Cameron says there is no alternative to austerity….This is complete nonsense – we can borrow money at 3% on international markets and then invest it in infrastructure which makes 6%, combined heat and power district heating,chpdh being one, then this will make us richer, employ people, take them of the dole and please the markets who will see for once we are doing something sensible, and therefore be willing to lend more money.
Obviously they will not want to lend us money to prop people up on the dole and or to buy more telly’s and cars which we cant afford.
Or am I being to simplistic.
09:42 (4 hours ago)
Of course there is an alternative..
The government could simply spend the necessary money (it costs nothing to create) on this infrastructure rather than buying gilts (the completely useless QE) and then get it back and retire it through taxing the production or use of the asset.
To do this is of course politically impossible as it would recognise that the existing financial system has robbed us blind for the last 300 years.
My approach is to cut out Treasury AND banks as middlemen, and enable direct investment by energy investors in the stream of energy savings through (say) ‘Gas Loans’. I have a major article coming out in the (Glasgow) Sunday Herald either this Sunday or next which covers all this.