Snoopy on 25 May 2016
| Dark_Lord_2008 said: People who go on about government debt have no idea about economics. A government only needs to be able to pay the interest on its debt. Unlike a company or family a government can make money magically appear out of thin air by using its Reserve Bank to print more money. |
I agree with you half way. The interest last I check is 300 billion a year which we cover really easily with no problem (we have companies that are worth over 500 billion dollars and continue growing). The second part I disagree. We have to have products/services in order to back the money up.
