If you want to understand the EU Referendum then you have to understand this graph:
What is happening? Why is this absolutely enormous £100bn plus deficit a year between the UK and the EU important? What you are about to read is the most important analysis in the EU Referendum.
The EU has two major currencies, the Euro, used in the Eurozone, and the UK pound. The UK economy is performing better than the Eurozone economy and as a result Eurozone companies and investors are investing in the UK. This investment has an unusual effect because, as a member of the EU, the UK cannot control the flow of foreign exchange or the flow of labour between the UK and EU.
The profits made and rents taken by Eurozone companies in the UK can be sent back to the EU without any hindrance. Profits can be made in the UK without any payment of UK company tax, the tax being paid, if at all, in Germany, France, Holland etc.. The jobs created in the UK can be filled by EU citizens without any barrier. In other words much of the profit and jobs created in the UK do not benefit UK citizens. The Eurozone companies that invest in the UK can also ship supplies from their European bases and warehouses without difficulty, increasing the UK trade deficit (See Note 1).
This is a truly enormous trade deficit. It is not due to any failure by British exporters, it is due to the flood of Euros entering the UK.
The lack of unemployment in the UK means that the new jobs created by Eurozone investment simply suck in EU workers rather than raising our wages and the failure to spend profits made in the UK inside the UK means that these profits are not being used to expand the UK economy. We get low pay and overcrowding for nothing in return.
Our separate currency and economic policies mean that there is a huge imbalance in the EU which is leading to the flow of wealth out of the UK to the EU. All of the economic "benefit" for the UK predicted by those who want to remain in the EU is actually a benefit for the Eurozone. Any apparent UK GDP Growth in the calculations of those who support remaining in the EU benefits the EU rather than the UK.
The pan-European corporations like Airbus, Siemens, Easyjet, BMW etc. get a huge advantage from free movement of labour and capital, they can use the UK without giving its citizens any return in profits or enhanced wages.
If the UK remains in the EU the trading environment will only get worse. Furthermore the Eurozone is in the process of political union, Stage 2 beginning in 2017, so the EU will become an organisation with only two real members, the Eurozone and the UK. Eventually the Eurozone will have 90% of the votes which means it will control all the major decisions, including those that govern the internal affairs of the UK. There are no vetoes now on most decisions.
Eventually, If the UK remains in the EU, it will have to abandon the pound and join the Euro. It will then have the same economic policies as the rest of the EU and will gradually equilibrate as a region of the EU. If you vote Remain in the coming referendum be assured that you are voting for the termination of the UK as a self governing country.
(For full details see The Imbalance of UK-EU Trade and its Consequences).
Why do Corporations and Governments Support the Remain Case?
Pan-European Corporations like Easyjet, Siemens and BMW benefit hugely from the current split between the pound and Euro, they can use the laxer regulation in the UK to make profits that they ship back to Germany etc.
The Governments that support the EU consist of 26 Eurozone supporters and the USA. The USA supports the EU because they created it and because they have a huge interest in TTIP - the Transatlantic Trade and Investment Partnership - which is not a trade deal but a transatlantic, embryo Common Market that is designed to create a power bloc that can be controlled by US Corporations (See War on Want Editorial on TTIP).
The governments that support membership of the EU are all part of the Allied post war settlement and all act together. All of them will tell the British to get back in line. It is now 70 years since this settlement and these organisations are departing from their original purpose. They originally intended that states should cooperate, not that there should be a move to global government.
Many of those individuals who support remaining in the EU also do so because it appears to be "Left" and has sometimes taken decisions that they like. Be warned, the EU will swing Right, it is a Corporate enterprise and will take decisions that the Left will not like at all. Others really believe in Global Government without realising that the Corporate foundation of the EU is a recipe for a corrupt Global Government that, with no possibility of rescue from outside, could last a millennium.
Sadly the UK media are pan-European corporations or government controlled. This is why the dreadful Balance of Payments data has been suppressed. When you hear dire warnings about "Brexit" the warnings are actually about hurting the profits of pan-EU companies and damaging the dreams of EU politicians.
The suppression of the Balance of Payments data by the media is not all they suppress, the EU has announced that the Eurozone bloc will, within 9 years, use "unified representation of the euro area", so acting like a single country which controls 90% of the votes in the EU with no vetoes for the UK, effectively terminating UK self government. Have you seen this mentioned on the BBC?
This Referendum is a battle between the People of Britain and Corporations and overseas governments. Don't let them win.
Note 1: The trade and financial deficit is financed by inward investment. The UK is selling off its assets to finance Eurozone imports. Eurozone businesses in the UK that acquire these assets are like a Trojan Horse, once established they lead to an ever greater deficit and suck in ever more people.
