Asian immigration (Photo credit: Wikipedia)
Like Dr Alf, I wonder.
QE, which basically means the electronic equivalent of printing more money, can have good short term effects but in the long run it means that the value of the currency being “quantitatively eased” will fall.
For a short time, people in the City and bourses around the world can make a killing and lower down the food chain exporters find it easier to export and jobs can be created by producing and shipping those goods.
Countries with competitive underlying economies and companies run by people interested in exporting therefore do well out of QE but countries like the UK which once had a fine exporting mindset and is now populated by risk averse directors interested in lining their own pockets and taking few risks gains little from QE as the benefits get squandered on creating housing bubbles which are flash in the pan.
We now hear that after $3.7 trillion USD,s worth of QE the process has been stopped in America because to have continued would render the US dollar about as valuable as the Zimbabwean currency and the images that Germans are brought up to fear of wheelbarrow loads of cash being taken to the shops to buy little more than a day’s food.
With Europe, QE could still be a remedy of a time limited nature but in its absence there has to be a concerted, messianic effort to export things and get the less academically inclined to go into business for themselves and start new lives abroad in places like Brazil which have the space and populations of similar heritage.
The Chinese are already doing this with their “Go Out and Bring Back In ” policy whereby their non academically qualified people are encouraged to go abroad, set up businesses, stay abroad and send money back home to support elderly relatives left behind.
Europe needs to follow that example whereby young Portuguese and Spanish people who would otherwise be unemployed in their own countries should go to Brazil, Argentina and Uruguay plus perhaps Chile, young Italians might be sent to Argentina.
Young unemployed Britons are, in their present form, largely unexportable because they lack language skills and the motivation to thrive in a new, alien and challenging environment.
Like the horses owned by landowners during the First World War they must be “brought into condition” prior to being sent overseas.
Then, after that, they must be encouraged to leave through modern arrangements modeled on the old “Assisted Passage Scheme” Harold MacMillan and the Australian Government dreamed up as a solution to too many people in the UK during the 1950s.