Re:Student Debt Payback Far Worse Than Believed
by RobertoG on Thursday January 19, 2017 @08:17AM
(#13435496)
True. But that only describe the private actors in an economy. In the same way that money come from the state it can disappear there.
The state can decide that "running deficits" is bad and start to destroy money running a surplus, frequently, when what you need is the opposite, like currently in the Euro-zone.
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Re:Student Debt Payback Far Worse Than Believed
by tedsanders on Thursday January 19, 2017 @08:48AM
(#13435691)
Running a budget surplus doesn't mean that money is destroyed. Also, the claim that the Euro-zone needs deficits is a highly contentious point, and not at all obvious or a consensus. Asserting it rather than arguing it does a disservice to the subtleties.
Re:Student Debt Payback Far Worse Than Believed
by RobertoG on Thursday January 19, 2017 @09:31AM
(#13436015)
"Running a budget surplus doesn't mean that money is destroyed."
What it means, then?
Re:Student Debt Payback Far Worse Than Believed
by tedsanders on Thursday January 19, 2017 @02:50PM
(#13438906)
It means the government takes in more money than it spends.
Depending on the policy of the Fed (or other issuer of fiat currency), the money supply may be increasing or decreasing at the same time.