The Noble Lie — Revealed
It’s time to let you into a little secret.
It’s a secret about the UK that those in charge keep in plain sight, but hide with their rhetoric.
They desperately want to keep your attention on the Wizard of Oz pantomime going on in front of you.
But we’re going to look behind the curtain.
This secret is so powerful and so profound that it will alter everything that you understand about how government works and what it can do for you.
It will highlight the lies politicians tell you. And it will disappoint you when you find that those lies are told by politicians across the spectrum.
It’s a simple lie. And they are always the best.
And the lie is this — that governments can run short of money.
So what’s the truth?
The UK government owns the Bank of England and has an operational infinite overdraft with its own bank (known as the ‘Ways and Means Account’).
That means the Government’s credit card is a Super Platinum Card and nobody can tell the government what it can and can’t spend.
Running short is impossible.
And of course the interest rate is effectively zero. If you own a bank, then anything you pay to that bank as interest comes back to you as profits of the bank you own.
Now, when government spends it creates a chain of transactions that causes taxation to flow, and creates savings at the Bank of England that match the initial spending. In the ratio of about 90% tax for 10% savings. Penny for penny, each time, every time, for any positive tax rate.
The books always balance. Anybody suggesting otherwise is lying.
So that means…
That means that if there is stuff and people free in the UK economy, then the UK government can set them to work.
If there are unemployed people we can give them a job.
If there is a drop in private trade, then that creates more space for government investment, not less.
It means that austerity is a political choice.
It means that paying interest on government debt is a political choice.
It means that the political class is lying to you.
So ask yourself:
Who benefits from the unnecessary interest paid on government debt. Why do we pay £240m per week overseas unnecessarily?
Who benefits from ensuring there are always fewer jobs than people who want them?
Who benefits from threatening tax rises when none are required?
Your politicians are lying to you, from all sides. Time to ask them why. Get them to admit the truth.
But importantly hold them to account for their lies at the ballot box.
It’s time to end political careers pour encourager les autres.
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