@JLeslie thank you for your comments it is always good to have ones opinion challenged.
I do see the point you are making because yes if you use credit that money is being extended on your behalf and you pay later…where as with paper money you are paying your immediate debt right then and there.
But look at this way: Take into consideration what the Federal Reserve is.
The Federal reserve is the central bank of the united states and it produces the currency of the united states. Central banks have two specific powers: The control of interest rates, and the control of the money supply, or inflation. A central bank does not simply supply a government’s economy with money, it loans it to them at interest. Then, through the use of increasing and decreasing the supply of money, the central bank regulates the value of the currency being issued. It is critical to understand that the entire structure of this system can only produce one thing in the long run: debt.
t’s important to clearly understand: the Federal Reserve is a private corporation. It is about as “Federal” as “Federal Express.” It makes its own policies, and is under virtually no regulation by the US government. Even now post the crash of 2008 and all the new banking policies that have been passed.. all congress did was give more power to the fed.
So through with paper money you do pay for your immediate debt immediately in the long run, you still pay later in the form of income tax.. which is not collected to pay for government services, it is collected to pay the interest on the issued money.