Wednesday , September 23 2020

Reshuffling Snakes

Summary:
Should Cabinet Reshuffles forgive ex-Remainers?A Nation represents its land and people to the world.  The UK is UK PLC, an economic unit that must be fostered.  In principle its government should optimise the physical, economic and social environment within the Nation and optimise trade and foreign affairs outside the nation.  Will the employment of ex-Remainers aid this process?Why are Nations central to our lives and government?  Constituencies based on the land are essential because otherwise the government does not truly represent the people.  If our vote were for centralised candidates with no direct connection to our land the essential services of local schools, local hospitals, the local environment and quality of life would be ignored. If our representatives are not linked

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Should Cabinet Reshuffles forgive ex-Remainers?

A Nation represents its land and people to the world.  The UK is UK PLC, an economic unit that must be fostered.  In principle its government should optimise the physical, economic and social environment within the Nation and optimise trade and foreign affairs outside the nation.  Will the employment of ex-Remainers aid this process?

Why are Nations central to our lives and government?  Constituencies based on the land are essential because otherwise the government does not truly represent the people.  If our vote were for centralised candidates with no direct connection to our land the essential services of local schools, local hospitals, the local environment and quality of life would be ignored. If our representatives are not linked strongly to geographical constituencies they will represent those who benefit directly from grand macroeconomic plans and international diplomacy and will ignore most of the ordinary people.

The most important "grand macroeconomic plan" of our times is economic globalisation.  In recent years an economic theory has been propounded that holds that each country should focus on the areas of production where they excel.  There should be few barriers to trade so that trade can occur as if the globe were a single economy.  This theory is now the conventional wisdom, it has led to what might be called the "second wave" of globalisation and international trade has flourished as a result (related to the red line in the graph below).

Reshuffling Snakes
See Understanding Globalisation
International trade has two effects, if it occurs at a surplus it can directly increase the volume of GDP and it replaces local businesses.  International trade is operated by Multinational Companies.

The growth in the power of Multinational Corporations is such that they are now imposing the theory of economic globalisation on governments.  The Multinational Corporations and Banks control think tanks, international bodies such as the IMF and WTO and the media.  Economic governance is being diverted from the Nation to elsewhere.  Democracy is under threat.

Notice in the graph above that there was a precipitate fall in economic globalisation in the 1920s. The increasingly globalised world was economically unstable. Curiously economic growth continued at its pre-collapse rate or exceeded it during the periods of peace in the 1930s, 1950s and 60s when international trade was depressed.

Reshuffling Snakes
See The Post WWII Boom

The fact that economic growth continued unabated when international trade had declined shows that vast international trade was not necessary for Nations.  It was only necessary for Multinational Corporations, it is what they do. Moderate international trade is adequate for prosperity.

The real problem with rehabilitating those who supported Remain is that they have the Multinational snake in their ears which points to graphs such as the growth of International trade without also mentioning that domestic production can usually substitute for international production in developed countries.  A strong and diverse local economy makes a country resistant to sudden international collapses such as in 1929 and 2008.  It links the economy to the Nation and its people.  If you remove the diversity of the economy and fully expose it to global economics you have lost governance, you can no longer represent the people.

These Multinational Corporations that preach global openness to trade are simply arguing their own case.  Most of them are effectively criminals.  The purple bars in the graph below show transfers of capital to avoid paying tax. Soon Multinationals will be shunting around as much capital for this purpose as they are actually investing in production.

Reshuffling Snakes
The Rise of Phantom Foreign FDI
The favouring of International Trade above domestic production has always been the Remain argument.  My plea to Boris Johnson is not to rehabilitate Remainers.  They have no love of their country, people or democracy.

13/2/2020

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