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Most of government dept is owed to domestic creditors. And the creditors will either spend the interest or invest it. ( It is really hard to freeze money, essen
by yk 14y ago
Most of government dept is owed to domestic creditors. And the creditors will either spend the interest or invest it. ( It is really hard to freeze money, essentially you need to bury cash in your backyard.) So the money simply stays in the economy.
- derefr 14y agoWhy do you assume that domestic creditors will invest domestically, though? Pay a debt to Apple and a new factory will get built... in China.