There are so many misunderstandings and outright falsehoods involved with our debt and interest rates that it is often difficult to project a logical path forward. The biggest is that people, even fairly smart ones, see our debt as a burden on future productivity when it is the "net" savings accumulated from our past productivity.

There is no answer to inflation caused by supply shocks or increased cost of resources except investments that will bolster supply chains in the future. This is not addressed by increasing the cost of doing business or of participating in the economy as consumers. This is doubly true when one considers that increased interest only benefits savers and burdens consumers further.

Lending reserves is not possible in our present banking system because it is lending that creates reserves, not the other way around. Our government has shown that it will always backstop lenders against default, so there is no longer a risk factor to consider. This means that the natural base interest rate should always be zero. Anything above that only rewards saving in an environment where capital already holds an extreme advantage and widens the divide between the classes.