14 thoughts on “It is more complex than Euro area trade surplus good, UK deficit bad

  1. Protectionism

    “Anywhere but there. Japan is following through on its plan to encourage some companies to reshore production from China, starting with makers of facemasks…….n addition, 30 companies are being paid to move out of China into Southeast Asia, including Vietnam, where labour costs are lower. A shift to these neighbouring countries sounds more realistic.”

    However with Japan’s sinking exports the economic damage in Japan is going to last years:

    https://uk.investing.com/news/economy/japan-exports-sink-again-in-june-raises-economic-risks-at-home-and-overseas-2165453

    As for the UK we are having spats with Russia and China and the latter threatening retaliatory action all which will make the world an unstable world with economic damage to come.

    • Im not so sure it’ll make the world a worse place, my view is the last 2 decades of bailouts for the financially retarded and free money for those who were born at the right time to buy a house, along with paying people to not to work is the low point,

      The last 3 decades has seen job exported to low wage nations, along with mass immigration from other low wage nations to undercut the natives.

      And then the natives being given tax credits by Gordon and Gidiot to keep them quiet leading to a state where mothers are financially better off to ditch the father if he merely has an average paying job.

      I was sat people watching in a rough part of town the other day, and 3 fat tattoo’d women were sat on a wall with 2 babies and were f’ing and blinding loudly, whilst drinking Tenants Super with fags hanging out their mouths. The nation wasn’t like this just 2 decades ago before this neoliberalism/globalism on steroids kicked in.

      As D:Ream once said …. things can only get better!

  2. My father worked in the shipyards and uncles worked down the mines (all closed now). In the mid 80s i often used to hear conversations between them about it being economic suicide if we keep on exporting our manufacturing base and jobs.

    All Donald Trump has been doing with MAGA is repeating this statement which is now proven to be accurate; though for the last 30 years such views have been deemed as being extremist, racist and socialist.

    Once the job losses come in full flow and the govt cant afford to fund so many non jobs and social security benefits then the plebs will be desperate for repatriation of our manufacturing base, there quite simply is no other option.

    As the golden era of selling houses to each other at ever increasing prices to replace productive work must surely be coming to an end once Rishi’s latest handout of a stamp duty holiday ends.

    • re: “must surely be coming to an end once Rishi’s latest handout of a stamp duty holiday ends….”

      I do not think “help” will end just like that .

      wait and see , there’s more to come!

      Forbin

    • Good points there Arthur, but I think your closing statement about the era of flipping houses to each other coming to an end may be a bit premature, I think it will happen as well, but the government will resist it with so much financial force it will take many years to achieve, so many that people like us will by then have given up, and of course that is why it is being done.

      You are ignoring the fact that most politicians have most of their personal wealth tied up in property, the average Joe having being conditioned by decades of government policies that support property prices and in fact encourage their inflation with interest rate policies, tax policy and local planning polices, will always believe property cannot lose and why should they? The next government is prepared to buy their vote by enforcing their distorted belief in the magic money tree and ensuring their misplaced belief is never punished.

      Most people in this country have very little or no savings, and their main and only asset(especially now that final salary pensions are on the way out) is their house and therefore, to them it is imperative that its price keeps going up to compensate for the loss in purchasing power of their currency – which unfortunately has become a permanent policy of the Bank of England, so expect ever more desperate and extreme responses to the implosion of the UK economy as the post world war II era of house price inflation comes to an end coinciding with the BREXIT hysteria that will be promoted to the same level as the Covid hysteria by the mainstream presstitutes.

      The UK is going to have to learn how to make a living in a new world economy that has moved nearly all its manufacturing to the far east and has an education system that has been corrupted to the point that children leaving it have virtually no knowledge either general or specific on most topics and all have certificates giving them the highest grades possible, thus giving potential employers an impossible task of selecting the best candidate.Obviously, the UK, in the face of many other better educated countries without such legacy issues won’t survive.

      If you were a CEO of a multinational company wishing to set up somewhere in Europe where would the UK be on your list? Having seen the shocking decline in educational standards first hand in new recruits, the appalling transport infrastructure, the massive social problems, the potential for race riots and high fixed costs, I personally would say the UK would not even be on the list never mind at the bottom.

      So as I have said before, the UK is going to become a cloudy and rainy northern version of Greece, the only question is how long will it take the average UK citizen to realise that is where we are heading? Probably many decades before they realise buying houses to make money is a bad idea.

  3. “Accurate by fluke” – anyone else spot a pattern here? Barnier is apparently keen to put the boot into the City of London, so the invisibles might be gone too.

    After a jolly good laugh at the 60%Brexiteers in Kent now moaning about the lorry park being built at Ashford, it is worth remembering one of the Brexiteers claims was that we could do more trade with the likes of China (not that Germany has ever found this a problem). However, the latest Japanese move does seem to be more of a coordinated move related to the growing tension in the South China Sea, albeit they don’t seem to be suggesting factories move to the other big regional player, India.

    I have always wondered about “invisible trade” and its measurement, but Brexiteers also promised “invisible” trade barriers, so I suppose you have them for invisible trade to pass through ….

    As I listen to Elton John’s 1989 Verona concert on Youtube from 1989 (saw him at Wembley Arena that year and he was excellent), I was amused by Shaun’s ability to reference economics, Stalin and Elvis in the same podcast. Now, after the Celtic Woman video suggestions, I get ads to visit Ireland. I suppose I should go to Dublin to check out where she came from and my Viking DNA (Dave Bloodaxe always seemed like a good nom de plume), but I now discover in these PC days that great-great-granny’s trip to South Africa had some gender politics meaning.
    https://www.tandfonline.com/doi/abs/10.1080/23277408.2020.1758005?journalCode=real20

    I can only resort to REM https://youtu.be/u1ZvPSpLxCg

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