Our national debt is, give or take, around £1.1 TRILLION.
We hear about the “markets” and how they lend money to the UK government to make up for shortfalls between tax revenue & public spending costs every year (the annual deficit), and how the “markets” control the interest rate the government pays on its debts.
So to whom does the government owe the national debt? Are the “markets” made up of evil capitalists chomping on big cigars in smoke-filled rooms plotting the destruction of our societies?
Well, actually the “markets” in this case are primarily you & I. We, mainly through our savings, life & endowment policy premiums, pensions contributions and even union subscriptions have lent about 75% of the national debt to our own government (the other 25% are lent by foreign institutions and governments)
Of course you & I didn’t write cheques to the government individually, but our banks, life & pension companies, unions etc, directly or indirectly, lent on our behalf.
In theory, we should tell the government not to cut public spending and borrow even more from us, and at higher interest rates.
Awkward, isn’t it?