Thank you Ann, as always an excellent article. Fwiw, my take is if 'the City' is already bursting with cash looking for a home, what's the problem fdi solves? Isn't risk aversion and declining disposable income the real issue? If returns from financial instruments are projected to outstrip returns from productive investment, why take the risky option?
I don't know if this could be worked into a title, but the general theme reminds me of a private sector version of Harold MacMillan's 'selling off the family silver' (one for the kids!).
To throw, my two cents to your comment, is that foreign direct investment would just happen to butter somebody’s financial … toast. I might guess that the investment would involve purchasing more assets similar to ARM. Aren’t there a few more water systems or other public services available for a sale?
Indeed. As said 'what problem does 'x' policy solve.' Whilst fdi has been beneficial (albeit beggar they neighbour) for Ireland, a small economy , for a large economy like the UK the benefits of attracting an Apple would be dwarfed by the revenue lost elsewhere. So the policy wouldn't even work on its own terms!
For neolibs government = inefficient/bad, so any solution must be private sector led. Problem is that as private sector investors don't get bang for their buck in the UK, there is no incentive to invest. So instead of some public investment, we end up with no public or private investment, just a fire sale of assets to be stripped as the economy disappears down the plughole. Macquarie anybody?
Neoliberalism was and is an ask that a people surrender their sovereignty to the tyranny of wealth.
I think this assertion has been born out after I half century of its application. I will point out that Singapore experimented with neoliberalism in the 90s. And when it blew up in their faces, this most business friendly of nations was not having any of it, and they ripped it out.
It’s an example of worth looking into and gaining some appreciation of.
To this engineer the sale of ARM was appalling but of not a surprise with the dominance of the City of London and London at the centre of the UK economy and politics - we do have an elite, it does not serve us well. And it is not the elite defined by the right wing.
Your preferred title for your book is very appealing to those of us who know of and applaud your work, but I am not sure about the use of the word Casino, a bit trivial, for a wider audience. “Fight the power of Global Finance”?
Here’s to the success of your book whatever the title.
Some time ago, I watched the debate between Mosler and Keen over trade.
Now Mosler (IMO) is all too fond of enfant terrible outbursts, and he stated one that incensed me, that importation was a form of tribute from the exporting nation, as if the latter were a vassal state.
Restraining myself to two observations:
1) stated with a smirk.. but stated that way, what nation would seriously consider *any trade* sensible? Stated that way, it's morally repellent.
2) it's true. For most of the world, "tribute" amply describes the relationship with the financial and industrial core, the multinationals headquartered in US, Europe, UK and China etc.
3) This applies also to most communities in a nation, e.g.: England, little islands of wealth (London) in a sea of poverty (the apt observation of John Burn-Murdoch)
This modern world is a rehash of 18th century Europe, where aristocracy engages in peer contests of opulence (financialization and privatization games, acquisition of companies) and glory (space races and AGI).
What I hope your writing answers is will the few that have more money than they know what to do with end up owning all the assets. Which means that the other 99% end up paying rent for everything.
I’m reminded of geographer Brett Christopher’s work detailing asset management in Britain and Korea, and how the results might be repeated with public utilities under the Inflation Reduction Act in the United States. I notice that Chancellor Reeves has staked some of her reputation on getting a British version of the IRA done, I wonder if the asset management mess is a part of it
As bad as it has been, I suspect it will only get worse for you poor Brits.
The BRICS Kazan summit is a warning shot: the BRICS nations representing around half of the globe, but more than half of global growth going forward, is starting work to form an entirely parallel international finance system to "accompany" the West's: currency exchange, payments, insurance, credit ratings, etc etc.
While I am no bankster - I have seen enough to know just how deeply embedded Western financial institutions are, inside practically every aspect of international trade. And if these various aspects operate like a money manager - the prospect of losing AUM (assets under management), or market share as another measure, should terrify any Western bankster with half a brain.
And how then will the UK survive - with a City that grows ever less relevant going forward?
My only question is with a few people owning so much of everything in the world, what does winning look like? Because the way these people operate, you tend to think they have a Highlander theme to their efforts, that is, there can only be one. I guess we’ll find out if we have a Smaug or Dark Lord in our future.
Thank you Ann, as always an excellent article. Fwiw, my take is if 'the City' is already bursting with cash looking for a home, what's the problem fdi solves? Isn't risk aversion and declining disposable income the real issue? If returns from financial instruments are projected to outstrip returns from productive investment, why take the risky option?
I don't know if this could be worked into a title, but the general theme reminds me of a private sector version of Harold MacMillan's 'selling off the family silver' (one for the kids!).
Oh you, asking inconvenient questions.
