Two Faces of Debt
Published by the Federal Reserve Bank of Chicago
September 1992

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The Federal Reserve tells us our money is debt... 

"Everyone knows what debt is when he or she owes it, but people sometimes forget that most of the financial assets they try to accumulate are the debts of others." (pg.1)

"In addition to issuing securities, the federal government, through the Federal Reserve System, issues noninterest-bearing debt–currency or paper money. Currency is so widely accepted as a medium of exchange that most people do not think of it as a debt. Technically, however, Federal Reserve notes are liabilities."(pg.4)

The Federal Reserve admits debt won't be repaid, thereby admitting wickedness...

"What about the burden of the federal debt? As the economy grows, the total amount of public debt will probably continue to increase. Existing debt will be refinanced over and over again, and it will always be owned by those who want to hold government securities among their financial assets."(pg.25)

"Debt–public and private–is here to stay. It plays an essential role in economic processes. Which of its two faces appears predominant depends largely on the state of business conditions.... What is required is not the abolition of debt, but its prudent use and intelligent management."(pg.25)