The Myth of the Necessity to Pay Back The Federal Government’s Debt

Executive Summary

• Private banking interests make an enormous issue of the US federal debt. This debt is not all that relevant and could be eliminated instantly by the government insuring its own credit to extinguish the debt.

Introduction

The government has its own money creation capability. If the government wants to bring forth into circulation $100,000,000 to pay for something, it can do that. Any vendor will accept this currency as payment. The current situation of a government having debt is only true because governments do not issue their own currency, but rather borrow their currency from a private bank that masquerades as a central bank of the country. If the central bank were actually part of the government, there would be debt to pay back.