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This from Hans Bromwich, Cowes. Ed
Economics professor Stephanie Kelton, author of The Deficit Myth and former chief economist of the US Senate Budget Committee has an interesting video on YouTube where she explains why the US can’t go broke.
National debt isn’t the same as personal debt, where creditors can come after you if you default on repayment. This is because governments borrow from themselves, not a third party.
They can make more money whenever they like
They can choose to make more money whenever they like, and uses that money to pay for whatever they wish, like paying the interest on national debt for example. Kelton explains, perhaps somewhat perversely, that national debt can be a good thing because it means more money is circulating in the economy.
Let’s not forget that after the Second World War many countries went into debt using the money to rebuild. Indeed, here in the UK we created our NHS.
Chagos islands versus winter fuel allowance
Perhaps this explains why the British Government doesn’t appear the least bit phased by the huge costs associated with the Chagos islands.
However, this then begs the question, why couldn’t it have found the money when it came to the Winter Fuel Allowance?
I believe that the truth is Labour made a political decision to punish pensioners, presumably because many voted for the opposition. Demonstrating such mean spirited and spitefully contempt for our elderly, I am sure will not be forgotten.
