Public debt – Banks win, Households lose

Public debt – Banks win, Households lose

Governments sell bonds (via the Debt Management Office DMO) to fund their budget deficits. Bonds are a way for the government to borrow – similar to the government taking out a loan.  The Government pays interest to those holding Government bonds.

This is despite the fact that a government also has the ability to create money for the benefit of the public rather than borrowing from the private sector.

“Socialism lives in Britain, but only for the rich: the rules of capitalism are for the rest of us.” – Owen Jones, 2014  Guardian.




Related posts

Leave a Reply

Your email address will not be published.