Government to pay down a debt of £1.4 trillion when having to borrow with interest? The mind boggles!
As I have commented so many times on this site Britain’s government debt can never be repaid if its borrowing is subject to interest payments. It is a total oxymoron to pay interest on private money supply to fund the government spending while at the very same time having the Bank of England give £450 billion since 2008 to these self same private money suppliers (userers) to keep them afloat by way of debt free QE!
The private banks should be subject to market forces rather than private socialism and file for bankruptcy if they cannot balance their books. As a push down that road the government could claw back the £450 billion by returning the worthless assets that these self same banks deposited with B of E as collateral for the QE.
The top executives of any failed bank should be placed on remand to await court procedings as were the top four executives of Iceland’s Kaupthing bank who ended up serving prison sentences.
Then the government of the day should have the B of E create exactly the same amount as the national debt and lend it to them by way of QE and have the self same B of E act as a UK money supplier in competition with the private banks.