Quote:
Originally Posted by OLD BOY
Yes, I get that, jfman. But we still have to pay back the instalments for those debts in the meantime, which have increased massively with the increased borrowing.
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Have the amounts paid year on year increased massively as you claim?
Interest rates are at an all time low. The cost of debt has never been cheaper. Government debt generally isn’t paid in instalments the way a household loan is. As demonstrated the erosion in the real terms value of the debt by inflation incentivises the Government to never repay the debt - simply kick it down the road with further borrowing.