Don’t forget that Austerity is a political choice.

No, Dinahmo, a personal mortgage or even a small business' borrowing is nothing like the government's borrowing.

The mortgage interest plus capital repayments come out of annual income. The interest due on govt borrowings should also come out of annual receipts.

But it doesn't come out of annual receipts, does it Dinahmo. Government just creates the money to pay what it owes when it is in deficit, as it has been for decades, or even, 100s of years...

Rather verifies my earlier post, there is a genuine lack of awareness of how the Government (any) Government runs it’s finances.

Who is this "one man"?

The one man is Richard Murphy, growstuff.

Which is weird, because I don't see his name on the research paper I quoted from, or the BoE bulletin articles I've suggested people look at.

GrannyGravy13

Rather verifies my earlier post, there is a genuine lack of awareness of how the Government (any) Government runs it’s finances.

The research paper I linked to earlier shows how the technical, accounting, side works. Where the money comes from and how it is passed round the system.

What is done with the finances, though, is usually a result of political choices. And an awareness of how markets and individuals are going to react.

MaizieD

GrannyGravy13

Rather verifies my earlier post, there is a genuine lack of awareness of how the Government (any) Government runs it’s finances.

The research paper I linked to earlier shows how the technical, accounting, side works. Where the money comes from and how it is passed round the system.

What is done with the finances, though, is usually a result of political choices. And an awareness of how markets and individuals are going to react.

I have a rough understanding, and I do try but honestly some of these research papers go straight over my head.

Thank you for posting them, every day is a school day on GN

GrannyGravy13

Rather verifies my earlier post, there is a genuine lack of awareness of how the Government (any) Government runs it’s finances.

It isn't just that most people are maybe less aware than some of the arguments over the semantics of economic theories.

Most people are not interested in far-left economic theories or far-right economic theories. What they are interested in is a quick way of knowing what is proposed and how it will affect us. Those who want to know these theories in depth can listen to the proponents or discuss as happens on here.

However, telling people they have taken lies on board is, at the very least, rude. Instead of attacking or supporting a policy/theory it is a personal attack and quite unnecessary.

In the end it has been shown, in the clearest way possible, that the markets like what we might call "balanced books". They will allow for a well explained "unbalancing" and figures to show just how it will grow the economy (in either a left or right way) but they will judge our currency and our ability to stand by our "promise to pay" by what we do away from the accepted norm.