Working our way around strikes

In the end, we come to accept strikes as part of the food and parcel of everyday life in the United Kingdom. So, what do we do? We try to work our way around them and move on. Once again, waiting lists at the NHS and missed schooling days will happen not because of the lockdown measures impelemented during the pandemic but because of strikes of very crucial segments of the economy. NHS strikes? Patients without treatment. School strikes?

Students falling behind in their studies. Most British education centres were downgraded this year. No surprise there. It was bound to happen after what has been happening since 2020 and there is more to expect in terms of lack of schooling. Children at home or wandering around getting into trouble, parents struggling to manage between work and caring after their children and, if this wasn't enough, all those jobs prospects for their children getting farther and farther away because lack of schooling means lack of qualifications to have acces to job opportunities.

There is no leveling up if people don't have what it takes to get better jobs and it could well be said that strikes ensure that the new generations will miss opportunities in the medium term and long term. If somebody is making less than 20,000 Pound a year, we can understand that they need more to get by, but when somebody is getting 59,000 on average there is no justification to keep asking for more when the country is struggling with public debt out of control. Trade Union representatives said it themselves: trains drivers are getting 59,000 Pound a year on average. They are thinking merely about themselves and they are forgetting the hundreds of thousands that are not so lucky, the ones who are going to be harshly hit by transport strikes. No transport, no work when people need transport to go to work and especially when a day out of work means no income whatsoever. They say that politicians are out of touch with the rest of society. Well, high earning train drivers are equally out of touch with the rest of society and because of it society as a whole stands to pay a very high price for it.

Strikes hit the have-nots harder. Billions of pounds will be lost, taxes will not be collected, and social misery will spread faster than ever. With every year turning the Goodwill Season into a confrontation season the feel good factor evaporates. 

The expression Capitalism creates wealth and Socialism spreads misery is truer than ever before. Of course we must support decent incomes for all, but we must reject opportunists driven by greed that hide their greed behind legitimate concers to justify the unjustifiable. 

Strikes: winners and losers

 

Strikes: winners and losers

The coming months will see more strikes in Britain and this will include not only transport but also state administration, National Health Service, Education and other segments of the British economy. The idea is that workers want better deals to lose less of the value of their incomes being eroded by the inflationary process created by sanctions against the Russian Federation.

One of the outcomes has been the downgrading of the education system with most education centres having gone done in terms of education standards and there is more to come when teachers go on strike. To the damage caused by the Covid Pandemic will be added the damage caused by absenteism from classrooms caused by strikes. This is going to be also a difficult time for working families and many will face the dilemma of going to work, leaving their children alone outside schools or staying home to look after their families. This will also pose serious social risks. Having children without education and without adult supervision roaming around with little to do is certainly a recipe for disaster. 

We cannot entirely blame workers concerned about their incomes, but the very shortsighted approach of administrations that completely underestimated the impact of geopolitical decisions. Everybody with a grain of common sense could foresee that economic warfare would have repercussions not only for the British economy, but for the world's economy as a whole.  Even France with its nuclear power advantage is in dire straits as the vast majority of French nuclear reactors are not operational and this led to a direct confrontation between the French authorities and energy providers when French authorities tried to force energy providers to provide electricity at below operational margins. Similar situations occur across continental Europe and Winter has not even arrived. As temperatures fall, the true extent of the energy crisis will be felt and words like rationing and blackouts. Those who remember the early 1970's in Britain will know fairly well what it means. At one point, Britain was working three days a week. In Britain, temporary aid has been provided to help both ordinary consumers and companies deal with the brunt of energy prices but, unless such schemes are intended to be a permanent feature, sooner than later the real costs of energy will be felt across the board.

So what do strikes achieve? To begin with, those who are going to bear the brunt of strikes are going to be the most vulnerable and especially those who are part of the Zero Hour Contract economy and the black economy. With reduced economic activity, they are going to struggle to survive. Recession could soon be followed by Depression and we also what Depression means. In a recession, economic activity is severely affected but continues. In a Depression, the ultimate consequence is massive levels of unemployment. The hospitality industries - for example, were critically affected by lockdown measures during the pandemic. After that, they have had to deal with higher energy prices and many businesses came to an abrupt end. If now they to have to deal with higher energy prices and margins that do not cover their operational costs, for a vast number of businesses this will be the end game.

Any temporary gains will be followed by gigantic losses. In an economy with skyrocketting levels of borrowing, any salary increases will be swallowed by inflation.

Permacrisis: new word officially added to the English language

From now on, we live in a state of permacrisis or permanent crisis. The word has been officially added to the English language. Events of the last two years and whatever is there to come more than justify the new addition. 

Despite the fact that the BBC, Sky and other media constantly fail to report what is happening not just in Britain but also abroad and especially in Continental Europe (for whatever reason they choose to 'blackout' the news and fail in their duty of care), Europe as a whole is in crisis. In Spain, hundreds of thousands went to the streets to demand better healthcare in Spain. The situation is critical due to mismanagement and lack of medical staff. Strike is the word across Europe. 

