No shortage of money for renewable energy, but there is a denial of that truth

 This is ridiculous beyond madness (and comes from the Guardian this morning with an addendum from the estimable Richard Murphy):

The government is struggling to pay for new clean energy supplies which could result in a rise in household bills or a major cut in investment in renewable technologies.

The Department of Energy and Climate Change (DECC) has already overspent its budget to support renewable energy projects over the next five years by £1.5bn, senior sources said.

Unless ministers increase the budget still further, the UK could struggle to meet legally binding commitments to reduce greenhouse gas emissions.


This is mad for four reasons.

First, it’s mad because we need renewable energy.

Second, it’s mad because renewable energy creates jobs in the UK and potential competitive advantage for UK business outside it.

Third, it’s mad because we could find £375 billion of quantitative easing to bail out banks (which is what it achieved, even if it was not quite what was planned).

Fourth, it’s mad because Green Infrastructure Quantitative Easing could, without a shadow of a doubt fund this programme at almost no net cost to society.

The argument that ‘there is no money’ is just not true. There is always money available to a government with its own central bank and a mechanism for repurchasing its own debt (which is what all QE does). To argue otherwise is to either deny the truth or turn a willing blind eye to it to achieve another political aim. It’ up to you to decide which one is going on here.



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