Jacob Rees Mogg admits that QE has cancelled more than £800 billion of government debt. Now we need to discuss the consequences.

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Jacob Rees Mogg gave a quite extraordinary interview on Sky this morning, seeking to justify Liz Truss's plan to cut taxes by £30 billion and to borrow to, as he would put it, pay for it.

He dismissed the inflationary impact of this, saying Patrick Minford was 'misunderstood' when he offered advice on this issue. I have often felt that about Minford, but always presumed the misunderstanding was Minford's alone.

More importantly, he made two additional points. One was that governments always borrow, and we should not worry about it. And, to add to that, he suggested that because £875 billion of QE funds (which he did not get quite right) were owed by the government to itself they should be ignored when calculating the national debt and that it was really only about 60% of GDP as a result, and so of course we could borrow more.

It would seem that Jacob Rees Mogg has been reading this blog. But it was not what I was expecting a Tory to say.

Now, when will Labour and others pick up the theme and argue how the borrowing that we need can be directed towards a Green New Deal rather than the callous cuts that the Tories still plan?