This is not a Recession it’s the beginning of the decline of the West into 3rd World Poverty.

This is not a Recession it’s the beginning of the decline of the West into 3rd World Poverty.

The WTO – The World Trade Organisation a few years ago came up with the silliest idea ever in the history of economics “Freedom of movement of Capital”.

What this means is disaster for the West, it means that we’ll end up living as tenants to our Landlord – the Chinese Communist Party : Let me explain :

When the UK had North Sea Oil and exported it, the value of the Pound Sterling was high – because foreigners wanted to buy our sterling so they could buy our oil.

But because it was too high, the UK could not sell its manufactured products abroad, and as the other countries’ currencies were weaker, UK companies could not sell their goods at home as they could not compete against cheap imports – so the industrial heartland of the UK became a wasteland and the country became de-skilled.

Now that the oil has gone, the currency should drop and we should be able to re-build or industrial base – but no ! Because we have “freedom of movement of Capital” foreigners can now, instead of buying our oil, they can now buy our land, our government bonds, our shares, our companies … And still we can’t sell our produce abroad because the value of sterling is too high.

All the theories of international trade – Ricardo and all that – were based on the idea of “we buy your goods and services and you buy our goods and services”. There is no theory of international trade to support “we buy your goods (making profits your companies and government) and we sell you bits and pieces of our country till its all gone” – what happens then ? – Well we’ll live as tenants, paying whatever rent the Chinese Communist party set for us. If this does not leave us with enough money left to eat then that’s just too bad.

“Globalisation” promised us that the Chinese can get richer without us getting poorer – we will be as rich or poor depending on how hard and well we work. More or less this might have been the case if Globalisation meant more trade in goods and services. But as we have the so called ‘Freedom of movement of Capital’ we intead have our top politicians always yakking on about attracting “inward investment” – which means at base “UK for Sale”.

Every day the West drops more and more into debt to China – by £Billions – so every time we pay £100 in tax more and more of that £100 goes to pay ‘interest’ to the Chinese so they can buy more of our government bonds so we then pay them more of our £100 next month. As they buy more and more of our shares, every £100 of dividend paid by our companies goes to the Chinese so they can buy more shares in our companies – we pay the Chinese money so they can buy more and more of us. Ball park we can’t be far off paying more in Government bond interest to the Chinese than we spend on our defence bill – add that that the ‘private money’ : the dividends we pay them and the rent we pay them for the land and buildings they own and it must be more.

… and every day it gets more and more – we’ve never had this situation before. We are running out of money, not because we are in a little recession and “things will get better like they always do” we have run out of money because we have given it to the Chinese.

We need to stop ‘Freedom of movement of Capital’

We need to sue the Chinese in the WTO courts for say £20 Trillion for manipulating their currency and causing industrial devastation in the West

We then need to start using NEFS – Net Export Financial Simulation so we don’t get back into this mess in the future

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