comment by kleinbl00

a thoughtful web.

Good ideas and conversation. No ads, no tracking. Login or Take a Tour!

kleinbl00 · 825 days ago · link · · parent · post: Pubski: August 24, 2022

Economically? It's not "extra money". It's "reduced debt service." Debt forgiveness allows people to redirect their capital from useless purposes to useful purposes.

markup tips · 0

uhsguy · 825 days ago · link ·

Yes but since the debt was to the government the result is an net increase of spendable dollars chasing fixed quantity of goods. Hence inflation equivalent to the amount of debt service being paid (not the lump sum).

+discuss+discuss

–

kleinbl00 · 825 days ago · link ·

I think the minute you're arguing angels-on-the-head-of-a-pin points like "is revolving credit inflationary" you've lost the script.

+discuss+discuss

–

uhsguy · 825 days ago · link ·

Idk how large the amount is probably not any worse than renewing 7k credits to Tesla buyers. There are a lot of folks with debt though and they only build some tiny number of Teslas. That money is all going to go right into circulation though instead of pumping equities or real estate though.