prosperous past guarantees a prosperous future. But it isn't written anywhere that this country deserves a place at the top table..../

For at least the past 20 years we have sat back and allowed productive industries to decline and disappear overseas while living at an ever high standard of living.  40%-50% of UK Plc is attributed to HPI (See government blue book stats-ONS).  Cameron says we are delusional if we think our standard of living will continue.  What he will  not say, but probably understands, is that inflation in a non-productive asset class ain't going to cut it for us any more. The "miracle economy" delusion must be broken because there are no such things as miracle economies that promise wealth from inflating house prices.

RB, Cameron never mentioned HPI though.  I see what you say, but I believe he is positioning himself in contrast to Mrs Thatcher.

In reality politicians of Thatchers generation  were a bit stupid and were hoodwinked by the City into believing that the City creates wealth.  As we now know the City is just another layer of tax that is taken via asset inflation.

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Are you sure he's not talking about banking?

Banking and HPI could be described as the evil twins*. The Grande Delusione of the Brown era relied on HPI and unfettered banking to fuel it.

_________________

*not to be confused with the post-CBS black face "evil twin" that featured the last of the hard wired jobs.

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RB, Cameron never mentioned HPI though.  I see what you say, but I believe he is positioning himself in contrast to Mrs Thatcher.

In reality politicians of Thatchers generation  were a bit stupid and were hoodwinked by the City into believing that the City creates wealth.  As we now know the City is just another layer of tax that is taken via asset inflation.

+1. Spot on!

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Banking and HPI could be described as the evil twins*. The Grande Delusione of the Brown era relied on HPI and unfettered banking to fuel it.

_________________

*not to be confused with the post-CBS black face "evil twin" that featured the last of the hard wired jobs.

Exactly. DC needs to address the real problem which enabled HPI. Kill two birds with one stone.

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Banking and HPI could be described as the evil twins*. The Grande Delusione of the Brown era relied on HPI and unfettered banking to fuel it.

Run like an extortion/protection racket.

Want a roof over your head? - pay the debt induced premium, the banks need these premium prices you see, firstly to extract the maximum from the population through commissions and interst, second to stop their balanced sheets looking like unhinged ones.

Edited by OnlyMe

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Exactly. DC needs to address the real problem which enabled HPI. Kill two birds with one stone.

Or he needs to addres the real problem that screwed up banking and the economy - the real estate free ride.

I don't think the conservatives are going to declare banking as non wealth creating because it couldn't be an idealogical stance for them, so they would have to explain it and the position makes little sense

Edited by Stars

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http://www.dailymail.co.uk/news/article-1290404/David-Cameron-says-UK-fight-stay-economies.html

'Britain is blessed with huge advantages - language, universities, established industries, ingenuity, openness and talent.'

The Daily mail comments on DC's speech seem to reflect what many on here are feeling.

IMO DC is failing to come to grips with the real problem in this country--the draining effect of inflation in our hugest industry (housing).

He mentions everything but--HPI, it is still the elephant in the room of illusions.

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RB, Cameron never mentioned HPI though.  I see what you say, but I believe he is positioning himself in contrast to Mrs Thatcher.

In reality politicians of Thatchers generation  were a bit stupid and were hoodwinked by the City into believing that the City creates wealth.  As we now know the City is just another layer of tax that is taken via asset inflation.

That actually is wrong. The city creates a great deal of wealth from its international operations. What has happened is that Thatcher and all others thereafter, Brown being worst, allowed our manufacturing sector to decline and just relied on the service sector and City to try and fill the gap. 30 Years later the result is a 'City' /service sector comprising 38% of the UK economy and manufacturing only 12%. We do need to manufacture and export and rebalance the economy. The public sector has risen from 37% in 1997 to about 50%. Far too large and a drag on the wealth creation sectors.

