The country is broke. There's no money in circulation. The country want to go and borrow.
The little that people earn can be accounted for in terms of household spendings, taxes and bank savings. All these means somehow pushes the money back into circulation.
But a certain % ends up somewhere weekly and monthly and does not come back into circulation because this somewhere is not a producing or productive part of the economy. So it only takes and don't give back.
While I think this somewhere has enough to bail out the country without the need to borrow, the country don't think or know so.
This is the sad part: A large chunk of the loan that the country is going to borrow will still end up in this somewhere and disappear as usual.
It's a vicious circle that need to be broken.
I'm not an economist or a qualified banker. I'm just benbrucing a probable area where the government is ignoring to consider when looking for missing money in circulation.
AV
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