Keith Evans
1 min readApr 11, 2022

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You're still hung up on the word debt, as are most people. Once you understand that revenue for the currency-issuing government is always a "following" event and cannot "fund" anything you will gain the needed perspective. One cannot borrow what doesn't yet exist.

Borrowing in our monetary system is simply a way to reward thrift and control private sector interest rates on bank lending. Our national debt is the money supply represented in Treasury bonds. Those bonds do nothing but limit reserves in the system and set a floor for investor return. They are not an obligation of the private sector and will never be repaid as doing so would remove all currency from circulation except that issued by bank lending.

That private debt would quickly go into default without money created by Congress to retire it in some timely manner. The last seven times we tried to significantly reduce the debt ended in almost immediate recession or depression.

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Keith Evans
Keith Evans

Written by Keith Evans

Meandering to a different drummer.

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