They'll come and bring tuition dollars. They would be "customers". Customers equal sales. Sales is what causes growth, which is what Rachel Reeves claims to want.

Definitely! Tho some argue that central banks can't really do much. Rates are a "blunt instrument" when it comes to fighting inflation. There is even some evidence that in economies with high levels of government debt, raising rates is actually inflationary. Interest equals income for someone else.

For sure. We can't forget though that most "money" in use at any one time is bank credit. And this is then "cancelled" as loans are repaid, leaving no net monetary assets. Ideally a productive asset is left over and not a spaghetti ball of debt derivatives. That's what's caused a lot of trouble!

Good conversation! I appreciate your concern. The problem is private sector debt. Balanced budgets will reduce net dollars in the economy requiring more bank credit creation. That will cause a crash. As always.

The BoC is a federal government agency. It exists by act of parliament. It is allowed to buy bonds directly from the treasury (within arbitrary statutory limits) and all net income goes straight into the treasury. It is a distinct institution, yes, but in effect is part of the government.

Money is a system of account. Government money is a tax credit. Bank created money is bank credit. Loans create deposits. Money gets created when people buy things.

The "debt" is almost entirely in Canadian dollars. The government of Canada issues the Canadian dollar. In the aggregate, every net Canadian dollar in the world comes from Federal government deficit spending after all the sectoral balances are tracked. There won't be a sovereign debt crisis.