New WaylandMatthew Lynn’s recent article (“The UK is heading for a full-blown financial crash, and nothing can stop it now”) paints a dramatic picture of fiscal doom, arguing that rising government borrowing figures signal an inevitable economic collapse. While the borrowing numbers themselves are significant, the conclusion that they spell imminent disaster fundamentally misunderstands how government finance works in a country like the UK, which issues its own floating-rate currency. Lynn’s analysis, focused solely on the government’s deficit, misses the other side of the equation: the non-government sector’s surplus....
Friday, April 25, 2025
Misreading the Signs: Why High UK Borrowing Doesn't Mean Financial Crash — NeilW
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2 comments:
"Borrowing." U.K. doesn't borrow.
“At the heart of the misunderstanding is a failure to grasp a basic national accounting identity blah blah blah…”
At the heart of the misunderstanding is a failure to grasp a basic realization that the Art Degree people are cognitively deficient…
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