Guest
asked 10 months ago
2 Answers - Sort by: Date | Rating
1. Taxes -- in other words your money. Our money.
2. They borrow money. They borrow billions. And billions. They do this by issuing government bonds that pay interest to those -- usually banks or pension funds -- who invest in them. But it's still your money/our money because when they pay interest, it is paid out of taxes and when they pay back the original loan -- if they pay it back -- they pay it back out of taxes!! Sometimes they don't pay it back, they just replace the old loan with a new one. On the stock market, such securities slashed investments are generally referred to as " gilts". Meaning "gilt-edged securities ".
2. They borrow money. They borrow billions. And billions. They do this by issuing government bonds that pay interest to those -- usually banks or pension funds -- who invest in them. But it's still your money/our money because when they pay interest, it is paid out of taxes and when they pay back the original loan -- if they pay it back -- they pay it back out of taxes!! Sometimes they don't pay it back, they just replace the old loan with a new one. On the stock market, such securities slashed investments are generally referred to as " gilts". Meaning "gilt-edged securities ".
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Guest
answered 5 months ago
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