Most people don’t understand the significance of the national debt: it is used to increase the money supply, so that people can buy ‘gilts’ and thus obtain interest as passive income.
‘Gilts’ or ‘national bonds’ are issued by the Government, backed by the Nation as an entity. But unfortunately the taxpayers of the Nation do not benefit. Only the people who can buy those papers.
Today’s article in the Telegraph may bring it home: people who are in a position to dip into the money pot, do so:
Government stakes in RBS and Lloyds could add £1.5 trillion to UK national debt