To throw, my two cents to your comment, is that foreign direct investment would just happen to butter somebody’s financial … toast. I might guess that the investment would involve purchasing more assets similar to ARM. Aren’t there a few more water systems or other public services available for a sale?
Indeed. As said 'what problem does 'x' policy solve.' Whilst fdi has been beneficial (albeit beggar they neighbour) for Ireland, a small economy , for a large economy like the UK the benefits of attracting an Apple would be dwarfed by the revenue lost elsewhere. So the policy wouldn't even work on its own terms!
For neolibs government = inefficient/bad, so any solution must be private sector led. Problem is that as private sector investors don't get bang for their buck in the UK, there is no incentive to invest. So instead of some public investment, we end up with no public or private investment, just a fire sale of assets to be stripped as the economy disappears down the plughole. Macquarie anybody?
Neoliberalism was and is an ask that a people surrender their sovereignty to the tyranny of wealth.
I think this assertion has been born out after I half century of its application. I will point out that Singapore experimented with neoliberalism in the 90s. And when it blew up in their faces, this most business friendly of nations was not having any of it, and they ripped it out.
It’s an example of worth looking into and gaining some appreciation of.
"Fight the Power of the Global Casino"
The biggest bubble ever conceived.
Thanks, Ann, for your work. Your preferred title for the forthcoming book seems to fit.
'The Global Casino'. Less is more
Yes. Less is More. But maybe: Global Casino: the World in the 21st Century
To this engineer the sale of ARM was appalling but of not a surprise with the dominance of the City of London and London at the centre of the UK economy and politics - we do have an elite, it does not serve us well. And it is not the elite defined by the right wing.
Your preferred title for your book is very appealing to those of us who know of and applaud your work, but I am not sure about the use of the word Casino, a bit trivial, for a wider audience. “Fight the power of Global Finance”?
Here’s to the success of your book whatever the title.
Can't wait for the book, whatever the title!
The title gets our vote❤️
Some time ago, I watched the debate between Mosler and Keen over trade.
Now Mosler (IMO) is all too fond of enfant terrible outbursts, and he stated one that incensed me, that importation was a form of tribute from the exporting nation, as if the latter were a vassal state.
Restraining myself to two observations:
1) stated with a smirk.. but stated that way, what nation would seriously consider *any trade* sensible? Stated that way, it's morally repellent.
2) it's true. For most of the world, "tribute" amply describes the relationship with the financial and industrial core, the multinationals headquartered in US, Europe, UK and China etc.
3) This applies also to most communities in a nation, e.g.: England, little islands of wealth (London) in a sea of poverty (the apt observation of John Burn-Murdoch)
This modern world is a rehash of 18th century Europe, where aristocracy engages in peer contests of opulence (financialization and privatization games, acquisition of companies) and glory (space races and AGI).
The colonialism never really went away.
What I hope your writing answers is will the few that have more money than they know what to do with end up owning all the assets. Which means that the other 99% end up paying rent for everything.
I think that is the ultimate, if utopian intention Bruce….
I’m reminded of geographer Brett Christopher’s work detailing asset management in Britain and Korea, and how the results might be repeated with public utilities under the Inflation Reduction Act in the United States. I notice that Chancellor Reeves has staked some of her reputation on getting a British version of the IRA done, I wonder if the asset management mess is a part of it
The sale of ARM is a study in arrogance, hubris, egotism, avarice and ignorance. The colonial mindset does hard.
Selling England by the Pound
As bad as it has been, I suspect it will only get worse for you poor Brits.
The BRICS Kazan summit is a warning shot: the BRICS nations representing around half of the globe, but more than half of global growth going forward, is starting work to form an entirely parallel international finance system to "accompany" the West's: currency exchange, payments, insurance, credit ratings, etc etc.
While I am no bankster - I have seen enough to know just how deeply embedded Western financial institutions are, inside practically every aspect of international trade. And if these various aspects operate like a money manager - the prospect of losing AUM (assets under management), or market share as another measure, should terrify any Western bankster with half a brain.
And how then will the UK survive - with a City that grows ever less relevant going forward?
Other gambling news. https://www.wsj.com/arts-culture/books/archie-karas-dies-73-a581b4c6
My only question is with a few people owning so much of everything in the world, what does winning look like? Because the way these people operate, you tend to think they have a Highlander theme to their efforts, that is, there can only be one. I guess we’ll find out if we have a Smaug or Dark Lord in our future.
Excellent. Thank you . This basic ChatGPT research to BAE Systems ownership.
What would Deliberative Democracy do?
https://docs.google.com/document/d/13C59r0gnacIyOBb1HqBgEG_cbq-zh2hpPRurpeOzR3k/edit?usp=drivesdk