Monthly Archives: November 2010

Dear Correspondence & Enquiry Unit @ HM-Treasury

Dear Correspondence & Enquiry Unit

I found your letter to Mr X so interesting that I published it on http://publicdebts.org.uk

As a mathematician and system analyst who used to diagnose high energy physics software at CERN, I trust my logic and analysis. Hence I would like to ask:

1.     How much of the capital of the National Debt is paid annually?

a.     Where are the statistics?

b.     Who determines the amount or percentage?

2.     What is the time span that is considered for ‘spreading across generations’?

3.     I do find the logic interesting that the National Debt is used for a ‘more stable the tax system’.

a.     Why do taxes get changed anyhow?

b.     What do you consider “economically efficient or inefficient”?

4.     What do you or the IOBR consider a “sustainable position”?

a.     Where is the clear and measurable fiscal mandate?

b.     Is there an equally clear and measurable mandate for the National Debt?

5.     What prevents HM Treasury to increase M0 to stabilise the tax system?

6.     Why is it relevant what the IMF thinks about HM policy?

7.     Why do you think that the IMF comment about “market reaction has been positive” is proof of the Government’s strategy to be “working”?

Looking forward to your response,

Yours sincerely,

Sabine K McNeill

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3D Metrics, Director

Forum for Stable Currencies, Organiser and Promoter

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It’s not Government policy to repay the National Debt completely…

HM Treasury, admittance of National Debt 1HM Treasury, admittance of National Debt 2Getting letters from Officials is always interesting.

This one is an anonymous response from public.enquiries AT hm-treasury.gov.uk and states:

The National Debt is not owed by the public, but is owed by the Government. It is not Government policy to repay the national debt completely. Governments borrow in order to spread the capital of projects across generations, so that all those who benefit from a government policy contribute towards it.

Borrowing also allows the Government to smooth its expenditures over time, allowing for a more stable tax system.

If the Government did not issue debt, then taxes would have to be constantly changed. This approach is unfeasible and economically inefficient.

I shall send an email in response to this and ask others to do the same.