tag:blogger.com,1999:blog-5312853715123370916.post1765300909665650392..comments2024-03-17T00:10:44.022+00:00Comments on From Arse To Elbow: Something Will Turn UpDavid Timoneyhttp://www.blogger.com/profile/03568348438980023320noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5312853715123370916.post-37316441126379137962015-06-11T11:19:41.639+01:002015-06-11T11:19:41.639+01:00Surely there's no possibility that it's go...Surely there's no possibility that it's going to happen. If you look at the stock flows in the OBR projection, in the absence of any private sector investment (IIRC they're still banking money), the future surplus relies on heroic levels of private indebtedness, and a huge drop in the trade deficit. Are either of those really likely? Without creating another crash?gastro georgenoreply@blogger.comtag:blogger.com,1999:blog-5312853715123370916.post-70417683147630641832015-06-11T00:02:16.593+01:002015-06-11T00:02:16.593+01:00I think it is safe to assume that this plan is no ...I think it is safe to assume that this plan is no more to be relied upon than any of his earlier wheezes, such as eliminating the structural deficit by 2015. This is an emperor's new clothes moment, where the real story is that supposedly fair-minded political and economic commentators have failed to ridicule the sheer absurdity of the proposal. I half suspect that someone put Osborne up to it as a dare.David Timoneyhttps://www.blogger.com/profile/03568348438980023320noreply@blogger.comtag:blogger.com,1999:blog-5312853715123370916.post-36240266796823389302015-06-10T23:31:20.998+01:002015-06-10T23:31:20.998+01:00I'm struggling to understand how George can ma...I'm struggling to understand how George can make this scheme work at the operational level. By my understanding at present the balance on the Consolidated Fund is rolled up into the Debt Management Account buffer overnight, into which any new reserves created by that days spend can be drained by debt issuance. The system is automatic, with gov't 'borrowing' back what is had just created. Tinkering with the nervous system might lead to some embarrassing bouts of palsy if her majesty's checks start to bounce. I'm guessing that he'll produce more waffle on structural and cyclical spending components and the whole thing will turn into another spin on the media carousel of shit.Hugo Evanshttps://www.blogger.com/profile/12705056750207255618noreply@blogger.comtag:blogger.com,1999:blog-5312853715123370916.post-6773092843903271872015-06-10T18:51:07.895+01:002015-06-10T18:51:07.895+01:00Did I dream it, or did the Tories promise before t...Did I dream it, or did the Tories promise before the election to make a law prohibiting tax rises as well?Igor Belanovnoreply@blogger.com