>>60829699
Ignore the other reply to your question. He doesn't get it.
I'll answer your question in three parts: why we need currency?What is currency?And why can't we get rid of our debt?
I'm using text to speech, so deal with it.
The world needs a stable currency. One that can be trusted and use as an intermediary transacting between economies.
Every country has its own currency. So in order to buy things from other countries, you need to have some of their currency. Keeping billions of dollars in fifty different countries' currencies is inefficient, and opens you up to a lot of counterparty risk. .Think of all of the small countries that have completely blowing up their currency through hyperinflation.
Gold played the role of this unit of account aka currency for a long time, but for reasons I can explain but won't, it no longer is a good currency. So now we have fiat. But some entity has to be responsible for stewarding an issuing this fiat currency. Enter the US dollar.
Dollars and really all currency are a form of debt. It started off as bank coupons, for silver. A dollar was point seven ounces of silver. I go to the bank and give them 70 oz of silver and they write me a worthless IOU that says "we owe you 100 spanish silver dollars". See the word OWE there. The bank was in debt to you some silver. You gave them silver, and they gave you nothing (except some paper.)
People started transacting with the banknotes because it was cheaper and safer than hauling around literal tons of physical silver.
But remember the banknotes only existed because the bank took your silver and never gave it back. If everyone at that time took their banknotes back to the bank and got out all their silver, there wouldn't be any money left and people who wanted money would need to us something else. No more US banknotes. You need to have debt in order to have money.
