[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.

[Toddsterpatriot]

The state could put up state-owned assets, such as land.

Maybe the state shouldn't hold those assets if they have huge budget deficits?

If those were privatized and sold, people are estimating the state could earn hundreds of millions of dollars.

They should be sold.

we could use it as the deposit basis for a state bank that makes loans to the state for infrastructure

Say they sold the stores and got $1 billion. If they put that in the state bank, what would that allow them to do? Walk me through the steps.

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

And if the Treasury issued bills directly, how does that fix the $13 trillion deficit? Would government bonds suddenly stop being rolled over?

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

The Fed doesn't force the Congress to waste our money.