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Economics

Sunday, 14 February 2010

Recent crisis in Greece was averted by help from other EU countries who are part of the European Moneytary System, or part of the Euro currency.

News in Britain was that we are much better off as we have our own currency pound Sterling and therefore are able to handle our own crisis much better. Also that way we do not need to bail out Greece because we are not in the Euro which according to British media is in severe crisis.

The underlying strenght of Euro is much stronger in world eoncomic activity than Sterling. While U S Dollar could be the world currency of choice up to 60% or so, Euro is world currency of choice up to about 30% or so of world trade, while the Sterling is under 10% of world currency of choice.

Devaluing a currency, whether it is officially done, or whether a currency is allowed to depreciate, is like declaring bankruptcy. U. K. has recently chosen to allow its currency to depreciate by about 20% but this has not helped exports which are down by about 6%.

A far better option would be for Britain to join the Euro and be part of the ideas and expertise of 26 nations and their real life knowledge about world trade, etc. rather than work alone or just by guidance or boosts to U. K. economy from U S A.

By joining the Euro, British goods and services will be understood in price terms much better by a local market of some 500 million in addition to its own population of 60 million. After that, the two parent family earners can easily revert to the old system of one breadwinner per family and the other partner making loving and caring home for the other partner and its own children.

By being bigotted about its misguided view of what is best in the long run, U.K. is shooting itself in the foot. Lord Mandelson seems to be the only politician who has the guts and the vision to understand the long term potential, benefit, stability and respect U.K. would gain by joining the Euro.





Sunday, 7 February 2010

An article on the flexibility of the pound versus the stability of the Euro will be written soon under this section.

Monday, 19th October 2009

If I want to start a new Political Party called the Trade Union Congress TUC Biscuit Party in the UK to become an MP, or the European Communist Party in the EU to become an MEP, would such a party be allowed with its rightful Constitution? Surely, it would draw several million votes compared to one million or so that the British National Party or the English Defence League could achieve? Anyone for answers? May be it will be asked in Question Time this coming Thursday, 22nd October 2009.

If the Prime Minister decides not to hold the next General Election until the last moment, then we have still eight months to go.

I suggest that all the 5 parties, Labour; Conservative; Liberal & Social Democratic; Independent MPs group; and Trade Union group discuss only one issue during one month. There are 8 issues that I believe are the most important for the next 8 months:

Month 1: October 2009 - education for children.

Month 2: November 2009 - education for adults.

Month 3: Decempber 2009 - defence.

Month 4: Januray 2020 - health.

Month 5: February 2010 - whether UK should abandon Sterling and adopt the the Euro currency and opt out of membership of EU at the same time

Month 6: March 2010 - foreign policy towards non-EU countries, including sending troops and offering technical knowhow aid.

Month 7: April 2010 - All other issues.

UK election rules allow for the General and Local Constituency Elections to be held earlier than the 5 years maximum period if the Prime Minister so decides.

The last elections were held on 5 May 2005.

Because of the current very serious fiscal deficit and many other long term deeply rooted problems, a Wise Prime Minster would certainly shorten this 5 year period right now.

He could indeed ask the Monarch this coming Monday, 5th October 2009, to dissolve Parliament by Royal Proclamation.

The election can then be held 17 working days after the date of Proclamation.

If the Monarch gives Royal Assent on the following Monday, 12 October 2009, general election can be held on Thursday 12 November 2009.