I’m sorry, whut?

Richard Murphy says:
December 15 2017 at 11:30 am

There is no economic use for savings in the UK and we have a glut of them

I mean, but just, whut?

Household wealth (which is, obviously, equal to household savings and or investments) is around £10 trillion.

We’ve no economic use for all that?

21 comments on “I’m sorry, whut?

  1. So…. what conclusion does he draw from this?

    Confiscate them?

    Force them to be reinvested in one of his People’s Green Ponzi Schemes?

  2. abacab

    ‘You’ve got it in one’ – that is exactly the conclusion. Private wealth would be better employed by the state and therefore fiscal policy should be set to confiscate it.

    A monstrous philosophy….

  3. Whats the latest figure for household debt, including mortgages, and what net wealth figure results from that computation? I as under the impression that the low level of household savings v the high level of household debt gave serious cause for concern to those who know about such things. The man’s so mad even “Bomber” McDonnell has shown him the door.

  4. “we have a glut of them”

    Do we?

    I was under the impression that the savings rate in the UK was famously low, and has been for decades.

  5. Translation: A lot of people have got more money than me.

    I wonder if Dick Tater sends what money he has left over at the end of every month by cheque to HM Treasury?

  6. There is a thing called a savings glut.

    It does not involve thee & me having too much under our mattresses.

    It also not something we have suffered from in the UK recently.

    He’s heard or read the term and totally failed to understand it. He’s thicker than a whale omelette.

  7. The £10 trillion includes over £5 trillion of normal residential housing.

    But, a glut of savings? All savings has equivalent borrowings somewhere. Is he saying that all such equivalent debt has no economic use? That the whole system of credit / liquidity has no economic use?

    Checked for myself, and there is also this exchange:

    David says:

    “No economic use for savings”.. how about working for 40 odd years and saving so you can enjoy your retirement

    Richard Murphy says:

    That does not negate the fact that a) we have a glut of savings b) you hope you can live off those savings but actually that is only if the next generation consent to buy them

    But those borrowings already exist – via banks to corporates, mortgages etc? To be repaid in due course, as value is generated, offset by the retiree spending those savings / buying that value.

    He’s getting worse.

  8. ‘That does not negate the fact that a) we have a glut of savings b) you hope you can live off those savings but actually that is only if the next generation consent to buy them’

    Can someone explain the ‘consent to buy them’ bit?

    Also, the rest of the thread about French Earth Tax just shows his ignorance as the French have reduced it by 70% as people were leaving. He won’t accept this and is scrabbling around as usual.

    How can this fool be teaching economics

  9. bet he’s not getting rid of his savings or investing them in green technology. Very quick to accuse his detractors of trying to destroy the planet – but i see no solar panels on chez potato, nor no electric car. He flies to scotland when trying to sell his insane ideas to the porridge arabs – probably much easier to get a train from ely than catch a flight. No doubt when he travels to Brussels to crawl on his knees to solicit funds from the EU he also flies.
    The fucking hypocrite.

  10. @MAX “Can someone explain the ‘consent to buy them’ bit?”
    If you’ve invested in shares – maybe – cash on deposit i don’t think this applies. Remember – he’s an idiot. That’s all you need to know.

  11. @ Kevin Lohse

    Whats the latest figure for household debt, including mortgages, and what net wealth figure results from that computation?

    This is 2014 (go to Table C) – column J:

    https://www.ons.gov.uk/file?uri=/economy/nationalaccounts/uksectoraccounts/datasets/thenationalbalancesheetestimates/current/previous/v2/nationalbalancesheet2015tables1_tcm77-425494.xls

    This is 2016 (Table C again) with the format flipped (rows/columns) – Row 17:

    https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/datasets/thenationalbalancesheetestimates

    If you freeze window frames on the 2014 version (at C6), it’s very easy to see what’s going on within the whole economy, with the various offsets beteween different sectors, different savings versus different debts.

  12. 2016 looks to have made some effort to split out land from buildings (for houses). 2014 shows the obvious total of £5 trillion or so. Whereas for 2016 one has to add land to dwellings (to get to the 2014 comparable).

  13. “you hope you can live off those savings but actually that is only if the next generation consent to buy them”

    I have no idea what this is supposed to be but;

    Hope you can live – inflation?

    Consent to buy – at a guess, he’s might be thinking (?) that savings can’t possibly exist unless there is debt created against them, and that something, something, Japan, something.

    All in all, nasal sex.

  14. “you hope you can live off those savings but actually that is only if the next generation consent to buy them”

    Pensioner: Hello, I’d like to buy a loaf of bread, here’s a pound.
    Shopkeep: Sorry, no, I do not consent to buy that pound off you with this loaf of bread

    He really does think that savings are put in a big pile and abstracted from the world.

  15. Shopkeeper (in WGCE-world): “Is that an earnings pound or a savings pound? Pass it over here. I have my MurphoGlass(TM) which will tell me whether that pound is the product of legitimately taxed earnings or exploitative neo-liberal savings!”

    Or some equivalent bullshit.

  16. Earth = Wealth – doh!

    Hard to tell these days. “French Earth Tax” sounded perfectly plausible.

    “No economic use for savings”

    He hates the fact that you posess money. He also hates you for spending money, a.k.a. consumption. There is literally no level of savings/consumption which would satisfy him so don’t even bother trying, not that a sane person would even try.

  17. He really does think that savings are put in a big pile and are safe from being stolen and misused by the State/unions/other collectivists.

    Edited.

  18. moqifen: He flies to scotland when trying to sell his insane ideas to the porridge arabs.

    When off to North Britain to perform Natilingus¹ he needs to conserve his forces.
    ___
    1) From the Latin natis, -is (f), a buttock

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