Well, OK, if this is true, then……

And as is also clear, whilst the 1866 Act says that all government revenues shall be paid into this account, nothing says there must be a balance held on it to permit this payment instruction to be enacted: it can happen, come what may, even if the overdrawn balance on it is growing. So an overdraft is legislated for here, and authorised by law, come what may.

So, UK law has already enacted MMT.

If we’ve already been doing this for a century and a half then why is it that things ain’t perfect?

Further, if we’ve already been doing this for a century and a half isn’t that a useful proof of the contention that MMT causes inflation? Because the last century and a half is when the UK has had sustained inflation rather than switching from inflation to deflation and back again……

5 thoughts on “Well, OK, if this is true, then……”

  1. I think his source for this is a certain Neil Wilson, who is, possibly, even less qualified to pass opinion on this than Spudumock

  2. Season of goodwill to all men:

    Richard Murphy says:
    December 22 2020 at 5:26 pm
    Thanks

    And I am really taking that break – last meeting has been done and the follow up will have to wait now…

    Reply
    Ben says:
    December 22 2020 at 6:07 pm
    Jesus all this “well earned break” stuff.. there are people out there doing real jobs, real graft.. an honest days work for an honest days pay… not quite the same as tap away on a keyboard and rely on donations..

    Richard Murphy says:
    December 22 2020 at 7:21 pm
    Dammit, education and research are such non-occupations, of course

    Silly me….

  3. Tim isn’t the answer obvious?- the govt has never taxed the population enough, despite the tax rate being over 90% for a few years. A tax rate of 101% for all would have killed that sucker dead.

  4. Murphy says that there is nothing in the legislation to forbid an overdraft and then claims – with no justification whatsoever “so an overdraft is legislated for …”
    He might just as well say “the sky is not yellow, therefore it is green with pink polka dots”

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