The one ingredient indispensable to re-balancing the economy to achieve sustained growth for the benefit of everybody, a falling pound, is in place. But the things to make it work in our favour are not.<\/p>\n
This Blog believes that sustained growth in which imports fall, home industry prospers and exports expand, require a pound sterling trading between a low of $.95 and a high of\u00a0$1.20. It also believes that central banks now have too big a remit which takes them into the arena of political decisions where they have no place to be, and from which they shrink. Restoring\u00a0the role of government in both economic and currency management is essential. Government should introduce QE into the real economy to create new wealth through critical investment in social housing, transport, education, health, science, power generation and so on. This\u00a0will\u00a0divert investment from banking and debt,\u00a0 which is far too large and which funds asset inflation, into\u00a0the creation of new wealth, which is far too small.<\/p>\n
If managed in the traditional manner by government, business, industry and unions, personal incomes\u00a0grow as the increased money supply \u00a0expands the\u00a0economy, through new activity both in the public and private sectors, which allows for an increase in the prices of imported goods and food to be offset by falling housing costs and less borrowing. It also creates much better opportunities for home manufacture of consumer goods and an expansion of exports through competitive pricing. This is all the more critical to the country’s future following Brexit. The critical bit is careful control and management of a volatile process.<\/p>\n
If that is absent at the political level, which it now is, there is a risk that export opportunities will be limited and the weight of increased costs of imports in a\u00a0country which imports almost everything, will act as a dead weight on the economy and slow it down. We are headed this way now.<\/p>\n
We need a Prime Minister and a Chancellor\u00a0long before September.<\/p>\n","protected":false},"excerpt":{"rendered":"
The one ingredient indispensable to re-balancing the economy to achieve sustained growth for the benefit of everybody, a falling pound, is in place. But the things to make it work in our favour are not. This Blog believes that sustained growth in which imports fall, home industry prospers and exports expand, require a pound sterling […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10527","post","type-post","status-publish","format-standard","hentry","category-malcolm-blair-robinson"],"_links":{"self":[{"href":"https:\/\/www.malcolmblair-robinson.co.uk\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/10527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.malcolmblair-robinson.co.uk\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.malcolmblair-robinson.co.uk\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.malcolmblair-robinson.co.uk\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.malcolmblair-robinson.co.uk\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10527"}],"version-history":[{"count":7,"href":"https:\/\/www.malcolmblair-robinson.co.uk\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/10527\/revisions"}],"predecessor-version":[{"id":10534,"href":"https:\/\/www.malcolmblair-robinson.co.uk\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/10527\/revisions\/10534"}],"wp:attachment":[{"href":"https:\/\/www.malcolmblair-robinson.co.uk\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.malcolmblair-robinson.co.uk\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.malcolmblair-robinson.co.uk\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}