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The interest payments go into the pockets of entities or people who then use it to spend in the global economy. So the interest alone isn’t an issue from a macr
by xyzzy4747 3y ago
The interest payments go into the pockets of entities or people who then use it to spend in the global economy. So the interest alone isn’t an issue from a macro economic perspective.
- howeyc 3y agoThis is correct. Interest payments go into bank accounts. Some of that money gets spent into the economy, some stays and gets reinvested into more treasuries. There's a reason real GDP growth is higher than it's usually been, money is being injected into the economy via interest payments.