CycloWizard
Lifer
- Sep 10, 2001
- 12,348
- 1
- 81
My statement was that the government could pay its debt not by increasing the tax rate 40% but to 100% for one year (not that this is a real solution - only that that's what it would take). What does that have to do with creating new debt or changing the amount of money in circulation? His statement didn't address this at all and only said that no, the debt can't be paid back because...something to do with interest being exponential.I think what he's getting at is that the amount of money owed always exceeds the amount of money in existence. Because money is created through debt, i.e. the selling of government bonds, all new money created is owed back with interest.