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http://www.telegraph.co.uk/news/newstopics/politics/david-cameron/7859562/David-Cameron-The-world-doesnt-owe-us-a-living.html

David Cameron: 'The world doesn't owe us a living
Britain has no automatic right to prosperity, David Cameron has said, declaring: “The world doesn’t owe us a living.”
..../
He said: “I think too many people in this country are living under the delusion that a prosperous past guarantees a prosperous future. But it isn’t written anywhere that this country deserves a place at the top table..../

For at least the past 20 years we have sat back and allowed productive industries to decline and disappear overseas while living at an ever high standard of living. 40%-50% of UK Plc is attributed to HPI (See government blue book stats-ONS). Cameron says we are delusional if we think our standard of living will continue. What he will not say, but probably understands, is that inflation in a non-productive asset class ain't going to cut it for us any more. The "miracle economy" delusion must be broken because there are no such things as miracle economies that promise wealth from inflating house prices.

Sounds to me as if he is preparing for a huge cutback in benefits.

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RB, Cameron never mentioned HPI though.  I see what you say, but I believe he is positioning himself in contrast to Mrs Thatcher.

In reality politicians of Thatchers generation  were a bit stupid and were hoodwinked by the City into believing that the City creates wealth.  As we now know the City is just another layer of tax that is taken via asset inflation.

Actually (and unfortunately) the City is still our main source of foreign revenues (about a quarter, if I remember correctly?), sadly.

We need to develop alternatives, to reduce our dependence on just one sector.

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Guest sillybear2

Or he needs to addres the real problem that screwed up banking and the economy - the real estate free ride. (facing this is uncomfortable for some of our posters)

I don't think the conservatives are going to declare banking as non wealth creating because it couldn't be an idealogical stance for them, so they would have to explain it and the position makes little sense

True, the Tories represent the old rent seeking aristocracy, The City is nothing but a modern manifestation of the Enclosure Acts, absentee landlords and serfdom.

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Actually (and unfortunately) the City is still our main source of foreign revenues (about a quarter, if I remember correctly?), sadly.

We need to develop alternatives, to reduce our dependence on just one sector.

Banking determines whether new industries can exist by choosing to lend to them or not. To date they only seem to love bricks and mortar.

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Banking determines whether new industries can exist by choosing to lend to them or not. To date they only seem to love bricks and mortar.

This is exactly right.

We are a HPI-reliant nation. Cameron has to fix the delusion or we are doomed o ever increasing busts preceded by diminishing booms.

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Guest sillybear2

That actually is wrong. The city creates a great deal of wealth from its international operations. What has happened is that Thatcher and all others thereafter, Brown being worst, allowed our manufacturing sector to decline and just relied on the service sector and City to try and fill the gap.

Ahh, the old "invisible exports" ruse, the problem is they're not nearly enough to compensate for what they've stolen from the tax payer over recent years, nor do they supply enough UK wide employment to make up for systematic destruction and off-shoring of other industries. What's been going on in the The City over the last decade, if not since The Big Bang itself, was simply an advance auction of stolen goods, and the bill for past largess has come due and been passed to the tax payers. The UK would actually be richer as a country if The City hadn't even existed, obviously a handful of rich people wouldn't be too well off but collectively The City acts as a net destroyer of wealth for your average surf/citizen.

Watch Will Hutton's "How the Banks Won", our manufacturing sector has contributed over twice as much corporation tax than The City over recent years, and they haven't asked for any of it back (£400m scrappage scheme aside).

Edited by sillybear2

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Guest sillybear2

Actually (and unfortunately) the City is still our main source of foreign revenues (about a quarter, if I remember correctly?), sadly.

We need to develop alternatives, to reduce our dependence on just one sector.

We've actually been living off North Sea oil revenues not the square mile, and we became a net importer in 2005.

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What does he expect the rich to do then? Actually work?

Yes, the "rentier class" is mostly parasitic. But investors are mostly not. There is some grey area between, of course. But, for instance, unproductive land heirs, living from rents, are mostly parasitic. But self-made entrepreneurs are mostly productive. And amongst the poor we also have people that are mostly productive, and others that are mostly parasitic.

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We've actually been living off North Sea oil revenues not the square mile, and we became a net importer in 2005.

Yes, that was a big number as well. But I don't remember how much either. It would be interesting to find these. (I can't do it now. Bit busy here.)

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  • 152 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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