How about some "Quantative Easing" for the MOD?
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Join Date: Dec 2006
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How about some "Quantative Easing" for the MOD?
Looking at the headlines in today's Daily Telegraph saying that according to Liam Fox we don't have the cash to maintain a balanced set of forces to defend the nation from all potential threats, the answer surely must be to target funds aimed at simulating the economy under QE, at MOD's equipment suppliers.
A few of billion £££s spent procuring the much needed kit we all need would help keep our national defence industries in business, maintain employment, possibly create a platform for overseas sales of defence "material" and creates economies of scale advantages to industry which all help to lower the unit cost of whetever is being made. This would also ease the strain on the defence budget, which we know is already over-stretched.
I don't know the sums, but for every £100 spent the govt will get back c. 20% in income tax, 5% in National Insurance, 20% in VAT, 24% corporation tax, Business rates ,not to mention the extra taxation burden we all have when we spend our hard-earned luca on petrol, fags and booze....
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When all is said and done, the net "leakage" to the taxpayer is likely to be less than 20% especially if there is a buy British slant given to where the money goes.....though I suspect that the EU bureaucracy in Brussels might frown on us doin that!
MB
A few of billion £££s spent procuring the much needed kit we all need would help keep our national defence industries in business, maintain employment, possibly create a platform for overseas sales of defence "material" and creates economies of scale advantages to industry which all help to lower the unit cost of whetever is being made. This would also ease the strain on the defence budget, which we know is already over-stretched.
I don't know the sums, but for every £100 spent the govt will get back c. 20% in income tax, 5% in National Insurance, 20% in VAT, 24% corporation tax, Business rates ,not to mention the extra taxation burden we all have when we spend our hard-earned luca on petrol, fags and booze....
.When all is said and done, the net "leakage" to the taxpayer is likely to be less than 20% especially if there is a buy British slant given to where the money goes.....though I suspect that the EU bureaucracy in Brussels might frown on us doin that!
MB
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How does QE for defence help bank liquidity? From now till 2014, banks are short to the tune of 390 Billion. When the special liquidity scheme ends, it will get worse.
QE is NOT there to spend at a whim. That after all, was what the LAST government did over the past 13 years and got us into this god almighty mess in the first place. I also dont think the bond vigilantes would like QE for government expenditure. Especially as Bob Mugabe did just that to fund the state and look where he has ended up...
QE is NOT there to spend at a whim. That after all, was what the LAST government did over the past 13 years and got us into this god almighty mess in the first place. I also dont think the bond vigilantes would like QE for government expenditure. Especially as Bob Mugabe did just that to fund the state and look where he has ended up...
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Procurement is so broken it needs to be put down in a humane manner. Too many people too focused on the wrong aspects for anything else to make a sufficient difference.
