Governments don’t borrow from financial markets

The obsession with the national debt is absurd. The UK government has no need to ever borrow money. It can create all the money is wants, when it wants, from the Bank of England. The reality is that the City is desperate to save its excess funds – created by government spending more than the sums it reclaims in taxation – with the government because the government alone can always guarantee to repay funds saved with it. But that’s not borrowing. That’s the government offering savings facilities as a favour to the City.