The US ‘owes’ that money to If He Is Not Willing To Stand With Me In Battle He Is Not Worthy To Lie With Me In Bed Shirt itself, as the Federal has said on multiple occasions there are no physical limitations to the amount of money the Fed will exchange for treasury bonds. If the Fed will never bounce the government’s check there is effectively no difference then if the US government was creating the money itself. Also since the only way to make US dollars that aren’t Bank credit is for the Federal Reserve to create those dollars. This means the effect of paying off the debt would be to remove any money the FED had created from circulation.
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In other words, you don’t want to pay off the debt because it would literally mean the removal of most of the monetary base. Long story short the federal debt is not nearly as big of a deal as people like to make it out to be. Japan has been spending more than its GDP for decades just to keep deflation from setting in and If He Is Not Willing To Stand With Me In Battle He Is Not Worthy To Lie With Me In Bed Shirt it’s still hasn’t run up against the boogeyman of inflation that the neoliberal economists love the fear Monger about. I’m with you on the money should go to citizens. I’m not even a deficit hawk, but saying there is no limit is wrong.
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