Most of the interest from treasury bonds is returned to the government by the Fed.
RC: Yes that is true so why bother issuing the debt.
Me: Here’s why: Because once it is established that debt free money, especially in the form of monetary gifting credited directly to the individual at a sufficiently high percentage of price discount at retail sale that it completely eliminates any possibility of inflation and in fact integrates beneficial price and asset deflation into the economy, and debited reciprocally back to the enterprise so that they can be whole on their overheads and profit margins…the jig is up for the banks’ monopolistic paradigm of Debt Only.
All of the de-bunking of neo-classical economics and decyphering of the mechanics of money creation of course has been good, but who would have thought that a simple accounting action at a strategic point in the economic/productive process was the key to implementing the new monetary, financial and economic paradigm? The significance of the point of retail sale has been sitting in plain sight for literally centuries waitng to be discovered, but like breathing, it was such an integral part of the economy….that economists and pundits generally being off in thrice removed theoretical and/or mathematical abstraction….unconsciously remained unaware of it.