The United Kingdom also swims in debt with no hope of ever paying off the debt. Any attempt of the UK to pay off debt would drain the Money Supply and cause a recession that would prevent further repayment. There is simply more debt than money. The solution is to ignore the debt. You cannot go broke because you have the authority to create the currency of the nation. The lenders cannot repossess you like a motorcar.

You will notice that the Cash Currency created by Bank of England has not fallen. You will notice that the Cash Currency created by the Bank of England only comprises a very small portion of the Money Supply. (3%) The remainder is numbers in bank accounts. You can tell that it is not regular money because you can have fractions of pennies.

Here is a graph of velocity for the United Kingdom. A higher proportion of money is being hoarded by those with ‘more money than they can spend’. Velocity has fallen below one. This means that money is changing hands less than once a year.

In this graph, you can see that the UK had no national debt before 1694, which happens to be the date that the Bank of England was created. Before that date, the sovereign created the money of the nation and spent it into existence. It was taxed back out of circulation, not because the sovereign needed money but to prevent an oversupply.

In the next graph, you can see that the Bank of England has been buying bonds in large quantities since 2008. The Bank of England previously owned zero government debt. It now owns a startling 28% of the entire stock of government bonds. This occurred during the dramatic Quantitative Easing program. To buy the bonds, the Bank of England created book money from nothing and used it to buy government bonds. The Bank of England is supposedly government owned and it created money to buy the bonds which still left the government in debt

The next graph shows the stop-go nature of bank lending: