3 thoughts on “What Jeremy Corbyn doesn’t know about government debt”

  1. Posted 07/06/2017 at 15:59 | Permalink

    This is the world of Argentina and Venezuela. Which Corbyn loves uncritically. Ruin credit rating, hyperinflation, failing public services because of no reinvestment, keep prices low to get the populist vote and give pensioners a cheap life. Corbyn has been in Caracas and La Habana and never understood any financial reality. He probably does not understand that Pinochet saved Chile from this. Thatcher did understand.QED

  2. Posted 16/06/2017 at 14:30 | Permalink

    “When a foreigner buys a UK business, all the expected future profits of the business come into the UK in the purchase price.”

    ALL the expected profits? Really? What’s in it for the buyer?

  3. Posted 22/06/2017 at 09:18 | Permalink

    Ben.. The actual future profits… The buyer has paid up front based on the value of project value of the future profits… That money is paid here to the seller… The actual future profits generated leave to go to the overseas buyer…. If the future profits are higher than the projected future profit for which he paid a purchase price today, probably at a discount… Then the buyer would see the purchase as a success.. If the future profits fall he would effectively have made a loss in relation to purchase price… The potential risk is future performance… Which will have been factored into the pricing… Never the less the immediate purchase price funds stay in the UK

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