My starting point is definitional and a departure from conventional framing. A government bond, or, in the UK context, a gilt, is not in any meaningful economic sense a loan that the government takes out and must repay. It is the equivalent of a fixed-term bank deposit account.
But a bank deposit account is the bank borrowing your money from you. And yes, we are all rather keen on banks repaying our deposit accounts.
A bank deposit account is repayable on demand (sometimes requiring a short notice period)not solely at some date in the distant future. So Murphy hasn’t even got that bit right.
If he gets his hands on any money I doubt anybody will be getting repaid.
It will be carefully invested in cake.
” … departure from conventional framing …”
A considerable departure, in that it’s entirely made up.
He gets madder and thicker every day. Dare I ask what it is he thinks gilts and fixed term deposits ‘really’ are?
This cunt looks exactly like Murphy. I bet Murphy’s fuming about it.
Notice it says he wants a wealth tax to fund welfare spending, not build something that will add value.
So another £24 billion spent on Stella and Golden Virginia it is then.
An annual wealth tax? Ok, so this year I’ll slice off the end of kitchen to sell to pay it. Next year I’ll slice off the rest of the kitchen to pay it. The next year I’ll slice off the porch to pay it. The next year, what, slice off half the living room? Stopping the house falling down will cost more than the amount raised, so slice off all the living room. Oo, and who am I going to find willing to buy the end three feet of my kitchen?
As with all of his “thinking” the starting point is what he’d like it to be rather than reality so everything that follows from it is wrong.
I have just asked my fund manager to sell my gilts. They are worth bugger all anyway. I lost hundreds on them when the BoE torpedoed Truss and they have just bobbled along since.
They are going to crater when Burnham really gets going.
You didn’t buy them with a view to holding to maturity?
Gilt fund rather than actual gilts. Sorry I was being lazy in terminology there.
They were soaring when I bought them and there was a really good profit to be made.
I will never see the money back, even if I held on to them till the bitter end.
Does anybody want to buy my Northern Rock share certificates?
There’s always one born every minute.
Why? Has the bog-roll panic started already?
That’s the trouble with gilt funds dated anything longer than 0-5yrs: tail risk. Don’t touch them with a barge pole unless interest rates are sky high.
Good job Spud isn’t in charge then because you’d not be able to get anything back at all, to paraphrase ‘people who lend money to the Uk do not really want it back, they merely enjoy knowing the government has got it’.
That’s the rub… and the “trick” he uses…
He gets to define what something is, then follows up with his “logic” and Theories™…
The whole idea that with any logic, your starting points needs to be actually correct, double-checked, and logically True if you want your train of logic to reach anything resembling actual reality escapes him.
Or he’s deliberately ignoring it, which is not beyond him or his ilk….
Those 5 words are a guarantee anything after it is incorrect, laced with his usual stupidity and vileness.
In short, he’s talking through his arse. No change there.
He’s talking like an overgrown 5-year-old wishing life were “fair”.
Instead of a Ragging on Ritchie tag, why not a I’m going to take all of your stuff because that’s the kind of person I am tag?
OT but I can’t comment on the actual thread because its locked: I see the Rev Stuart Campbell has repeated David Davis’s HoC allegations about Nicola Sturgeon on his blog as his own published views and said ‘Go on, sue me!’.
https://wingsoverscotland.com/these-words-are-my-own/
So its make your mind up time Nicola…….
Yes, sorry, sorta, but happy to make it difficult for you to comment on hte subject so that I don;t get lawyers sniffing my arse….sorry not sorry, sorta.
If there was any chance of the Government defaulting on the bond repayment, gilt buyers would want a very much higher interest rate to carry that risk.
He reminds me of this Blackadder Sketch, which funnily enough is from an episode called Potato:
Spud has been getting high drinking his own piss gift at least the last 20 years.
He really seems to be getting desperate – this content has been seen before – and really adds nothing new. Basically his argument is that fundamental accounting principles are wrong (and no doubt ‘neoliberal’ to boot)
There’s clearly an audience for this but is it big enough to keep him in the lifestyle to which he is accustomed??
I doubt it but what else is he going to do? Work for a living?
He could open a bank. Apparently they can invent money out of thin air and spend it on directors’ bonuses.