Re:The ballooning money supply may be the key to unlocking i...
by Qasaur on Tuesday October 13, 2020 @03:28PM
(#24769274)
It cannot be repaid, ever, because the interest exceeds the amount of money that is currently in existence, which means they will always have to borrow more money (which is created out of thin air) to service the debt.
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Re:The ballooning money supply may be the key to unlocking i...
by comicjk on Tuesday October 13, 2020 @05:01PM
(#24770263)
Interest on the national debt is $400-$600 billion per year depending on what you count (a lot of it is paid to the federal government itself). It's a lot of money, but it's a small fraction of the federal budget. It's also less than the amount of money in existence - M1 is $5.5 trillion and can easily be expanded, as mentioned.
(It also wouldn't necessarily matter if the interest per year were greater than the total amount of money in existence. If the money supply were $20, that wouldn't make it impossible for me to pay you $21/year; I could pay it in 21 $1 payments.)