Why is almost every country in debt?
In: 7
I studied this!
Let me make it way more basic:
Money is created two ways: by bank loans and by government spending
for(national governments that own their own currency like USA’s dollar or Japan’s yen).
It is uncreated by paying back the loan and by taxes.
All of this money is *accounted* as debt. We need new money to maintain the existence of markets. The economy is always growing: more people, more stuff, and more money invested, so we always need new money. That new money is always counted as debt.
Next, ask me why bonds are still money, and better thought of as money rather than loans to the government.
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