Monday, 11 September 2017

Quote of the Day: A reminder on all those spending promises

“There is no such thing as public money; there is only taxpayers’ money.”
~ Margaret Thatcher



  1. Treasury can issue bonds and RBNZ can buy them. Push of a button.

    Which will probably happen.

  2. Eventually those assets have to come off the books and be carried as debt or monetized away, and what enables the government to do this (you might want to get a pen) - future taxpayers money.

  3. the Drunken Watchman11 Sep 2017, 18:57:00

    who says they have to come off the books? Anonymous?

    1. History. Reserve Banks have never indefinitely keep assets on their books unless they monetise them away during hyper inflation or they render insolvent through economic collapses. At that point, the concept of tax payers "money" has been rendered moot, the reset button is set, and any debt issued (in whatever capacity) is still backed by future taxpayer's liability.

      All government funds and debt comes from taxpayers or is backed by taxpayers. The form and current holder of the security matters not.

    2. Sorry I didn't proof this, it should have read:

      "Reserve Banks have never indefinitely kept assets on their books, unless they monetise them away during hyper inflation or they are rendered insolvent through economic collapses."

  4. Written off the books more like. Who gonna complain?


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