As we’re coming to the end of 2024 let’s look back at some of the best articles of the year – this one highlighting a claim that high interest rates mean there is no national debt; it has been wiped out. Strange how everyone in the government has been quiet about this one…
Government accounts apparently show there is no national debt so what is Rachel Reeves bawling about?
Here’s Richard Murphy of Funding the Future, who understands these things:
So let’s try to get this right:
This year’s rise in interest rates has removed £1.5 trillion from the UK’s debt liability, which is more than the government has been saying is even owed by it.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
Outstanding government borrowing listed in the most recent all-government accounts is nothing more than the money currently being pumped through the economy, without which there would be no trade, commerce, or profit. So none of that cash can be removed.
(This isn’t, strictly speaking, true. The government borrows money and pays money back, according to its policies, and interest is paid on what is borrowed – as far as This Writer can tell, in order to ensure that the amount of cash in the economy doesn’t trigger an inflationary crisis. But the amount sloshing around is expected to be what’s necessary so there always has to be some there.)
So the public finances are in excellent health.
What, then, is Rachel Reeves making such a fuss about a hole in the national finances of £22 billion? It doesn’t exist!
Right?
The only question now is how she, Keir Starmer and the others are going to use the extra interest-rate cash to rebuild the UK’s crumbling public institutions and services. Right?
If not, why not?
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Top articles of 2024 – December: There is no national debt
As we’re coming to the end of 2024 let’s look back at some of the best articles of the year – this one highlighting a claim that high interest rates mean there is no national debt; it has been wiped out. Strange how everyone in the government has been quiet about this one…
Government accounts apparently show there is no national debt so what is Rachel Reeves bawling about?
Here’s Richard Murphy of Funding the Future, who understands these things:
So let’s try to get this right:
This year’s rise in interest rates has removed £1.5 trillion from the UK’s debt liability, which is more than the government has been saying is even owed by it.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
Outstanding government borrowing listed in the most recent all-government accounts is nothing more than the money currently being pumped through the economy, without which there would be no trade, commerce, or profit. So none of that cash can be removed.
(This isn’t, strictly speaking, true. The government borrows money and pays money back, according to its policies, and interest is paid on what is borrowed – as far as This Writer can tell, in order to ensure that the amount of cash in the economy doesn’t trigger an inflationary crisis. But the amount sloshing around is expected to be what’s necessary so there always has to be some there.)
So the public finances are in excellent health.
What, then, is Rachel Reeves making such a fuss about a hole in the national finances of £22 billion? It doesn’t exist!
Right?
The only question now is how she, Keir Starmer and the others are going to use the extra interest-rate cash to rebuild the UK’s crumbling public institutions and services. Right?
If not, why not?
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Be among the first to know what’s going on! Here are the ways to manage it:
1) Register with us by clicking on ‘Subscribe’ (bottom right of the home page). You can then receive notifications of every new article that is posted here.
2) Follow VP on Twitter @VoxPolitical
3) Like the Facebook page at https://www.facebook.com/VoxPolitical/
Join the Vox Political Facebook page.
4) You could even make Vox Political your homepage at http://voxpoliticalonline.com
5) Follow Vox Political writer Mike Sivier on BlueSky
6) Join the MeWe page at https://mewe.com/p-front/voxpolitical
7) Feel free to comment!
And do share with your family and friends – so they don’t miss out!
If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Buy Vox Political books so we can continue
fighting for the facts.
Cruel Britannia is available
in either print or eBook format here:
The Livingstone Presumption is available
in either print or eBook format here:
Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:
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