Ritchie’s summary of money

Money is a government backed promise to pay that is only of worth because it alone can tax.

Err, no, not really.

One ounce of gold is probably a better form of globally accepted money than a handful of £50 notes. And that’s all we really need to disprove Ritchie’s contention.

55 thoughts on “Ritchie’s summary of money”

  1. True, of course but he compounds the idiocy by making the connection with tax which, if true, would mean that the entire centuries-old mechanism of bills of exchange and letters of credit could not have existed.

  2. If there isn’t an opposite to polymath, there really should be. Is there nothing he doesn’t know absolutely nothing about?

  3. bis,

    If there isn’t an opposite to polymath, there really should be.

    The word you are looking for is “fuckwit”.

  4. I went over there for the first time in a while, just so you don’t have to.

    What is not apparent from Tim’s summary is that the Murphy post on money is the second consecutive blog of those fvcking mind maps we hoped we’d never see again, just like the unlamented “Venn diagrams for our time”.

  5. I shouldn’t have done it but I went to TRUK and read his post. If there is anything factually correct in it, maybe someone could point it out?

    It is a series of assertions made by a monumentally stupid person.

    Take his first assertion – that money is debt. So if I receive a fiver in change, I owe the shop?

    Doesn’t he know that the printing on the note “I promise to pay….” is just saying that the paper can possibly be exchanged for gold at the Bank of England? Obviously he doesn’t.

  6. So, in Ritchieland, money printed by a government, those promissory notes, have value because that government can demand more promissory notes as tax. Cuckoo”s Nest!!

  7. The Courageous State should nationalise all stones. Society cannot afford to have capitalists competing for stones as competition means failure, by definition.

  8. Up to a point Lord Copper. Notes in circulation ~ £64 billion, gold reserves c. 310 tons @ $40 million/ton ~ £10 billion, so that if the new Duke of Westminster cashed in all his properties and wheeled a barrow full of notes round to Threadneedle Street, chances are that the cashier wouldn’t be able to honour them with a quick trip to the vault.

  9. BIS

    Thesaurus.com lists the following:

    Uneducated – hard to argue with that. Murphy is the definition of someone who might have formal qualifications but is actually profoundly uneducated (And indeed ineducable some would argue)

    Ignorant – And quite proud of that fact at times – When asked about Japan in relation to ‘People’s QE’ famously declared ‘I know nothing about Japan’

    inexperienced – the various Accountants on here marvel at Murphy’s level of ignorance of basic accounting principles, and he shows no evidence that life has taught him anything.

    Stupid – Self-evident I would have thought from looking at even half a dozen blog entries

    Green – this is the man who authored the ‘Green NEw Deal’ and ‘Green QE’

    Immature – his spats on Twitter would be ill-becoming of a 15 year old let alone a man of 57.

    Unsophisticated – Murphy is not a fan of a nuanced argument in general unless it ties in with his basic mindset The debating tactics of banning people, assigning them a label (‘Neoliberal’ or ‘Troll’) doesn’t speak to a sophisticated argument

    Uninformed – Q.E.D – I think every commentator on this blog has proven him uninformed at one point or another….

    So Bis – you are right – he as an ‘anti polymath’, The William McGonagall of the economics scene…

  10. Diogenes:

    ‘I shouldn’t have done it but I went to TRUK and read his post. If there is anything factually correct in it, maybe someone could point it out?

    It is a series of assertions made by a monumentally stupid person. ‘

    Oddly I posted without seeing the TRUK summary – which I now regret. I mean your summary speaks volumes. If this was written by a GCSE economics student I would have serious doubts about whether this was the right course for him. As a matter of some urgency, they need to look into City University and potentially close it down as a fraudulent operation. Under no ‘fit and proper person’ test could someone capable of writing that blog entry be permitted to teach anyone anything.

  11. “True, of course but he compounds the idiocy by making the connection with tax which, if true, would mean that the entire centuries-old mechanism of bills of exchange and letters of credit could not have existed.”

    It’s largely a confusion between ‘currency’ and ‘money’.

    ‘Money’ is any credible and enforceable promise to deliver something of value at a later date. A ‘currency’ is a particular medium of exchange of such promises.

    ‘Money’ can be backed by anything. Book tokens are backed by books. Phone cards are backed by phone connection services. Gift vouchers are backed by goods available from a certain store. But the government currency (pounds sterling, US, dollars, Euros, whatever…) is backed by the guaranteed ability to pay your taxes with it.

    A letter of credit made out for government currency is a promise to obtain and deliver a set amount of said government currency at a future date. It doesn’t have to be issued by the government, and most of it isn’t. And the value that the writer promises to deliver is not generally based on remission of taxes. The currency simply acts as an intermediary. It’s value is anchored by the theoretical ability to pay taxes with it, but no taxes will ever actually be paid with it.

    We could do the same with tokens for tins of beans. If Alice has apples and wants pears, while Bob will have pears later in the season but wants a load of apples now, Bob can buy Alice’s apples in exchange for a get-x-tins-of-beans-free store voucher. Later, Alice will buy Bob’s pears in exchange for the same voucher, and Bob can either redeem it at the store or use it again in another trade. (Or if he only borrowed it from the store, simply repay the loan.) But should Bob’s harvest fail and no pears are available, Alice still has the voucher for beans, which are always available. The store’s promises are a far safer bet than Bob’s.

    The only functions the voucher has to satisfy are universal desirability and credibility. Everyone can eat beans. The store is a big and reputable one that is not likely to go bust. It’s therefore a far safer and more widely tradable asset than Bob’s voucher for pears. Those are the same reasons people use government currency – everyone has to pay taxes, there will always be taxes, and the government will still be there for many years to come. What they’re providing is certainty.

