Episode 35: Central Banks Part 2 — The Government’s Biggest Lender Is Itself

Who does the British government owe its debt to?Most people would say pension funds, insurance companies, foreign investors, or the banks.And yes — all of those matter.But the single biggest lender to the British government is the Bank of England. At its peak, it owned around a third of all government debt in existence, and even now it still holds hundreds of billions of pounds of it. The strangest part? It didn’t buy that debt with money that already existed. It created the money first — and then bought the debt.In this episode of Taxed & Taken, I break down how that system actually works in plain English.We go through:* how government debt really works* why banks are allowed to create money* what quantitative easing actually is* why asset prices soared after 2008* why wages didn’t keep up* and why the losses ultimately fall back on the taxpayerThis is the second part of the central banking series, and by the end of it you’ll understand how money is created, who gets it first, who benefits most, and who ends up carrying the cost. The episode also sets up the next question in the series: once inflation is loose, who gets chosen to pay for bringing it back down?If this episode changes how you see the financial system, share it with one person.Stay informed, stay independent, and stay free. Get full access to Taxed & Taken: Money, Power & Freedom from the State at patelankeet.substack.com/subscribe