Letter to The Guardian:
Professor Richard Murphy says the government would be doing large companies a favour by issuing more debt that they can place their enormous cash piles into. Such a hunger for secure savings opportunities would be evident, if it were there, in current purchases of gilts by said large companies. The government’s Debt Management Office regularly publishes the data on who owns gilts. Once we strip out local authorities, pension and insurance companies, banks, the Bank of England, foreigners and households we’re left with those “private non-financial companies” owning some £1.5bn or so of government bonds – under 0.1% of total issuance. This is not evidence of a craving for a secure savings opportunity.
Senior fellow, Adam Smith Institute
Martin Wheatcroft’s letter is also fun even if I’m not sure I understand it.