Governments can’t have block holes, whatever ministers might say

[@physiocrat7143]

The black holes are between the politicians' ears.

[@ryanseddon4800]

You made my day

[@lmg7503]

😅

[@johnmadrid9865]

Spot on 😂

[@Skylark_Jones]

😂😂😂😂🤡👍

[@davidmcculloch8490]

​@@fredfredrickson5436Yes, perhaps they depend on said holes between the voter's ears.

[@chrishurst965]

I think this training should be extended to include journalists who genuinely seem as ignorant about Gov finances, maybe they can filter this down to the electorate. Great work keep it up

[@davidmcculloch8490]

Journalists sometimes parrot press briefings because many financial reporter's jobs have gone. I've taken the BBC to task on their definition of debt and still they persist with their parroting.

[@johnners911]

Trickle down Economics?

[@colsylvester639]

Not only ministers but also journalists

[@theolddog5129]

Don't forget the OBR and the IFS as well. In fact, everyone other than this YT publisher and his followers it seems!

[@ZodiacVoodoo23]

It's a big stick to frighten people into accepting austerity ideologies.

[@NodrogMacphee]

The conservatives wont argue against it as its a useful ploy when they have been in.

[@roddychristodoulou9111]

I'm always astonished at how PMs appoint MPs into posts they know nothing about . This adds to the debate about ministers being unable to answer questions properly and on point .

[@indricotherium4802]

It's rumoured that ministers are often moved on because, however unlikely it sounds, they've started to press ideas for doing stuff that might make things better.

[@shugieshugied2269]

It's amazing how many people end up doing things they really don't have the knowledge to do though. Most MPs have humanities degrees, many are barely numerate, yet when appointed as ministers are expected to understand complex issues often relating to finance and budgets. That's why we have a civil service to provide the expertise ministers lack, although ministers often ignore the advice their civil servants provide. In fairness to Rachel Reeves, she does have a Master's degree in economics, and A levels in maths and further maths, so she is probably better suited to be Chancellor than many others who have done that job previously. There are all manner of "experts" in politics, the chap presenting this channel is a professor of tax, yet he will give forth on matters well outside that body of knowledge as if he were a master of law and politics too. People don't seem to appreciate that being a professor in one academic area does not make you more knowledgeable than anyone else on other matters. We don't for example, expect brain surgeons to be experts in tax.

[@gavinlucas22]

Politics. PMs require allies that will back them, so they appoint MPs. It needs to be so that they can bring in experts from outside and put them in govt. Of course, they'd need to dramatically increase the amount they can pay them to hire top talent.

[@indricotherium4802]

@@shugieshugied2269 : trusting in any source of information is always a problem but 'expert' is a misleading term. Take the Gell Mann Amnesia effect, for example. You read or hear from a respected source an article on a field you know a lot about, recognise it as BS but that doesn't stop you consuming other stories from the same source which you know much less about - yet you give them credibility. Agreed - this is irrational. I think a variation of this effect is possible. So when you hear or read a source on an item and you know it's not BS,, you're inclined, with good reason, to give credibility to other analyses and opinions emanating from that same source. This is rational, though it may not be 100% foolproof. I've seen very little evidence of anything so far that might be termed BS on this channel but it wouldn't harm for there to be occasional discussions of opposing points of view.

[@shugieshugied2269]

@@indricotherium4802 When someone uses their title "Professor" on KZbin, they are effectively claiming expert status. They may well be Professor status in their field, but why should that make them more credible in other areas where they know little more than anyone else not expert in that field?

[@ryanseddon4800]

This series should be mandatory in schools across the country.

[@NodrogMacphee]

except the climate change thing , thats way off course.

[@JohnPark-xf2gq]

​@NodrogMacphee are you saying you do not believe in climate change despite that the evidence is shown on the media every day.or are you saying its a problem for the future.lf the second it's important to appreciate that nature does not follow man deadlines and the quicker changes can be made to our behaviour the easier it will be to adapt.

