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To: blazenzim who wrote (32551)4/7/2008 9:49:12 PM
From: Moominoid  Respond to of 219688
 
In those examples it's mostly domestic content you are right. But it is a short-term thing. In the long-term:

1. The consumer has to pay back the debt and reduce consumption then.

2. The bank deduct it from profits reducing the income measure of GDP.

3. The government has to raise taxes to service the national debt reducing future consumption and GDP (or print money to achieve something similar).