Can we talk about 'Government Borrowing'?

Clearing the National Debt would be inconvenient, because we would no longer be able to invest in government bonds or funds and the banks would be in a mess because government bonds, Gilts etc are treated as highly liquid assets and a safe place to put money on deposit.

What do you suggest we should do?

M0nica

Clearing the National Debt would be inconvenient, because we would no longer be able to invest in government bonds or funds and the banks would be in a mess because government bonds, Gilts etc are treated as highly liquid assets and a safe place to put money on deposit.

What do you suggest we should do?

I'm not suggesting anything, MOnica. What I'm trying to get over to people is that the 'borrowing' that they think has to be somehow 'repaid' is not 'borrowing' and doesn't have to be 'repaid'.

I keep seeing this on threads; people saying that the covid money has to be recouped so we have to put up with higher taxation and reduced public spending when in fact, it is not true. The deficit (or debt) which the nation has is either people's savings or investments (as in my OP), or money issued for QE by the Bank of England, which doesn't have to bee repaid...

It would help if everyone realised that just as businesses are not run like household accounts so the economics of countries, especially with monetary sovereignty (never given up, never had to take it back), are not the same as either households or businesses.

This government is not about facts - it's only about feelings and they use those feelings about money to control us.

Yes it does. I know where you are leading and we have been through that so often before I will not bother ot go any further.

I'm going to my daughter's and Sainsbury's, shortly. I didn't think that would offend anyone!

I am wondering how many of the people posting on it realise that the money they have invested in Premium Bonds is actually part of the ;government borrowing' that most people treat as though it were a Bad Thing which has to be repaid ASAP.

Yes, and I am surprised that Sunak didn't increase the amount that could be held in Premium Bonds.

There may be many people who haven't spent as much on holidays, going out etc during the last nearly couple of years and who may be looking for safe investments.

Government has just announced the issue of a Green Bond for savers. So who fancies lending the government some money to put into spending on green projects?

Is it a fixed term bond?

Yes, I just checked.
Once you invest, you won’t be able to access your money until it reaches the end of its term, but in return you’ll be guaranteed a fixed rate of interest for three years.


They could spend money borrowed from Premium Bond holders on green projects.

No chance, the interest rate is too low to tie up money for 3 years.