Finally, he admits he’s ignorant

Richard Murphy says:
October 15 2015 at 6:47 am
Almost too tedious to argue this one

First, I called it Green Infrastructure Quantitative Easing in any case

Second, like most people in economics, I had not heard of OMFG when I wrote it

Overt monetary financing of government. Aka, debauching the currency.

And Ritchie actually admits that when he’s been thinking big thoughts about how to change the world he’s actually ignorant of the subject under discussion? Seriously, just never even heard of the multiple occasions when government has tried to finance itself by said debasement of the specie? Not even third century Rome, Henry VIII, Weimar, Hungary and the pengo?

None of them?

36 thoughts on “Finally, he admits he’s ignorant”

  1. Surely that came after he flounced out of his economics degree claiming that he alone provided more wisdom than the previous two centuries of economics theory – good to see him admit his stupidity but as the likes of Rob point out expect a blog in a month saying ‘of course everyone has heard of OMFG’ – he suffers from severe ADD and I think he is losing his short term memory….

  2. Edward, so did I. Must say though, that’s the most bestest, most appropriate economics acronym I ever did see.

  3. ‘I am doing a talk to sixth formers at lunchtime today. I enjoy these events. Young people have insights that I invariably enjoy hearing.’

    How strange. Captive audience of largely naiive people who have yet to feel the irritation of working for a living and then handing over some of their cash for wall pissing purposes, who are mostly easily baffled and imoressed by jargon, and if not are being watched by a beady eyed teacher… the ego massage involved in that must give him a semi.

  4. ‘One reason for going on the media is to challenge these MSM views

    So I went round studios yesterday…..’

    Well, yeah, that’s one reason, Rich.

  5. Dammit, Interested, beat me to it. The next line is lovely, though: ” I always hope they get value from what I say, but expect to get at least as much back”

    Is he arguing his knowledge is sub-sixth-form, or that he’s aiming to bring the down to that level?

  6. @NielsR it’s what we call a target rich environment.

    That’s a good point though – it’s hard to imagine an actual economist ‘learning’ anything from sixth formers. The only conceivable thing is one of them pointing out that his dad’s business is struggling with tax and red tape, at which point Richie’s response would be, with a thin, mirthless smile, ‘Your father is clearly a neofascist and you, candidly, are trolling.’

  7. It’s not true to suggest that OMFG necessarily “debauches” the currency. We’ve had had OMFG on an unprecedented scale over the last three years, and excess inflation is nowhere in sight. I say we’ve had OMFG in the last 3 years because fiscal stimulus (government borrows and spends) plus QE nets out to the same as OMFG.

    Clearly the currency is debauched if EXCESS OMFG takes place. But the right amount of OMFG brings full employment without excess inflation.

  8. You don’t need to know monetary theory to have been aware of the feasibility of OMFG. You only need to have been paying attention to the policy debates of the early 80s.
    Back then, the govt tried to reduce M3 growth by “over-funding” – selling more gilts than needed to finance the PSBR: this was negative OMFG. Until then, governments had from time to time done the opposite & sold fewer gilts – in effect OMFG. This old BEQB article describes this:
    http://www.bankofengland.co.uk/archive/Documents/historicpubs/qb/1984/qb84q4482492.pdf
    Economics isn’t just about long-winded theory; there’s also history.

  9. ” But the right amount of OMFG brings full employment without excess inflation.”

    But if one takes Smith’s ” the sole purpose of production is consumption”, there’s no reason to say that outcome is preferable. All economic policies favour some interests over other interests. So OMFG, like all initiatives, favours some interests at the expense of other interests. An absence of QE might have produced deflation which could have suited savers just fine. So there may have been an excess of inflation over what could have been.
    In other words, politics not economics.

  10. Bloke in Costa Rica

    “Young people have insights that I invariably enjoy hearing.”

    Young people are fucking idiots who have nothing of any substance to contribute to any discussion on any subject, ever. This, of course, is why the Left wants to give them the vote.

  11. @chris
    “Economics isn’t just about long-winded theory; there’s also history.”

    Very true, the history of creation of the Royal Mint is an object lesson in debasement and restoring confidence in a currency.

