The government must borrow more so that taxpayers can be forced to pay guaranteed interest to big investors, who otherwise might lose their shirts inflating other asset bubbles?

Why would the monopoly issuer of the currency ever have to “borrow” to spend, or tax for that matter? Both are only reserve drains meant originally to draw down excess reserves to defend a gold reserve. Taxes, of course, are permanent, but bonds are nothing but asset swaps that take reserves out of circulation (made them non-convertible with the gold standard) for a specified time and pay a small return for giving up liquidity.

The Fed always sets the interest rate by buying and selling in the secondary market and the fiat currency means that Treasury can never involuntarily fail to pay any obligations denominated in that currency. Deficits are required almost all of the time and the debt is nothing but an accurate representation of currency created by Congress in the economy not yet used to pay a federal tax obligation. It is our “savings” represented in Treasury bonds, not an obligation of the taxpayers.

Not only do bonds not fund the government, but the government must spend before excess reserves are available to purchase bonds or pay taxes. Spending funds both, not the other way around. Private sector bank debt, in aggregate, cannot “net” pay taxes or purchase bonds. The only “net” source of black ink in the private sector is the red ink of government. Until the public figures this out the massive misinformation campaign of politicians, banks, and their lap dog economic “experts” will continue.