The typical thinking in Governments and central banks when it comes to current monetary and fiscal policy can be summarized as:

• fiscal deficit spending is needed to avoid recession, and kickstart investment, growth and economic activity;
• lower interest rates are needed to stimulate borrowing and spending by consumers;
• economies need inflation; persistent low inflation or even deflation is to be avoided.

That this groupthink continues to dominate even after years of practical experience to the contrary, is amazing in itself. More seriously, it is very damaging for our economies and will make economic recovery and future growth delayed and harder. Continue reading →

Is it just me? Or have others noticed it, too? The number of articles written about climate change and published in the trade magazines and professional journals follow a common language and structure. Almost invariably, the articles will begin along the following lines: “The risks of climate change are becoming increasingly well-known.” Then, there will usually be reference to some global body, such as the UN, the World Economic Forum, the World Bank and of-course the IPCC. This part of the article could say: “[insert name of global body] believes that the world’s climate is at a tipping point and any further delays in action risk catastrophic damage to the planet.” Then, there is reference made to global commitment to action, taken from the most recent gabfest: “Fortunately, real agreement and commitment to action to halt the extent of global warming and transition away from a carbon-based economy is emerging. Leaders at the [name of summit] signed on to a new set of carbon-reduction targets by 20[xx].” Continue reading →

With the British referendum on withdrawal from the European Union now complete and the issue has been settled in favour of leaving, it is vital that the Government moves quickly to avoid any perception of a political crisis. There could be continuing unpleasantness given that the whole debate became emotional and base. Prime Minister Cameron obviously had to resign. He has stated that his resignation will be effective no later than October 2016. I think he should go sooner. The same applies to the Chancellor of the Exchequer. It is not possible for either of them to continue in their current offices.

Continue reading →

Ordinarily, I would expect that a Government decision to introduce taxes on the proceeds of a superannuation fund payment to the dependants of a recently deceased person, would be considered a type of death duty. The imposition of that tax would then be considered the imposition of death duties. Call me old-fashioned.

Our current Government, in its budget night announced proposals, introduced death duties. Continue reading →