    I suspect this is him just using a “new” term for something well known as an excuse for not knowing or understanding something basic, not an uncommon deflection technique. Certainly I hadn’t come across omfg other than the more popular usage, but the idea of behind it isn’t new.

  12. BniC

    Absolutely agree 100% with your assessment of his technique. I think it was one of the other blokes (not Germany obviously!) who pointed out if you read TRUK you would see almost every type of fallacious argument employed there – usually several times over – and if you make the comment ‘so what they did in Zimbabwe and are doing in Venezuela?’ you’ll push the right buttons to provoke a block!

  13. “Surely that came after he flounced out of his economics degree claiming that he alone provided more wisdom than the previous two centuries of economics theory – good to see him admit his stupidity but as the likes of Rob point out expect a blog in a month saying ‘of course everyone has heard of OMFG’ – he suffers from severe ADD and I think he is losing his short term memory….”

    Screw the ADD, in a month he’ll be whipping out…

    People’s Green Transparent Country-By-Country Fair Tax Mark Quantitative Easing OMFG

    …And then he’ll claim he only just thought of it.

    Arnald’s probably whipping up some really bad folk music to set it to at this very moment so Corbyn can sing it at voters.

  14. Eileen is on top form.

    “For once I agree with you. I am sure you could learn much from sixth formers studying economics.”

    Whoever you are, take a bow.

  15. So Much For Subtlety

    Bloke in Costa Rica – “Young people are fucking idiots who have nothing of any substance to contribute to any discussion on any subject, ever. This, of course, is why the Left wants to give them the vote.”

    You, sir, are a credit to the great nation of Costa Rica. Or wherever.

    The Left, however, are not merely idiots. They are f**king dangerous idiots. The British government has just funded a legal conference in London. Supported by the Supreme Court (how I hate those little sh!ts who thought up that idea) and, of course, the United Nations. During which British lawyers have called for climate skepticism to be made illegal:

    http://www.telegraph.co.uk/comment/11924776/Judges-plan-to-outlaw-climate-change-denial.html

    The purpose of this strange get-together was outlined in a keynote speech (visible on YouTube) by Philippe Sands, a QC from Cherie Blair’s Matrix Chambers and professor of law at University College, London. Since it is now unlikely that the world will agree in Paris to a legally binding treaty to limit the rise in global temperatures to no more than 2 degrees C from pre-industrial levels, his theme was that it is now time for the courts to step in, to enforce this as worldwide law.

    Although his audience, Sands said, would agree that the scientific evidence for man-made climate change was “overwhelming”, there were still “scientifically qualified, knowledgeable and influential individuals” continuing to deny “the warming of the atmosphere, the melting of the ice and the rising of the seas”, and that this is all due to our emissions of CO2. The world’s courts, led by the International Court of Justice, said Sands, could play a vital role “in finally scotching these claims”.

    “The most important thing the courts could do,” he said, was to hold a top-level “finding of fact”, to settle these “scientific disputes” once and for all: so that it could then be made illegal for any government, corporation (or presumably individual scientist) ever to question the agreed “science” again. Furthermore, he went on, once “the scientific evidence” thus has the force of binding international law, it could be used to compel all governments to make “the emissions reductions that are needed”, including the phasing out of fossil fuels, to halt global warming in its tracks.

    Matrix have long since passed the point where nuking them from orbit is the sensible option.

    So no doubt these laws will be coming soon. I am sure Dave is right on it.

  16. I’m hopeful that another conference of heavyweight lawyers will recommend making anti-gravity boots denial illegal so I can fulfill a boyhood dream.

  17. ‘ever to question the agreed “science” again’

    Perhaps we can get some sixth formers to explain the scientific method to him, especially the point that you are supposed to question things.

  18. So Much For Subtlety

    Bloke not in Cymru – “Perhaps we can get some sixth formers to explain the scientific method to him, especially the point that you are supposed to question things.”

    AP is, apparently, going to stop referring to “climate deniers” which is nice, but also to “climate skeptics”.

    Apparently it has occurred to them what the opposite of a scientific skeptic is.

