[GLLUG] Will the sale of ARM Holdings be blocked by the UK government?
marcusjharriott at yahoo.co.uk
Tue Jul 19 10:33:00 UTC 2016
As well as a government budget deficit of around 5 pc ( the difference
between what the govt earns and what is spends currently around £133bn
pa and which the government covers by issuing debt - currently £1.7
TRILLION) the UK runs a current account deficit. In Q3 2015 this hit a
record 7pc. This is when we the people spend more on foreign goods
than we sell stuff abroad. This difference must be financed by cash
flows inwards such as FDI (foreign direct investment) , loans and
portfolio investment (buying shares). The government proclaims that
this is vote of confidence in our country and this is undoubtedly true
but there is a big difference between sending in £1bn into the country
to build a car factory in Sunderland and selling off a job and cash
yielding asset (like ARMH). Its a bit like selling 5pc off the value
of your roof each quarter and saying how well everything is going...
Please note that the govt revunue figure is much worse than the £133bn
p.a. (including interest - which the government mysteriously does not
include..) . Because the govt constantly sells off its land ( e.g old
airfields for housing estates) and books this as income ( and not as a
decrease in capital assets)
Also the government particularly at lower levels, cuts back on
repairs and renewals (e.g. road repairs in order to continue making
payments such as salaries pensions and benefits. This could be another
Pensions are also underfunded or (in most cases) UNfunded and this
amounts to an unknowable amount but likely around 2.5pc of GDP
Altogether the amount of capital that the current country is bleeding
could be 30pc of GDP pa and getting worse...... Around 50pc of the
value of the FOOTSIE is now foreign owned....
Most of it is not stated by government on a GAAP balance sheet (which
companies are required to do to stop fraud) - because the facts would
Meanwhile the tax base ( the fund of all companies which provide
revenues is falling as overtaxed Brits 'sell' what is left and go to
live in Switzerland and Singapore. taking their cash with them.
None of this is political..... its mathematics....
ARMH will probably be purchased through Ireland and Singapore so that
no UK tax is paid ever again. Might the chinese strip out the IP
value?? Now we are getting political....
> On 19/07/16 08:42, Christopher Hunter via GLLUG wrote:
>> As a shareholder, I'm certainly FOR the deal. As a British
>> citizen, I'm
>> also for it - the incoming investment will grow the company
>> significantly and allow them to hire more real talent.
> I wonder what the last foreign company Britain purchased was? I
> wonder what the last UK company that a British consortium purchased
> We're just seeing the Woolworth's syndrome all over again. Everyone
> laments its situation but nobody wants to put their hands in their
> pocket for it.
> Peter Cannon
> IRC: dick_turpin @ freenode.net
> Podcast: http://tdtrs.co.uk
> "Be who you are and say what you feel because those who mind don't
> matter and those who matter don't mind."
> GLLUG mailing list
> GLLUG at mailman.lug.org.uk
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