MOSLER , Don't know if this is the right place to post this question, So based on MMT, the Interest Expense on the Debt Outstanding ( http://www.treasurydirect.gov/govt/repor\\... ) is not actually paid out to any entity, but is an accounting entry that reduces the currency created by that amount? So in 2011 its been reduced by Fiscal Year Total $412,517,504,466.06 "all our children will have to do is shift funds from one account to another at the fed, just like we do and our fathers did." Can this be understood with the governments accounts or does it require faith the system works differently to the accounts? Is MMT something based in accounting or is it based in 'in reality it works very differently' to the way you think it works. Why do MMTers talk about simple accounting and operational realities? The simple accounts so not support MMT because these simple accounts (the ones required by law) say there are no funds in an account at the fed to return funds to the bondholders. The simple accounts say when the government deficit spent it created true debt for the bank owning bondholders, whereas immediately prior to deficit spending the simple accounts say the banks had an iou and the government had an iou. After spending the government no longer has an iou. Several MMT'ers have told me these simple accounts are a charade. Others say MMT just works differently to the simple accounts and the insiders know this. So has MMT