All our cash is included in the so called national debt.
The United Kingdom National Debt is the total quantity of money borrowed by the Government of the United Kingdom at any time through the issue of securities by the British Treasury and other government agencies.
And if you think about Ritchie’s statement there it can’t be true, can it?
There’s some £600 billion or whatever of QE out there. Which is the creation of cash to buy gilts. If the cash is part of the national debt then the national debt must be £600 billion more than the amount of gilts out there. Which ain’t how we do measure it. Thus cash ain’t part of the national debt, is it?
And here is the Bank of England’s definition of the national debt.
Cash ain’t part of it.
Now, I am entirely willing to agree that cash is something entirely made up by the Bank of England (and the Mint) and that it is a debt, in that they do promise to repay the bearer. It’s just that it’s still not part of the national debt, even if it is a debt and is even national.
What Snippa’s done here is start with his poor understanding of theory, made a leap and not bothered to check whether he’s actually right.