Governments need to borrow £11 trillion on financial markets this year, breaking the £10.9 trillion record set in the recession-fighting spending spree at the height of the financial crisis.
Most of this is caused by governments refinancing existing debt mountains as the bonds issued to finance earlier debt-fueled spending mature.
But more than £2 trillion is new borrowing as nations continue to add to their national debts, according to data on rich-world economies from the Organisation for Economic Co-operation and Development (OECD). The US budget deficit hit more than 4% of GDP last year.
Amidst all this nonsensical talk of austerity, government debt keeps expanding, and expanding, and expanding.
MMTers will respond that government debt doesn’t matter at all. So, why tax anybody? After all, government always spends money wisely.
Mike “Mish” Shedlock