Unfortunately, those in power seem to be more interested in geopolitics than in real politics and ordinary people will suffer as a consequence of mismanagement and short-sighted approaches. Politicians appear to be acting first and thinking later, completely oblivious to the consequences of the decisions that they are taking. Some say that we need to cut down taxes to restore financial health. Others say that we need to increase taxes to restore financial health. The summary of it all is, nobody knows with any degree of certainty what is going to happen.

Flipping a coin in the air is all we have left to do. As a consequence of it, we are paying enormous amounts of money to people who are just guessing and don't have a clue about what is going to happen. This is Democracy for you. They sit inside a debating chamber, make a few speeches about things they know nothing about and we have to accept political gambling because this is what Democracy has become.

The ones making the decisions have little or nothing to lose and it is up to ordinary members of the public to deal with the consequences of their decisions.

Utility bills go up and grocery bills go up and this is very much what leads to inflation. Now, in order to reduce inflation we raise taxes that will make utility bills and grocery bills to go up faster and lead to more inflation, but 'those who know say that increasing utility bills and grocery bills will reduce inflation'. You know that it does not make any sense. You are going to be more often than not completely out of pocket and you will have to cut down vital expenditure or get into additional and higher levels of debt. The most vulnerable stand to suffer most from what is happening but because the most vulnerable stand at the bottom of the pyramic there is a domino effect. Suddenly, the hospitality sector detects that less and less people are using their services because they cannot really afford to use their services. Balance sheets go into the red and unemployment raises its head. Not only that, is the hospitality sector suffers others sectors that provide services to the hospitality sector suffer and follow a similar paths. More unemployment is added to the pile and tax receipts start falling. So the Chacellor of the Exchequer Jeremy Hunt MP has formally declared that Britain is in recession and recession means that from now on unemployment is guaranteed.

Paralizing the economy with more and more taxes, fuelling inflation while not promoting added economic activity, will lead us to a permacrisis with higher levels of debt, unemployment and social ills. Before we had health lockdown. Now we will have economic lockdown leading to social breakdown and political instability.

  

 

People who pay more taxes must have a greater say in public affairs very much like a shareholder in a private company

Our Democracy is imperfect because the votes of those who contribute very little have the same weight of the votes of those who contribute a lot. The votes of those who pay more in taxes should count more than the votes of those who pay little or nothing. 

If you are a shaholder in a private company, your decision power depends on the number of shares that you have got and Democracy shouldn't be any different. You put more money in the pot then you should have more power to decide what to do and what not to do.

Therefore, people would be encouraged to contribute to more to have a greater say in public affairs. In Britain, it was necessary to have something to lose to be able to have a vote. Nowadays, everybody votes regardless of their contributions and this is wrong. The rule should be: 'Do you want to have a greater say? Contribute more.' The vote of a vagrant has the same power of the vote of a captain of industry. This wrong. The reason our Democracy is falling apart is that the idle are awarded the same rights that are awarded to those who work hard.

Environmental gatherings: Saving the planet?

Environmental summits are no more than grandiose talking shops for picture opportunities and empty promises and am sure that mass media loved them because they give them something to write about without much effort and surely there is a crowd worldwide eager to swallow every fib that comes out of magnificent wastes of time.

Headlines like 'tens of billions needed to save the planet' might sound impressive - am sure they sound impressive - but they are as impressive as meaningless as no country in the world will ever consider spending such amounts of money that will surely come from additional borrowing that would lead them to implement austerity policies that no one likes to implement because they usually land those who try to implement into deep water. 

Questions that are seldom asked include 'who is going to get such amount of money and what they would be suposed to do with it?'. The 'what for', 'how' and issues of accountability are non existing. As soons the the mass media circus is over, it will be business as usual until the next mass media circus. 

After the mass media circus, the real issues of everyday life will once again be on the table. Ladies and Gentlemen, we have an energy crisis. Germany is said to be in talks with United Kingdom to seek gas supplies - Germany does not have enough storage capacity for liquidified gas and even if Germany had enough storage capacity the amount of energy obtained from liquidified gas is quickly reduced by the same process of turning liquified gas into usable gas. This putting aside issues involving transportation of liquified gas done with a lot of fossil fuels. All those ships that carry liquified gas use fossil fuels and this has a cost. The cost of maritime transport has gone up considerably to the point that bringing in goods from faraway places has become extremely onerous reducing commercial margins generated by low production costs abroad. Perhaps the German move to transfer production to China was inspired by the fact that bringing factories closer to raw materials will allow them to reduce production cost a lot more. Scania made a similar move years ago when much of the operation was transferred to Brazil. Brazil needed trucks and it was easier and cheaper to produce trucks in Brazil that incidentally was going to be a major market for Swedish trucks.

The other issue that lies around is fracking. For all the talk about fracking producing earthquakes, you would need specially sensitive equipment to detect such 'earthquakes', and obviously ordinary people who don't have such equipment will hardly ever know about the said 'earthquakes'. Mass media have been very active creating an artificial monster out of gullible minds that are very willing to believe whatever horror story they are told. Although fracking will not provide immediate results in terms of increasing energy supplies, it is something to take into consideration when energy supplies are going down. Nuclear energy is a certain possibility but it takes decades for a nuclear plant to be built to produce the energy that we desperately need. We need energy now. This is one of the subjects Germany will be discussing with Britain to avoid what now look like unavoidable blackouts in the biggest manufacturing country in Europe.

