Because as you rightly observe the Congress and its various creatures are masters of the US dollar denominated money supply, it's meaningless to talk of them as

Because as you rightly observe the Congress and its various creatures are masters of the US dollar denominated money supply, it's meaningless to talk of them as having any kind of financial net worth in the way that an entity that isn't a currency issuer has. Congress's "debt" in no way constrains their operational spending ability as it does for those parties who can't create money de novo. Thus, as I already said, the money was effectively printed when they originated the loan, and no new money is created when they forgive it. You're confusing a lack of deflation with further inflation. As for "backing by a bond," clearly you're aware that's just a shell game, because the Fed will issue and front the Primary Dealers whatever reserves they need to buy whatever bonds the Treasury issues. It's operationally impossible for a treasury auction to fail because Congress, via the Fed, backstops it using their constitutional money creating power. It's a kind of fig leaf to hide the fact that in the end it's all just naked money creation. That's not to say that a sovereign currency issuer doesn't face real limits on their spending[1] power, but that would be a rather lengthy digression and I'm fairly certain you understand at least the gist of it anyhow. [1] But not money creating power! Nobody denies that Zimbabwe and Weimar Germany were able to create money, they really truly did. It just had greatly diminished purchasing power.