[@NodrogMacphee]

@@JohnPark-xf2gq Well for starters its pushed by mainstream media and they really cant be trusted to tell you anything only sensational stories. Climate Change is nothing we can do about it .Its too big a project , we cant even get councils to work together let alone countries . It would just scare kids in schools who will come up with endless hair brained ideas to rescue the future. If Climate change , and its a big if , is caused by man , then the only answer is to wipe man out to much lower numbers around the world, not quite the palatble answer that people like to hear.Covid was a wonderful experiment , showing what happens when we all stop, it made very little difference to C02 levels.

[@theolddog5129]

If this rubbish was taught in schools every youngster would grow up being broke and in debt.

[@zetectic7968]

@@fredfredrickson5436 Your tinfoil hat is slipping

[@steveclen-murphy582]

continuing professional development is an extraordinary idea. Make it so!

[@lmg7503]

So they are gaslighting

[@ruthguthrie1099]

Shock horror.

[@ellebee6712]

That makes complete sense. Everyone should watch this.

[@timothybadgett4503]

Agree with everything you said. Thanks!

[@andielines]

Thank you! The most important thing people could watch today.

[@bassplayer3974]

That black hole is wearing thin , more tax and even less in return

[@franm.8343]

We are taxed enough as it is.

[@SaveEarthPlsBeKind]

Thanks. Labour will use their austerity to continue with further inequality. They rely on people having no clue about their tactics, using faux financial 'black holes' etc as a means of divide and rule by blaming the poor, disabled and vulnerable for being poor. They've no interest in narrowing the gap between rich and poor, quite the opposite in fact. Their suitability for the jobs that they occupy in government is mostly irrelevant, in some ways it's about who will be the most compliant in conning the people, tossing any conscience aside, if they have that attribute in the first place. You just have to see that Wes Streeting to see why they dole out the jobs to that they do. Conning most people most of the time is easy peasy it would appear.

[@bradtenbonga]

Absolutely Richard ! An MP could have been the fool at the back of the class in my primary and secondary school .

[@Washington23-m9l]

I Hit 250k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in July 2024

[@NourahMarie]

There are actually strategies that could be put in place for colossal gains, but such execution is usually carried out by financial experts

[@Washington23-m9l]

I agreed, investing without proper guidance can lead to mistakes and losses. last year. I did so many mistakes but also learned so much from it, If you're new to investing or don't have much time, it's best to get advice from an expert.

[@NourahMarie]

Nice. those who work with expert typically earn more than those who go it alone

[@ElenaChavez-eb4cr]

I am surprised that Geraldine Ann is being mentioned here, I stumbled upon one of her client trading on CNBC news last week..

[@ElenaChavez-eb4cr]

I keep hearing a lot about Mrs Geraldine Ann Philips.wow😳

[@Skylark_Jones]

Richard J Murphy - my go-to on economics and how idiotic and ignorant this government is about it.

[@bradtenbonga]

The opposition need to do their homework and call them out on their illiteracy ….

[@oldsailor9022]

I did wonder what these block holes where until I watched the video

[@dennismccarthy7032]

Well said

[@maddang1797]

This lack of knowledge of the depts and particularly economics has been a frustration for years.

[@christimbers2006]

Not having a plan to ?..... what? a politician without the courage to tell us?

[@fylbike]

'Everybody knows' you can😢't spend more than you have! And there lies the 'problem'. This ignorance of 'everybody' allows this and previous governments to impose politically driven austerity

[@paulgibbons2320]

Banks exist to corrupt that statement. Now you really can spend more than you have.

[@charliemoore2551]

Of dear!

[@fylbike]

@@charliemoore2551 I was being sarcastic 😀

[@charliemoore2551]

@@fylbike My apologies!

[@fylbike]

@charliemoore2551 no problem 😊

[@johnmadrid9865]

Excellent presentation of the reality👍

[@skyblazeeterno]

Just pointing out that it says "block" not "black" in the description

[@SaveEarthPlsBeKind]

Well spotted!

