UK Budget AKA Re-election broadcast

I wrote this last year: 2013 Budget, March 2013

You might spend 2 minutes looking at it.  You might notice nothing much has changed.  And why should it?

Even Conservative advisers agree that an annual Budget is a pointless exercise:

This from Institute of Economic Affairs:

The highlights:

Retirees no longer ever need to buy an annuity with their accumulated pension fund.  They can take chunks out and pay tax on it.

[Question: what do they do when they run out of fund…? They sell their homes, if they haven’t already crashed in price because everyone else has the same idea and tried to sell…]

Tax free income rises to £10,500 pa.  Excellent.  No doubt.

[Question: What about the super rich who don’t pay tax as all their assets are based in British Virgin Islands or The Caymans.  Or what about the vast tax free growth people have had in houses for 50 years?  Nah. Better to pretend all is fair. ]

Tax free Individual Savings Accounts to be up to £15,000.  Currently c £12,000.

Retirees will be able to buy a Pensioner Bond ie lend to the Government and get quite a good rate – assuming inflation doesn’t come.

There was growth last year and there will be for the next 5 years – assuming there is not a global economic shock…which I think there will be.  They can forecast for as long as they want but it assumes all is well elsewhere.  Quite ridiculous.  BTW – the growth last year and now is not from a ‘better economy’ – it’s from higher consumer spending.  Just like last time. Er…

Help To Buy extended to 2020 – of securing lenders in case of price falls.  [Question: Who secures?  The Government of course.  Er…but all the Government has are taxes and  borrowings.  You’re getting it!]  AKA Marxism.

We’re still borrowing huge amounts …we still owe a vast amount …. and our kids will have to pay it back.

It wasn’t a bad Budget as it goes but Budgets themselves are very bad as they pretend all is well or can be helped.  We’re toast.

Look.  All Budgets are about pretence and vote winning.   Of course the BBC makes out that Osborne is the first Chancellor to do so and, by inference, Brown never did… HAHAHAHAHAHA

This one is about Conservatives fighting UKIP in the Spring Euro Elections.   No doubt this will garner some votes for the Cons.  Who’s paying for that?  Our kids.

Who’s paying for the tax cuts?  The voters and our kids.  That’s right.  They buy votes with our money and the reduced welfare of our kids.  That is what debt is folks.

The Budget circus is an annual obfuscation from the real issues.   The Govt owes £5,ooo BILLIONS.  Saving £500 MILLIONS here or there is not even chicken feed.  We’re toast.

Something else that was hilarious.  I am 99.9% sure he said – and I quote “Lower borrowing = less debt”.    No it doesn’t!!!

Certainly, there was UK growth last year and there will be this year because:

1. There are two major elections this and next year

2. We still have the emergency Base Rate.  Anyone see an emergency?

3. The Government is borrowing like billy-o.

4. Help to Buy (Sell!) started last year.

It’s all about #1 in that list.  And the next generation will pay for it.

I cannot reiterate enough – the next time there is a global economic shock they will not be able to slash interest rates.  Please consider the inevitable results of that.

Still believe all is well?  Think again.

Still think we live in a Capitalist country?  Not even close.  This is increasing Marxism / Fascism – there is no practical difference for you and me.  The intellectuals have written libraries on the differences but to you and me there is zero difference.




Copyright Jonathan Davis 2014

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10 Responses to UK Budget AKA Re-election broadcast

  1. Anonymous says:

    good article, spoiled by your silly insistence on calling anything you don’f like “marxism”. having studied marx, i can’t remember the part where he advocated policies which encouraged the bourgeousie to accumulate private property. a better ezample of a marxism housing policy would be singapore, where the state owns all the land and provides subsidised social housing to 85% of the poulation through the state Housing Development Board.

    • Anonymous says:

      seriously – when you talk about “marxism” you lose all credibility. wake me up when the government gives control of the means of production to the proleteriat, abolishes property in land (and the renting of land) and abolishes the right of inheritance. the government are awful, i strongly agree, but to say they are “marxist” is ridiculous. you should read some marx just for reference, as i have done with all of that mises, hayek, rand and block piffle.

  2. Anonymous says:

    another very good article spoiled by the claim that helping the middle class buy houses (private property) is somehow marxist. an example of a marxist housing policy would be that of “red vienna” where they levied property and luxury taxes to pay for social housing with extremely low rents.
    aside from calling Anything You Don’t Like “marxism”, spot on.

    • The market didn’t create 500% rise in house prices

      • Anonymous says:

        sure – idiotic policies like ZIRP and unlimited mortgage tax relief (like in NL) cause these bubbles, but to call these policies “marxist” is silly. the UK, NL and sweden have been abandoning socialistic public housing policies since the 80s. no idea how you can describe private landlords getting money off the state to house the unemployed and working poor as marxist. more like neo-feudalist.

  3. I thought Osbourne’ s speech today was politically masterful .However ,economically he has done precious little to cut spending and as you have said why is there the need for such record loose money when ( .5%until 2015) when we have firm growth . Lower borrowing doesn’t mean lower debt and lower borrowing rates mean comfort with more debt .Unfortunately nothing has changed ,the only solution is huge cuts in spending /tax and let rates return as painlessly as possible to the market rate .The only difference is now there is more debt

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