Let’s assume you have 2.800€ debt.
A year ago you paid 14€ interest on that debt.
Today you already pay 119€ interest on that debt.
But more importantly, you spend 128€ more than you earn each your. So your debt grows with 128€ + the interest of 119€.
It’s a debt cycle you can never get out of. Only way out is to kick the van down the road and print that deficit and interest every year.
Appreciate the post - I think we have to get past the term money printing. Money in the debt system is created by banks making loans. That system is a post-fiat world. It is not controlled by the FED.
Sure! There is a difference between the growth of base layer money supply and broad money supply.
Base alone isn’t inflationary, broad is.
Increasing base layer money supply (QE) in combination with massive fiscal deficits and deficit spending is inflationary.
#[4] has some very good articles on that