[@ryanseddon4800]

Ignorant or Liars...? A bit of column A and a bit of column B .

[@PeterPotnoodle]

Wilful ignorance, they don't want to know the truth because it helps them keep a straight face when they lie

[@EnglishVeteran]

The “loan” supplied by The Central Bank of England is created from thin air yet we pay interest on that “thin air”!

[@DD-jm5ug]

Gotta keep us in our 'place'

[@Hickalum]

I would like to see a more detailed examination of RR’s black hole.

[@alecdurbaville6355]

No thank you

[@mementomori7825]

😮

[@paultraynorbsc627]

Thanks Richard

[@clivejonathan8014]

Richard , please take over as Chancellor as soon as possible 🙏

[@terryo5672]

It is surprising how low the quality of these politicians is. Most of them would survive 5 minutes in a large private company.

[@PeterPotnoodle]

Haha they are psychopaths, they would be welcome in big business any day, and are often recruited when they leave office

[@ianofthetaylors6288]

Excellent video and content. The politicians are at best incompetent and unsuitable for their role, or at worst, they are liars. I'd like to see a video on your take on the practically of introducing a Bradbury Mk 2 system.

[@allotmentuk1303]

I have not believed anything that a politician says who ever they are labour, tory which ever.

[@sampaterson1352]

Thankyou Professor, this is a clear explanation and very useful

[@Anti-Peaceforcepolice]

9 million of the 22 million black hole is a recent pay rise for junior doctors.

[@derekashenden9789]

Another informative vid from Richard.Unfortunately incompetence is normal for government ministers. Ministers are selected normally not on what knowledge they may have in the department they are leading but on their ability to negotiate the media and spin. The civil servants do the work and feed the ministers with the information they need.

[@GregoryKodolanyiRitter]

Worry not; our budget is fully costed!

[@kevbrown2532]

Those who can, do. Those who can't, go into government.

[@Azmodaeus49]

When i heard reeeves say what she said, i was like this lady is nuts

[@janetholben]

Elected as a district councillor some years ago, I was completely new to local government. We were offered significant amount of training sessions, about finance, about planning and other important topics - I do not understand how Government can work without at least basic training. There may be many new MPs who are themselves business people, but government finance is a very different animal.

[@spoonfulofdreams]

I’d like to take issue with the matter of ministers being professionals because it’s not a profession. They are, in effect, lay people themselves but with direct access to those who can disavow them of their BS.

[@truthseeker5911]

What chance is there of politicians understanding these things when 99% of economists don't understand it either and they are supposed to be the experts.

[@janeknight3597]

“How the revenue cycle is managed”. Well yes!

[@safirahmed]

Particle accelerators such as Large Hadron Colliders at CERN can create black holes, microsingularities that could explain where Ministers credibility, competence and compassion has gone.

[@crayontom9687]

If you’ve been promoted into a prominent position in this Government, it’s the clearest evidence possible that you’re not fit for the job

[@ennesshay5040]

3:32 - EVERY mp from ALL partys !!!!!!!!!!!!!!!!!!!!!!!!!

[@darrenjosephgregory]

It's an old poll, 2017, but 85% of MPs didn't know where money came from. So it is reasonable to assume that a great deal of current MPs don't understand government finances. So I would say parliament is largely ignorant rather than deliberately lying.

[@alanhat5252]

No, it's deliberate lies. If I stated as definite fact that your shoe size is 11 I would be lying because I don't know. Ministers compound the lie because the have the House of Commons Library, Civil Servants, the Treasury, the Bank of England & an array of other experts they can ask!

[@blackbulldog4897]

The PM poll showed 85% of MP's didn't understand how private sector credit creation works. It also showed 70% understood govt creates new money. Swings and roundabouts.

[@peteduch2151]

You think one of them must know what is going on

[@Hickalum]

They are not stupid - they know exactly what is going on, and why.

