The UK government cannot go bust because it is the only organisation with the ultimate authority required to create the money that’s required to settle its debts. It really is time politicians understood that. youtu.be/jVdu8d8b-1E?... - ThreadSky

richardjmurphy.bsky.social • 10 days ago

The UK government cannot go bust because it is the only organisation with the ultimate authority required to create the money that’s required to settle its debts. It really is time politicians understood that.

https://youtu.be/jVdu8d8b-1E?si=9D31bbxQuwPUsr9Y

Comments

celticboi.bsky.social•10 days ago

Robert Mugabe believed that too when he took control of his printing

stortfordandrew.bsky.social•10 days ago

And yet sovereign states have defaulted on their debts in the past, many times.

mcrosa.bsky.social•10 days ago

Richard, I hear you state this a lot. But (non-economist here) doesn't "printing your own money" lead to hyper-inflation? Honest question; is there a previous thread you can point me to?

toddlenrant.bsky.social•10 days ago

That question nags at me.

jo-jo64.bsky.social•10 days ago

I fear that this government might find a way..........

alanlawlor.bsky.social•10 days ago

This barely skirts on the issue of inflation and doesn’t touch on currency devaluation.
You very quickly mention that the risk of inflation can be offset by raising taxes. So, you’re saying that we can pay back debt by (ultimately) raising more taxes??

alanlawlor.bsky.social•10 days ago

Your argument that newly minted currency can pay debts is one that only borrows time. But you must still balance the books if you want to control inflation and currency devaluation?

alanlawlor.bsky.social•10 days ago

You also don’t fully address the implications of having control of your own interest repayment rates on future ability to borrow: if you lower the rate too much, no-one will buy your bonds any more or might insist they’re transacted in $ or € (as the £ becomes too risky)

diamondhell.bsky.social•10 days ago

Great video.

I understand that there is a significant chunk of our government debt that is owned by corporations and other countries and the government pays interest to them, on that debt.

How can we find out who owns UK government debt and how much interest the UK government pays them, please?

diamondhell.bsky.social•9 days ago

@richardjmurphy.bsky.social any chance of a response on this, please?

johnsteel.bsky.social•10 days ago

Many people believe the UK economy works just like a household budget. It leads to woolly thinking & false equivalences like "the national credit card" etc. Artist / campaigner @darrencullen.bsky.social has a brilliant take on this. https://www.spellingmistakescostlives.com/single-post/the-national-credit-card

politicalgardener.bsky.social•10 days ago

Bankers do that's why we are nearly £3tr in debt and the US is $36tr in debt.

They'll destroy the welfare state, acquire the state in a new form of corporate governance & that's the CEO playbook being used—& project 2025 lays the foundations for.

1728, 1929, 2025—Casino Capitalism=Crisis=Fascism

richardfadams.bsky.social•10 days ago

Some might say that we still haven’t recovered from the oil shock in the seventies. Everything we have now can be traced back to that point which was the mainstream inflection point for neoliberalism and what has come since. It’s time to move on and create something new.

jamesbarfoot.bsky.social•9 days ago

The total money supply can increase by the real increase in physical goods and services, plus reasonable inflation (say 2%). Beyond that, you cause too much inflation. Much of the safe increase comes from banks loaning money, so the government is quite limited in how much money it can create.

thelion79.bsky.social•10 days ago

That's odd. It seems to be saying that whoever holds our debt can't call it in at any time. And also that the government can create money out of thin air (not based on anything). Is that right?

toddlenrant.bsky.social•10 days ago

No expert here but we abandoned the gold standard decades ago.

thelion79.bsky.social•10 days ago

That doesn't mean that the government can print money with nothing to base it on. Money doesn't even exist except as a promise to pay the bearer. And if no-one/nothing is promising that, you may as well use your bank notes as wallpaper.

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