Most of Our Debt Is Fake - Let's Abolish It

[Lefty Thinker]

22. It is a terrible mistake to confuse

private debt with public debt. The federal government has one big advantage: it can create money out of nowhere (with consequences depending on the situation). So debt taken on by the government can always be repaid if there is the political will. This is separate from private debt, where one non-governmental party borrows money from another non-governmental party. In that case, despite what the fractional reserve apologists say, no money is actually created. A scheme that interferes with private lending will not fly because of the chaos it would cause in the financial world, hurting most Americans. But if the government wants to erase some debt with the big coins right now, I'm game. We can always raise the debt ceiling and roll it back.