[@peteduch2151]

@Hickalum acting stupid is just as bad basicly misleading people

[@mr.b.4048]

They do know what is going on, but want to dupe an ‘ignorant’ public.

[@normanchristie4524]

This has been going on since Osborne was appointed...

[@timbarthram]

Most other countries ministers say the same thing. The world must be full of governments who know little if anything.

[@sarahann530]

Shouldn't accountants know what constitutes a tax dodge in Belize ?

[@voonyboy]

An IQ test for MPs linked to salary would be a good idea too.

[@ruthguthrie1099]

Good point re annual work place development. ,👍🏻

[@Ludd439]

It's essentially like walking down a path coming to a fork in the road and telling everyone it's a dead end, because you don't want to make a decision. Wow what a brave and bold government we have... Constantly paralysed by either fear or stupidity or both!

[@zetectic7968]

About 30 years ago politician went from arguing a point from ideology, logic or economic position to using focus groups, polls, newspaper headlines to tell the public what they wanted to hear or offer excuses as to why they hands were tied & there was no alternative action possible.

[@utube521]

please change block to black in the title

[@hugolindum7728]

Whilst it is technically an impossibility, printing money leads to inflation and devaluation of the currency and all its negative consequences.

[@grid462]

Politician being political about an important matter.. I won't be easily convinced that they're each so ignorant and not lying. I think I would be a fool to believe that.

[@Wearywillie-x5t]

Does no one sit the Chancellor of the Exchequer down on day one and explain it to her? The Torues aren't any better, they talk of " tax and spend".

[@aliruane]

Block holes sounds uncomfortable

[@roberthuntley1090]

Re mandatory training for new ministers, I would also add the 'Unintended Consequences' series of YT videos, which highlight a number of politicians bright ideas which went badly wrong when exposed to reality.

[@jimmytucker8365]

Nurse/Doctor=Health Minister, Ex soldier=Defense Minister, Accountant=Finance Minister. etc. etc. Anything else is just a reward for being in the party, hence why so many F up and lack knowledge.

[@sirjohng1]

In my 60 years old enough to realise I have rarely seen an MP let alone a Minister have any reasonable knowledge of how the rest of us actually grub along. They all play musical Ministers whilst the (Masonic?) Civil Service runs the country their way. Just look at our Government borrowing to realise this, March 2023 saw this: At the end of March 2023, UK General government gross debt was £2,537.0 billion. Just the INTEREST on this debt was £110 BILLION, ROUGHLY 10% of all Government Revenue.

[@gj55223]

So what’s the chances of the BofE bouncing a cheque for £18 trillion?

[@alanhat5252]

they're not allowed to 😂

[@JamesScott-k3k]

I was more thinking that it might be to con people into thinking that you can't tax the wealthy and that government intervention is a bad idea and so fourth. But, remembering that time Barry Gardiner said once when Boris Johnston was Foreign Secretary he came up and asked him 'What is a customs union?' as he seemed to have no idea despite that literally being his job, I think you could easily be right.

[@azar1354]

One can argue the whole deficit is a black hole. In this sense, the black hole in 2023 was about 100 billion. What I don't understand is if (according to Professor Murphy) the UK's deficit and debt don't matter and the books will balanace regardless, what is the practical difference between a country with high debt (say the UK) and a country with low debt (say the Netherlands)?

[@RichardBergson]

I believe the level of deficit within the bounds of a functioning economy is not that important and as Richard was explaining the £22 billion figure is not one that would have much effect on inflation which is the biggest threat to an economy. Elsewhere Richard has also explained that inflation is controlled by taxation which limits the amount of money in circulation. A deficit which puts more money into circulation is needed to stimulate growth and does not have to be 'paid back' unlike foreign investment that Keir is so keen to attract.

[@blackbulldog4897]

Debt (£s still in the economy) does matter, more in terms of who has them and why than overall size. If one country has less govt "debt" than another it simply means there's less of one countries currency in that economy than the other.

