Tag Archives: lie

The ‘magic money tree’/’maxed-out national credit card’ LIES

Liars: both David Cameron and (now) Keir Starmer have voiced the falsehood that the UK has credit limits imposed elsewhere – it doesn’t. There IS a magic money tree, though – despite their claims to the contrary; it’s called the Bank of England. You won’t find this mentioned by the mainstream media, though – instead you have to come to Vox Political, Another Angry Voice, and Mainly Macro (among others).

Simon Wren-Lewis, over at Mainly Macro, has written a scathing critique of politicians like Keir Starmer and Rachel Reeves, who are copying the Tories by saying there is no “magic money tree” and that the government has “maxed-out the national credit cards”.

For clarity: there is a magic money tree. It’s called the Bank of England.

And it is impossible to max-out the national credit cards with the amount of debt the UK currently has.

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Professor Wren-Lewis explains:

Keir Starmer, in commenting on the recent Budget, said “Britain in recession, the national credit card maxed out, and despite the measures today, the highest tax burden for 70 years”. The analogy of maxing out the nation’s credit card has been repeated by other Shadow ministers. Rachel Reeves, Shadow Chancellor, has joined many Conservative ministers in saying there is no ‘magic money tree’.

Anyone who knows any macroeconomics understands that these analogies are false. The nation does not have a credit card with an externally imposed credit limit that it can ‘max out’, and the UK government does have a magic money tree because it can create money.

Imagine, for example, if we forced politicians to be more precise. Rather than claiming that the government had ‘run out of money’ and ‘maxed out its credit card’, they would instead have to say that the government had almost hit their self-imposed borrowing limits.

Rather than saying you couldn’t promise to spend this or reduce that tax because there is no magic money tree, politicians instead would need to say that the government could create more money or borrow more, but that would add to aggregate demand which would risk higher inflation and so force the Bank of England to raise interest rates.

Why do politicians say there is no money tree at their disposal? Because they don’t like telling the truth, which is that they don’t want to break their fiscal rule, or they don’t want the additional spending or tax cut adding to aggregate demand and leading the central bank to raise interest rates. That is a trade-off where many voters might take a different view, so it is much easier for them to say there is no money. It is a way of disguising a political choice, and not being honest about these choices.

So ‘there is no magic money tree’ is normally said by Chancellors or Prime Ministers who want an easy excuse for not spending money or cutting taxes. It is a straightforward deception to give politicians an easier life, and therefore it is difficult to defend its use.

The phrase ‘maxing out the nation’s credit card’ is more often used by politicians attacking the borrowing record of others. Yet it too suggests politicians have less choice than they actually have. In this case it perpetuates the idea that governments can only borrow so much, and that they are currently hitting that limit.

This is nonsense. There is a limit to how much UK governments can borrow, but it is way above levels of debt ever historically recorded. (Debt was 2.7 times GDP after WWII.) [1] But it sounds more dramatic to say a government has maxed out its credit card than to say it is leaving insufficient headroom to meet its own fiscal rules.

The use of these false analogies probably wouldn’t matter too much if we had an informed and informing media that was quick to correct these attempts to mislead. Unfortunately the complete opposite is the case. Because much of the media views macroeconomics as too complex and boring for its viewers, it laps up these incorrect attempts to relate fiscal policy to household budgets.

Sometimes this media environment gives politicians little choice but to follow. But that is not the case with phrases like ‘no magic money tree’ and ‘maxing out the nation’s credit card’. No one is forcing politicians to use these phrases. Instead it is their own choice to do so. If they know they are false analogies that just mislead the public they shouldn’t use them. If they don’t know that they are false, I’m afraid that is even worse.

So, when Keir Starmer said those words in response to Jeremy Hunt’s Budget, somebody in BBC/ITV/Sky News or the newspapers should have immediately called them out as lies.

But they didn’t.

This means the media are misinforming the electorate. This in turn means that most of the voting population, at the next general election, will be basing their decision on false information.

That is inexcusable. There should probably be a law against it. But there isn’t, because the law-makers benefit from the falsehoods.


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Trade minister lies to the UK about ‘pact’ with Texas

Greg Hands: He’s probably wishing he’d kept his lips sealed (or rather, kept his typing fingers to himself).

Tory trade minister Greg Hands wants you to think the UK has signed a trade deal with Texas worth trillions of pounds. It’s a bare-faced lie.

Here’s what he has said, followed by two responses debunking him completely:

The Tory government is currently in freefall after a series of controversies, with MPs calling for a change of leadership.

