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Right. A small vision of the future. Debenhams has collapsed and has to sell as much of its stock and itself as it can to pay creditors. That’s what happens when firms go bust. Right now members of the public are frantically buying sale items at cut down prices
The public are doing so understandably. Bargains at this time of this year are very handy. But it is also behaviour that applies on a macro level. When large businesses outside of retain collapse, as they surely will due to the combination of Brexit and COVID, what happens then?
When large businesses go under, asserts are sold off at knock down prices to vulture capitalists. These people specialise in buying vast stocks, buildings, vehicles. It’s alike a house clearance when someone dies and you get £200 for the entire contents of your gran’s house.
These people then sell the assets on at a higher price, usually overseas investors buy property and high value materials that sustain value and the original firm’s competitors buy up pieces of the former business to consolidate their own.
So what is the bag whitening on about all this for? Well if there is no deal With the EU, watch this space in 2021 when the cold dark grip of Brexit forces many many more firms into collapse as they are unable to compete with overseas competition because of tariffs.
Tariffs between us and the EU but free trade agreements between us and mass production economies who then have tariff free access to U.K. customers for clothing, food etc. This is a race to the bottom and forces U.K. business down and it is precisely what the hard brexiters want.
Why? Well two reasons really. First it causes the economy down and the value of its currency. The currency speculators know this and buy up foreign currency in advance. The hedge funders love this upheaval and make fortunes, just as they did the night of the Brexit vote.
You can spot people who are, or who have friends who are, money marketeers because they are those who spout a myth about post no deal prosperity while at the same time moving their assets overseas eg moving their business to Dublin or who advise on moving assets to the EU.
Tory MPs and cabinet ministers have been doing this from the start and they are easily identifiable as hard Brexit backers. Add into this equation the introduction of overseas asset tax reforms in the EU coming in February and you can see why they are so keen.
Second, the vulture capitalists, by far the most populous of Tory party donors, will pick over the bones of collapsed U.K. firms like scavengers picking over the corpses of companies that used to employ hundreds of thousands of British workers. Workers discarded like dry bones.
To me Brexit is a license to print money for the already rich and the greatest con of all, is that using xenophobia and let’s face it racism, they persuaded the poor to vote for it.
The U.K. fire sale has begun. Spreading public money around friends through PPE contracts illustrates the behaviour. The U.K. is the slowest wildebeest at the back of the herd. Waiting for the scavengers to take it down and strip it bare.
This is what Brexit is really about.
This is what Brexit is really about.
Why are the arch brexiters nervous? Well it’s so close. And the person in charge was originally pro-European but who jumped onto the Brexit bandwagon for personal promotion then crapped himself when he won. Now he is in a game of chicken and they are terrified he will blink first
This is not new. This is Toryism. It is about a Darwinian model of economics. It’s an “I’m alright Jack” model which perpetuates the myth of “trickle down” while in fact money flows freely up. Brexit is a tsunami up.
Now I need coffee.
Now I need coffee.
