Remember: the money supply of a nation consists of
- Cash issued by government as notes and coins – interest-free – raising seigniorage as income
- Credit issued by banks at interest.
The budget deficit of a government consists of the difference between income and expenditure.
Government income consists of taxation and borrowing, since seigniorage has more and more decreased and is being ignored in general budget figures.
- In the UK, the hole of the budgetary deficit is filled by …
- Public Spending Borrowing Requirment (PSBR).
I.e. the tightening of public debt spirals is built in; with every annual budget – according to seemingly “good” and even “golden” fiscal rules.
And that means: dependency of governments by supranational bureaucracies such as the EU. Euroland is the first of such “world regions” that the Single Global Currency Association and other questionable groupings of the global financial elite are advocating.