The title of the article may seem rather obvious. However there is good reason for it at this reflective time of year as we watch the banking industry refuse to lend to business at a level which will promote the growth of previous years  in the real economy and many are left wondering if increasing private sector tax revenues can possibly fill the hole left by Britain's ever expanding debt.

Squeezing business to pay for waste is an economic model doomed from the outset and that is what we face today. Unless we remove the shackles of tax from business and wealth generation in whatever form it may take and write off small business debt incurred by interest on loans, we are going to sink underneath the waves of debt lashing at our shores.


Talking the economy down is one thing but giving false hope when there is clearly little is just as irresponsible. Especially if expectations for businesses still seem to be based on pre-banking crisis type data but without the credit supply to reinforce the business model.

Couple this with not just an increase is VAT but also a clampdown on tax (and poor record keeping by HMRC) with exorbitant fines faced by small and medium sized businesses to maintain the public sector through taxation and it's no surprise that the incentive to succeed in wealth generation is left flat as a pancake.

The separate penalties for corporation tax, capital gains tax, income tax and VAT are a headache for the small business person and sole trader who must juggle this book keeping without, in many cases, the assistance which larger businesses get through being able to afford to employ someone solely to keep the books properly.

Most small businesses are only able to focus on the immediate problem of trying to remain solvent in these difficult times, good book keeping may not be the priority until it becomes too late and there is a knock on the door from HMRC.

On the subject of tax there is the increase in VAT which should see businesses squeezed even further by the tax man to yet again maintain "public services" or rather to prop up public waste and until this problem is addressed properly there will always be a drag on the UK economy.

But is it any wonder when the nation's finances are in such dire straits? Not when you consider that 77% of workers in Wales for example are funded by the public sector!

This is not sustainable.

So what about industry? Well, with such heavy focus on the construction industry for growth, which has been assisted by low interest rates and held up house prices, any raise in interest rates (of which we have had many recent warnings) will decimate any future growth within the one sector that has kept Britain in "growth".

Then there is the service sector and in particular the banking industry, which chooses to squeeze those indebted to it yet hand outs massive bonuses with the full backing of the law.

Let us not forget that up to 40% of mortgage holders may default this year, so will the lenders choose to take a non aggressive stance when it comes to debt and repossession? After all it is those they evict that have kept them in a job in the first place through the bailing out of banks.

The banks themselves are reported to be facing another wave of bailouts and considering the first wave was illegal and undemocratic in the first place we can only sit and pine over the Icelandic initiative where the country's finances are almost repaired.

So it would seem that the entire system is geared up against business with no politician brave enough to give us an alternative economic framework.

There is hope but only if we can default.

The reset button needs to be pressed, there is no other option. The next generation will not and should not pay for the mistakes of a few who continue to enjoy their privileges and are supported by the word of law written and influenced by themselves.

Pressing the reset button means the permanent writing off of just about all debt, sovereign and individual. A 'debt jubilee'. But if the reset button is pressed there is a real danger that the prudent will lose out. For every debtor paying interest there is an investor or saver receiving interest (with finance institutions in the middle of course). So they should be rewarded proportionately to the wealth write-offs and those who profit at the expense of the majority should be penalized proportionately.

This is called fairness, which is an alien concept to anyone who wants to maintain the current crumbling system at any cost (to others).

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