There is no reason for the Fed to create notes except to lend them to gov't. When you lend something you usually want it paid back with interest.
No. The Federal Reserve loans money to banking institutions. This loan carries an interest, widely known as fed funds rate. They also require the banking institutions secure the loan with deposits and securities.
The federal reserve does not lend money to itself, the government. The Federal Reserve is, in itself, a government entity.
Why do those goods and services costs rise? Could it be the producer now has higher costs for raw materials (first) and labor costs (later) due to <gasp> inflation?
No. Rise in cost of goods is not directly correlated to inflation, but rather the inverse. You are confusing causality. Bigly.
Demand, or lack thereof, creates scarcity or abundance. That is basic economics as well. I thought I covered that w/ the dope analogy. Take another look.
No. Demand itself does not create scarcity. Supply is part of the equation. Sorry.
Sure, blame it on anything but more people wanting more from gov't.
What does that have to do with the price of apples in India? Facts are facts.
........was never, You mean deficit.
Deficit spending causes debt but the lack of deficit spending does not make already accrued debt "go away".
THAT is a serious disconnect w/ reality that endangers further discourse.
You are correct, I conflated the misnomer. The national debt has been on a steady rise since we've been following it in the early 1900s. I could go on about how that number doesn't actually matter until you evaluate it as a percent of GDP, but thats a topic for a different day.
You may be in the minority about the "makes sense" part. Others seemed to grasp it well enough that they're not asking questions about it.
Pulling money from an ATM doesn't create money nor is money lent to satisfy the request. It's already sitting in an account somewhere waiting to be used or requested.
K then. What base of real value keeps the Fed from just printing however many notes <which is another word for debt> they want?
No. Nobody has agreed specifically with your last statement. They aren't asking questions because they either don't care, don't believe what you have to say, or are not educated on the subject enough to understand. Sorry.
No. You can pull money from an ATM that you don't have. It is possible.
The Federal Reserve also prints money to cycle out old paper for new.
I get how you are trying to create an analogy of paper notes to debt, but I'm afraid it's an oversimplification.