Tag Archives: economics
  • 08/04/2013

    On Marginal Tax Rates

    Apologies for a very pedantic piece on a Monday morning, but someone has to raise it. Today is the first day of the next tax year and so there is some play in the media about the various tax effects of the budget and previous budget as to what all of those who may be due pay some tax may experience in their wage packets. Much of the discussion, as one would expect, is around who wins and who loses and indeed who got

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    Larry Summers: Wrong about UK and US fiscal policy

    Larry Summers, a former senior US economic advisor made some pretty stinging comments yesterday about UK economic policy. He said it was a mish mash of austerity and loose monetary policy which has clearly failed, comparing it disapprovingly with the US policies. So what has happened to the 2 nations since the great crash of 2008 and who has come out better. Financial crises take a long-time to recover from and we can't be sure we are there yet, plus of course the US has not had to deal with the Euro collapse, which has probably benefited the US,



    Where art thou, Eurofudge?

    Has it really comet his this? Ever since 2009 the favourite nibble across Euroland has been delicious eurofudge. Everywhere from Italy, to Spain, Ireland, Greece and Portugal there has been plenty of fudge; enough to sate even global appetites and keep the euro bandwagon well fed and on the road. But now tiny Cyprus could see and end to fudge distribution and dark day for the euro-fudge industry - another tale of woe for European industry. Of course, Euro-Fudge is resilient and production runs



    The Budget I don’t want to see but probably will

    All the articles I read are about various ideas that George Osborne could use in his budget tomorrow. I have read some really nutty ones, Richard Murphy seems to think all our woes can be solved simply by taxing everyone and anything that moves - its an interesting concept! So here is my reverse prescription - things I am dreading come to pass, but probably will.... 1. No more cuts - yes indeed, we need more cuts, more cuts to quango's more cuts to crazy subsidies of



    Cyprus; the penny drops

    Just in case the citizens of Europe were in any doubt about who is in charge and what their fate maybe, the EU decision to try and impose a 9.9% levy on Cypriots - via closing down their banking system, will perhaps wake a few more people up to the ugly reality. In a fatally flawed move the EU is trying to get Cyrpus to pay for 50% of its own bailout directly from its tax payers. No doubt this will be

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    Tax has to be taxing these days!

    Ed Milliband speaks to Vince Cable Is it just me or has the UK gone totally potty? Years ago, not that many, there was a consensus that you could tax the rich, but pushing it too far would be counter-productive. Now we just have more outrageous proposal after more outrageous proposal - with all the Political parties joining into say how much the rich should pay. Think of the poor people on benefits they say - what of them. The thing is, its the maths that sticks

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    Monetary defeat for the UK?

    When the Bank of England is in such a terrible corner, mainly of its own making I may add, it is hard to know whether to laugh or cry. For today, with ts Governor actively wringing his hands, the Bank announced that inflation will likely stay at over 3% for a year or two more. Not much we can do, says the Bank, the Pound is sinking and we can't raise rates as the economy won't be able to hack it. What a disastrous situation to have



    What will Spanish unemployment be in 2017?

    Because it is not a very pretty site today. In fact it is at nearly 60% for under 25's! As much as we think a potential 2017 UK referendum on Europe is a long time away, it maybe much further than the average man on the street, or even Ed Milliband thinks. A country like Spain should not have to suffer with such massive levels of social misery. Spain remember did not even stoke up a banking crisis or a have a crazed government



    Snow Joke for a triple dip

    I knew it would not take long. The FTSE rally has been very strong this year, as it often is in January as people get optimistic that the coming year will be better than the last. Well here we are 2 weeks in and it is all unwinding quite quickly. The heavy snowfall in the UK will depress economic activity in Q1 enough that the likely slight fall in Q4 will be repeated and so we will have a triple dip. Having said that, it does



    RBS: the faliure of Vickers already evident

    6 years from the implementation of the Vickers report and its failings are already clear to see. RBS is about to get a huge fine for Libor rigging, as is par for the course for seemingly every bank that had a trading division in the City. RBS though are using this as yet another chance to re-structure what is left of the investment banking division. The CEO is going to go and maybe one of the deputies too. The remnants of the investment banking division