The second key assumption is that whatever happens in the future the government will do no more QE, even though the report admits that one third of all government debt is now owned by the government and that the debt in question has, effectively, been cancelled.
It hasn’t been cancelled. The BoE is actively discussing when it is going to stop replacing it as it matures. That is, when it will reverse QE. The asnwer being, of course, when they think it is going to cause inflation not to do so. The only alternative, at that point, to reversing QE would be raising taxes. You know, to stop the inflation.
He really is incapable of seeing things in the round, isn’t he?