"Last week Plaid Cymru announced a ‘Build for Wales’ project to create a new entity to invest in public infrastructure. In explaining what this innovative approach is expected to achieve, it is worthwhile to look at the context and background of the constraints to public sector investment in Wales.
Although housing is currently very expensive, it is generally considered desirable for people to aspire to own a house, for most the biggest capital investment they are ever likely to make. Because it would be impossible for all but the most extravagantly wealthy of individuals to purchase a house out of their current income, and because it would take a very long time to save up the money necessary to purchase a house, a mortgage market has developed which allows individuals to buy houses and live in them as they gradually pay off their debt over a number of years.
The situation of governments is not so terribly different. If they want to undertake large amounts of capital expenditure to invest in new schools, hospitals, roads and so on they must either use current income, save until they have enough money, or borrow the money over the years and repay as they use the facility."
from Madoc Batcups 21st March 2011 Politics and Policy
#housing, #industry, #PlaidCymru article Why we need to build for Wales.
My Own article building on Gordon Browns promise for a federated Pound Sterling.Bricks and Mortar a real right to buy from Home@ix
Benefits to Bricks , A Home@ix response to PM and Michael Gove . Proposing the; English, Scottish, Welsh, & Ulster Land pound .
"Boris mentioned this yesterday in PMQ's, will look at details. If Boris want to give the right to buy to Low Paid workers , he would get the Bank of England to establish a regional Mortgage Finance corporation ( Building Society, but not necessarily mutualised) The Bank would originate finance for Land purchases, construction finance and long term mortgages . The mortgages would be held by individual home owners in stead of for profit private landlords."
"A good way to deal with creating such a “State Bank” would be to implement Gordon Browns , Federalised Bank of England, Scotland, Wales and Ulster. This would scotch the Scots Nat’s, as per PMQ’s handbags between Boris and Ian Blackford, but would also stimulate activity at the end of the market that needs it."
Within that larger pure banking structure, the sorts of Bonds Home@ix is proposing and which Berkley homes floated last year
could be underwritten by the new federated land banks of England, Scotland, Wales, and Ulster. a sort of rentenmark solution
3. The Crisis IN AFFORDABLE HOUSING has been well known and increasingly acute since the Mid 1990’s. Provision of suitable housing has traditionally been through a mixture of Local Authority Provision, Private Landlords and Through Home ownership supported by Mortgage Society Home loans ( Mortgages) With the Liberalization of the UK housing market since the early 1980’s and light touch regulation of the finance sector the Financing of and distribution of types of housing has changed considerably.
4. Land use policy through the planning and regulation framework, Government policy and Regulation of Rent levels , financial firms and so forth , availability of land for development .Demand for accommodation near employment opportunities all present a myriad of dynamic variables which are often treated as discrete problems withing their own boundaries with different sets of Experts and Agendas all explaining their estimation of the problem often pulling if opposing and contradictory directions.
5. There are two broad categories of Residential Property Homes for rental and Homes for Owner occupation. Rental homes for social housing provision exist as a fact of life for those without the means to become owner occupiers or as temporary longer term accommodation for people with a temporary need to be in a community for longer than a guest spell of time but shorter than justifying the costs of acquisition inherent in making a long term mortgage commitment.
6. Whether properties are built for Rent or for sale Finance plays a very large role in both funding development and providing long term mortgage finance
7. The Modern Property Market is based around the repayment of privately created debt money. This is distributed through the banking system Banking interests operate a cartel setting the terms and conditions for issuing fresh debt money short term for development and longer term for mortgages. This aspect of the Housing Market is usually looked at through the lens of Interest Rates and rarely with an appreciation of the Quantity of available credit being distributed by the Monopoly suppliers of that credit.
8. The system of Debt based Money creation and the System of Taxation operate in Tandem as set out in the Paper submitting evidence on tax policy to the Treasury Select committee on Tax Policy. “Legitimate government spending generally provides infrastructure, services and welfare payments to resident people and businesses. To benefit from this government spending, a person must own or rent a home or operate a business in the area. The monthly amount people pay to occupy their homes is set in the marketplace, based upon location and the value of natural, commercial and government amenities provided. Landlords charge monthly for these location amenities while home sellers charge a lump sum.”
9. Following the Financial Crisis of 2008 and the subsequent Sub Prime fall out the emphasis has been on Borrowers and their action s and motivations and not on the Lenders and the Dynamics surrounding Credit creation . This lacuna in analysis leads to a misdiagnosis of an affordability and allocation problem in The Housing market not a Supply Shortage
Chrematistics to Carbon Credits. The new Monetary System, The carbon credit “Gold Standard”
“What’s the good of Mercator’s North Poles and Equators,
Tropics, Zones, and Meridian Lines?”
So the Bellman would cry: and the crew would reply
“They are merely conventional signs!
Click to access lewis-convention1.pdf
(10) A medium of exchange–say, coin of the.realm–has its special
status by a convention among tradesmen to take it without question
in return for goods and services. Some conventional media are better
than others: bulky or perishable ones are bad; ones that would retain
some use if the convention collapsed are good–but the inconvenience
of accepting a bad medium of exchange is less than the inconvenience
of refusing it when others take it, or of taking What one can neither
use nor spend. Again, as in (4), there is the complication of legal
sanctions, Refusal to accept legal tender makes a debt legally unenforceable. But again, such sanctions are superflous if they agree with
convention, are outweighed if they go against it, are not decisive either
way, and therefore do not make our regularity any the less conventional.
I suppose we may safely define a medium of exchange as any good
SAMPLE CONVENTIONS I 49
that is conventionally accepted in some population in return for goods
and services. This definition raises an annoying question: is it right
to say that we have a convention to accept our media of exchange
in return for goods and services? It is false to say that our convention
is that we accept our media of exchange in return for goods and
services. For what follows “that” does not state any convention
because it is true, by definition, of any population. On the other hand,
it is true to say of our media of exchange that our convention is that
we accept them in return for goods and services. My question was
ambiguous. It can be read opaquely or transparently.6 It is like the
question whether Hegel knew that the number of planets is greater
than seven. He did not know that the number of planets is greater
than seven. But he did know, of the number of planets–namely
nine–that it is greater than seven
I have a meeting with Madoc tomorrow It seems we will have plenty to talk about.