My point was they don't have to pay off all those loans at one time, which is what accrual accounting assumes. It is a false argument, in other words. As far

My point was they don't have to pay off all those loans at one time, which is what accrual accounting assumes. It is a false argument, in other words. As far as inflation goes--you're making the original commenter's point about why the Fed is bad. They inflate away debt, in other words, it was all a confidence game. We get paid in deflated dollars and wonder aloud why the change in our pockets is worthless.