by Summary:
Deficits Equal Wealth?
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
Deficits Equal Wealth?
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
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| Deficits Equal Wealth? |
Listen all!
Does it create reserves?
The gov wants to pay $1000. It creates a bond of $1000.
It sells it to the banks for $1000 who do pay it with a $1000 central bank loan. The reserves are on the govs central bank account.
The govs spends those $1000 reserves and the banks gets those reserves. They increase their customers bank account by $1000 of their own money they create.
Then they use those $1000 reserves to pay back their loan from the central bank to avoid interest payments.
The reserves are gone now. What is left, is the gov bond and $1000 in the customers bank accounts.
This is how I would expect, what would happen.
Deficits and debt mean austerity