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And when the government unwinds it debt, there is no need at all for it to turn up as new debt in some other part of the economy, unless someone actually want to borrow massively.

You're inverting the causality again. The government can only unwind its debts when someone else wants to borrow massively. Or if the private sector were to somehow radically alter its propensity to store its savings in monetary instruments. But the latter scenario is only of academic interest, as it has not happened to any modern industrial society.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Dec 14th, 2011 at 10:42:05 AM EST
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