Most nations have their own national currency. Their central governments can create as much of their nation’s currency as they like out of thin air. If the nation’s currency is not accepted outside its borders, then the nation must obtain foreign currencies in order to buy imports from abroad. The nation does this by selling things to foreigners. If a nation has a trade deficit (imports more than it exports) then the nation must obtain foreign currency loans so the nation can keep buying imports.
The USA does not need foreign currency loans, since the U.S. dollars are accepted worldwide. Half of all international transactions are denominated in U.S. dollars. Every country has banks that will change U.S. dollars into local currencies.
The table below shows the most traded currencies on the Forex market, which is roughly the same as the most widely used currencies. The table may not be accurate (every Internet source gives different numbers) but we can reliably say that U.S. dollars are the most widely used currency in the world, and that British pounds are also widely accepted.
This means that the U.K. does not have to borrow foreign currencies in order to buy imports. A British buyer can use British pounds to buy almost anything worldwide, directly or indirectly. This is not the case with Angolan Kwanzas or Laotian Kips, or with any other currencies that are not widely accepted.
The U.K. government can create infinite U.K. pounds of thin air, but politicians lie, claiming that this is not so.
Neoliberal politicians lie because they want to cut social programs that help average people. Likewise “Democrat” (and “Labor”) politicians also lie, because they want the masses to think their only salvation is “Democrat” (or “Labor”) politicians.
Indeed, when Republican President Richard Nixon tried to enact universal Social Security in the USA (aka a basic income for all citizens) it was killed by Democrats who feared losing their power. Democrats know that as long as they keep the masses starving, the masses will beg “Democrat” (or “Labor”) politicians to “save them.”
If order to keep the masses starving and groveling, you must tell them that the bottomless well has run dry, and that the central government must rely on loans and on tax revenue. You must tell them that rich people should be taxed to “pay for” the central government — i.e. that rich people should give up some of their water to replenish the well (which is inexhaustible).
This brings us to the U.K., which on 8 June 2017 will have a General Election for members of parliament. Each of the 650 parliamentary constituencies will elect one Member of Parliament (MP) to the House of Commons.
In a quest for votes, the British Labour Party has released a “manifesto” that proposes to raise taxes on the rich to supposedly pay for expanded social services.
By calling for tax increases, “Labour” politicians pretend that the inexhaustible money-well has run dry, so the masses will grovel before their “saviors” (the Labour Party).
Conservatives and the corporate media outlets claim that the government “has no money” to spend on social programs. The Labor Party echoes this lie, and says it is the reason why the masses need the Labour Party, and why taxes must be increased (even though rich people pay no taxes in any case).
The lie continues because the peasants like to hear it. The lower you are on the ladder of wealth and power, the more you are likely to escape into delusions and fairy tales.
And speaking of delusions…
And regarding fairy tales, below we see Bernie Sanders claiming that the Russians “rigged” the U.S. presidential election.