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Anyone can create a debt.  I could create DavidDollars and try to trade them for stuff.  The trick is getting people to accept them, which is considerably more challenging.

All money is debt.  And what a dollar is, is a tax credit.  You save dollars because you can pay your taxes with them.  It’s also convenient as a medium of exchange, since others will also save them and accept them.

But only the Government could issue tax credits as a liability.   Yes, banks can create banking deposits which trade at par with Government liabilities, but that doesn’t mean Government can’t spend without borrowing first.  The idea that “everything the government has it gets from someone else first…” belongs in the dustbin of history.

It’s completely absurd to suggest that only private banks issue can tax credits which the Government (whose liability it is)  must then borrow at interest.

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