But it is lies like this that make them unelectable.

Dim Bim tries to hoodwink us all – and gets community noted on ‘X’

Dim Bim Afolami: he’s been caught telling untruths.

This is from before the budget, but it goes to show how Tories try to hoodwink us with dishonesty.

Bim Afolami, Tory Treasury minister, tried to tell LBC listeners that average earners are better-off now than they were 14 years ago – because the nominal amount of money they earn is more.

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He neglected – deliberately? – to add that the cost of living has also increased by more than is covered by the increase in earnings.

There you have it, in the community note.

Mean household incomes have increased by 7.5 per cent but inflation has increased the cost of living by a whopping 47 per cent.

Under the Tories, average-earning households are much worse off than they were 14 years ago. And Dim Bim tried to hide it.


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Jeremy Corbyn should sue Nigel Farage over this outrageous falsehood

Stranglehold: The signer was actually interpreting a comment in a previous Nigel Farage TV appearance, but it works equally well to describe feelings across the nation at this right-wing mouthpiece’s misrepresentation of former Labour leader Jeremy Corbyn.

The reason other politicians keep smearing Jeremy Corbyn with false accusations of anti-Semitism is that he keeps letting them get away with it.

Mr Corbyn’s attitude is that, if it isn’t hurting people other than himself, he’s big enough not to worry about it.

The problem with that is that it harms his supporters, who are also smeared with the same allegation; they may be said to be supporting an anti-Semite.

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Nigel Farage has appeared on GB News, saying the following:

This Writer knows of no occasion when Mr Corbyn has ever suggested that “the Jews run the world”, and I think Farage should be dragged into a courtroom to explain exactly why he said such a thing.

Sadly, I doubt Mr Corbyn will be bothered – and in this failure he is letting us all down.


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Another Keir Starmer lie? Election candidates to be chosen centrally?

Keir Starmer: they lie, and they lie, and they lie… (allegedly).

Here’s the claim:

Didn’t Keir Starmer say something about constituency Labour parties selecting their own MPs, before he became leader?

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Yes:

The comments are searing:

So, if this claim is true, not only will Keir Starmer have reneged on yet another promise, but he’ll be foisting candidates of highly suspicious character on UK Parliamentary constituencies.

Worth your vote? Really?


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Tories set to lose Uxbridge & South Ruislip – after voters saw through ULEZ deception?

Change of mind: voters in Uxbridge & South Ruislip aren’t happy about being fooled into supporting the Tories, it seems. Polling suggests they’ll switch sides at the general election. But why just swap a useless Tory for a useless Labour MP?

The Conservatives will lose a Parliamentary seat they retained at a by-election – because the electorate is angry that they won it by lying about a measure to stop vehicle pollution in London.

It is widely believed that the Conservatives won the by-election in Uxbridge & South Ruislip on July 20, 2023, by claiming that Labour’s London Mayor Sadiq Khan had imposed the Ultra-Low Emissions Zone (ULEZ) on London, where drivers with the most polluting cars pay a fee to travel.

In fact, the ULEZ was imposed in 2013 by a Conservative – the same Conservative whose resignation forced the Uxbridge and South Ruislip by-election to take place: Boris Johnson.

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The implication is that voters in the constituency formerly occupied by the politician who introduced the ULEZ were fooled into voting for his party’s candidate in protest against it:

People don’t like that sort of thing.

But This Writer is mystified as to why they would vote Labour instead.

There will be a number of other candidates for this Parliamentary seat at the general election, and I would advise anybody in the Uxbridge & South Ruislip constituency to consider very carefully what each one is offering before deciding where to place their ‘X’.

I’ve stated it before, and no doubt I’ll do so again:

You simply cannot vote tribally – for the party you think represents you – at the next general election.

Instead – and I cannot stress this strongly enough – if you want your vote to mean anything, you have to actually find out what the candidates in your constituency are planning to do, if they are lucky enough to be elected.

That is what party manifestos are for. Independent candidates also have policy documents and they will all be online for you to find and read.

You need to find and read these policy documents, and then you need to make a dispassionate choice, based on what you have read.

Which of the candidates offers the most policies that fit what you need? And, by that, I mean: who will improve your own life the most?

Do not consider how other people will vote, either in your constituency or the other 649 around the UK. That is not your concern.

It is not for you to worry about which party will get enough votes to actually enact its policies. This will lead you down the usual garden path to voting in a government that won’t do anything at all for the good of the country, like the one we’ve had since 2010.