  19. Has anybody ever seen Sacha Baron Cohen and Richard Murphy in the same room as each other?

    It won’t be long before we discover that the former has been dressed up as the latter for the last few years as a wonderful and elaborate hoax on the Left.

  20. @Dennis the Peasant

    Where IS the Fair Tax Mark these days? I haven’t heard the Fair Murf Mark mention it for ages…..

  21. I’ve just had a thought.

    If ISIS is beaten, should we open our doors to former ISIS soldiers who will undoubtedly be fleeing for their lives from a war zone?

  22. So Much For Subtlety

    Andrew – “If ISIS is beaten, should we open our doors to former ISIS soldiers who will undoubtedly be fleeing for their lives from a war zone?”

    It has been Britain’s policy since the 1980s to give refuge to Islamist terrorists or their enablers. Who do, after all, have a well founded fear of persecution in their own countries.

    So I have no doubt the leaders of ISIS will end up gracing the pages of Comment is Free. Especially if they are so inept they manage to blow their own hands off building bombs.

  23. “Where IS the Fair Tax Mark these days? I haven’t heard the Fair Murf Mark mention it for ages…..”

    Another company was awarded it a week to two ago, and a Co-op a while before that.

    By my reckoning that makes over a dozen now, including the original ones, in about 18 months.

    If I remember correctly, the business plan assumed several hundred… I shall be interested to see the first set of accounts when they come out.

  24. “If I remember correctly, the business plan assumed several hundred”

    Their prospectus targeted 350 companies in the first 3 years although it said there was the possibility of significantly better performance.

  25. Andrew (As opposed to AndrewC)

    I have increasingly come around to the idea that the likes of ‘Jihadi John’ ought not only to be given aslyum but set loose amongst some of the universities where ideas like the ‘criminalisation’ of Climate scepticism are being touted – it might give them some idea of where restrictions on freedom of expression can eventually lead.

    As SMFS has said – ‘ISIS may well be greated as the lesser of two stupidities’ against militant political correctness.

  26. “Andrew (As opposed to AndrewC)”

    In one of those bendings of reality fit for the plot of the next Matrix film, I’m both. AndrewC at work and Andrew on the home lap top.

    Sometimes I respond to my own posts. And I don’t always agree with what I’ve said.

  27. “I have increasingly come around to the idea that the likes of ‘Jihadi John’ ought not only to be given aslyum but set loose amongst some of the universities where ideas like the ‘criminalisation’ of Climate scepticism are being touted – it might give them some idea of where restrictions on freedom of expression can eventually lead.”

    Todays students would see no problem in censoring anyone who might hurt their feelings or the feelings of a member of some protected group.
    ‘Jihadi John’ would be invited to explain why the actions of the vile, racist West forced him to behead those people and would be cheered to the rafters, while anyone expressing the mildest doubts about ‘climate change’ would be denounced as an enemy of humanity and chased off campus.
    The excellent Brendan O’Neill wrote about his recent experience here:

    http://blogs.new.spectator.co.uk/2015/10/why-are-students-now-cheering-about-the-massacre-at-charlie-hebdo/

  28. Jonathan

    I agree that would be their reaction if he were merely invited to speak – however, I am proposing he be allowed to go around beheading ‘Kuffars’ as he likes and videoing the experience on various university campuses free from prosecution.

    I am hoping the students of today are not so lemming-like they would meekly submit to be beheaded on the grounds of their gender, apostasy or sexual orientation but that is an interesting point you raise…..

  29. @VP

    ‘I am hoping the students of today are not so lemming-like they would meekly submit to be beheaded on the grounds of their gender, apostasy or sexual orientation’

    Do you know, I think a fair number of them would. There’s a certain glamour in martyrdom – otherwise people wouldn’t blow themselves up in support of an idea.

    I’m quite convinced that there are people in our universities who would consider it an honour to be beheaded for imagined western crimes against the rest of the world.

  30. Interested

    The terrifying thing is I think you are absolutely right, there are a large number of lemmings who would consider it an honour. We also need to look on the bright side – if Owen Jones or Richard Murphy is on the campus at the same time as ‘Jihadi John’ he might decide to recruit them for a video……

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