Reply to post: Flow of money

NEVER MIND the B*LLOCKS Osbo peddles, deficits don't really matter


Flow of money

"if you're paying that interest out to foreigners then that's money that leaves the domestic economy"

That's true for Greek euro payments to Germany; but when Britain repays its debts to a foreign creditor, those are pounds sterling; and they can only be spent in Britain. So it never really leaves the British economy.

The result is that printing money has the same effect as printing debt: it's inflationary.

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