Monopoly but with real money
Friday, 01 August 2008 11:01

The great wealth-creating businesses of the UK are being bought up at knock-down prices by foreigners and our labour government is doing nothing to prevent or regulate it. Soon there will be nothing left and we will see price hikes that will lower our living standards while foreign owners live in luxury on our money.

Gordon Brown and his government are presiding over a living disaster. As a nation we are paying huge amounts of money for oil and other natural resources to foreigners, we don't have a lot of choice about that, but even so the government is not taking any serious steps to reduce our dependence of foreign energy sources. Wheelbarrow loads of money are paid out every single day and much of it ends up in what are called 'Sovereign Wealth Funds'. Basically these are the vast stockpiles of money that oil-rich and other nations accumulate because they have so much money they don't know what to do with it.

So what do Sovereign Wealth Funds do with their money? The answer is that they buy up the best assests in other countries. In short they look at what are the best and most profitable organisations and then buy them up.

With the exception of Norway, Sovereign Wealth Funds are secretive organisations that don't tell anyone what they are doing.

The situation is like a game of Monopoly, but it's for real. If you have played that game you know that once a player gets into difficulties they have to sell or mortgage all their assets at ridiculously low prices, and the result is always the same - they go bankrupt and fall out of the game. That's exactly the position that the UK and many other countries are in.

We are paying out vast amounts for oil and other energy, then that money is being recycled back into our economy by buying up the best companies. That means that the profits are then exported and even worse, our workers are being told what to do by foreign bosses who have no real interest in the UK.

How did this happen?

What used to happen was that pension funds bought the most profitable companies' shares, which meant that you and I were would be supported (through our pensions) by these companies when we retired. Gordon Brown stopped pension funds from getting tax relief on investments so pension funds can no longer grow like they used to. This is the reason for the major switch away from final salary pensions to money purchase pensions. The result is that pension funds can no longer need to buy shares and similar investments in the same way. So our pensions will be less and the money that would have been paid to us is going to Sovereign Wealth Funds who then have even more money.

What is Gordon Brown and the government doing to stop the UK being sold too cheap?

Nothing!

While the companies that generate wealth are being bought up cheaply by Sovereign Wealth Funds the goverment is doing precisely nothing. Instead they are concerned about trivial matters, introducing more rules and regulations on the British population, spending more and taxing more.

We need action now, immediate measures to reduce energy consumption such as those taken in Spain, and a fundamental re-think about energy use. Houses need to be insulated to the highest standards without regard for complaints from builders and householders. Old style light-bulbs should be taxed at 200% while low-energy bulbs should be tax free. Any household appliances that are not A rated for energy consumption should have a special tax applied to them, A rated appliances should have greatly reduced tax. These things are not rocket science they are easy, sensible things yet Gordon and his cronies are more concerned with micro-managing our lives with surveillance cameras and id cards.

Gondon Brown has presided over a disaster and will not admit it, few people can see what is happening and it's too late to stop it.



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