This will be my last response. You claim to know MMT, but keep going back to the credit nonsense, so obviously, you don’t. Credit is a component of borrowing, which the issuer of the sovereign fiat currency can never do without first creating the money it wishes to borrow. That is not a difficult concept to grasp, so I don’t understand your reluctance to accept that spending “funds” both taxation and Treasury bonds, including those owned by China.

We don’t “BORROW” anything, and never did, even with the gold standard. The money is already created and in reserves before the Treasuries are sold. Otherwise, there would be no money in reserves to purchase them. They are an unnecessary function of the spending process only kept as leverage for the Fed to set interest rates (and another form of welfare for the wealthy). We probably should do away with them anyway, just for their propaganda value and the type of misunderstanding you are displaying.

All of the credit limit and debt nonsense is political theater and is harming our ability to spend effectively to assure our nation has the productive capacity to remain competitive. It also enables neoliberalism, which is just fascism’s little brother and is destroying the middle class. MMT economists estimate we are leaving four trillion per year in potential productivity on the table because of our insistence to use the economy to balance a meaningless budget. Whatever resources are available and priced in US dollars are affordable without causing inflation. No “CREDIT” needed.