[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.

[Fingolfin]

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

I agree, to an extent.

They should be sold.

Agree completely.

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.

$1 billion in deposits would allow the state bank, at a 10% reserve ratio, to make a $900 million dollar loan on top of the $1 billion.

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

All outstanding bonds could be purchased with U.S. Notes, thus eliminating the national debt. There is no other way the national debt can be eliminated.

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

No, but if (if?) Congress is like a desperate crack addict, then the Fed is like their shady dealer. Take the dealer out of the picture and you can begin to deal with the addiction.