pk nicky knot hola and the debt burden waddlings of n successive generations

" a debt inherited from the past is, in effect, simply a rule requiring that one group of people — the people who didn’t inherit bonds from their parents — make a transfer to another group, the people who did" pk
pk avoids the main point of rowe
bonds bought not inherited

what rowe misses
that buying "generation"
sells the bonds to a third generation
and on and on it goes

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"It’s quite possible that debt can raise the consumption of one generation and reduce the consumption of the next generation during the period when members of both generations are still alive" pk


of course
but the real transfer such as it is
whenever it occurs
and between whom so ever
is an incomplete accounting
of a system moving forever through time
we buy bonds we sell bonds
its a relay thru time
only at an end of time
can the accounting be complete


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what  about the rate of growth  of debt by rate of  interest
what if its  continually faster than the growth  rate of the economy"

in a model
the rate ratio assumption
g/r
where g is gdp growth rate
and r the average rate of payment
on existing sovereign debt
can create scare stories


because one can assume any pair of rates one wants to assume


but if we look even a little at social reality
out there
ie the historical record
Clio shows us
the growth rate exceeds the debt service rate
over long hauls


and of course the ratio is always under the potential control
 of the central bank
in a pure credit money system like ours