27/4/16
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| Click here to see ONS original |
The EU has two major currencies, the Euro, used in the Eurozone, and the UK pound. The UK economy is performing better than the Eurozone economy and as a result Eurozone companies and investors are investing in the UK. This investment has an unusual effect because, as a member of the EU, the UK cannot control the flow of foreign exchange or the flow of labour between the UK and EU.
The profits made and rents taken by Eurozone companies in the UK can be sent back to the EU without any hindrance. Profits can be made in the UK without any payment of UK company tax, the tax being paid, if at all, in Germany, France, Holland etc.. The jobs created in the UK can be filled by EU citizens without any barrier. In other words much of the profit and jobs created in the UK do not benefit UK citizens. The Eurozone companies that invest in the UK can also ship supplies from their European bases and warehouses without difficulty, increasing the UK trade deficit (See Note 1).
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| UK Balance of Trade in Goods and Services |
The lack of unemployment in the UK means that the new jobs created by Eurozone investment simply suck in EU workers rather than raising our wages and the failure to spend profits made in the UK inside the UK means that these profits are not being used to expand the UK economy. We get low pay and overcrowding for nothing in return.
Our separate currency and economic policies mean that there is a huge imbalance in the EU which is leading to the flow of wealth out of the UK to the EU. All of the economic "benefit" for the UK predicted by those who want to remain in the EU is actually a benefit for the Eurozone. Any apparent UK GDP Growth in the calculations of those who support remaining in the EU benefits the EU rather than the UK.
The pan-European corporations like Airbus, Siemens, Easyjet, BMW etc. get a huge advantage from free movement of labour and capital, they can use the UK without giving its citizens any return in profits or enhanced wages.
If the UK remains in the EU the trading environment will only get worse. Furthermore the Eurozone is in the process of political union, Stage 2 beginning in 2017, so the EU will become an organisation with only two real members, the Eurozone and the UK. Eventually the Eurozone will have 90% of the votes which means it will control all the major decisions, including those that govern the internal affairs of the UK. There are no vetoes now on most decisions.
Eventually, If the UK remains in the EU, it will have to abandon the pound and join the Euro. It will then have the same economic policies as the rest of the EU and will gradually equilibrate as a region of the EU. If you vote Remain in the coming referendum be assured that you are voting for the termination of the UK as a self governing country.
(For full details see The Imbalance of UK-EU Trade and its Consequences).
Why do Corporations and Governments Support the Remain Case?
Pan-European Corporations like Easyjet, Siemens and BMW benefit hugely from the current split between the pound and Euro, they can use the laxer regulation in the UK to make profits that they ship back to Germany etc.
The Governments that support the EU consist of 26 Eurozone supporters and the USA. The USA supports the EU because they created it and because they have a huge interest in TTIP - the Transatlantic Trade and Investment Partnership - which is not a trade deal but a transatlantic, embryo Common Market that is designed to create a power bloc that can be controlled by US Corporations (See War on Want Editorial on TTIP).
The governments that support membership of the EU are all part of the Allied post war settlement and all act together. All of them will tell the British to get back in line. It is now 70 years since this settlement and these organisations are departing from their original purpose. They originally intended that states should cooperate, not that there should be a move to global government.
 |
| Not elected and running out of control |
Many of those individuals who support remaining in the EU also do so because it appears to be "Left" and has sometimes taken decisions that they like. Be warned, the EU will swing Right, it is a Corporate enterprise and will take decisions that the Left will not like at all. Others really believe in Global Government without realising that the Corporate foundation of the EU is a recipe for a corrupt Global Government that, with no possibility of rescue from outside, could last a millennium.
Sadly the UK media are pan-European corporations or government controlled. This is why the dreadful Balance of Payments data has been suppressed. When you hear dire warnings about "Brexit" the warnings are actually about hurting the profits of pan-EU companies and damaging the dreams of EU politicians.
The suppression of the Balance of Payments data by the media is not all they suppress, the EU has announced that the Eurozone bloc will, within 9 years, use "unified representation of the euro area", so acting like a single country which controls 90% of the votes in the EU with no vetoes for the UK, effectively terminating UK self government. Have you seen this mentioned on the BBC?
This Referendum is a battle between the People of Britain and Corporations and overseas governments. Don't let them win.
Note 1: The trade and financial deficit is financed by inward investment. The UK is selling off its assets to finance Eurozone imports. Eurozone businesses in the UK that acquire these assets are like a Trojan Horse, once established they lead to an ever greater deficit and suck in ever more people.
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| EU Workers in the UK |
27/4/16
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Andrew