[Toddsterpatriot]

Well, lets let the states experiment: the reckless will fail and the wise will succeed,

Who pays back the depositors when the reckless state loses billions on their loan portfolio?

Permanently circulating, government-issued fiat is one method.

Our current money isn't like that? Why not?

and instead force the government to borrow it from them.

How does the Fed force the government to do that? You think the government borrows FRNs? For what?

$47 billion is a small price to pay for control of a nation.

How does returning all their income after expenses give the Fed control? Sounds like the government controls the Fed.

Its like the Bible says: "the borrower is slave to the lender".

The slave is getting $47 billion in free money from the lender. You're more confused than usual.

[Fingolfin]

Who pays back the depositors when the reckless state loses billions on their loan portfolio?

The state could put up state-owned assets, such as land. For example, I live in Pennsylvania, which has state-owned liquor stores. If those were privatized and sold, people are estimating the state could earn hundreds of millions of dollars. Instead of squandering it on nonsense, we could use it as the deposit basis for a state bank that makes loans to the state for infrastructure, which is crumbling here. Infrastructure that would support further economic activity, enabling the loans to be repaid and the money extinguished.

Our current money isn't like that? Why not?

Our FRNs only appear to circulate permanently because the government bonds backing them never get repaid and continue to be rolled into new loans.

The slave is getting $47 billion in free money from the lender.

Its a pittance and an illusion, and only comes at the expense of a multi-trillion dollar, unpayable national debt.