monetarily sovereign that is the monopoly issuer of a nonconvertible floating rate currency cannot be indebted in its own currency. That is just a nonsense. There is no national "debt." It is rather nongovernment savings of net financial assets in the form of tsy's. Tsy's only represent debt under a convertible fixed rate system like the gold standard and they are a holdover from those days. Presently, they are obsolete operationally and could just be eliminated if Congress wised up. What happens operationally is that numbers get switched on the Fed's spreadsheet from demand deposit accounts (bank reserves) to time deposit accounts (tsy's) and back, with more interest paid on the time deposits. This not a fiscal operation and does not require new funding to be appropriated. The interest payments are funded by currency issuance, but this does not come from revenue or borrowing, since neither funding from revenue nor financing with debt make operational sense under the present monetary regime. What happens is that when Congress approves a budgetary deficit, private bank accounts get credited, bank reserves increase for settlement in the interbank market, and tsy's are issued to drain the excess reserves to allow the Fed to hit its overnight rate. Tsy issuance just sterilizes the excess reserves in time deposit accounts at the Fed, removing the excess reserves. Sales and redemption of tsy's just return the reserves to the interbank market. The Fed uses OMO to smooth this out to hit its target rate. Meanwhile, the private