Your first point is only valid if the government doesn’t spend that money or uses it to pay down debt, a dubious assumption with the US federal government. You

Your first point is only valid if the government doesn’t spend that money or uses it to pay down debt, a dubious assumption with the US federal government. Your second point is wrong: you can continue to run deficits without printing money. You just have to find lenders in the marketplace willing to buy your bonds. Yes, the Federal Reserve is buying vast quantities of US treasuries right now, effectively monetizing the debt, but the sequence of events you describe isn’t typically how things work.