Thursday, December 6, 2012

Tullett Prebon say

Autumn Statement: lemmings in denial

Dr Tim Morgan is head of global research at Tullett Prebon. His analysis starts:"The chancellor tried to be upbeat today, but the serious state of the economy cannot be hidden. Neither George Osborne nor Ed Balls is addressing the real problems of our obsession with consumption, lack of focus on production and acceptance of ‘spiv capitalism’......."

Posted by alan @ 09:58 AM (1666 views)
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3 thoughts on “Tullett Prebon say

  • mark wadsworth says:

    Consumption + investment in real capital assets = production + amortisation of real capital assets.

    The investment in and amortisation of real capital assets nets off to a very small figure, and the distinction between “amortisation of capital assets” on the right hand side and “consumption” on the left hand side is unclear, so it’s easiest to ignore these completely and assume

    consumption = production

    You might think that it is a frippery and a waste of money to get your hair cut or go to the pictures*, but what about the people cutting hair, making films, selling tickets and sweeping up popcorn? Are they not working and producing and creating net wealth, however ephemeral?

    * if you are some sort of hair shirt Puritan nutter, in which case, please list the items of “consumption” which you approve of. Is growing and eating raw vegetables OK? But that means poo and that requires sewage works and water purification and so on.

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  • stillthinking says:

    MW, not everything is in the UK. What about shifting your identity around

    consumption(UK) + investment in real capital assets (outside UK) = production (outside UK) + amortisation(UK)

    but also amortisation is not a plus, its a write off of value, unusually sneaky of you to use a negative word to pop in a + on the maths. How about;

    +amortisation = -capital destruction

    going to

    consumption(UK) + capital destruction(UK) = investment in real capital assets (outside UK) + production (outside UK)

    which sounds more like it.

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  • stillthinking says:

    And check the UK trade deficit, still as insane as ever and ultimately to be moderated with higher unemployment.

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