More Straws in the Wind

Someone suggested recently that extensive foreign ownership of British industry and utilities does not matter. I disagree, but am prepared here, for the sake of brevity, to accept that ownership by foreign commercial companies operating out of a democracy is not a critical problem. Rather than debate that matter, I wish to focus on a form of foreign ownership which can indeed be a serious problem, should Britain be subjected to it.

I mentioned yesterday (Straws in the Wind) that in the western form of capitalism, those with economic interest act in politics to pursue their commercial objectives, and that state capitalism reverses this process. There, those with political objectives act on the economy in pursuit of their political aims. Therein lies a danger.

A number of countries, most notably, but not exclusively, China are running up huge foreign reserve funds through their trade surpluses. In many cases, those funds are then siphoned into a government controlled bank and used to build Sovereign Wealth Funds. Those funds are then used in turn, sometimes through a nominally commercial company, to invest in acquiring foreign assets. Such investment may not have a commercial rationale, but be more the result of geopolitical aims of the government.

So, if one can be sanguine about foreign commercial companies owning British assets, perhaps a little more concern is called for if those companies are too close to their domestic government, and may, under political pressure, use ownership as a lever to influence Westminster. Certainly, concern is now being expressed in America.

Straws in the Wind

Empires do not collapse in one cataclysmic event. Rather, death creeps up on them in a series of incremental setbacks, so slowly that most of those living within the walls remain unaware of their growing frailty, their complacency and decadence making the probable end inevitable. Though external enemies may hasten decline, they cannot strike fatally when the empire is at the height of its power, but must wait until that power wanes as the system on which it has been built is superseded by another. We live now in such a time. The enemies of American style capitalism, whether they be Muslims or others, need only wait.

Both America and its British satellite are destined to social fragmentation and economic decline because of two aspects of globalisation: migration and the attachment to ‘free’ trade and movement of capital. Voices are raised in awareness, but they are of a minority. Two recent books, ‘The End of the Free Market’ by Ian Bremmer, and ‘Free Trade Doesn’t Work’ by Ian Fletcher, both authors being American and pro-capitalist, warn of impending doom, but the majority of economists bury their heads in trusted models.

William J Barber began the prologue to his book ‘A History of Economic Thought’ with the question “Why should the history of economics be studied?” To me, the answer is plain: those who do not know their history are likely to repeat its mistakes. Modern theorists such as Bremmer and Fletcher are reminiscent of earlier observers like Adam Smith and David Ricardo who so effectively criticised mercantile thinking that preceded the capitalist system. Continue reading “Straws in the Wind”

Attention Lawyers!

let’s sue 10:10, The Guardian, Sony, Kyocera and O2:

Extremely offensive film clip.

Take a look at the film clip on the Guardian site. If you feel as strongly as I do about this you can make a complaint here:

http://www.pcc.org.uk/complaints/process.html

UK Hate Crime Law:

A hate crime is any criminal offence that is motivated by hostility or prejudice based upon the victim’s:

disability
race
religion or belief

…

How to give a cat a pill

A friend sent me this. Some may have seen it.  But I like it.

How to give a cat a pill

1) Pick cat up and cradle it in the crook of your left arm as if holding a baby. Position right forefinger and thumb on either side of cat’s mouth and gently apply pressure to cheeks while holding pill in right hand. As cat opens mouth pop pill into mouth. Allow cat to close mouth and swallow. Continue reading “How to give a cat a pill”