Migrants come to the UK because life in the UK is harder?

The usual culprits keep talking about the EU and calling it Paradise. Do you know why migrants keep flocking into the UK? Because UK compared to many, if not to all, other European countries has the highest living standards including its Welfare State.

Just two days ago talking to Peruvians that lived in Italy and decided to leave Italy because.... because Italy does not have the welfare standards that Britain has and on top of that criminality is spreading.

Compared to most countries in the world, Britain has the highest living standards and whoever talks about relocating to other countries when they retire do so thinking that they will still have a UK income to support their lifestyles abroad and not because income levels abroad are higher. 

The entire set of left-wing arguments is a travesti and plagued with contradictions and fundamentally based on ignorance and lack of proper thinking. They complain about inequality in Britain because they are not thinking about so called inequality overseas. They don't have a clue about factual realities.

Life is harder and there is the issue of numbers. In the 1930s, who many people inhabited the planet? In 2022, how many people inhabit the planet? Pollution? Contamination? Of course, there is going to be more pollution and more contamination as world populations grow and grow and grow. When people run out of space in urban areas then other areas within countries become urban areas. In many countries, wild animals with nowhere else to go start coming into populated areas. As we destroy their habits, our habitats become their habitats. Don't you wonder why so many sea birds have become the new pidgeons in British cities? Their eating habits are changing as fish stocks in the seas are reduced or non existing. They were hunters in the wildness and now they have become city scavengers.

Allende before, Lula next

 

In the 1970s, many in the left celebrated the arrival of Salvador Allende. 11 September 1973 ended with bloodshed and the rest is history.

I happened to be in the River Plate region at the time. I was told about the imminent military coup in Chile and was even told when and how it was going to happen.

There are different versions about Salvador Allende's death: one version of events was that he killed himself not to be arrested and another version is that he was killed when he was still at La Moneda Palace. It makes no difference. The fact is that that put an end to his life and to his government.

This is Lula's second coming and this time the difference between his party and the opposition is less than 1 per cent of the vote. This means that opposition in Parliament will be fierce. As soon as Lula tries to implement any policy that goes against the flow, the transit of any bill through Parliament will be traumatic. 

When Latin American countries go left, alarm bells start ringing in the US State Department and like it happened in 1973, the CIA and others will have already made contingency plans to deal with governments that are seen as a security threat to the USA.

In Argentina, the second most important member of Mercosur, the situation is unbearable. Neither Radicales nor Justicialistas have been able to bring things under control. Indebtedness, galloping inflation in Argentina has led Uruguay to take urgent measures to curb importation of goods coming from Argentina as a massive influx would endanger Uruguay's own economy.

What happens in Chile? Well, just a few days ago a Referendum was called to try and reform Pinochet's Constitution and there were not enough votes to change the Constitution. The fact that this happens many years after the end of the military regime tells you, without a shadow of a doubt, that the country is very much divided. And what happens in Venezuela? Let us remember that Uruguay, Argentina, Brazil, Chile and Venezuela are members of Mercosur. With Lula at the helm, will Brazil get closer to Venezuela and Cuba? Left-wing hope could well lead to left-wing tragedy.  

Jeremy Hunt: November 17th 2022 - Tax Day

 

November 17th 2022 - Tax Day

A hole in public finances of  more than 50 billion Pound will have to be plugged. Apart from the prospect of budget cuts affecting services, the alternative is a massive amount of tax increases.

Kwasi Kwarteng was slaughtered, thrown to the wolves, because he wanted to implement Liz Truss policies of tax reductions. What will happen to Jeremy Hunt when he announces a budget that contains punitive measures?

Let us remember that on the first round of the leadership election that led to the Premiership of Liz Truss the now Chancellor of the Exchequer didn't manage to progress beyond the first round. He was not popular among MPs and was not popular among the Membership of the Conservative Party. Now, the same man is going to propose a budget that goes against what is the declared ideological stance of the Conservative Party. Rising energy costs, rising interest rates plus rising taxes. If you are a business owner struggling to survive in the present financial environment, how are you going to react? Will you minimize your business to reduce fixed costs and in doing so sent your staff to the queue of the unemployed? A very harsh winter coming for those who lose their jobs when families are already struggling to pay for rental accommodation because they don't have the means to afford mortgage payments.

Wasn't Rishi Sunak the one who suggested that we should have a long term approach instead of shock therapy? Will such a budget be compatible with long term thinking? If Jeremy Hunt goes to far, this could the end of Jeremy Hunt and also the end of an already wavering Rishi Sunak? What next? Another leadership election?

Just a few months ago it was reported that recent interest rates will put more than 500,000 mortgages in jeopardy. Will more taxes and more unemployment make the situation better or worse? If the mortgage business falters, the financial system as a whole will be in serious trouble. We don't need even to explain what a wave of mortgage and load defaults will do to the economy.