I learnt two important things yesterday in the debate on the Queen’s Speech. The Prime Minister is an up to date reader of this blog. Unfortunately he does not seem to understand it.
I ask my other readers to allow me to make just a few things clear to our PM thirsting for knowledge from the wonderful world of the web.
1. The main point of most of the posts on this site for the last couple of years has been to advocate more freedom and higher living standards for the UK.
2. The last thing I want is lower living standards or a downturn.My posts explaining that we are now living through a sharp downturn in living standards is describing the results of the PM’s economic policy and banking crisis, not describing what I want or what would have happened if he had taken better advice.
3. In 2007 I offered advice which if taken could have avoided the run on the Rock. I then offered advice after the run which could have avoided the need for nationalised ownership and the big cuts in the business which followed.
4. A year ago I offered advice to cut interest rates substantially, which if followed could have avoided some of the severity of the downturn we are now entering.
5. My advice- offered by others as well – on more liquidity to money and banking markets was taken too late, and my advice on interest rates was followed months too late.
My advice now, just to remind him is:
1. Don’t cut VAT. It gives very poor value for all the borrowing.
2. Start selling assets off from the nationalised banks, to reduce taxpayer risk and to cut borrowing.
3. Then cut interest rates further.