Quote:
Originally Posted by gippy
you definitely don't. It paid for covid by instructing the BoE to spend that money, who then created it, and bought the bonds which the treasury issued.
And seeing as the BoE is effectively the governments bank, it cannot owe money to itself.
I'm not surprised you don't understand this, as i say, most people don't have a clue how it works.
There's a whole host of resources i could give but there wouldn't be any point really.
It requires a complete changing of your frame of reference.
You first have to understand what banks do, how they create money through issuing loans, and understand how the government is not a household, and whenever it runs a deficit, it actually creates a private sector surplus - it's part of the national accounting identity.
You'd also then have to understand how GDP is calculated.
Taxes do not pay for anything. Taxes destroy money - that is the purpose of a tax. Their primary use is to control inflation, and to generate incentives/distribute the money supply; They serve as a drain on the money supply. but in terms of government requiring 'our taxes' in order to spend on public services, this is entirely wrong.
The good thing is, slowly but surely, people are begining to realise this, as they wonder how covid was paid for and how government could 'magic up' a ton of money.
You ought to check out what QE is, and then go and do some research around how government actually used BoE to 'pay for covid'. Check out the BoE website - useful resource.
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You do just come on here trolling don’t you? At least one person you have insulted works in the banking sector. Now explain to me what your qualifications and experience are so that I can determine who I believe.