Economics

How government borrowing works

Whenever I listen to the news and hear about multi-billion, even trillion dollar national debts, I always wonder where on earth does all that money come from? So yer, how does government borrowing actually work? Well it kinda goes like this… Governments raise taxes to pay for schools, hospitals, roads and many other services. But …

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Sketchnote explaining where the money governments come from and how government borrowing works

How bubbles happen

Bubbles happen when a specific asset type or closely-linked group of assets suddenly become very popular and significantly grow in value as more and more people are drawn in. At some point the assets reach their peak value and the bubble will either burst with a big BANG or just slowly decline. The asset types …

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Sketchnote explaining how financial bubbles happen

‘The Deficit’ explained

Over 10 years ago, a new word emerged from the backwaters of the dictionary to become a regular feature in popular conversation. In fact, to call it a word is incorrect, it was a term and the term was ‘The Deficit’.  I’ll stop capitalising and wrapping it in quotation marks now, but for many years …

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Sketchnote explaining the difference between the deficit and the national debt.