IslingtonTribune

The independent London newspaper

It’s rich when people who prefer us to remain in the EU predict economic apocalypse

02 February, 2018

• PAUL Lasok makes the claim that sound money is irrelevant when set against the problems posed by Brexit (Must people lose jobs so we can save on groceries, January 26).

He neglects to specify what those problems posed by Brexit are. It strikes me as rich when people who prefer us to remain in the EU predict economic apocalypse. For all the world they appear perfectly at ease with the misery and social destruction caused by the euro.

This will not change because the euro is a debased currency without a country. No country, no tax policy: an object lesson in poltroonery. Shameless and without regret or apology and our fate if we remain within the Parish Council of Europe.

The European Central Bank (ECB) has no option but to rely on monetary policy combining below-zero interest rates with unrelenting money creation. Good luck, savers. Massive monetary stimulus resulting in pitiful growth: truly the poison pill that forever prevents EU reform. The ECB is at the limit of this policy and cannot stretch the elastic further.

Donald Trump has wisely chosen the route of fiscal reform, with tax cuts which will cause billions of dollars to return to the US in return for a one-off payment of 15.5 per cent. Investment will increase and with it employment. Already, companies in the US have awarded bonus payments to employees as a share of the reduced taxes.

Meanwhile, the Federal Reserve is pursuing a policy of rate rises which will incentivise saving and beget more investment. What a contrast with the low-growth, no-hope, high unemployment eurozone.

Outside the customs union we will have lower food prices but not at the expense of our citizens. Post-referendum, we have the highest level of employment in 40 years, a booming stockmarket, a currency strengthening against the dollar and euro, and most reassuring of all a ticking-off from the IMF.

STEPHEN SOUTHAM
Mildmay Grove North, N1

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