And because that new money simply replaces that which would normally be created by commercial bank lending which isn’t happening right now there is no chance it will deliver inflation. Instead it just keeps is going. Thank goodness for gov’t and its ability to create new money in that case, I say End/
Twelfth, in that case without the injection of new government-created money that is happening right now into the economy it would literally grind to a halt. Would anyone prefer that to this new money creation which will be used to clear a large part of this so-called debt? 13/
And when the economy stops being ground to a halt and the banks start lending again which creates that new money again then what happens to inflation?
Tenth, anyone who claims we cannot repay ignores the fact that the government can buy back its own debt any time it likes: it has had the Bank of England create £575bn of new money via QE to do this over the last decade and none of that has to be repaid because the gov’t owns the BoE 11/
Well, actually, that’s when the BoE has to sell those QE bonds back into the market in order to remove that QE created money from the economy. The only alternative to that being to increase tax rates to do the same. Which is, of course, indistinguishable from increasing taxes to pay off the government debt.