But if what you’re really saying is does this mean more tax the answer is no, it doesn’t. It means we will create more debt because the economy needs it. Just to keep pace with inflation we need to create about £50 billion of new debt a year to provide pensioners, banks and other savings institutions with the government debt that they need to keep the economy going.

Nope, he’s still not getting this difference between M0 and M4, is he?

And very rarely has any been repaid. And that’s a good thing. Because government debt is what underpins the value of our money. So repaying it cancels money.

So countries that don’t have any government debt don’t have any money then, yes?

12 thoughts on “Sigh”

  1. So he is saying that inflation exists without an expansion in the money supply. Sometimes people who go against the consensus are just wrong

  2. Walking out of his undergraduate economics course did him the power of good. Speaking of over-inflated buffoons No comment from DBC Reed on this – has his program failed potentially?

  3. “Diogenes

    Sometimes people who go against the consensus are just wrong”

    I think it was Carl Sagen who said something along the lines of; “Yes, they laughed at Copernicus but they also laughed at Bozo the Clown”.

    Spud ain’t no Copernicus.

  4. It was, indeed, the great Carl Sagan:

    The fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. They laughed at Columbus, they laughed at Fulton*, they laughed at the Wright brothers. But they also laughed at Bozo the Clown.

    * Robert Fulton – designer of the first practical steamboat and submarine

  5. Hong Kong runs a huge budget surplus – at the insistance of the Mainland. I’ve never noticed people struggling to buy things because there’s no money around.

  6. Norway runs a surplus.

    It does have debt though, around 30% GDP.

    Pretty sure their money works too.

  7. bloke in france

    Greece and Itally also run a surplus, although only a primary one.

    Puerto Rico went bust today.

  8. Noel Scoper: “So he’s either got too fat for it, or the missus really has chucked him in.”

    I was wondering this too, but surely he would start bad mouthing GPs if that was the case?

  9. When people moan about privatisation of the NHS, they always seem to forget that this large part of the NHS has been private for ages and creaming quite a lot from it too.

  10. Samuelbuca, it is not on to point out that certain people benefited hugely from the NHS – consultants and GPS. Those bastard fat cats were bribed by saint Aneurin for their own good

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