Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Liberal Democrats Punish Sheffield for Voting Labour By Scrapping ForgeMasters Loan

Local / Sheffield Jun 18, 2010 - 06:19 AM GMT

By: Nadeem_Walayat

Local

The Con-Dem government eager to implement a hit list of spending cuts that primarily target Labour area's of the country have started the ball rolling with £2 billion of cuts in planned projects which range from a new £450 million front line NHS hospital to an £80 million loan to Sheffield ForgeMasters that would have been the genesis for the development of a nuclear power industry in the cities steel sector.


The Liberal Democrats were smarting from having lost ground to Labour in the general election in Sheffield as they lost overall control of the city, as well as failing to gain the Sheffield Central seat, which made the scrapping of the loan to Forgemasters an easy option for the Liberal Democrats to announce.

Whilst the Con-Dem government's propaganda machine announced that the £80 million saved will go towards bridging the gap in the countries finances, however what the Liberal Democrats down played was that the monies would have been an interest bearing loan to Sheffield Forgemasters that would have been matched by private sector support of several hundreds of millions more so as to kick start the nuclear industry in the city as ForgeMasters installed new plant machinery to enable it to produce nuclear power plant components that would eventually have lead to the creation of several thousand high skilled jobs. Now all those future jobs, tax revenues and technological advancement have now been scrapped.

At the end of the day this was NOT government spending, but a repayable interest baring loan that had already fulfilled the Treasury's rigorous assessment criteria.

Nuclear power is going to play an important part in Britains energy future, instead of investing in an £80 million loan in Britains own nuclear industry, Britain will now buy nuclear power plant components from abroad.

Comments and Source:http://www.marketoracle.co.uk/Article20405.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-10 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 500 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Alfred Warschauer
20 Jun 10, 09:30
Your worst article ever

Nadeem

Sorry but this has got to be your worst article ever. If they have such a red hot business proposition, why do they need the government as an underpin? Please do not let any local affinities cloud your judgement. Britain would not be the place it is today if billions of £'s had not been pissed away on trying to prop up British Leyland, coal mines and shipyards etc. If the UK is going to get itself out this mess, it will not be with the help of HMG crowding out entrepreneurs getting access to capital that can provide proper jobs. I look forward to your comments about how unfair it is for the under 16's to be deprived of free access to swimming pools or better still free laptops for kids who live on sink estates.

regards

Alfie


Nadeem_Walayat
20 Jun 10, 10:59
Jobs

New Nuclear power plants costing tens of billions will be built, its just not by brits but french, chinese, americans ?

Free laptops is a great idea for those that live in sink estates.

Better to be tapping away on laptops then engaged in petty crime, a % of which will go on to start businesses or a career in computing.

Governments job should be to oil the economy in favour of the productive private sector, not fund a bankrupting public sector.

The loan to forge masters that has been around since the industrial revolution started was LOW RISK.

All business decisions are on the basis of risk vs reward, which in forge masters case the potential rewards far outweighed the risks.

The decision was political because Sheffield is a Labour city so the cuts are being targetted at areas that will be least costly to the tories and liberal democrats in terms of voter fallout.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in