But if what you’re really saying is does this mean more tax the answer is no, it doesn’t. It means we will create more debt because the economy needs it. Just to keep pace with inflation we need to create about £50 billion of new debt a year to provide pensioners, banks and other savings institutions with the government debt that they need to keep the economy going.
Nope, he’s still not getting this difference between M0 and M4, is he?
And very rarely has any been repaid. And that’s a good thing. Because government debt is what underpins the value of our money. So repaying it cancels money.
So countries that don’t have any government debt don’t have any money then, yes?