Tuesday, 6 September 2022
Spades In The Ground?
Day One, and Liz Truss has already outflanked Labour on the left. If £100 billion or more is going to be "borrowed", then why not tack on the mere £2.8 billion that it would take to renationalise energy, as favoured by the huge majority of the electorate, including at least half of Conservative voters?
But "borrowed" from whom? This is an accounting trick. The Bank of England and the Treasury are both the State, so there is no debt. In the event of a "default", then would bailiffs be sent round? What items would they seize? A sovereign state with its own free floating, fiat currency cannot be in debt, and it certainly cannot be in debt to itself. Therefore, there is no reason effectively to issue every household with an energy mortgage to be paid off over 10 or 20 years.
And the entirely ineffective sanctions regime against Russia, where even The Sun has found that prices are down and that energy bills are far lower than they are in Britain, is significantly worsening the cost of living crisis that the working class has been suffering since the beginning of the austerity programme 12 years ago. But this year's invasion of Ukraine is not the cause of that crisis, nor is Brexit, and nor is anything to do with Covid-19.