But Snippa, as you keep telling us, all money is just government created debt

This, of course, is a blatant falsehood since it ignores quantitative easing. If UK government ‘borrowing’ this year will be £361 billion, as the FT estimates, and quantitative easing will, we know, be at least £300bn then the real ‘debt’ has only risen by £61 billion at most, and not by £361bn the FT represents because the government simply owes itself the rest, which is meaningless. As a result national ‘debt’ is actually only about 65% of GDP.

That cash created by the BoE is debt. As Snippa keeps telling us it is. That’s the only way his insistence that if we don’t have a budget deficit then we have less money works.

The increase in M0 is still debt that is.

Leave a Reply

Your email address will not be published. Required fields are marked *