Tuesday, 12 October 2021

Operational Independence

Last night's instalment of that silly thing about Tony Blair and Gordon Brown gushed over the 1997 surrender of democratic political control of monetary policy, which had been in neither main party's manifesto, and which no Conservative Government had ever attempted to do.

Today, we have this "emergency loans" nonsense, loans that everyone knows are never going to be repaid, just as there is no real "debt" in bonds issued by the Bank of England, which is the State, to the Treasury, which is the State. 

A sovereign state with its own free floating, fiat currency has as much of that currency as it chooses to issue to itself, with readily available fiscal and monetary means of controlling any inflationary effect. Those means therefore needed to be under democratic political control.


  1. If only we had one, one, MP saying these things.

    1. Well, one who could make the media pay attention to him, yes.