[Toddsterpatriot]

The US has the authority to issue money. If it issued money, it wouldn't have to pay interest or even repay it.

That might be a bit inflationary.

So instead of issuing the money itself, the government borrows the money from a private bank which issues the notes and charges us interest. What a racket.

And then....wait for it....the "private bank" gives all its earnings, after expenses, back to the government. What a racket.

[Sgt_Schultze]

That might be a bit inflationary.

There is no difference on (money supply) inflation between the federal government creating money through issue and the federal reserve creating money through issue. The difference is that by having the fed do it, we also incur interest costs, which would not be the case through direct issue.