Of necessity, that means more public spending and borrowing and the rules Labour proposes serve that goal. The framework – a cap on public debt interest of 10% of GDP,

How in buggery does that work? We repudiate debt when interest rates rise?

18 thoughts on “Eh?”

  1. No need to repudiate, you just need to pay less for your borrowings so as your socialist policies shrink the economy, you reduce unilaterally the rate of interest you pay on your existing debt.

    You probably try at the same time to borrow more which reduces yet further the interest rate applicable to all of your debt.

    Roll up, roll up, all lenders. (Where day gone?)

  2. “We repudiate debt when interest rates rise?”
    Tim sorry we don’t know either. It would kind of make sense if Will’s starting assumption is we can only afford a max 10% of GDP in interest repayments and so there’s our cap. and wait let me just punch that into the old calculator. Ok here we go… we can only borrow so and so much money. That would be ok. but i stronly suspect he doesn’t mean that.. He means i make up some rules and the universe arranges itself accordingly so that we can spend what we want to spend and repay what we want to repay..

  3. I’ve yet to see an analysis by an MMT proponent that follows the logic that, if growing debt at or about the rate of GDP growth is fine, how they deal with taking money out of the economy in a recession when growth is negative.

  4. ‘build a capitalism that serves the common good’

    The man doesn’t know what capitalism is (Marx’s pejorative of free enterprise).

    ‘The CBI may represent British-based and British-owned capitalism’

    What does that even mean?

    ‘Our capitalism has fractured.’

    Translation: Our free enterprise has fractured. Whatever that means.

    ‘Given that capitalism’s universal supremacy is justified because it works, how can it be shaped better to deliver the common good?’

    It can’t. That’s the whole damn point. The answer is to leave the people alone.

    ‘Part of the answer lies in better and more public goods, tougher progressive taxation to address inequality and stronger social provision, all of which Labour is committed to.’

    The exact opposite of leaving the people alone. Hutton demands a cure for freedom.

    “Freedom works, so we must end it.”

  5. “The conversion of the Tory party into the Brexit party has robbed it of both an intellectual structure and its reliable association with the business mainstream. Brexit has stripped the party of its brain and left it with just a frame of mind – Europhobia. So when Carolyn Fairbairn, the director-general of the CBI, complains, as she did last week, that both parties now ignore business, it’s a statement of a new political economy. The CBI may represent British-based and British-owned capitalism, but it is judged no longer significant enough for the Tories to heed. Our capitalism has fractured.”

    The CBI are not “the business mainstream”. Find me a corner shop owner who is a member of the CBI, a personal trainer who is a member of the CBI, a small specialist software company who is a member of the CBI.

    The CBI are about lobbying for business, including the sort of business that robs people of wealth, like companies building government boondoggles.

    if government is ignoring the CBI, this is probably a good thing.

  6. Bloke on M4 – have met several small business owners at CBI meetings. Including corner shop owners. Not sure about personal trainers – not something I deal with so would not go looking for one at a meeting.
    The thing about groups is that they can attract people for multiple reasons.

  7. “Whatever you have belongs to us anyway so we’ll just take it as we please. Yes, we know that makes us thieves in your understanding, but you’ll be slaving in a gulag if you say the wrong thing so shut up and know your place.”

    There – I think I’ve covered the essentials of their argument.

  8. Isn’t there a well tested method of limiting debt interest payment to a particular percentage of GDP? Seem to remember government being quite successful at it in the 70s.

  9. How about limiting debt interest payment to what you owe?

    Interest RATES are set by the market.

    The Gamecock Solution?


    Hutton is off in a world where the laws of economics are just suggestions.

  10. I think it’s a good idea.

    Interest payments reach 10% of GDP, government can no longer borrow money at all until it is back below 10%.

    What’s not to like?
    It means the government must cut back and stop pissing it all up against the wall.

    Hang on, i just saw an airborne porcine go past…

  11. Some OT Eh?

    Sunday Humour

    How Wonderful – This will anger Left, PHE & Vegans

    Americans Try Greggs For The First Time

    Northern & Southern English People Swap Snacks

    Guy at end summed it up: “Beauty of this day and age is we can have anything we want”

    Well yes, but that ends if Corbyn elected; then it will be “We can have anything Gov’t deems necessary for All” what You want irrelevant

  12. Sunday Election Commentary

    I’m sure many feel same:

    Election Watch 17 Nov

    Tory HQ are not-so-quietly filling their candidature with an assortment of closet (a closet with a loose door) Remainer Spads, Spuds & Spivs

    Sadly Mr “Turncoat” Ecks refuses to admit or see this and goes silent when questioned

    The dilemma for Farage and all who want a clean-break Brexit

    For Johnson’s pledge not to extend the transition period is highly dubious. Any request for an extension to the transition has to be made by July 1. There’s next to no chance that the free trade deal with the EU will be concluded by then, nor by the end of next year. If negotiations have not concluded by the end of 2020 and Johnson sticks to his pledge, that means the UK will leave with no deal.

    Anyone believe Johnson will do that?

    I want Johnson to win, but with a small or no majority and be held to account by DUP, TBP & UKIP MPs

  13. Sunday “What to Read”

    The Nanny State on Tour – Mark Tovey, IEA, 60pg
    The fantastic innovations civil servants have made to transfer money from poor UK taxpayers to rich overseas embezzlers.

    ‘I am incredibly grateful to be the recipient of these wise investments,’ said Dr Fortune m’Bezzla, of the 419 Institute.

  14. There were some sensible things in that article but ,( I think) with the current low world wide interest rates that would imply a National debt or about 250% of GDP
    That is purest runny shit
    For most of my life you started to worry at about 40% and we are now charging up to 95% with the Blue Nazi Party I don`t believe anyone seriously thinks this is reality
    Its the sort of thing that means you think you must have missed something about the argument , its so absurd

  15. Alex
    “Interest level reaches the cap, government issues zero coupon bonds“

    And forces pension funds to “invest” in them.

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