[cinquemb]

>Student loans are either guaranteed by the government

>Ultimately, if the loan is not repaid, and there is no collateral nor assets to seize, it comes out of the assets of the bank

Which bank in this case (since we're talking about government student loans, not private ones…)? Federal Reserve Bank of (NY, St Louis, Cleveland, etc)? Where do they get the money from?

Increasingly more (because seriously how much does yearly tax revenues pay the bill in full?), the government getting private (other central banks/ institutions/very wealthy individuals) buyers to buy their treasury notes/bills at record breaking supply auctions with currency that originated somehow from central banks…

Although the textbook definitions of counterfeiting and debt monetization may differ, I suspect there will be those who will never even question how the two could be perceived to be similar by anyone without dismissing them as completely insane and incapable of logical thought…

And somehow in the midst of this, we loose sight on resource allocation in general…

[skookumchuck]

The government banks issuing T bills is indeed an example of creating money with no backing, which results in inflation.

Those are not in the nature of free banking, however. It's a special government privilege.

[cinquemb]

"A privilege is a certain entitlement to immunity granted by the state or another authority to a restricted group, either by birth or on a conditional basis. Land-titles and taxi medallions are pronounced examples of transferable privilege. These can be revoked in certain circumstances."[0]

Who grants the "special government privilege"?

One could dare say that this "special government privilege" could be challenged by any group of actors with varying degrees of sufficient power, at any time, and/or become effectively revoked, especially when a government overextends itself in trying to execute it's influence over an economy.

[0] https://en.wikipedia.org/wiki/Privilege_(legal_ethics)