If all the money ever created in the US comes from Fed loans (using US dollars which the Fed created out of thin air), then logically, the only way to fully pay back those
loans plus interest is by borrowing more new money from the Fed - This is because no other entity except the Fed has the power to create the USD necessary to cover the interest on the loans it makes.
If the government can keep accumulating debt forever without limits, is it actually debt?
If someone kept loaning you more money every year and they let you use some of the money from your new loan to pay back all of your old loan... and they let you keep doing this forever; is it actually a loan?
Comments
If all the money ever created in the US comes from Fed loans (using US dollars which the Fed created out of thin air), then logically, the only way to fully pay back those loans plus interest is by borrowing more new money from the Fed - This is because no other entity except the Fed has the power to create the USD necessary to cover the interest on the loans it makes.
If the government can keep accumulating debt forever without limits, is it actually debt? If someone kept loaning you more money every year and they let you use some of the money from your new loan to pay back all of your old loan... and they let you keep doing this forever; is it actually a loan?