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Politics : Formerly About Advanced Micro Devices
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To: tejek who wrote (200492)9/6/2004 7:53:16 PM
From: i-node  Read Replies (2) of 1575764
 
>>> Yes, I can......when the interest on the debt is greater than the operating surplus, a deficit is created.

Great. The question was, "Can you explain to me what causes the debt to increase if there is no budget deficit?". While your terminology is confused, the concept is right -- if the interest expense exceeds the operating surplus that would exist were there no interest, then you will have a deficit [and the debt will be increased].

You still didn't explain how the debt is increased where there is no deficit.
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