On the national debt

Imagine it’s 1913, and the fledgling Fed just printed its first federal reserve note and gave it to you, saying, “Congratulations, we hereby lend you this first-ever dollar, which you are obliged to repay… plus interest”. In your euphoria to get your seaty mits on this dollar, you stop and think… hmmm, there’s this one dollar, which I am obliged to give back… but where is the money I need to pay the interest? It doesn’t exist!

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