BE SELFISH. Bizarrely, it might be the only way to get the kind of government that all of us need.


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It gets worse: did Israel LIE about rescuing hostages to justify Rafah bloodbath?

This Site has no way of proving or disproving what follows.

I am merely showing you what’s being said. Hopefully more information will become available (although probably not via the BBC) and we’ll all be able to make up our own minds.

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Here’s the issue:

Just when you think Israel could not descend any lower, this happens.


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Is Environment Agency colluding with government to lie about bathing water quality?

The Environment Agency has been telling the government how to lie about the quality of bathing water, investigations have revealed.

Here’s Channel 4 News to explain:

According to Channel 4 News,

We’ve seen documents which show that almost twice as many English bathing waters would fail pollution tests – if the regulator [the Environment Agency] wasn’t legally allowed to disregard some of the worst results.

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Papers and emails show Government officials were also worried about negative press and wanted pollution incidents to be “better presented”. But the Environment Agency warned some options they gave could look like ‘greenwashing’.

The Government and the agency insist it’s perfectly above board and follows scientific best practice, but campaigners want the system to change, insisting public safety should come first.

Former musician, now clean water campaigner Feargal Sharkey has obtained a copy of the Environment Agency’s advice to the government, explaining how to – basically – lie to us about the amount of pollution in our waters:

In the TV report, an interviewee suggests that protection of the environment should be what the Environment Agency does, and not “spinning for the government”.

This Writer would certainly agree.

But it’s just another example of the corruption sweeping the UK.

It seems clear that the Environment Agency is not fit for purpose; when an organisation that is supposed to penalise water companies that break pollution rules is instead providing advice on how to hide such breaches, it does not deserve to continue.


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Rishi Sunak lies that 18-week waits for NHS services have fallen – or he’s an imbecile

Rishi Sunak: I always thought he looked nervous in this image. He could also be dishonest. Or just plain stupid. Your choice!

How courageous (in the Yes, Minister sense of the word) of Rishi Sunak to come out with an outrageous lie in a newspaper – that is published just hours before a TV news report debunks it, never mind Full Fact.

Here it is in brief:

The Full Fact article says:

The Prime Minister said in a comment piece in the Telegraph that the government had substantially reduced 18-week waits since January 2023. This is not true.

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Waits for non-emergency treatment of more than 18 weeks in the NHS in England have actually risen in that time. Health is devolved so that NHS England is the part of the health service that the UK government controls.

The article came out the same day (January 31) as Channel 4 News came out with this:

Full Fact, in an act of astonishing charity, suggested that Sunak was mistaking 18-week waits with 18-month waits – which have reduced significantly.

This Writer reckons that’s letting the prime minister off lightly.

He’s the one in charge. The buck stops there. And he needs to have the facts at his fingertips.

If he doesn’t, who knows what other clangers he’s been dropping left, right and centre?

So either he lied in Parliament, which is a cardinal sin of UK politics, or he’s an imbecile, which should be a cardinal sin of UK politics.

Either way, I don’t want to have him running my country into the dirt for one minute longer than I have to. How about you?


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Jeremy Hunt nailed over claim to be cutting taxes for working people

Jeremy Hunt: he was laughing on the other side of his face when Martin Lewis had finished with him.

It’s great when someone nails a Tory politician over a falsehood they uttered.

Here’s what happened when Martin Lewis met Jeremy Hunt on the Martin Lewis Money Show, according to the Daily Express:

Appearing on January 9’s Martin Lewis Money Show, Mr Hunt insisted that he wants to cut even further to put more cash into ordinary people’s pockets during the cost of living crisis.

But Mr Lewis floated the idea that he’d only brought in cuts to National Insurance on January 6 – a date he branded “unusual” – so that people could see the modest benefit of the policy before fiscal drag means No10 taking more cash through taxes.

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Mr Hunt insisted that “we wanted to bring it in as quickly as we could” in order that people could have vital cash “after a period in which taxes have gone up in order to pay for the cost of the pandemic”.

The Chancellor – who has been repeatedly urged to cut taxes further with a general election looming – added: “We can’t get all the way back to where we were before the pandemic in one go.”

Mr Lewis pressed the Chancellor…

Indeed he did:

He was exactly right – as This Writer explained here.

No wonder Hunt looked like a rabbit, caught in the beam of a car’s headlights. He had nowhere to run and nowhere to hide.

And it made any further tax-cutting promises seem equally deceitful.


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