The point that I was making is simply that any interest accrued by investors in Treasury bonds is just another means of injecting currency into the private sector and not an encumbrance on the future productivity of America. The discussion of monetary policy cannot be coherent when framed in the “household budget” context that turns most functions of the Fed and Treasury 180 degrees from reality.

There is no distinguishable difference, beyond the interest paid on Treasury bonds, between them and reserve deposits to government’s suppliers in regard to their impact on the budget and money supply. Government spending requires no “funding”, as the US dollar is self-funding when created. The requirement to match deficit spending with Treasury issues is a leftover from the gold standard that only serves banks and high level investors. Framing it as “funding” is purposefully misleading and everyone who understands federal finance should refute it whenever it pops up.