The good news is that it’s always been that way and it’s never been a problem.
Wrong, We didn’t used to have BORROWED MONEY, there was 150 years where we actually Coined Money, and it was not Loaned into Society at Interest by The Federal Reserve Corporation.
When we coined money, debt (and savings) were larger than money supply. So what?
and it was not Loaned into Society at Interest by The Federal Reserve Corporation.
Where do you get this silly idea? When a bank gets FRNs from the Fed, they buy them, they don't borrow them.
The Fed doesn't charge interest on FRNs because the Fed doesn't lend FRNs.
When you get FRNs from your ATM, are you paying interest on them? Are you paying interest on the $20s in your wallet?
Why? How much? Where do you mail the check?