Goodbye British made steel: would a Corbyn-led government say “we can’t favour domestic production in the face of Chinese dumping”
The 99% don’t agree with this government policy
Why not favour British production? As festivities celebrating the visit of President Xi Jinping proceed apace, Richard Murphy’s Green Deal colleague, Colin Hines, describes the collapse of the steel industry as “A triple whammy forced on Europe by the Treaty of Rome’s open borders diktat”. He adds – in the Guardian:
The Magic Money Tree: there is a way out of this – and a funding source to finance it
- The EU must be reformed by a “treaty of home”, allowing national economies to flourish via border controls to goods, money and people. The problems of protecting domestic sectors like steel could then be overcome.
- Future mass migration could be limited once its causes are tackled; in the interim massive aid should be given to those countries hosting refugees.
- Finally, austerity should be replaced by funding the rebuilding of social and physical infrastructure. The simple way to pay for all this is with the EU’s magic money tree (phrase coined by the Economist?), the European Central Bank, which is e-printing €60bn a month in a failing attempt to counter the downsides of the free market in Europe.
“The Bank of England’s quantitative easing programme has created £375 billion of magic money, which keeps interest rates artificially low, thus engineering a recovery, or at least the illusion of one. But this sort of magic money tree is more at home in a Grimm’s fairy tale than a modern one where everyone is destined to live happily ever after. Because not everyone’s a winner under QE. If you’re rich and you’re able to borrow, then you’re laughing all the way to the bank as it boosts the value of assets and keeps debt cheap . . . But if you’re prudent – a saver, or a pensioner – then you see the opposite happen”.
And Positive Money points out that creating money is as easy as the flick of a pen and the clattering of some computer keys. While the UK’s “magic money tree” is currently controlled by the private banking system, the UK government is quite capable of altering this situation. All it requires is the political will to act.
Colin Hines recommends that next month, the ECB could instead print:
- €20bn of “migrant QE” to help cope with the refugee crisis,
- €20bn of “jubilee QE” to deal with the continent’s debt problems and secure the future of millions of future global warming migrants and
- €20bn of “climate QE” put on the table at next month’s climate change conference in Paris.
As Scots rescue their shipyard the government merely says “Goodbye British made steel” and buys shares in foreign steelmakers.
Corbyn would do better: the banks have had more than their share: now for migrant, jubilee debt and climate QE.