The Electorate Has Spoken: “Democracy is Important”

The winner of political arguments in democracies is decided not by those who argue but the voters. The electorate has spoken and has definitively decided which side won the argument.

Despite this, journalists continue their mindless and boring speculation on what will happen next. In fact the predictions of the various BBC “political editors” have been a bit like the horoscope in a popular rag – all things to all people and anything could happen. The journalists will now (for a while anyway) embark upon sucking up to the politicians that they in the course of the election treated rudely and called liars.

The journalists fail to understand that the electorate is not stupid but really extremely perceptive – more perceptive than the political commentators and politicians give credit for. It perceived by the majority of the electorate great damage by not “getting Brexit done” was being inflicted on our democracy and according the majority voted to get Brexit done because the majority deemed democracy more important than prosperity.

The majority were right. I think that the important thing about democracy is that in the world today the majority of people in any nation can never be prosperous if the nation is not democratic, because democracy does create conditions for prosperity. Tyrants, dictators and democratically installed rulers of whatever political persuasion always end up impoverishing the majority of the people in the nation they rule.

The case for Brexit is simple: the European Union is not genuinely democratic; the real decisions are made by un-elected bureaucrats and the people of the EU have no real say in the direction that the EU is to travel and the policies it should adopt. In the United Kingdom the majority of the people perceived this and voted for Brexit. They understood that in the short term there will be loss of jobs, perhaps a loss of some prosperity, but in the long term democracy will bring prosperity and if it cannot be found in the EU then the UK is better off outside the EU. Staying in a nation (the EU is attempting to be a nation) that does not have real democracy will inevitably result in prosperity moving from those less well off to the large corporations and to the politicians.

Clever, this electorate.

Saving and Gambling

The buying and selling of investments has always been dominated by two different activities with opposing motivations.  Continue reading

To Enrich the Few

The lobby groups are marshaling the great and the good to speak up against a financial transaction tax in the European Union. Eleven of the twenty seven member states think a financial transaction tax is a good thing, but the rest are either undecided or are opposed to it. Britain is opposed, fearing the tax, which would be levied on trades in bonds, currencies and shares, will damage its “banking” and financial markets. Continue reading

Transaction Taxes

The European Commission has proposed a transaction tax. It is a modest proposal which sets a tax on transfers of shares and bonds of 0.1% payable by the buyer and a tax on derivatives of 0.01%. It is intended to encourage what the commission calls more responsible trading and it should make speculation less attractive. Continue reading

Our Crooked Banks

Banks Cheating? My goodness me. Surely not? Who would have thought that British Banks, established for centuries and servants of the economy their executives honoured and feted and given extreme wealth, would ever resort to rigging markets?

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Odd Things: Why on earth do we let the Banks do it?

Right now the banks in the United Kingdom are in business and able to trade in markets by leveraging their depositors’ funds. Their depositors are only placing such funds on deposit because the government of the United Kingdom has given a guarantee supported by the taxpayers of the United Kingdom, many of whom have deposited the funds which are being guaranteed. Without the depositors funds the banks would not be able leverage and that would prevent them dealing in markets for profit (or loss). Continue reading