Would a Labour Government be able to effectively redress Cameron’s follies and strengthen the UK’s status with Europe, the US, Russia and China? – John Gelmini

Ed Milliband MP speaking at the Labour Party c...

Ed Milliband MP speaking at the Labour Party conference. (Photo credit: Wikipedia)

Dr Alf poses a simple question to which the answer has to be “no!”

The Labour Party has already said that there is no new money and that it will follow George Osborne‘s spending plans.

Unless there are more exports, or they plan to borrow more money, there is no more money for defense.

An island nation spending beyond its means, with an army smaller than that of some banana republics, no coastal protection vessels and a tiny navy, cannot be taken seriously, whether it is under Cameron‘s watch or Miliband’s, assuming the latter became Prime Minister.

Lord West, an expert on navies and sea power, has said on Radio 4 that with just seventeen escort vessels, it is little short of a scandal.

Last week, 1000 soldiers were sacked and plans to replace them with reservists are nowhere near on track, nor credible.

Without a lot of spending on defense, a massive increase in exports to pay for things, we are effectively relegated to a passive role on the sidelines, unable to project military power or give anyone cause for pause.

The credible scenarios now are:

  1. Remain in the EU and contribute to a European Army
  2. Become a plug and play component of the US military
  3. Leave the EU, become neutral and become an offshore tax haven

Ed Miliband, if he lasts the distance, will not go for the third option, so the result will be one of the two, unless he plans to reintroduce National Service and introduce conscription, which the Army has said it does not want.

John Gelmini

Dr Alf’s Two Cents: Against Stupidity, The IMF Itself Contends In Vain – Paul Krugman – NYTimes.com

Europe Simulator

Europe Simulator (Photo credit: wigu)

This is an excellent MUST READ article from Paul Krugman, the Nobel Prize winning, liberal, economist, writing in his Op-Ed blog in the NYT. Check it out!

via Against Stupidity, The IMF Itself Contends In Vain – NYTimes.com.

As I read this article, a number of thoughts went through my mind. Firstly, I was saddened that President Obama did not have the strength to overrule the Republicans who were blocking using public finance to get Americans back to work.

Then my mind, raced to consider the same argument for both the UK and within the Eurozone in Europe.

In the case of the UK, David Cameron’s government does not face the same constraints that President Obama’s does in the US. The IMF recently proposed that the UK borrow an additional £10 billon this year and invest in quality infrastructure projects. This IMF proposal was quickly rejected by UK Chancellor George Osborne. However, Shadow Chancellor, Ed Balls has, this week, shrewdly adopted the proposal as a keystone to the Labour Party’s recovery program.

Moving to Continental Europe, the same argument is even more pressing. Additional public finance invested in quality infrastructure projects would kick-start economic growth in Southern Europe. Sadly, the troika of the IMF, the EC, and the IMF continue to squabble and fire-fight, going from crisis to crisis. Of course, the just like the Tea Party is blocking financing growth in the US, their soul-mates in Germany are doing the same in Europe.

Any thoughts?

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