[@kevinsyd2012]

The point is that the government's books do not need to balance. Government funding (fiat currency with own central bank) is not like a company or personal finances. The UK government can never run out of money as the BoE covers all legal spending by printing new money (QE is an example). Taxation is used to claw back most of that money to keep a lid on inflation. It's spend and tax rather than tax and spend. And a government deficit is good for the economy as it means that excess money is floating around society, whereas a government credit will be bad for the economy. Government red is our black as economists say.

[@azar1354]

@@kevinsyd2012 Thank you for your response. You say the government's books don't need to balance. That means it's okay to have a deficit year after year. Therefore, the debt will go up year after year. This trend has been happening in the UK. Most countries, at least G7, have brought their debt down since their 2020 peak, except for the UK. Shouldn't the government try to bring the debt down at some point?

[@blackbulldog4897]

@@kevinsyd2012 I'd go along with most of that, couple of points though: . "printing money" throws up al the negative framing that gets the hyperinflation hyperventilators all excited . QE isn't "money printing", it's an asset swap, reserves for Gilts. It simply reverses the original transaction which swapped Gilts for reserves . It's a finer point but, Taxation is used to depress demand so the resources govts wants to use are freed up. . Govt deficits aren't necessarily good for the economy; as ever the important questions are who has the and why?

[@Ma55ey]

It would probably be a good idea... but when you go from working in a bank to being minister for agriculture, then health, then education, then defence all in one year.. its surprising that the government functions at all... When you heard ministers talking about the horizon scandal, it's clear to see that Government ministers only look at what is put in front of them...

[@alanhat5252]

This is what hustings are for - they let you discover which candidates are happy to guess & which seek expertise so you can then #VoteWisely.

[@anneyeo3985]

👏👏👏👏

[@jankoszuta9835]

An enjoyable rant! I guess they know how it works but they are acting on the fear that the media will pounce on them. Hopefully your ideas will percolate public consciousness. Mainstream politicians can't go too far ahead.

[@maryloureeve9938]

Can you please explain how it is possible to live in Ely and work in Sheffield? We do enjoy your talks, but really can’t understand the 2 places .

[@jimsmith7771]

Shouldn’t the term borrowing from the bank of England be rephrased to asking the bank of England to create money to cover the cost of the government additional and existing spending requirements? Once the additional money has served its purpose as a medium of exchange it’s then recycled back to the bank of England via taxes where it disappears.

[@blackbulldog4897]

Instructing, rather than asking. I agree though, the language used to frame the subject isn't helpful at all. Technically, govt borrows from it's own bank but the negative connotations of the term don't apply to the currency issuer, only the currency users.

[@johnharvey1786]

The idea of training in a subject for politicians is interesting. I haven’t seen any genuine understanding by a politician, either central government or local government, in my area of work, but this is also true of most TV commentators. They are basically members of the public, who have been awarded power, with no knowledge of the industry involved, but then try to impose their “beliefs” on the industry. Over the years I have had numerous meeting with various politicians at all levels of government, from all three main parties and it is very disheartening, just how clueless they are or perhaps they are just following instructions from other interests.

[@alanhat5252]

That's the joy of the House of Lords - 850 experts in a huge range of fields with enough humility that they call in panels of experts to discuss things with as a matter of routine procedure.

[@safirahmed]

There is no black hole as government could use Quantitative Easing to fully fund its funding without increasing tax, without cuts to social security and without austerity.

[@odinallfarther6038]

👏🏼

[@drew...1679]

I guess you havent heard of inflation i guess?

