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We’re told that government debt is spiralling out of control. Commentators scream “fiscal crisis!” and “record borrowing!” But the truth is very different. High government debt is not a sign of collapse—it’s a sign of trust. People and institutions are desperate for the safety that only the government can provide. Debt is not a danger—it’s a deposit facility. Let’s cut through the panic and face the facts.
By Richard MurphyWe’re told that government debt is spiralling out of control. Commentators scream “fiscal crisis!” and “record borrowing!” But the truth is very different. High government debt is not a sign of collapse—it’s a sign of trust. People and institutions are desperate for the safety that only the government can provide. Debt is not a danger—it’s a deposit facility. Let’s cut through the panic and face the facts.