Stump thinking

The Conservatives have borrowed more in total and on average than Labour whether in original or current prices.

Richard Murphy says:
September 30 2016 at 2:54 pm
He is right

QE has cancelled 1/4 of UK debt because it is now owned by the government and you can’t meaningfully owe yourself money

??

From two separate posts but both on the front page right now.

7 thoughts on “Stump thinking”

  1. Isn’t the owe yourself money thing his attempt to explain government finances using the level of double entry accounting suitable for a small corner shop

  2. No, he’s right that you can’t meaningfully owe yourself money. He’s just mischaracterising QE as the government owing itself money.

  3. @dave,

    he’s convinced himself that money is debt to the government.

    Hence the government printing more money is the government just generating more debt to itself.

    It’s internally consistent (for once), just based on a completely barking initial assumption with no basis in reality.

  4. Someone leaves you with a massive deficit then understandably you have to borrow more money to pay the bills.
    The economy not quite ready for cuts of over a hundred billion a year or an increase in VAT to 65%.

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