So I have been thinking about this. QE has been incredibly good for asset prices - but at its heart its an attempt by central banks to send capital away - and to devalue its currency.
So when I say pro-capital policies, I should really say pro-corporates (as QE policies meant deposits got a low to negative return, we probably not call …
So I have been thinking about this. QE has been incredibly good for asset prices - but at its heart its an attempt by central banks to send capital away - and to devalue its currency.
So when I say pro-capital policies, I should really say pro-corporates (as QE policies meant deposits got a low to negative return, we probably not call them pro-capital). Now policy wants rising consumer power, you want a strong currency - so higher interest rates, and also higher taxes to pay for the pro-labour policies. So in UK, cutting taxes led to a weak currency in the most recent mini-budget.
Brexit may be good for the UK in the long run - but they have to renegotiate all the trade deals they were already part of before leaving the EU, and do it from a weaker negotiating position....
So I have been thinking about this. QE has been incredibly good for asset prices - but at its heart its an attempt by central banks to send capital away - and to devalue its currency.
So when I say pro-capital policies, I should really say pro-corporates (as QE policies meant deposits got a low to negative return, we probably not call them pro-capital). Now policy wants rising consumer power, you want a strong currency - so higher interest rates, and also higher taxes to pay for the pro-labour policies. So in UK, cutting taxes led to a weak currency in the most recent mini-budget.
Brexit may be good for the UK in the long run - but they have to renegotiate all the trade deals they were already part of before leaving the EU, and do it from a weaker negotiating position....