Where does the money supply come from? How much money is allowed to be saved in bank accounts? What happens if we build a ton of wealth, through labor, but the

Where does the money supply come from? How much money is allowed to be saved in bank accounts? What happens if we build a ton of wealth, through labor, but the amount of money in circulation and saved in bank accounts doesn't increase to account for all that extra economic activity? It would cause a dollar to be worth more and more, shifting the value of a dollar. Similarly, what happens if the government makes purchases by printing more dollars? It has the potential to make a dollar worth less, if the purchasing gets out in front of the productive capacity. When the US government issues debt to spend money, it's doing the equivalent of printing more dollars, just a special type of dollars. When the debt is due, the government can always print more dollars. Always. There's no fixed amount of dollars, there are only the number of dollars that the US government decides that there are in circulation. So US treasuries act just like more money supply; they are traded for dollars, saved in accounts like dollars, pass between holders just like dollars. The only thing about this debt is that by changing interest rates, the the government changes the value of currently held treasuries. When somebody has a $10k in treasury notes that yield 2%, and the fed increase interest rates to 3%, it decreases the $10k in treasuries to a smaller value. So this sort of debit instead of dollars isn't completely useless, it's gives a bit of control of the money supply in a weird way. And since the US dollar is the international reserve currency, the preferred way to save money, these treasury notes end up not only being the methods of savings in the US, they are the methods of savings for the entire world. This gives the US enormous power the word over, gives US business enormous power, and is a massive advantage for the US. But in addition to giving the US power across the world, by being the reserve currency, we also need to be sure that there are enough dollars out there for people to hold onto in order to represent their savings. And in reality, that means there needs to be enough treasury notes, "debt", for the everyone to hold onto and trade. Because one thing that kills a currency is not enough of it to go around, which makes it too illiquid. Which means that the US needs to do enough spending to make sure that there's enough t-notes out there. In essence, our "debt" is actually skimming off the productivity of the rest of the world. We take their stuff, they get our dollars that we issued out of thin air, and all members of the US economy benefit. It's incredibly important to realize that the US is not a household, not a business, the US is the currency issuer. We should not be concerned about the level of "debt" other than we are 1) concerned about the total money supply of dollars, 2) want to prevent inflation from too much spending.