[@LAbstract0]

Like your channel, even though the obvious conclusion is why aren't more people like you involved in both the governing and (as media) questioning what's going on. This particular video focussed a bit on the current governments "black hole" (though probably what they actually mean is what you alluded to, they haven't got a proper budget for how to recuperate the spending at a future point), but what about the last government and the reduction in funding to things like the NHS, which I can assure you is very real. What were they misunderstanding and how come they didnt just take 22 billion from the Bank of England and budget for it later? (I just mean the tone of the video seems specifically aimed at a 100 day government taking over from the previous 14 year one, and hence it seemed a bit .... oddly targeted) keep up these great videos, very informative, thoughtful and interesting

[@AnBreadanFeasa]

I've been thinking about government "black holes" (I know.. I don't get out much ",) and the difference between the UK's upcoming budget compared to the post GFC situation for countries like Ireland and Italy. MMT was not a thing back then, at least in my world, and while Italy borrowed from the market at penal rates to fund government expenditure, Ireland was forced to take a bailout from the EU, IMF and ECB. In Ireland's case at least, the purpose of the bailout/borrowing from the "Troika" was to repay foreign bondholders who held the debt issued by Irish banks that went bust due to the property collapse (values dropped between 50-90% on EVERY property in Ireland 2009-2011). The Irish government agreed to this for two reasons, I believe. The first was that burning the bondholders (mainly German) would have created contagion in the system and put the existence of the Euro at risk. That seems a valid reason. The second was that Ireland would be excluded from capital markets for years to come and would not have been able to borrow. They key point here is that Ireland did not have its own independent central bank. It was subordinate to the ECB. If I'm right about this, an MMT type was not an option for Ireland in 2010-2011 and the country was in a no-win situation.

[@facelessvaper]

If I mention this to my dad, he'd say I am living in cloud Cuckoo land✌

[@jennil7797]

When my son was about six, he asked me why MPs called each other, " My 'orrible friend. " It now seems a far more apt title to me. They know that black holes are imaginary, because they inflate them and deflate them to suit whether they wish to stop paying something out of pay more out on their pet projects. In anycase, as with law, in matters of fiscal responsibility - or irresponsibility - ignorance is no excuse. That's why we don't give little kids free rein with an overdraft of their own. They just aren't responsible enough to handle one. My grandchild knows the theory of how silly it is to run up debts, he currently owes me £2:14. I could forgive that debt, but he needs to know how tough it can be to go without every day things in order to buy treats beyond his means. Next year, when he is nine, we will add on a little interest to any borrowing he does. Mean? Maybe, but we don't want him to grow up like a UK PM or chancellor, do we?

[@andrewburgess2482]

IFS also use that term .

[@foxmoongaze]

The black hole is where all the endlessly printed currency pours. It matters not how ignorant politicians are, or who runs the country when the remuneration given to people for their time is becoming worth less and less due to currency debasement. We did not escape the consequences of the financial crisis of 2008, it was just kicked down the road so that the big banks and financial businesses could be saved, at the expense of the currency and the value your savings. Some of those consequences are becoming too big to kick any further.

[@robertbruceborthwick6751]

Is this video available in a text format?

[@BGS_123]

Professor, there are various reports that Rachel Reeves knows MMT and how spending works. But the have to play the charade to keep the conservative papers happy

[@ellebee6712]

Well she has an economics degree and did work at the Bank of England, so therefore she must be lying. I think it is all about trashing the Tories.

[@BGS_123]

@@ellebee6712 The economics degree is not an indication, because they are incredibly dogmatic. They aren't even trying to define the economy as a science. It's more like a witchcraft, or how to poke the bear and see what happens. But yes, Reeves did work at the Bank of England, so she should know better

[@mawkernewek]

It shows the politicians ignorance of astrophysics. If you throw money into a black hole, you don't get rid of the black hole, you just get a bigger black hole. A financial black hole would be more like an enormous mountain of money distorting the economic space-time around it by the financial-gravitational pull of the enormous quantity of money.

[@joeljones7271]

Morning Richard, What if £300 billion was paid using QE every year. 10% increase in m2 money supply year 1. To pay NHS and Education. Would CPI be 10%?

[@blackbulldog4897]

QE doesn't pay for anything, it's an asset swap; Gilts for reserves. It reverses the original transaction which swapped reserves for Gilts.

