Yes, there is that

Your correspondent Richard Middleton asks a question many have asked, but to which no Treasury civil servant can respond. Answering properly involves the use of “Bank of England” and “insolvency” in the same sentence and so is a question best avoided. The Bank of England is not just a regulator – it is an operating bank, with assets in the form of government debt (and a small amount of gold) balancing its liabilities in the form of bank deposits and cash money. While the government could in theory cancel some or all of this debt, I have a feeling that attempting to run our economy with an insolvent central bank might not be the best idea.

2 thoughts on “Yes, there is that”

  1. In my view, Martin Wheatcroft could have improved the impact of his damning letter by inserting the word “candidly” in an appropriate place.

  2. “There does seem some logic in Richard’s view…”

    Is the only bit of Martin Wheatcroft’s reply that Spud will notice.

    It will be interpreted by Spud as “so you agree with me”

    This is a sad pattern. Spud is a nasty, mean spirited pompous twat when debating and people are polite back. Spud cherry picks the odd word or phrase of the reply and off he goes braying that he has won the debate.

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