posted on Jan, 12 2011 @ 09:17 PM
reply to post by Cassius666
Well actually if you look at the debt trends of countries, in order for a Central Bank to be "repaid" there would have to be negative debt growth..
We borrow $1 .. then $2 .. then $4.. then $8 .. then $16 .. when we repay $1, it gets rolled into $2, when we repay $2 it gets rolled into $4 .. this
way the country maintains funding and inflation is kept in check than if we were to say, borrow full cost with non existent debt than debt that
In order to actually repay we would have to see 1, 2, 4, 8, 4, etc .. you have to see a decline in debt, which in Western Keynesian economies is
almost impossible to do.. we've only ever done it once, under Clinton, and even then we maintained Tbill funding of the government.
In Western central banks interest is usually destroyed and or rolled into Treasuries (I am unsure about the EU though) the Reserve not being an actual
bank doesn't profit from the debt, though through the monetary manipulation it's member banks do .. an indirect profiting.