Sun. 12/06/17 09:42 EDT
.post #170
[url=Newly Created Money - #4 by EmbraceLiberty]
It would, if what the Fed did after getting the principal and interest back was keep the interest and destroy the principal. But is this what happens? I don’t think so. What happens is that the government borrows again, and it borrows more the next time than the previous time, and this goes on continuously. In theory, the Fed both creates and destroys credit. In practice, on net, it only creates and expands credit. That’s the game.