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SimonThe Labour reply is rather vague, along with Conservatives and Lib Dems. They seem to be unable to make the connection that increasing credit boosts the economy, then paying down debts will cause a recession. Restricting lending as they propose will slow the economy down, and make existing debt hard...

23 hours ago
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RJBut this is incorrect and shows the writer hasn't a clue how the US treasury system works"This should be funded directly by Fed-printed money (not bonds bought by Fed-printed money), thereby directly increasing the money supply. "Whenever the US spends it pays the banks with reserves created out of ...

3 days ago

RJGood article. But the writer is very confusedThis is almost right"Yes, through its program called "quantitative easing," the Fed has been creating money out of thin air and using it to buy U.S. government bonds. But because the Fed has been using this money to buy bonds that are simply kept on its b...

3 days ago

J Sumner (EthosDel)Is sustainably living on planet part if this equation in process?...

3 days ago
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RJThe UK Govt does not borrow money. It creates new reserves by JE whenever they spend. We borrow money from the banks (created by the banks by JE) if we are credit worthy and have to pay it back at the banks interest rate. State Govt borrow money as well as do Euro countries (from banks or the market...

3 days ago
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RJJake is correct. re what you have posted. The deficit is not borrowed. the Govt like the banks simple create new money (reserves) by JE whenever the spend. And then drain these reserves by either tax (that makes us all poorer) or by issuing bonds once again created on a computer screen. So no borro...

16 hours ago

SimonThe deficit is borrowed and at least part of it plus interest is paid back by the tax payer...

22 hours ago

jakenothing wrong with increased deficit spending. The Deficit is simply spending which exceeds taxation (G>T).What you are talking about it the public borrowing which the govt chooses to match with the deficit to "finance" it....

23 hours ago
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