I'm wondering if anyone can help me answer a question?
So the United Kingdom is in debt.
The government is raising taxes and will be cutting public spending to reel in the debt and pay it off.
Apparently 'we' owe about £1 trillion or something like that.
So all of us...many of us are paying this money back through tax raises etc.
The banks were in trouble so we bailed them out.
So my question is...
Who do we owe this money to?
Who exactly are we paying this money back to?
It can't be a human free organisation or company because there has to be someone at the end of the line. There is always a person somewhere down the line.
So who is this person or people that we owe all this money to?
If it is the banks then why did we bail them out?
If it is a person then who are they and how do they have so much money to lend?
As you can see I am no economist, but I am seriously troubled by this question.
Anyone care to help?