First, they said that the national debt is now a little over £2,500 billion. As a matter of fact, it is not. That’s just what the Office for National Statistics (ONS) says it is, but they have got the accounting all wrong.
There are two massive adjustments required to that number. One is to take out what is called the Bank of England (BoE) contribution to the national debt. The ONS say that this is about £300bn. It isn’t. There is no such number on the BoE balance sheet.
In fact, this number only exists because the ONS refuse to recognise that the BoE has assets to match the liabilities that the ONS include in the national debt. Because the ONS refuses to recognise those assets it claims there is a debt when in real terms there is none.
Debt is debt, whether there’s an asset to match it or not. A company saying that the mortgage isn’t, in fact, a debt because, well, it owns the building, see? would swiftly be shouted down by their auditor. Debt is debt. Now, the net figure at the bottom of tge balance sheet will depend upon what assets there are to match the debt – but not the gross debt number itself.
It’s the usual Spud thing, reality changes to match the point he wants to make.
That takes about £300bn off the national debt. The second figure to take off is bigger. That is the money held on deposit by the UK’s commercial banks with the BoE. This figure is a bit over £800bn at present, having been £900bn a year or so ago.
This is not a debt because something. That something being tht as QE will never be reversde it’s not debt. But as we can see from Spud’s own numbers this hsa decreased by £100 billion. So, QE is being paid back – therefore QE is a debt.