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submitted 10 months ago by Blaze@discuss.tchncs.de to c/europe@feddit.de
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[-] tryptaminev@feddit.de 2 points 10 months ago

As the only way to create money is for the central bank to grant the government a loan, it goes even further. If the government has no debt, nobody has any currency to pay with. It is a surefire way to destroy the entire economy.

Also Germany has been able to take on loans at interest rates well below inflation, or for some years even at negative interest rates. So it has gotten and still gets money in real terms from taking on government debts. You realize, that when you take out a loan for 1 Billion but you only have to pay back 900 Million, you made 100 Million?

this post was submitted on 14 Jan 2024
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