Hmmm..... did someone replace the fried brain of a few people over in Britain?
In a stark warning ahead of next month’s Budget, the Chancellor said there was little the Coalition could do to stimulate the economy.
Mr Osborne made it clear that due to the parlous state of the public finances the best hope for economic growth was to encourage businesses to flourish and hire more workers.
“The British Government has run out of money because all the money was spent in the good years,” the Chancellor said. “The money and the investment and the jobs need to come from the private sector.”
Uh, wait a second.... Britain is a currency issuer as well. This means it can "print", just as can the US (by borrowing more and more from people.)
Someone, it appears, has figured out that this doesn't work because "printing" (e.g. borrowing more and then possibly QEing it) simply acts as a tax upon the poeople, and therefore is exactly identical in terms of its effect on the economy as doing what no politician wants to say out loud -- raising taxes.
See, it's simple folks when you start looking at the world (and its component parts) as a balance sheet.
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