Monday, 4 April 2016

EU contributions, £10bn, Overseas Aid, £12 bn, total £22bn, UK current account deficit £96.2bn last year.

So our benevolence to Johny Foreigner accounts for a quarter of our current account deficit! In the old days this might have been called a balance of payments crisis leading to a sterling crisis. In a floating Forex regime exchange rates are much more volatile but  do not cause anything like the same problems.

That is not to say it is not a problem. £96.1 bn is 7% of our GDP and when a crisis hits, as it surely will, that is enough to destabilise our economy long term economic plan and all.

A fall in the value of sterling is a good thing for us although the Remain lot would have us believe its a bad thing. It would jack up the price of Mercs, BMWs etc ande reduce the price of UK made Nissans, Hondas etc. It would help rebalance our economy towards manufacturing something the BoE has been trying, and failing, to do for many years. Maybe Gov Carney should admit he is wrong and start supporting Leave.

The Port Talbot disaster may also help this rebalancing if as a result the government insists on all public infrastructure contracts locally sourced steel. It may upset Gideon's Chinky friends, not before time, but will stop Gideon becoming Tory leader and let in someone sensible from an ordinary background like Gove.

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