Quote:
Originally Posted by Vicky.
Is it actually true that we just owe the debt to...ourselves? If so, why the hell worry about paying it back? I know the economy is not as simple as doing a household budget...I don't really understand how it all works as until recently I did think we owed the debt to other countries...as I was wondering how the bloody hell near every country could be ion debt 
I feel a lot of spending is actually needed. Especially on public services. These flats that were built with unsafe materials, the councils should be given more cash to sort it rather than be told that they have to find the money themselves. Need attractive bursaries and such for nursing students to encourage more into the profession. Need to reverse the savage disability cuts and scrap the bedroom tax (until there are enough smaller properties available. I don't have an issue when people have the option to move to not have 'spare' rooms). Need to replace the police that have been cut...and so on. I am sure May said that austerity was over. Unless that was just more soundbytes to cling onto her job |
No.
We owe about 35% abroad, and then to the private sector.
The government sell gilts and bonds to garner loans.
They do borrow some from themselves.
If we don't pay our debts then we will lose our ratings and be downgraded, therefore having to pay extra interest on what we owe.