How economies actually work

YOU will read people every day talking about “wasted taxpayers’ money here, there and everywhere”.

Sure there is waste and deceit like Johnsons bridge or ferry company with no ships but this is NOT how a sovereign economy actually works. Governments do NOT tax to spend... what actually happens when the government wants to spend money on something is a matter of simple accounting and someone accordingly credits an account on a computer with the amount decided, which is wholly independent of tax revenues.

The government will issue bonds to cover deficit spending which is a highly safe investment so this is actually owned by the investor indeed all the potential Labour leaders sitting before a Sky newsdesk in debate demonstrated they have no clue how the UK financial system actually works where austerity is a huge lie, so were entirely impotent to offer anything real in the face of an entirely deceitful series of fallacious claims by the Tories.

Not so for Euro user Greece of course which is hemmed in completely by the EU Financial and Stability Pact which the Tories deceitfully claimed bound them through the Single Market, adherence to which has pretty much destroyed its economy.

This is why it was incumbent on Greece to return to the Drachma where it could issue currency at will and enable their economy to grow again but the Greek people unaided by real politicians at the helm making the arguments had long since been brainwashed over the alleged benefits of full EU membership whilst the rise of fascism in Greece is accordingly not unexpected.

The French Gilets Jaunes is a growing movement subjected to huge violence by the hypocrite Macron on account of the oppression largely of the neoliberal EU.

A sovereign economy is not a business nor a household. It has no constraints at all. It is the sole issuer of the currency and its deficits are other people’s investments it doesnt actually even need. Bill Haymes, Coventry