Jersey's just published its latest figures on the state of its economy. The chart looks like this using constant 2003 prices:
That's four years of national economic decline in a row. That even makes George Osborne look good.
And finance is sinking. The result is the economic black hole I predicted in 2005 when looking at its proposal for the zero/ten tax regime that was meant to make the finance industry grow, and grow, and grow.
Which it hasn't, as is very clear.
Zero tax does not grow an economy. It can never grow an economy. Jersey's learning that the painful way.
And at real cost to the people of Jersey - who are now footing the £1 million bill to the States of Jersey to subsidise the finance industry in the island.
Odd isn't it that the so called free enterprise offshore financial services sector is so willing to take a state bail out, don't you think? Especially when the largess will change nothing - but keep them all going in champagne receptions and back slapping in the promotion of offshore abuse for just a little while longer.
I just wonder, when will they agree I was right?
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From the start it was predictable that Jersey, and the equally despicable Isle of Man and Guernsey, would not be able toviolate public decency for ever — and now thankfully the day of reckoning is fast approaching all three islands.
These islands led a champagne lifestyle at the expense of millions of ordinary, decent people.
Soon it will be the turn of the PSG to pop open the bubbly in applauding their demise.
But before any celebration please commiserate with the consequential victims of this grand fraud — the ordinary people of these islands who have been deceived, exploited and robbed by their own “government’s” traitorous connivance with the “financial services industry”.
All economies are sinking not just Jersey and all have blackholes. To suggest that Jersey’s 0/10 caused the black hole is asinine, when we are in the midst of a global economic slowdown.
Respectfully that’s not true
Jersey’s record is the worst in Europe
It’s an outlier
It’s much worse than the UK – especially under Labour
I guess they will put up their GST to plug the gaps or issue some Government debt.
Out of curiousity, why do you think that “Jersey’s record is the worst in Europe”?
Has anyone else had four years of decline?
It might be a little early to start celebrating. This sinking Jersey continues to have a GVA per capita of around £36,788 compared to the UK equivalent of around £20,322 per head in 2009/10. It has a very long way to sink before it will hit UK levels and the Jersey population are unlikely to rush to change a model that has given their island a lot more prosperity than the UK.
The predictable response of “Premier Shareholders Group” also overlooks the fact that the Isle of Man’s GVA per capita has increased over the last few years and now exceeds that of Jersey. The idea that “the day of reckoning is fast approaching all three islands” is wishful thinking.
Right now the graph of GVA for Jersey just looks cyclical with a very small downward trend, but I am sure many would argue that when you go through something that many people called the deepest global recession since the Great Depression you might expect a worse downturn than normal.
GVA includes profits artificially reallocated to Jersey
That’s a meaningless figure when the people of Jersey do not benefit
The predictable response of “Premier Shareholders Group” does not “overlook” the fact that the “economy” of the Isle of Man is based on fraud and deception — Stephen Harding the Attorney General and Colin Goodwin have recently been charged with a series of offences. Mr Harding faces a total of six including forgery and perjury. Mr Goodwin is charged with three offences, one jointly with Mr Harding, of acts against public justice.
There is nothing to be proud about an island that provides a secretive platform for financial shenanigans which cause wide spread suffering across the globe — and the time is fast approaching when its unsavoury government and its artificial regulatory authorities will face a day of reckoning.
The Isle of Man is indefensible by either debate or statistics.
I couldn’t possibly comment on such allegations because I believe in the concept of individuals being innocent until proven guilty in a court of law. However if the Isle of Man was quite so bad as you paint it I would suggest the case would never have come about in the first place.
A point I have acknowledged
We do not know the details of the case as yet
Itself a little odd
Nice piece of selective quoting there Michael, you seem to be using Jerseys GVA per capita as a shining example of success compared to Richard’s prediction of doom.
You failed to mention this which is included in the same report you quote from:
“As a result of this increase in the resident population and the real term decrease in GVA, Jersey’s real term GVA per capita was more than a fifth lower in 2011 than in 2000 (down by 22%).”
“Between 2000 and 2011, the real term GVA per capita of the UK increased by 12%.”
So, in the same period our GVA per capita has reduced at double the rate that the UKs has grown. Is that really worth shouting about Michael?
If Jersey’s GVA per capita falls in real terms by another 22% over the next 11 years and the UK’s grows by another 12% over the same period than Jersey’s GVA will still be around 26% higher than the UK equivalent. So this isn’t going to be an overnight change is it?
When places collapse it doesn’t go like that
As you would be wise to note
It’s interesting that Jersey statisticians use the term ‘value added’ to measure the output of an industry that is engaged in value destruction
I’ve often thought that those who use the term “value added” most often, have little concept of what ‘value’ actually means and usually interpret it as more profit for themselves
So much for your predictions about Jersey losing business and going bust then:
http://www.thisisjersey.com/business/2012/10/05/four-chinese-banks-to-open-jersey-branches/
JPG, did Geoff Cooks last prediction come true?
See here http://www.thisisjersey.com/news/2011/12/13/eurozone-crisis-may-be-good-news-say-finance-experts/
Oh no, it looks like it didn’t, December 2011 Geoff tells us all that the euro crisis would be good for Jersey business.
Seems like the latest stats have proven Geoff wrong.
If I was you JPG I’d start listening to Richard Murphy’s predictions, they have been proven to be more accurate than anything coming from Jersey Finance of the Jersey government in the last few years.
do you remember when Walker and Le Sueur said the zero ten blaxk hole would only be about £35 million way back in 2005? Richard said it would be nearer £100 million, guess who was right. Have a look at the Medium Term Financial plan and you will even see Ozouf agreeing that zero ten caused a £100 million black hole.
So then JPG let’s see in a years time how many chinese banks have opened in Jersey.