Dirty Ugly Lies

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My £1 Million challenge continues this month after last month's general election caused a bit of a hiccup on the markets.

I managed to make a modest £630.82 for June, my worst month so far.

The markets don't like the fact there is a chance Jeremy Corbyn may get in power. It's a long shot currently, but the Conservatives have managed to shoot themselves in the foot so many times I'm amazed they're still able to walk.

So a mixture of a terrible campaign from them, some blatant social media lying sent around the UK by Labour's support network and Jeremy Corbyn promising the young voters of free University education prevented the Tories from gaining the majority they needed. But only just.

Cue Corbyn parading around the UK like he'd won the election, informing his supporters to take to the streets to demand that he gets in power and keep demanding and abusing everyone until they get their way. Apparently Jeremy Corbyn believes in democracy, but not when it goes against him.

Aside from the dirty lies of his campaign, the real worry is about the economy and the handling of Brexit if Corbyn was ever to get in power.

This is why the market is so jittery. The market is a good indicator of what is going to happen next and it knows that a Government run by an extremist is not good for the economy as a whole.

The Economy Under Corbyn

The market knows that offering free University education will cost at least £100 billion to fund and they won't have the funds to pay it.

Corbyn believes that by taxing the rich in excess of 60% income tax he will get the necessary funds. Sensible economists disagree. The rich, especially the super rich, will go elsewhere and take all the tax they currently pay with them. They will also take all the money they spend in the economy with them. The ones that stay will spend less in the economy and work less, therefore paying less. Why would you work your heart out in order to pay the government 60 pence for every pound you make? 

So, he will go after businesses and tax them from every angle he can think of. This will cause many of them to reduce costs. The best way to reduce costs? Cut staff levels. So unemployment will rise. Many ordinary low wage workers will be the first to go. They won't be able to pay their rents or mortgages and will lose their homes. 

Some businesses will fold, adding more unemployed to the numbers.

There's no money to pay for education, the uncapped immigration levels are bringing more people into the country without any work for them. Unemployment is rising. These new members of the population and the newly unemployed see their health deteriorate and the NHS is at breaking point due to the overwhelming demand. It's a numbers game after all.

There are too many children in classrooms, but the money's all gone and no more schools can be built. People are queuing an hour every morning in London just to get on their train to work. Many decide to drive instead leading to road blocks lasting hours every morning and evening.

Now, what will Corbyn do next?

Does he pull the rug under all the students that have taken up their University places and inform them of the thousands of pounds they now owe the Government?

Or does he raise income tax, council tax and VAT on the sitting ducks? Namely the lower middle class and working class. Or does he do both? Because the reality will suggest he does.

You see he knows they can't escape as easily as the super rich. They're stuck to deal with the mess and they've got no choice.

So when their tax levels start to creep towards 60% is when the not so nice stuff really hits the fan.

The market has seen all this in it's crystal ball and the market is very nervous.

Brexit caused a bit of panic for the short term, but it realised a sensible exit could actually enhance their prospects in the long term.

But a Corbyn led government could lead to the collapse of the UK economy and it certainly won't be the rich who end up paying for it. Just ask the people of Venezuela.

Some are saying he won't get in power and that the UK isn't that foolish. But then they said that about Donald Trump in the USA. I'm not so sure.

I'm on alert over the coming year and I'll be doing everything I can to make sure my earnings mostly remain tax free.

Good luck to the rest of you.

Mark

Daddyworksathome.com

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