[@davidthompson797]

The next video KZbin recommends for me is "How Rachel Reeves can fix the budget black hole" from the New Statesman with a smug looking Andrew Marr in the thumbnail. Its one thing politicians lying to us but the complete acceptance of those lies by our journalist class is unforgiveable.

[@bradtenbonga]

Richard ? Great killing off of the “ black hole “ best leave that to the star gazers …

[@DavidBraithwaite-p9n]

How about choosing an expert from within their own ranks? Torsten Bell?

[@txm9441]

Would be very interested in seeing a video on your thoughts about Javier Milei and how he and the Argentine economy is doing........'Afuera' and as far as training schemes for ministers - we already do - its called Life in the real world

[@alexguest9937]

It's just a convenient linguistic device to harangue the Tories.

[@simonpannett8810]

it would be nice to see Taxes fund specific projects and spending ie Road Tax = Spending on Roads. Public could then argue for more or less for future??

[@blackbulldog4897]

Reality is taxes don't fund anything at all at national level, they create the space for government to spend into.

[@Moosevideostoday]

What interest rate should the BofE charge on this "overdraft"? 0.5% would be nice!

[@blackbulldog4897]

If the deficit was left (as it would be by default) in the ways and means account instead of it being refinanced via HMT securities then the rate wouldn't really matter to govt as all BofE profits are remitted to HMT.

[@Moosevideostoday]

@@blackbulldog4897 You were very kind to point me to some background reading on MMT, thank you. I have tried in the past to understand the BofE's balance sheet expansion since 2008. Looking at a recent chart it peaked at over £1 trillion in 2022 and is now closer to £850 billion (30% of GDP). I have also read recently that losses are now being remitted to HM Treasury. So when you say it 'wouldn't really matter', wouldn't that depend on what losses/profits were being remitted to HM Treasury? So what the media reports as 'govt debt interest' would just become 'debt interest plus BofE profits/losses'? So where's the benefit? Are our governments just wasting money by financing too much through Treasury securities? Massive growth in the BofE's balance sheet has not produced inflation since 2008 and recent inflation is more about supply shock and increasing trade tariffs than money supply expansion. I absorbed your comment about the MPC and also Richard's comments that govt should set interest rates. I am more leaning towards the market setting interest rates with much better and more timely reporting from the government and BofE on the state of public finances, the money supply and the supervision of to big to fail financial institutions. Wouldn't it be great if UK plc published quarterly results - surely this must be possible in today's digital world.

[@blackbulldog4897]

​@@MoosevideostodayYou are welcome my friend, happy to help wherever I can. I'm always happy to discuss these matters with anyone who has an open enough mind to challenge the nonsensical orthodoxy. You are correct about the profit/loss point but, in reality, it doesn't matter as govt is the currency issuer; it neither has nor doesn't have £s. Your point on govt debt interest: consider this... If BofE holds Gilts via QE then the BofE receives the coupon payments. If the coupon payments contribute to BofE profits they are remitted to HMT, it's Alice in Wonderland. When govt issues HMT securities to refinance any deficit it's making a political choice; that political choice is to give rich people free money. Given the above, consider this: Government Interest payments have increased by over 4% of GDP 2020 and Q4 2022. That's more than energy subsidies and benefit increases combined. I agree with you regarding inflation, it's almost always a supply side issue, normally energy. Regarding interest rates, an understanding of MMT would lead you to realise the bank rate should be set to zero or close to it then let the credit mark compete on that basis. The money supply is completely endogenous.

[@johnharvey1786]

You are absolutely correct in economic terms. What Labour were perhaps showing is that the Conservatives have always stressed borrowing is bad and everything must be covered by taxation (Remember the magic money tree comment by Margaret Thatcher) but the Conservatives plans did have a black hole under these conditions but the Conservatives covered it up. It’s seems this was more of a political exercise than an economic one by Labour, just showing the duplicity of the Conservatives. However what is worrying is that Labour, having made such a political fuss about this, have now placed themselves in a tricky situation, as they are frightened of the right wing press (including the BBC), who will pile in on any borrowing or money creation (as they have already started to do) scaring a general public who still seems to believe money only comes from taxation. There are indications that the borrowing restrictions are being loosened but we will have to wait for the budget to know for sure.

