The debt service total has an impact on nominal demand and income and wealth but hey its all tcontrollable by taxation

The state can tax away anything Of course not without consequences But Lerner's point about Interest paid on borrowed funds Is only part of a complete set of circuits The rest of the circuits can be change too

It's all just a set of rules the state can play anyway it wants nothing costly here

Rentier income balloons Increase taxes on interest And dividend income Cut off the blood supply to capitalist corporations force them to use state finance State loans below state borrowing costs State red ink So what

Crowding out is a route to socialism

Public option for rentiers

Treasury paper with a high Coupon rate is cost less to produce It's all notions in a data base

Crowding out as a means to socialization of capital

Don't starve the rentiers Stuff them with high yield t bills notes and bonds Blow up private capital markets with high safe returns on treasury paper

The difference between money and a zero real console or tip-C

If the console pays out an inflation adjustment Obvious Conjecture If theres zero conversion cost At any time between tip-c and money This system is stable discounting money at the market weighted expected instantaneous inflation rate

CB buys all new debt then sells it .....

In our zero real safe rate regime Can safe rates on secondary markets go where ever they want ? Consider our fed console the tip-C Hold to maturity you get inflation protection If fed zero real manages Nominal secondary market safe rates If not then Treasury must issue Various term length Notes and bonds That insure inflation protection At maturity by periodic payouts of inflation compensation Zero real tips