[jhayward]

Now we enter the area where almost no commenters understand how sovereign currency debt works, and what is required for a healthy economy.

It would take a mini-treatise to summarize what's wrong with this statement, so suffice it to say that there are several scenarios where such a debt is absolutely healthy and encouraged, and no one should use it as an excuse to put their foot further on the neck of the lowest rungs of socio-economic status.

[riskneutral]

The chief complaint is that many people have almost no money and a few people have almost all the money. Where is this money? It is in bank accounts. Where does the money in the banks comes from? The banks borrowed the money from the central banks. Where did the central banks get the money from? The central banks borrowed it from themselves. How will the central banks pay themselves back? They central banks hold, among other assets, a large quantity of US Treasury bonds. The central banks pay themselves back whenever the US government pays interest on its bonds. If we want people to have more money, then the banks need more money from the central banks, and the central banks need a larger quantity of US Treasury bonds. If we want to redistribute money using taxes, we probably would want even more US Treasury bonds to be issued.