Debt is money. Money is debt. You borrow money and it's fresh new money, expanding the money supply. If everyone pays back their debts, then (nearly) all of the

Debt is money. Money is debt. You borrow money and it's fresh new money, expanding the money supply. If everyone pays back their debts, then (nearly) all of the money is gone. You don't have $1000 in your checking account. You have an IOU from the bank for $1000. You can then 'spend' the money by transferring the IOU to someone else. But it is never guaranteed transferable for something real. It relies on everyone else believing the $1000 has value, which they do, so you are OK.