Government borrowing
Discussion
Can the PH hive mind help me understand government borrowing?
From what I understand, the government effectively takes loans from institutions which are paid back over a period of time at an agreed rate. Which if I am right, seems simple enough but does that pot have a bottom?
Is this ability infinite?
Does money move from one account to the next? Is it actual cash in the bank so to speak, or is it theoretical money?
Could the government feasibly say ‘that’s it, there is no more money’ and it be real?
I see £x trillions and think - wow, that’s a big problem but I struggle to comprehend the numbers that are being talked about if I’m honest.
From what I understand, the government effectively takes loans from institutions which are paid back over a period of time at an agreed rate. Which if I am right, seems simple enough but does that pot have a bottom?
Is this ability infinite?
Does money move from one account to the next? Is it actual cash in the bank so to speak, or is it theoretical money?
Could the government feasibly say ‘that’s it, there is no more money’ and it be real?
I see £x trillions and think - wow, that’s a big problem but I struggle to comprehend the numbers that are being talked about if I’m honest.
Some great explanations and things to explore a bit more - thanks a lot folks!
It hadn’t occurred to me other nations would buy these bonds, but that really explains the concern over rapid inflation as a potential outcome of borrowing.
Japan is an interesting example and one I hadn’t really considered beyond them being quite static.
It hadn’t occurred to me other nations would buy these bonds, but that really explains the concern over rapid inflation as a potential outcome of borrowing.
Japan is an interesting example and one I hadn’t really considered beyond them being quite static.
Gassing Station | Finance | Top of Page | What's New | My Stuff