The Guardian really does need to improve its economic literacy
That’s the Senior Lecturer saying that…..who also says:
Second, this comment ignores the fact that there is enormous demand for government debt from two sources. One is the growing number of relatively (and I stress, relatively) wealthy retirees needing a secure home for their money. The other is big business that is sitting on massive cash piles because it has no idea what to do with all the profit its monopoly based activities now generate for it, and so they lend it to governments as the only secure place to deposit mountains of cash.
Hmm. Who owns gilts is here. (“distribution of gilts holdings as an .xls). That big business stuff is “private non-financial companies” who own £ 1.5 billion or so. As low as it’s been since 2010.
Err, no, that really is £1.5 billion, local government 500 million, public corporations 500 million, monetary financial institutions (not just BoE, but others like them) 640 billion, insurance companies and pensions funds 550 billion, other financial institutions 135 billion, households 85 billion and overseas 520 billion.
Those big businesses looking to stash their profits aren’t even 0,1% of the market. Err, yes, really, zero point one percent not even.
At which point the senior lecturer tells us:
It really is time that the Guardian woke up and smelt the coffee on economics, because right now it is about as economically literate as the Mail, and that’s not a commendation.
Err, yes Ritchie, if you say so.