Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "Where does an extra £80 billion for defence come from?" video.

  1. 1. When the US spends 5% on defence... Well, it's good to lead by example isn't it? 2. I came across a suggestion from Matthias Matthijs and Mark Blyth in an article they wrote for the US journal Foreign Affairs in July 2024. They argue that the UK government could expand its fiscal space by instructing the Bank of England to stop paying interest on commercial bank reserves. Currently, high interest rates incentivize banks to hold reserves rather than invest in the real economy, allowing them to earn an estimated $286 billion (£221.37 billion) in interest by 2033. With that, Labour would not have had to abandon its green investment plans costing $35 billion annually, highlighting the disparity between government spending constraints and central bank payouts to banks. They also claim ending interest payments on reserves would reduce long-term debt projections and facilitate investment at lower rates. The European Central Bank (ECB) has already adopted a similar policy, setting its rate at zero percent in September 2023, which allegedly had mixed results partly because of its immediate implementation, and partly because it passed on the costs of Quantitative Tightening onto the banks, which reduced their margins. But, is there a SMART way to save that money? What do you think? 3. If we don't defend what we have, we will lose it. Yet, there are many ways to do so, and the rebuilding of Britain's soft power is the cheapest place to start. Nework effects are force maximiserz. Therefore, if there's a political and strategic brain inside Starmer’s stodgy head, it had better start learning in the job and fast, because we haven't go time to waste. Starmer needs to find a pair and out Brexit out of its misery pdq. A bilateral customs union and removal of trade barriers would be the first plank wilding a bridge to the continent, and improving the quality of life of British people. He also needs to strengthen alliances ans security networks to, but also if defence spending has to increase, it doesn't have to focus solely on building up armed forces. It could focus in building up defence production, because Ukraine may need alternative suppliers sooner or later than the US. Investment in Cyber defence, and AI R & D is more important that boots on the ground. Money earners would be providing technical expertise to Ukraine in technology, reconstruction, and governance so it's productive capacity can be maximised whether or not it retains only de jure but not de facto control of all its territory for the time being. Upgrading the manufacturing of consumables, materiel, and spares for Ukrainian armaments would help. Financing is piliticised as, Russian frozen assets are being held by Europe, and whether they are added to the pot is a serious matter. But the ECB and the IMF could help with financing for Ukraine to pay for resupply. Boots on the ground is a long term goal, especially as we have labour shortages in Europe. And so on...
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