This is just great from Ritchie

We live in an era characterised by a confusing evolutionary dynamic relationship between financial innovation, the state and patterns of investment that we barely understand.

We don’t understand it, it’s all a mystery, therefore the government which knows nothing about it should plan it.

At the core of this conundrum is the little understood issue of shadow money. Shadow money is a promise to pay backed by high grade collateral, usually government bonds, which means that government debt now plays a key role in the stabilisation of the financial system.

No, no, it ain’t.

18 thoughts on “This is just great from Ritchie”

  1. Oh God, he’s read about something else he hasn’t heard of before, failed to understand it, got the wrong end of the stick and all excited, so he’s incorporated it into his economic worldview (MOAR TAXES!).

    Here we go again.

    There’ll be a flurry of posts about it for a few days, people will politely (or more politely than he deserves) point out that he’s got it wrong, then after a while he’ll find something else to get briefly obsessed about.

  2. Noel Scoper said:
    “Meanwhile, SSE has the only FTSE 100 Fair Tax Mark.”

    I use them and was thinking of changing supplier, but where I live is a pain to get to and I don’t use much, so it probably costs them more to service than they make on the supply.

  3. Richard,
    It doesn’t matter where you live. The pipes and infrastructure are maintained by National Grid Transco. Changing your supplier literally just changes the company name at the top of the bill, how quickly they answer the phone, and of course the price.

    That is unless you’re talking about the kind of gas which gets delivered to rural homes in large tanks; but that’s a completely different market.

  4. Andrew, I’m on ‘leccy only; too remote for gas (I get oil in a tanker). Is it the same principle for electricity, that the wires are maintained by a gridco irrespective of who my supplier is?

    At least it must be costing them to read the meter (no smart ones here), but I suppose that will still leave them a profit.

    Perhaps I should switch in protest.

  5. Bloke in North Dorset

    “(MOAR TAXES!).”

    Its worse than that, he wants “MOAR GUMINT” and with him behind the scenes pulling the levers.

    Even small, classically liberal, Governments would occasionally have to increase taxes.

  6. Tim

    The Comments in TRUK are usually the equivalent of used Weapons Grade plutonium but this one from the Mass Murder advocate Andrew Dickie is worth sharing:

    ‘First, I hope I won’t be thought big-headed to say that the solution you have proposed here bears similarities with something a posted here a while back (I cannot now find that post) concerning a “Progressive Front/Rainbow Coalition”, with a 2 year remit totally to reconstruct our Constitution, based on a year consulting on proposals to be put to a Referendum, followed by a year implementing those proposals, followed by a General Election carried out under that new system, all buttressed by a Fundamental Law Act, and with Caroline Lucas as PM – both to reward talent and integrity, and to exclude the “Casablanca syndrome” of “the usual suspects” from the established Parties.’

    Caroline Lucas as PM – even by his standards that is batshit crazy….

  7. This is also brilliant from his own blog- can anyone think of someone to whom this might apply:

    ‘He glories in his own ignorance and inconsistency.

    Truth is whatever he finds convenient.

    His policy ideas are ludicrous, where they are not horrifying.

    Yet his attitudes and ideas are less disturbing than his character:

    He is a narcissist, bully and spreader of conspiracy theories.

    It is frightening to consider how such a man would…..

    Murphy looks in the mirror perhaps?

  8. Richard

    You are right – I’d give the ‘Investment State’ about 6 weeks at the outside before he jumps on his next hobby horse. He seems to suffer from the same kind of ADHD one sees in Special Educational Needs Children. It’s really acutely embarrassing….

  9. At the core of this conundrum is the little understood issue of shadow money. Shadow money is a promise to pay backed by high grade collateral, usually government bonds, which means that government debt now plays a key role in the stabilisation of the financial system.

    Wow.

  10. We live in an era characterised by a confusing evolutionary dynamic relationship between financial innovation, the state and patterns of investment that we barely understand.

    The Murphatollah is writing like the worst type of academic.

    How can x be “characterised” by a changing relationship, y, “that we barely understand”. If we don’t understand something, then we cannot characterise it.

  11. Theo

    It might be pointing out the obvious to suggest that he is writing like the worst type of academic because that is what he is?

    I agree with your comment though!

  12. The Keith Fletcher? As opposed to any other Keith Fletcher. Of Essex and England? Makes a change from porn starts I suppose.. I found the IAFD (iafd.com) a great resource. for psudonyms. I may now switch to Wisden and Cricinfo.

  13. Such innocence!

    Keith Feltcher says:
    May 18 2016 at 12:01 pm
    he has a point! Venezuala’s illusory wealth derives from ecocide and money ultimately from big corporations. If the revolution is to be saved it has to invest in its true resource – the Venezualan masses.

    Keith Fletcher says:
    May 18 2016 at 3:47 pm
    Schoolboy humour again?
    If you’re going to impersonate me then at least learn to spell my name!

    Richard Murphy says:
    May 18 2016 at 5:49 pm
    I am lost as to what this is about: sorry

  14. If Murphy has ADD, then this blog is full of full spectrum autists.

    You watch the same plate spin around and around and say the same things again and again.

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