1.   Governments borrow funds for numerous reasons.

2.   The government borrowed from the banks about four-fifths of these deposits, to finance its deficit.

3.   Government both borrowed and taxed to finance them.

4.   The British government borrowed sufficiently and cheaply enough because its reputation for efficient tax gathering allowed anticipated revenues to provide the security for its present borrowings.

5.   The government borrows foreign currency, thereby directly financing government imports.

6.   The government might then borrow these funds from the banking system.

7.   Also, if governments borrow less money to finance deficits, the supply of public debt will shrink as a share of GDP.

8.   And what would be the trust fund of choice from which the government borrows?

9.   And the less government borrowed, the less pressure on the budget was exerted by previously swelling interest payments on a ballooning national debt.