Beware rightwing economic myths such as ‘maxing out the nation’s credit card’

‘A government that issues sterling cannot run out of sterling to pay them. John Maynard Keynes understood this.’ Photograph: Tim Gidal/Getty Images

Larry Elliott’s column on the rightwing economic myths constraining Andy Burnham’s government should be required reading before John Healey’s budget (Rightwing economic myths could derail Burnham’s project – to destroy them, look to Keynes, 1 October).

I spent 20 years trading bonds, and agree that the household budget analogy bears no relation to how the UK state finances itself. Parliament votes on the spending, the Treasury instructs the Bank of England, and the Bank credits accounts in the private sector. Taxes withdraw money afterwards.