The constant terror the UK seems eternally embroiled in that the country is about to ‘become insolvent’ is unfounded, writes Martin Odoni.

Basically, because the country has its own Central Bank that issues the very currency the Debt is composed of, the UK can’t go bankrupt unless the Government is stupid enough to apply to.

The interesting development today is that the minutes and documents of The Bank Of England’s activities at the height of the financial crisis from 2007-9 have been published.

As the Guardian has highlighted in its summary of the documents, officials working in the Bank Of England do not noticeably endorse the aforementioned line that the country has been on the edge of bankruptcy for about six years; you would have thought their opinion on the matter would be worth something. Certainly far more than George Osborne’s.

“The Bank fully supported the increase in national debt sanctioned by the then Labour government to rescue the banks and considered the action to be no threat to the solvency of the UK.” (Bold emphasis mine.)

Read the full article on The Critique Archives.

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