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Originally Posted by OsmundL
 I wasn't getting ready to make any point, actually; this is not my fight I am thrilled you think I'm capable of anticipating the next move But you made some good points, so I'm glad I asked.
But I was seriously interested to hear the net spending figure, because everyone bandies about numbers. After all, any portion that is loans/equity is not spending at all. So I wondered what net numbers might be.
You raise an interesting issue about inflation/currency. One of the fascinating questions right now is the dollar, because it doesn't behave as it "should" when money is printed. Its position as a world trading vehicle means it hasn't dropped as a currency should in this situation. Kind of makes Reserve Bank steering awkward. |
It absolutely is spending, regardless whether it's a loan or not. Especially since the federal government is operating at a deficit. Every dollar spent by the government is a borrowed dollar and that's a dollar that is not available to private borrowers. Toss in the dollars printed and you've a recipe for inflation and, more than likely, hyper-inflation. I'll leave the desirability of government having an equity stake in business out of the discussion for brevity's sake.