this post was submitted on 14 Jun 2026
1210 points (99.5% liked)
Political Memes
11977 readers
1986 users here now
Welcome to politcal memes!
These are our rules:
1) Be civil
Jokes are okay, but don’t intentionally harass or disturb any member of our community. Sexism, racism and bigotry are not allowed. Good faith argumentation only. No posts discouraging people to vote or shaming people for voting.
2) No misinformation
Don’t post any intentional misinformation. When asked by mods, provide sources for any claims you make.
3) Posts should be memes
Random pictures do not qualify as memes. Relevance to politics is required.
4) No bots, spam or self-promotion
Follow instance rules, ask for your bot to be allowed on this community.
5) No AI generated content.
Content posted must not be created by AI with the intent to mimic the style of existing images
founded 3 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
That’s why I specified in my first sentence that it depends upon how the monies are spent. I outlined a few different ways in which government spending impacts inflation.
Just paying down interest on national debt (as we have been doing) is just as deflationary as paying down principal, given that it’s removing money from the economy.
Where the money goes to holders of treasury bonds who then spend it again
Those who hold treasury bonds don’t tend to spend the interest on their day-to-day living costs. Those who hold treasury bonds use them as an investment vehicle, whose proceeds are usually either reinvested or invested elsewhere where the effects of investment aren’t inflationary. Many treasury bonds are also held by the international community, who by definition don’t spend those proceeds within the country whose bonds they hold. Domestic Australian retail investors make up such a small fraction of total ownership and, those that do own them in this context, tend not to use the proceeds as regular income that would be inflationary.