After all, aren’t you aware that the economy needs government debt to function? It is the ultimate source of money, after all

So, Brunei, a richer country than the UK, and one with no government debt at all, has no currency or money?

4 thoughts on “Err?”

  1. The exchange of goods and services between people REQUIRES government to be present. Cos it’s all about government. God created Man because He didn’t have a way to create government directly. He’s happy now.

  2. Barking, but in a way not untrue. Executors needed some safe haven to park their widow and orphans clients’ money. Bonds were seen as the least risky (and least risky of getting sued).

    Didn’t stop cpnsols going to 55 at the depth of the Napoleonic war, though.

  3. Well, you don’t need need to have net debt. But of course, whenever you are involved in economic activity, there is some gross debt around, as money is exchanged.

  4. Reminds me of commentary in Australia in the early 2000s. The (conservative of course) government at the time was on track to pay down all federal public debt – at which they actually succeeded. I remember numerous articles talking about lack of liquidity in the bond market, ruining traders livelihoods, market would collapse without an underpinning of government debt, etc.

    None of that happened and everything was fine and dandy with no federal debt. We elected a Labour government in 2007 though, and they fixed the non problem. We’re back in the happy position of huge public debt and annual deficits as far as the eye can see.

Leave a Reply

Your email address will not be published. Required fields are marked *