Idiot Ritchie

The government no longer pays interest on this £375 billion of its borrowing, because to do so would mean that it would simply be paying interest to itself since the government gilts now belong to the Bank of England, which is in turn owned by the Government.

The gilts are still paying interest. Which the BoE turns over to the government as its profit. Sure, we can say that govt is thus paying interest to itself. But we cannot say that interest is no longer being paid.

Moron.

We reiterate: this whole process can be undertaken without creating new debt that will have to be repaid in future. It is instead paid for by creating new money, which is a total different process.

Sigh. The creation of new base money has costs.

Dim bulb.

9 thoughts on “Idiot Ritchie”

  1. Every pound (well £10 now thanks to Healey’s hyperinflatoin) that is printed (or created electronically) is a debt from the government/state to the holder.

  2. “We reiterate: this whole process can be undertaken without creating new debt that will have to be repaid in future. It is instead paid for by creating new money, which is a total different process.”

    If this were true, then there wouldn’t be any need to pay taxes at all, would there? The state could just be paid for in its entirety by printing new money.

    Ah but wait, then there would be no need for the HMRC and its employees or unions… hmm… need to rethink this one…

  3. @ agn

    I’ve asked him this question as well – if the government can magic up debt free money, with zero cost and zero downside, why hasn’t it done so already. Surely cutting tax to zero would somewhat of a vote winner…..

    He rather loses the plot at the very suggestion of no need for his beloved tax.

  4. It’s an exercise in futility getting him to try and understand anything that is (at least to his astonishingly arrogant mindset) so ‘trivial’ as basic economic theory. As Tyler says, the reaction is that you might get from a toddler whose toys you have removed. I’m guessing the purblind idiocy is why the Scots extended him the invite anyway – the SNP would seem to have swallowed his stupidity hook,line and sinker…

  5. Well interest is no longer being paid in any economically meaningful sense. If you wrote down a model, you could cancel those terms

  6. GlenDorran

    hilarious! What a profoundly stupid and unbelievably pompous windbag of an individual he is – have just, a couple of hours after breakfast, had the stomach to read through the whole thing. Nauseating doesn’t even begin to describe it – an apologist for evil and tyranny.

  7. I sneeze in threes

    Great, he must now agree government employees don’t pay income tax (in any meaningful way).

  8. “Creating new base money has costs” What costs?And how is base money different from any other money?What does it cost the commercial banks to create new money which we now all know from the BoE’s “Money Creation in the Modern Economy” accounts for over 9O% of it.

Leave a Reply

Your email address will not be published. Required fields are marked *