ANALYSIS: The unnerving truth about how Australia will pay for its new nuclear submarines
Australia's Commonwealth government has been in deficit in all but 17 of the past 50 years.
To raise the money it needed for programs such as JobKeeper, the Government sold bonds to traders, which its wholly-owned Reserve Bank then bought, using money it had created. These days the Reserve Bank creates money electronically. It credits the accounts of the banks that bank with it.The Government creates money every time it gets the Reserve Bank to credit the account of a private bank , and destroys money every time someone pays tax and the Reserve Bank debits the account.
If it wants to spend really big , it might have to restrain the spending of others, which it can do by raising taxes.WatchWhat matters is what others are spending
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