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Government's promise to pay back its debt is a promise to tax its citizens to pay it back. So at least to the extent that the Fed finances the US government, th
by dpatru 16y ago
Government's promise to pay back its debt is a promise to tax its citizens to pay it back. So at least to the extent that the Fed finances the US government, the Fed "lends" money it creates but expects to be paid back in tax money (money the citizens have worked for.)