Of course nobody talks about the elephant in the room.

Free movement of capital one of the four prisons. The conservatives won't dare talk about it with all the money they get off the banks. The city of london wrote Hammonds brexit speech for him.

The capital markets union (CMU) is a plan of the European Commission to build a true single market for capital in the EU by 2019. Under the CMU action plan, the European Commission has started working with EU countries to examine the remaining national barriers to the free movement of capital.

This isn't about capitalism or socialism this is all about the city of London controlling our elected governments.

Wall Street and the City of London scream for balanced budgets or budget surpluses. So the banks can allocate resources and the banks can be the main issuer of the currency. We don’t want the government to fund public infrastructure. We want it to be privatised in a way that will generate profits for the new owners, along with interest for the bondholders and the banks that fund it; and also, management fees. Most of all, the privatised enterprises should generate capital gains for the stockholders as they jack up prices for hitherto public services.

This idea that governments should not create money from thin air implies that they shouldn’t act like governments. Instead, the de facto government should be Wall Street and the City of london. Instead of governments allocating resources to help the economy grow, the commercial banks should be the allocator of resources – and should starve the government to save the wealthy. Starve the government to a point where it can be drowned in the bathtub and which is what austerity and neoliberalism is really all about.

Allowing the commercial banks to control the money supply they then proceed to privatise the economy, they can turn the whole public sector into a monopoly. They can treat what used to be the government sector as a financial monopoly. Instead of providing free or subsidised schooling, they can make people pay for it to get a college education. They can turn the roads into toll roads. They can charge people for water, and they can charge for what used to be given for free under the old style of Roosevelt capitalism and social democracy.

As they tuned the economy into a private monopoly it now means that over 70% of our wages goes to economic rent and the renitier class.

Rent

Student loans

Loans and credit cards

Travel and energy costs

etc,etc,etc…

I.e. Debt bondage.

Insercure low paid jobs used to extract rent for the 1% leaving you a couple of pay cheques away from complete and utter disaster.

Away from Free movement of capital rules we can do something about it. Stay with it and the rentier class the Fire sector continues the interest charging economic rent bondage.

It is a shocking state of affairs when 48% of this country supports Free movement of capital. The IMF, World Bank and the rating agencies are now nothing more than a lobbying arm for the FIRE sector.

"that Chequers is probably not anyone’s dream plan for Brexit – being too close to the EU for some and too distant for others."

We voted to leave which has become lost in the narrative. It was not Goldilocks and the 3 bears it was leave and chequers is not leaving.

I also like how Boris evokes history he should try this.

The British went into Ghana in the 1800s to grow coffee. There was no monetary system in Africa at the time. There was no unemployment when you went out and visited the population. Everybody was helping each other out with jobs to do. It was a very social place. The men would hunt and fish and build the houses, and the women would take care of the children and do the food. The grandmother would help out taking care of the children. The people were doing things and there was more to do than there was time to do it. How did the British get them to work in the coffee plantation?

They came up with this brilliant idea. They told everybody there was going to be a tax on their hut. It was called a hut tax. Everyone had to pay, what, 10 Pounds a month, something. Tax. Or they would get their house burned down by the British. What happened? Everybody said all right, what do we have to do to get the money to pay the tax? ‘Ah, if you come to the coffee plantation we’ll pay you one Pound a day to work’. Sure enough, people starting coming over to work, to earn the money, so they didn’t get their house burned down. The tax, the monetary system, created the unemployment.

Then the British hired the people so they could get the money to pay the tax so they didn’t have their house burned down. They would spend the money first and pay people, and then collect the tax, right. And they spent more than they collected because some people saved them [Pounds] for paying taxes later.

But would they let them earn enough to pay the tax, or would they say, ‘No, we’re not going to do that and go burn your house down’? Of course not. They let them come work and earn all they wanted to pay the tax, and to save, so their houses did not get burned down. If too many people came to work, they would reduce the tax. They didn’t send the people home and burn their houses down like they’re doing today in the European Union.

The Romans also knew they had to spend the coins first into the economy before anyone could their hands on them to pay taxes. That the taxes funded nothing but controlled inflation.

I agree with just about everything Boris Says here he hits a lot of nails on the head. Very impressive indeed.

I just wish he would stop with this gold standard, fixed exchange rate nonsense that taxes fund government spending. Both the left and the right need to stop this rubbish it has held the country back for far too long. Yes, when you can convince a nation through 15 min soundbites that the Monopoly issuer of the £ accounts is the same as a household budget you can win votes. But at what cost ??

Corbyn is neither Marxist or Communist he is a Keynesian exactly like Trump in the US who isgetting 4% growth rates. Slashing taxes and record US government spending knowing full the budget deficit is everyone elses surplus.

Japan Debt to GDP ratio 253%

Japan 10 year bond 0.12%

Completely destroys everything the fiscal conservatives say.

