I felt like a spy for the other side

Hi Julie,

I didn't see you at the Urban Hub event but I know that the organisers, Centre for Cities, have a reputation for stimulating debate, rather than telling parties what they want to hear - it sounds like you gave them exactly what they wanted!

I think your argument is weakened, however, by the fact that two of the three organisations you mention are publicly funded, and the CEO of the third formerly ran an organisation bootstrapped by the public sector.

I think we need to move the debate on from the old public sector too big / too small argument. What matters is intelligent investment. If public sector money can help generate individuals with the vision and drive of NACUE's Victoria Lennox - whose organisation will repay any public investment one hundred fold in eventual tax returns - we need more of it.

On the other hand, sometimes the public sector can be like a friendly elephant. It can kill you without even noticing. It needs to know when to grow and when to shrink - not dependent on which party is in charge, but on what is best for the situation; when public seed money will generate returns to the exchequer, and when it is squashing competition.

PS Love your blog - good to hear an entrepreneur putting her mouth where her money is

Hi Julie -

Thanks for taking part in our Urban Hub debate - your first fringe event! Hope it didn't freak you out too much. I was really pleased you could join us on the panel, and liked your "real entrepreneur" perspective. Would be great to include you in another one of our events some time.

Here's my blog on the event - I focused on the comments about Regional Development Agencies - http://centreforcities.typepad...-rdas.html

PS will check out the Fredericks Foundation - sounds good

Oh, and thanks John for the plug!

All the best, Dermot

There will be no new significant job creation in the private sector for a while. Western governments will ultimately have to down size resulting more unemployment or continue to print money to hold back economic depression. Assuming that the private sector will suckup market share from the public sector is far fetched. What is in question is genuine end user demand, period! Economic depressions are a necessary component of capitalism, and infact realists like me actually look forward to such regressionary events as it is crystal clear that nothing has really changed from a macro social economic standpoint.

Look back to the Roman Empire, The British Empire and now the American global footprint ; These three vehicles were designed to secure resources for the few at the expense of the majority. The only difference now is that these resource sucking vehicles no longer have any idea what their ultimate goals are due to the effects of globalisation, enhanced by improved communication technology now available to more and more people. Gone are the days of governments abilities to create distractions in foreign territories by starting wars in a view to enhance percieved value back home.

Isn't it obvious, that if the banks are unwilling to lend to the SME sector even though they have recapitalised off the back of direct tax payer cash injections, that private equity investors would be crazy to put their money or their wealth on the line! This is not the time to bet against the trend! This certainly not the time to be brave!

So what has changed?...nothing really, what you should be asking is what is changing? Well, here's my take, historically 20 percent have held 80 percent of the world resources and wealth, this 20 : 80 phenomenon is rupturing at an ever increasing rate. Global money / wealth flow is accelerating at a rate where it is now unstoppable. No governement market manipulation / intervention can stop this bleed from rupturing, that is unless we have another world war!

How can entrepreneurs, businessmen and business women benefit? Investing in businesses located in western economies, such as Europe, The UK and even the USA would be a bad move simply due to the fact that these economies are sustained on the dependency of artificial reflationary moves by their governments, now this money printing cannot go on forever as this ME policy can only cause huge dilutions to all asset valuations, besides this, taxes and levels of red tape have to rise to pay for the ever increasing extended government debt....this is clear to see in currency markets...the US Dollar is set to ultimately collapse, the GB Pound will also buckle in the process...holders of US treasuries will liquidate their holdings as the US will be technically bankrupt as a result of being unable to pay the interest to its debt holders without printing more money...its a vicious carousel, but thats how capitalism works!...So where's the upside in all of this doom?...

Well like I said nothings really changed for centuries when you look at it from a macro social standpoint, human nature has not changed one bit!, it certainly won't be the end of the world if the US dollar collapses as capitalists will move on to greener pastures...This upside will be the real asset grab...Sell all western governments bonds and buy exposure to commodities such as GOLD, OIL, The INDUSTRIAL METALS; Food prices are set to soar, buy all soft commodities... I certainly wouldn't buy private equity as it is so illiquid. The current economic environment presents too much risk, poor private equity investments are likely to be put to sleep by government red tape.

It is more important now than ever before for individuals along with business people to take direct control of thier financial destiny. You can't rely on your governments...whether its Labour or Conservative makes really no difference as when you dig deep enough you realise that they are the same but with different name badges. It's not sensible to get caught up in political drivel. I'd rather live under the leadership of President Barrack Obama who seems more grounded than any other political leader in the world today.

Globalised Capitalism is the real movement in play, the middle classes are nearly extinct!,....this 20 : 80 ratio is breaking down not in the favour of Europe, the UK or the USA!......don't wait for change, make a change now....its time to cash in!