When banks loan money, they create the money. But when the loan is paid back, the money is destroyed.
The federal deficit is not paid back. (Oh, there's the fiction of it being paid back, but what actually happens is the government just issues more debt.)
When banks loan money, they create the money. But when the loan is paid back, the money is destroyed.
The federal deficit is not paid back. (Oh, there's the fiction of it being paid back, but what actually happens is the government just issues more debt.)