Wall Street and the City of London scream for balanced budgets or budget surpluses. So the banks can allocate resources and the banks can be the main issuer of the currency. They don’t want the government to fund public infrastructure. They want it to be privatised in a way that will generate profits for the new owners, along with interest for the bondholders and the banks that fund it; and also, management fees. Most of all, the privatised enterprises should generate capital gains for the stockholders as they jack up prices for hitherto public services.

This idea that governments should not create money from thin air implies that they shouldn’t act like governments. Instead, the de facto government should be Wall Street and the City of london. Instead of governments allocating resources to help the economy grow, the commercial banks should be the allocator of resources – and should starve the government to save the wealthy. Starve the government to a point where it can be drowned in the bathtub and which is what austerity and neoliberalism is really all about.

Allowing the commercial banks to control the money supply they then proceed to privatise the economy, they can turn the whole public sector into a monopoly. They can treat what used to be the government sector as a financial monopoly. Instead of providing free or subsidised schooling, they can make people pay for it to get a college education. They can turn the roads into toll roads. They can charge people for water, and they can charge for what used to be given for free under the old style of Roosevelt capitalism and social democracy.

The Romans knew they had to spend the coins into the economy first before the people could ever use the coins to pay their taxes. So it was never about funding public services it was all about controlling inflation.

Government spending creates currency. Taxes destroy currency like a tally stick. There is no Huge shed on the Isle of Wight filled with our taxes for future use. Our taxes are destroyed every night of the week. In the overnight interbank market so that they can add or drain the reserves so the BOE can hit its overnight interest rate.

The real data for the UK economy is clear. As long as you keep slashing the budget deficit you destroy personal " savings"

When you run government budget surpluses you put the private sector into deficit and more people into debt. Private debt the debt that matters.

As you can see from the graphs of the UK economy.
https://d3fy651gv2fhd3.cloudfront.net/charts/unit...

This is nothing new economists, first year econmist students know this.

Goldman's Top Economist Jan Hatzius calls the sectoral blances the The Most Important Chart in the world.
https://www.businessinsider.com/goldmans-jan-hatz...

Yet, here we are in the year 2018 and the fiscal conservatives still think the government budget deficit and national debt are the same as their household debts.

Nothing could be further from the truth the government budget deficit = the private sector surplus and the national debt is just that surplus moved into gilts.

Somebody better explain to the Tory party that Trump has slashed taxes and broke US government spending records spending $5 trillion this fiscal year with growth rates over 4%.

Trump knows full well along with first year economic students that the US government budget deficit is the private sector surplus to the penny. That government finances are NEVER like your own household budgets the way the fiscal conservatives frame it using ideological propaganda.

The deficit of the U.S. government thru Sep 20 is $769 bln. That’s 3.8% of GDP. The deficit narrowed a bit from earlier in the month due to corporate tax payments, however, it will widen out further by the end of the month as September is usually a big spending month.

Trump knows fine well the private sector now has a surplus of $769 billion. More savings, more money in households and business pockets that they can spend in the US economy.

If you slash the government deficit then you slash the private sector surplus. That's households, businesses and the foreign sector " savings"

UK Sectoral balances from the ONS always paints the correct picture.

In Quarter 2 (Apr to June) 2018, real household disposable income grew for a second consecutive quarter, with growth of 0.4%, compared with an upwardly revised growth of 0.7% in the previous quarter.

Despite a marginal increase in the households’ saving ratio to 3.9%, in Quarter 2 2018, it remains historically low and is the fourth-lowest since records began in 1963.

Households were net borrowers for a seventh consecutive quarter (at £7.2 billion) in 2nd quarter 2018 as they continue to spend and invest more than they received in income.

Corporations increased their net borrowing by £11.7 billion in Quarter 2 2018, to 2.2% of GDP.

Central government continues to show a decrease in their net borrowing, a trend that began in 2010.

A little better than what it has been but still a horrow show.

And why Clinton's budget surpluses destroyed the US economy.
https://www.pragcap.com/visualizing-the-destructi...

NO !

EU self imposed constraints John

EU is thataway ------------------------------->

We are taking the control of our money back and the monopoly issuer of the £ can create as much of it as it likes as long as there are enough skills and resources to absorb that spending

You should learn how it works John
https://www.scribd.com/document/385745247/Textboo...

Actually study the accounting between the central bank the treasury and the commercial banks

John we can see right through you like a glass window millions of us.

This you trying to impose your version of the EU growth and stability pact, 2 pack and 6 pack now we are leaving the EU.

The whole point of leaving the EU is to have control of our money back. Yet here you are putting a gold standard, fixed exchange rate, household busget constraint on the monopoly issuer of the £.

John the budget deficit is the private sector surplus to the penny and the national debt is that surplus moved into gilts.

Ask Trump he'll explain to you how it all works.

We don't need a stabilty and growth pact in the UK John hence why we are leaving.

Battle of ideas ??

What that you think we are still on the gold standard and fixed exchange rates
http://bilbo.economicoutlook.net/blog/?p=2562

Dearie me Chloe MMT'rs would own you.