    “So, in Ritchieland, money printed by a government, those promissory notes, have value because that government can demand more promissory notes as tax.”

    No. They have value because the government promises to accept them in payment of taxes, and hence decides not to send you to jail.

    ‘Not being sent to jail’ is the universally desirable thing backing all government currency, in the same way gold does a gold-based currency.

  12. @Bravehart “those fvcking mind maps we hoped we’d never see again”

    Last one
    I Could be
    bothered to read
    just read
    like an exploded

    sentence.

    He could just write it as a sentence and it would read the same. Like everything else he doesn’t actually understand the concept of a ‘mind map’

  13. Ha ha.

    I see he’s read my comment on another part of Tim’s blog earlier wondering why he uses ‘mind maps’ instead of writing things out in sentences.

    Which means he is reading this.

    Richard – you are a fat turd. I’m never sure whether you believe your delusions of connections and influence or are just making them up. Truth is, you’ve never been a director of any company that wasn’t your own except TJN and even there you pissed everyone off with your arrogance and ignorance. You’ve never been involved in any serious tax planning and I don’t know anyone in the tax profession who knows of you who doesn’t think you’re a malodourous cretin.

  14. I think (and I stand to be corrected by an anyone whose classics are less rusty than mine) that he should be referred to as an “anamath”

  15. Bloke in North Dorset

    “Diogenes
    August 10, 2016 at 12:07 pm

    M-pesa seems to be doing fine in Kenya, without much government involvement.”

    M-pesa succeeded because the Government didn’t get involved.

    Initially the banks thought it was a joke so the Govt just ignored them. By the time the banks realised it was a threat and tried to get the Govt to shut it down it was it was so popular their hands were tied.

    This guy is worth listening to if you like podcasts, if not there’s some links worth following on that page.

  16. gunker

    LOL – Florence Foster Jenkins!

    Murphy’s lack of basic general knowledge would certainly qualify him for a standing entry in every Private Eye Dumb Britain section.

  17. gunker/Bf

    He doesn’t have time to read ‘The Gutter Press’ or indeed look at the entertainment headlines! He is a ‘tax expert’ dontcha know!

  18. V_P, he is a Professor of Public Practice, please. He ticked off John McDonnell for referring to him as a “tax expert” and it would certainly tick off Andrew C of this parish.

  19. People all over the world put their money here and know its value will be protected. Sterling Savings is a valuable export product, hence the trade deficit.

  20. Bob>

    Pretty much anyone you’re willing to do business with at a price and in a volume that makes it worth their while to do so.

  21. Bob

    it worked very well for holders of Reichmarks in the 1920s, or any of the currencies that Brazil has burned through in the last 30 years, didn’t it? And if, those foreign “investors” in sterling were to try to convert it into another currency, they would find quite a large depreciation over the past few months, wouldn’ t they? There is no way that anyone can say with a straight face that governments protect the value of their currencies.

  22. What a wonderful family holiday. Trotting around the holocaust memorials and then sitting down and making stupid mind maps on his iPad.

  23. NiV>

    All money is ultimately based on our inability to live in any groupings larger than a dozen or so people without it. Currencies are based on confidence that they will continue to be fit for that purpose. There are all kinds of things that can affect that confidence, including worries about whether the government will fuck things up (e.g. by printing too much money), whether the currency remains reasonably suitable despite changing real-world circumstances, and so-on.

  24. Bloke in Costa Rica

    re opposite of polymath: I like ‘anamath’, but I think Henry Crun has the most apposite version.

  25. @Noel scoper

    He has declared that the people in dachau were a bit like him.

    He misses the point that the Nazis didn’t arrest the stupidest fat cunt in Germany and send him to dachau, they put him in charge of the airforce.

  26. What an odious fucker! So they went to Passendale, as it is now called, and then drove to Munich to eat sausages and dream of being Nazis. That’s a 9 hour drive. So let’s add ignorance of geography to go with everything else. Is he doing the death tour of corajus states?

  27. A visit to Dachau was hard. My sons realised that some of the people who went there were a bit like their father. The right to think was discussed.

    Je suis Richard

  28. A visit to Dachau was hard…

    As if any more evidence was needed as to what a total utter self obsessed cunt Murphy really is.

  29. Reminds me of the old joke, “[gulping, tearful] don’t joke about the holocaust, my grandfather died at Auschwitz”

    “Oh, I’m so sorry. Please forgive me?”

    “Yeah, he got drunk and fell out of one of the guard towers!”

    I’ve got my coat…

  30. His poor unfortunate children, to be taught history by someone so thick and lacking knowledge, self-awareness… So irretrievably dense and smug. The comparison between Trump and Hitler makes you gasp at his lack of grip on reality. And just how did the child-catcher come up?

  31. Postcard from his holidays:

    “A visit to Dachau was hard. My sons realised that some of the people who went there were a bit like their father.”

    Make of that what you will.

  32. The point about Dachau was that just about anybody could be sent there. So, in the unlikely event that there was someone like Murph around, he might indeed have been sent there. I bet that’s not what he is trying to claim. Not every inmate was an heroic dissident let alone a twat who thought he was speaking truth to power. It boils my piss when people try to attach themselves to heroic martyrs : even more so when they get the analogy wrong. Please let me know that Murph is a singularity, that there is no one else like him.

  33. I have only just logged back on – Wow! I mean Wow!

    “A visit to Dachau was hard. My sons realised that some of the people who went there were a bit like their father.”

    Perhaps he had in mind this guy

    https://en.wikipedia.org/wiki/Martin_Gottfried_Weiss

    OR one of the other 7 commandants….. Extraordinary – I am half wondering if someone has hacked his account – noone can be that self obsessed, surely?

  34. @Matthew L – bravo.

    If there’s anyone out there who could tweet that to Murphy’s twataccount it would be wonderful.

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