What this chap doesn’t mention is the part of national debt ‘ owned ‘ by the Bank of England. To understand my comments one needs to understand the structure of a balance sheet of the BOE . The Bank of England was nationalised in 1947 and as such assets ( UK gilts ) are balanced , as are all balance sheets , by the BOE liabilities comprising shareholders equity owned by the UK Government . As the UK government owns the BOE is owns all the shares in the BOE and the gilts purchased . At the time of this comment , approximately one third of gilts are owned and appear on the BOE balance sheet as assets " if we deduct from the total national debt the gilts owned indirectly by the BOE then factor in the historically low interest rates paid on the non BOE gilts we get a less alarmist view
Good video that raises an obvious and ignored question usually entirely missed by economists - why on earth do we have an economic system where we have outsourced money creation to private interests? Why is money not created as a national asset? This presentation inadvertently illustrates perfectly how our government has been bought throughout perpetuity.
52darcey The Bank of England was nationalised in 1947 and is therefore wholly owned by the UK Government . As a result of QE , One third of gilts are presently owned by the BOE and are not therefore real debt as all the shares ( liabilities o& the BOE ) are owned by the Government . He has therefore overstate the national debt by 50 %
The graph at 5.20 is interesting because that is the time things were getting really awful in England. Since they were so awful in a an economic sense that my ancestors left England and migrated for that very reason - the generally bad economic conditions for most people !!
yes good but what is the debt now and how will the US LOSING ITS RESERVE currency status and world slowdown effect us .You mention how we just inflate away our debt but that just means our savings are taken and currency buys less a hidden tax on the people, transfer of wealth to the central banks
Interesting information but wrong in respect to one of the conclusions. The reality of government debt is it becomes entirely the burden of the private sector since there is nobody else to pay for it. Government does not pay it's own since it is only an abstract construct which is exempt from the tax and other obligations of the private sector. It must always be that way since taxes pay for the debt that government creates by spending more than it earns which is something that private sector institutions and people are forbidden by law to do and if they try they are sent to bankruptcy.
yes agree inflation is a tax that devalues your pound without you realising ,its the trick the government /central bank uses to transfer the wealth to themselves from you ,gold protects against this
PJ yes , he ignores the fact that one third of gilts are now owned by the BOE which is in turn wholly owned by the UK Government . According to a correct accounting perspective is that the national debt is one third less and therefore he has overstated the situation by 50 %
He side stepped the fact that the current debt increase is not due to war but bailing out the banking sector.
Not just that, spending on social services is I believe single biggest spend of the govt.
Exactly
Thanks for bringing things into some perspective :)
What this chap doesn’t mention is the part of national debt ‘ owned ‘ by the Bank of England. To understand my comments one needs to understand the structure of a balance sheet of the BOE .
The Bank of England was nationalised in 1947 and as such assets ( UK gilts ) are balanced , as are all balance sheets , by the BOE liabilities comprising shareholders equity owned by the UK Government . As the UK government owns the BOE is owns all the shares in the BOE and the gilts purchased . At the time of this comment , approximately one third of gilts are owned and appear on the BOE balance sheet as assets " if we deduct from the total national debt the gilts owned indirectly by the BOE then factor in the historically low interest rates paid on the non BOE gilts we get a less alarmist view
Spot on
Good video that raises an obvious and ignored question usually entirely missed by economists - why on earth do we have an economic system where we have outsourced money creation to private interests? Why is money not created as a national asset? This presentation inadvertently illustrates perfectly how our government has been bought throughout perpetuity.
52darcey The Bank of England was nationalised in 1947 and is therefore wholly owned by the UK Government . As a result of QE , One third of gilts are presently owned by the BOE and are not therefore real debt as all the shares ( liabilities o& the BOE ) are owned by the Government . He has therefore overstate the national debt by 50 %
The graph at 5.20 is interesting because that is the time things were getting really awful in England. Since they were so awful in a an economic sense that my ancestors left England and migrated for that very reason - the generally bad economic conditions for most people !!
"Push through this thing until the end" love it, so totally blinkered cant see wood for trees. What end sir?
What are the implications of private debts that is the crust of the matter? No explanations then what is the point of this talk incomplete....
yes good but what is the debt now and how will the US LOSING ITS RESERVE currency status and world slowdown effect us .You mention how we just inflate away our debt but that just means our savings are taken and currency buys less a hidden tax on the people, transfer of wealth to the central banks
Interesting information but wrong in respect to one of the conclusions. The reality of government debt is it becomes entirely the burden of the private sector since there is nobody else to pay for it. Government does not pay it's own since it is only an abstract construct which is exempt from the tax and other obligations of the private sector. It must always be that way since taxes pay for the debt that government creates by spending more than it earns which is something that private sector institutions and people are forbidden by law to do and if they try they are sent to bankruptcy.
yes agree inflation is a tax that devalues your pound without you realising ,its the trick the government /central bank uses to transfer the wealth to themselves from you ,gold protects against this
Misguided view on this subject by an academic in my opinion me thinks....
PJ yes , he ignores the fact that one third of gilts are now owned by the BOE which is in turn wholly owned by the UK Government . According to a correct accounting perspective is that the national debt is one third less and therefore he has overstated the situation by 50 %