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‘T’is to Larff

Spud tells us that if households save more, government saves more (or borrows less), business doesn’t invest more, then foreigners must dissave from the UK.


This would also mean the disappearance of the trade deficit, the bit Spud doesn’t note.

This would also, apparently, be a disaster. At which point, Spud in his own words:

Think tanks are very good at suggesting that governments should do joined-up thinking. It looks to me as though the Resolution Foundation might need to do the same. It might also need to sharpen up its understanding of macroeconomics. It might be a little more credible if it did so.

Ho Hum.

This is the necessary consequence of the infallible logic implicit within double-entry bookkeeping, which is that every action has a reaction

Double entry also applies to trade deficits and capital surpluses, see?

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