But we were discussing physical FRNs.
Are you changing your claim?
Does the government now have to repay every single dollar in existence, with interest?
I don't think your changing claim makes any more sense than your original claim.
The facts are clear, any and all federal reserve notes in circulation, be they actual paper notes or characters on a computer screen, represent a debt owed to the federal reserve banking cabal by the tax payers of the Unites States.
Unbelievably silly claim. Let me demonstrate.
I go to the bank to get a car loan. My loan increases the money supply. How does my increased liability put "the tax payers of the Unites States" on the hook?
When taxes are insufficient to cover their liabilities, they issue a treasury note to the federal reserve bank
You are mistaken. The Treasury does not sell or issue Treasury notes to the Fed.
you are nit picking, creating straw man arguments, and dragging this dialectic further and further away from the original argument, that federal reserve notes represent debt. I stand by my assertion that any and all federal reserve notes in circulation be they physical paper or characters on a computer screen, represent a debt owed by the US government/taxpayers to the federal reserve bank. Even the money created via fractional reserve banking by your bank for your hypothetical car loan was made possible only by incuring an initial debt to the federal reserve.
A car loan does not increase the money supply. Perhaps your personal money supply but not the amount of money in the economy.