Money is merely a means by which people avoid barter in trading, including not only goods, but "work valuation", expressed in dollars/hr. or a salary/period. We've plenty of work to do on updating, upgrading and simplifying our banking system besides making it a "level playing field for all". As a population grows, and/or does more monetary "things", it needs a steadily increasing money/currency supply, just to denominate the increased number of transactions. Even in the current system, the supposed "debt" is ONLY that amount of currency supply increase that is not clawed back by the issuer via taxes. There's no one to "pay it back to except ourselves", and no possible reason for ever returning our own currency supply to the issuer - our own government. The entire topic of a national debt is entirely a tool used by those in the banking trade who are totally malfeasant against the electorate and in political campaigns, as the bankers can especially now buy their influence that the founding fathers warned us of with the horrid ruling by scotus, the oxymoronic "citizens united".
Fiat currency ISSUERS have debts only in real goods/services/capabilities/outputs, and use currency only
for internal bookkeeping. They cannot run out of numbers to use any more than mathematicians can. It is a ruse, myth, scam, usury, fraud, and hopefully, unconstitutional.
Fiat currency USERS use their nation's sovereign currency as an accurate proxy for their local goods/services budget. Currency users can run out of currency, currency issuers cannot. The difference is this fundamental: The so-called national "debt" is in reality our private savings, save the huge, inflationary, invalid amounts printed in excess of the GNP as it accumulates, minus depreciation, etc.. If no extra currency was left in circulation, there would be no possible way for people to have private savings. IOW, it is all of the value of goods and services owned by the people which has been stolen by the currency issuers, ie. the Fed has "traded" their useless fiat for our real goods and services...FRAUD, by legal definition. Unless the government issues the money, to roughly track the GNP, there is either inflation or deflation, AND a "national debt" to cover the amount issued by the private Fed banks...under the Constitution, this is FRAUD (art.1, sec. 8, par. 6.....not par. 5, dealing with "coining" money which the government still does, but the amount is tiny compared to other fiat forms of money "issued/generated", etc.)
Think of the federally issued GNP dollar as an extension of the most honest form of exchange of goods and services...barter. Now go to the next phase in the development of money...an LETS system. A local exchange trading sytem has records kept of all goods/service rates, etc. such that when a person wishes to "buy" something in goods or services, it is deducted from their assessed valuations, which are kept in journals and updated daily, etc. much as now in many ways with the present system of accounting. For this system to become "money" based, the government now needs to declare that instead of journals being used as they are, often with "notes" to pay at a later date, that these notes are not legal tender, but merely contracts between citizens and can go no further than the immediate transaction. Legal tender laws would dictate that all commodities would be awarded on surrender instead of just metals, etc. This would be especially poignant, eg. in the case of TARP mortgages, where either banks, private individuals, or the government could make claims against housing to satisfy such liens/suits, etc. Taxes would be the method of keeping the government funded as usual in some form, and when these funds, and new money was generated, say by a bank for a mortgage, the bank would not be able to claim ownership of the principle, just earning the interest on that principle, which would be "issued" by the government to increase the GNP by that amount...plus the interest if ruled to be valid in the new system (a smaller correction factor, but arguable). This way, as the economy grew, the money supply would roughly track it to prevent inflation or deflation, but still have enough "wiggle room" to grow.
To make sure that the government didn't abuse the right to creat money such as the oxymoronic "federal reserve" has done, say with unncessary deficits, bailouts, etal. the states would contribute to the effort so that many eyes and hands were on the "tiller of the tally", using their powers of nullification to berate and empower to proper adjudication if necessary, the creation of new money to cover such excess printing, which might be needed, but need approval by those so affected, especially the states, as they must balance their books, unlike the Federal government, thereby making them more solvent for the sake of the nation as a whole. In times of congressionally declared emergency, deficit money could be generated, but that would be clearly spelled out, and challengeable by the states also, as well as in times of clear and imminent danger, when the POTUS could for a short time declare the need for extra money to be printed to demonstrably ensure the safety of the country.
Teaching the Fallacy of Composition: The Federal Budget Deficit -
"Almost everybody talks about budget deficits. Almost everybody seems in principle to be against them.
And almost no one, literally, knows what [they are] talking about." Robert Eisner, The Misunderstood Economy, p.90; With a government issued currency instead the Fed doing it, this act would not generate any "national debt". A deficit would merely inflate the currency by increasing the money supply to cover it, and decreasing the dollar's purchasing power to whit accordingly as we have been experiencing especially since the Reagan administration, and now the the "Quantitative Easing" ploy used by the "federal reserve" private banks, as they have totally debauched the currency with it, and they or their assigns have devised other ways to at least end up with as much of it as possible before the whole system crashes as people and governments around the world lose faith in the US Dollar. We will shortly need a new currency, much as Ben Franklin and Lincoln did during those trying times, but we should base it on something that we can stand behind with confidence as to its surrender value what with all the modernity at our disposal not as back then, and institute the proper "legal tender" laws to do it, gradually replacing the frn in orderly fashion so as to not cause panic in the banks, and so that proper adjudication can take place on a case by case basis to see if people's savings pass the "smell" test as to the money's origin, as the work ethic and property rights law would be invoked to pronounce a valid account of such money. "invalid" money, like any "QE" money, would not be redeemed, but destroyed, and it's value not counted, and the person involved would be investigated properly, with then perhaps forfiture, jail, etc. That way the new system would not "inherit" the evil of the past, but start afresh with freedom and fairness for all....but you'll never see it unless we all OWS or use as many such venues as can be devised to force new legislation to whit.