A fiscal deficit is a surplus for the private sector. Higher debt service results in a larger deficit, which means more money will enter the economy through the interest rate channel.
Discussion
Basically, the treasury, which already runs a fiscal deficit, to pay the rising interest on its bonds and other debts, needs to issue more bonds, which, if they are bought by the FED, is basically money printing. Correct?
I see, if the money doesn't come from taxes.
However, in the aftermath of 2008, they did QE but didn't lead to inflation because the $ went to rich bond holders (that's my probably flawed understanding). In 2020 the money went to plebs which led to inflation.
So, like, if you pay higher debt service, doesn't that repeat the 2008 model ?
***Disclaimer*** I'm an irredeemable idiot.