>there is always one question I have wanted an answer too, how do they pay governemtn stimulas debt back?
You don't, and it doesn't get paid back. It's considered an injection of liquitidity into the money supply in the hope that it gets distributed via efficient (hahaha) mechanations of the market. How this injection 'has happened' is by fighting the biggest fires (not the best ones or the right ones, just the biggest). The debt is sold via bonds/coupons to whomever wants to buy it at the prevailing market rate - even to the central bank who issued it.
It matters not who issues the debt, just who 'owns' the debt. If you own the debt, you own the enterprise - the more debt you own, more of the enterprise you have. Then it only matters on what obligations remain in repaying it and when.
The problem has always been not becuase of the stimulus - as growth always requires funding via an injection of capital from somewhere - but what was stimulatd and by how much. It went to the very same [moderated] useless and corrupt institutions that caused the problem!
Eventually it ends up as more inflation, bonds yields rise, the debt gets recycled, and maturities (hopefully) come and go. Commodity prices are one of the most obvious indicators of inflated prices and free cash flow.
Controlling inflation is the next step of the process once ('if') they avoid further asset deflation/depreciation. The source of the problem was how much leverage was applied to the base asset, and the price of the base asset.
They are now waiting for private enterprise to put it's hand in its own pockets. Private enterprise will do this when the consumer does so. The consumer does so when he/she is happy to based on a secure outlook for the future and has enough $$ in their pockets to pay the asking price. The secure outlook commences with sttability and opportunities for growth. Growth is not self sustaining - for where does it come from?
Here beginith the loop. Where the consumer gets it's money from matters a great deal. If the consumer grows, the economy grows with it.
Plus, if the popoulation grows on ave at 2%, then this must be the minimum underlying growth of output (and hence balanced input), otherwise it is automatically a recession with growth out of kilter.
That's just part of the 'ideal'. It's actually a big world, with a lot of problems. Most of them start with the abuse of finance.