[@alanhat5252]

You seem to be suggesting that it's ok to lie if it's "only political"?!? I put it to you that there's a million or more dead people in Iraq whose families might have a different opinion & another million in Britain 😢

[@johnharvey1786]

@@alanhat5252 Where exactly did I say that. Please do not impose your bias onto others.

[@SirKeefyKeef]

I couldn’t agree with you more, all my life since I have been aware that not a single Minister nor Secretary of State for whatever department actually needs any knowledge or experience in whatever sector of government they find themselves chosen to represent the British people, I have been in disdain of how this government is both structured and run by those who again choose to make it run in the way it does in what appears to benefit the few paid for by the many. Nice job if you can get it….which is part of the problem also…. Getting a foot in the door of Parliament if one is not a Party Loyalist. Still my English cousins vote for those who con them blind at the last election, yet in some dark way I am glad everyone can now see Starmer for what he iss and not what he says he is. The only true way to meaningful change is in how one changes how one votes. I am of the belief that one votes on Principle and not for Party, I feel, as I did at the last election, that the age of political parties is coming close to an end and in the future more and more people will vote for Independent candidates rather than the Party Plant helicoptered in from Alaska or Woomarooa, the latest friend of the current fly by night Leader, ye know the type… anyway, maybe not the complete end of parties but a large drop in their vote share I pray. Vote Independent and keep it Local! Let’s see how things develop after the upcoming budget and also whatever is going on over in the Corbyn et al Corner…. Things may be afoot for movement and that Time Warp Jump to the Left may be about to manifest.

[@alanhat5252]

The Sir Humphrey Appleby character in _"Yes, Minister"_ is real, one of them was interviewed by the Lord Speaker just yesterday. A very interesting watch...

[@julianclover1663]

..or they know perfectly well that there's no black hole. they're simply lying about it in order to justify more austerity.

[@Hickalum]

I think that is quite likely - They have clever Civil Service advisers to explain the reality of the financial situation and yet more clever Civil Service advisers telling them what, and how, to communicate to the electorate. They wont see it as “lying” though.

[@Johnson-xx9pm]

I wish this could be funded to be a public interest advert. Not sure about ignorance or liars, but for Labour they seem intent on following the same economic orthodoxy as the Tories, so maybe the latter.

[@LDaQuirm]

Yes it’s politics and inflammatory language is part of that .. sadly ..

[@leehumphries7696]

Richard, the tag line to this video has a spelling error. You'd think MPs should know there are a set of checks and balances on govt spending each year. You'd also think MPs know the Supply & Appropriation Act (which is voted for by them and never turned down), enables the govt to instruct the Bank of England to mark up the accounts of all the public sector bank accounts on an annual basis and the appropriation is the tax to delete that money when paid back.

[@charlierob4377]

I get that money is just a made up thing and that confidence is based on tax. Could we as the people not use other forms of currency outside of the £$€?

[@blackbulldog4897]

You could but why would anyone accept your currency and, of course, how would you pay your tax?

[@charlierob4377]

@@blackbulldog4897 just thinking of the Congo solution where everyone uses phone tokens even though they currency is shillings

[@BobGP1]

I've seen a few interviews with finance heads in many major economy's where they were asked what money is how is it made and what/why is interest. Not one understood and most showed and complete lack of basic fiscal knowledge... the most worrying was bush Jr. Head of money matters. They go to all the best schools leving with a black book and skeletons but no understanding. Look at some of the things starmer has sade and trying to inact that show his grasp of the law is abysmal despite being a sir solicitor 😂

[@lesley-annemclelland857]

Q. What are government ministers, ignorant or liars? A. both!🤭