So how do you get the idea that dollars are debt?
The current US money supply began as a mix of gold certificates, silver certificates, and Lincoln’s pure fiat US Note issue. Their existence wasn’t based on debt. Two were based on precious metals. One was pure fiat.
Those all were rolled into the general Federal Reserve Note issue after 1963. That money supply can be expanded when the Fed creates money to purchase Treasury bonds, but the bonds are the debt. The dollars aren’t.
At usdebtclock, they calculate total debt at $90T. And, M2 at $22T.
In other words, there is four times more debt than
dollars to even pay it back. Where’s the ‘money’ that was, in theory, loaned to create the debt?
Not a plug nickel of IRS 1040 dollars pays for ANY federal program (see Grace Commission). The IRS is just a collection agency to skim off dollars, or debt, or so-called ‘legal-tender’, that they send to the private corporation we refer to as the FED. The FED creates more and more ‘debt’ we call ‘money’, has been doing so, since at least 1933.
The US is bankrupt. It only holds debt.