Any way you look at it though, and however you consolidate the accounts buying Gilts back at higher prices than they we issued at is still going to mean HMT has lost money. You can acknowledge it upfront, as you see to want to do with consolidated accounts or you can amortize the cost as HMT has done, but you can’t escape this very basic fact.
This is pretty simple stuff in concept – you only need to understand bond valuation and pricing and some common accounting principles to get there. I’m sort of surprised you haven’t managed to.
Richard Murphy says:
October 26 2020 at 5:38 pm
I have already explained why you are wrong on thisAnd the Treasury did not lose on repurchasing these gilts
It saved paying future interest to third parties – and that was what the premium represented
Hence, prepaid interest
It really is not hard
And now your posts will be deleted, because I bet bored after a while with people who can’t understand macro issues
It’s all rather amusing.
Richard Murphy says:
October 26 2020 at 6:59 pm
It hasn’t been paidStop the BS
That was your last post
How dare you disagree with me!
This is the man who is now turning his mighty intellect from examining and commenting on tax to audit and accounting.
Lord help us all, and his deluded funders.
Such a pity Christy Malry is no longer around.
This is the BBC’s go to ‘expert ‘ on things financial. I haven’t heard on the BC recently. But then he’s one of the (many) reasons why I gave up listening to the BBC…
You’d think he would want to keep all these posts in which he vanquishes the Unbelievers, wouldn’t you? I mean, if they show him in a good light as he thinks.
You would delete them if you’d been shown to be a chump and your only response was bluster and ad hominem. In that case yeah, delete them.
How odd!
“And now your posts will be deleted, because I bet bored after a while with people who can’t understand macro issues”
Exactly the sort of patient and sympathetic soul you’d want to be teaching students at Uni
He’s been 100% rinsed and acts like this. No wonder his wife had a breakdown.