Starmer's vision quest

[Pross]

You think it's exactly the same?

No, it has marginally improved.

 

[First Aspect]

Yeah. But obviously if they print too much and it doesn't translate into an economy that exports things that other countries want to buy off us and in turn drive growth then we know what happens next.

The UK government does not print mone does it? I thought that was the independent bank of England?

 

[Shortfall]

The UK government does not print mone does it? I thought that was the independent bank of England?

The Government has handed monetary policy to the Bank of England who also set interest rates to meet the 2% inflation target (Ha ha!!) If Andy Burnham thinks the government is in hock to the Bond Markets then he is right because it's where they go to borrow money. It's for him to say how he will finance future borrowing for his program.of government and if he's not going to raise it through issuing bonds then how? Presumably the only other option open to him is through money printing ( if you want to call it that) or QE. The B of E is only independent until the government of the day wants to take charge of monetary policy itself again, in which case Burnham could fire up the print presses. I'd be interested to hear from anyone in here "on the left" how Bunrham-omics would work in practice. It's worth pointing out that Manchester Council is £1.6 billion in debt and rising.

 

[bobzmyunkle]

It's worth pointing out that Manchester Council is £1.6 billion in debt and rising.

Not defending Burnham but that figure should be put in context.

'Relative Debt (Affordability): Despite high nominal figures, when compared to its income (net revenue), Manchester's debt ranks much lower (127th) and debt per resident is moderate (42nd), indicating it's considered affordable and proportionate to its size, according to this Manchester City Council document.'

 

[Shortfall]

Not defending Burnham but that figure should be put in context.

'Relative Debt (Affordability): Despite high nominal figures, when compared to its income (net revenue), Manchester's debt ranks much lower (127th) and debt per resident is moderate (42nd), indicating it's considered affordable and proportionate to its size, according to this Manchester City Council document.'

I don't know how their debt is structured and how affordable it is but it's also worth noting that it went up by £289 million last year. I'm willing to listen to Andy Burnham (or anyone) tell me how when he is Prime Minister he can pay for his program of government spending if it exceeds tax revenues (which it will) if it's not by issuing bonds.

 

[BoldonLad]

The Government has handed monetary policy to the Bank of England who also set interest rates to meet the 2% inflation target (Ha ha!!) If Andy Burnham thinks the government is in hock to the Bond Markets then he is right because it's where they go to borrow money. It's for him to say how he will finance future borrowing for his program.of government and if he's not going to raise it through issuing bonds then how? Presumably the only other option open to him is through money printing ( if you want to call it that) or QE. The B of E is only independent until the government of the day wants to take charge of monetary policy itself again, in which case Burnham could fire up the print presses. I'd be interested to hear from anyone in here "on the left" how Bunrham-omics would work in practice. It's worth pointing out that Manchester Council is £1.6 billion in debt and rising.

It will be interesting to see how Burnham is viewed when the interest charges begin rolling in 😊

 

[Shortfall]

I've heard quite a lot about Modern Monetary Theory recently and it's advocates say that a sovereign government with its own currency issuing central bank can basically print all the money it needs without having to go to the Bond traders who demand healthy interest on the bonds they buy. It's opponents point to Zimbabwe and Venezuela as examples of when too much money printing has had catastrophic consequences and they describe MMT as the Magic Money Tree. I'm open to persuasion but I've yet to hear Andy Burnham to say how it will work in practice.

 

[BoldonLad]

I've heard quite a lot about Modern Monetary Theory recently and it's advocates say that a sovereign government with its own currency issuing central bank can basically print all the money it needs without having to go to the Bond traders who demand healthy interest on the bonds they buy. It's opponents point to Zimbabwe and Venezuela as examples of when too much money printing has had catastrophic consequences and they describe MMT as the Magic Money Tree. I'm open to persuasion but I've yet to hear Andy Burnham to say how it will work in practice.

Yes, I have been following some of the MMT stuff.

One of my drinking pals has become a believer (worryingly, I would categorise his as the most intelligent of our little group).

Not that it really matters, since neither of us are likely to get our hands on the levers of power 😂