The Explanation for Unpayable Debts That’s what we use: money
based on debt. If we don’t have debt, we don’t have money. When
the debt disappears, so must the ‘money’ disappear! Additional
proof that money disappears comes from Report No. 83-125E,
Congressional Research Service, Library of Congress, John B.
Henderson Money and near-moneys, 1983 (available online at
http://www.bookprep.com/read/uc1.b4177387). On pages 28-29, we
read these words (emphasis added): “On an even more fundamental
level, there is the matter of how money is created in the modern
world. If the reference is to the statistics of the Federal
Reserve, money held by commercial banks, by the Federal Reserve
Banks, or by the U.S. Treasury is not counted in the aggregates;
in that sense, money is not manufactured, merely because coins
are stamped and paper notes are printed. Nor does the Federal
Reserve System alone create money. Rather, it provides the basis
on which the commercial banks (and, now, near-banks as well) are
permitted to create