Eliminating the cost of the Asset Purchase Indemnity

The Asset Purchase Facility has landed HM Treasury with a ~£90 billion bill over the next two year. This paper lays out an approach that requires no further vote funding from Parliament, no additional debt interest payments, and restores “postive cash flow” from the APF for the remainder of this Parliament.

27 Dec 2022 08:32 +0000 · 7 min · NeilW

Why the Russian Oil Price Cap Won't Work

The 2020s appear to be a never-ending parade of global groupthink. The Russian Oil Price Cap is yet another stupid and self-destructive idea that should have been suffocated at birth. It cannot possibly achieve what its supporters claim, and it represents emotional value signalling from the Big Hug Club rather than any semblance of rational thought.

6 Dec 2022 05:45 +0000 · 6 min · NeilW

Whole of Government Accounts: some juicy quotes

Once intra-government transactions are eliminated, QE represents an exchange of gilts (liabilities of the National Loans Fund) for central bank reserves (liabilities of the Bank of England)

28 Oct 2022 08:24 +0100 · 3 min · NeilW

Gilt issues considered harmful

The public debt markets add less value to national prosperity than their opportunity costs. A proper cost-benefit analysis would conclude that the market should be terminated.

28 Oct 2022 06:25 +0100 · 7 min · NeilW

How Russian Gas Is Paid For

How the new payment process for gas in Russia will work, including how it is settled at the Moscow Exchange, all of which leads to some interesting observations

4 Apr 2022 08:54 +0100 · 8 min · NeilW

Rouble Rumble Continues

Journalists really should take some time to learn how correspondent banking works

31 Mar 2022 19:02 +0100 · 2 min · NeilW

Rouble Gas Payments are probably a False Flag

In all international transactions they consumer pays with the currency they have and the producer gets the currency they want to hold. So why the big fuss over Russia’s requirement to receive Roubles?

28 Mar 2022 22:10 +0100 · 4 min · NeilW

The Russian Fiscal Toketa

Russia has easily countered the attempts at financial sanctions, resulting in some interesting outcomes that further confirm the view taken by Modern Monetary Theory

7 Mar 2022 21:17 +0000 · 3 min · NeilW