Money Creation

Wray: "OK Praxis be prepared to be amazed by elemental accounting:
Govt is first a creditor: it imposes a tax on you which is your liability and its asset.
Next govt is a debtor: it issues currency to buy what it wants, and now you are creditor
Next you pay your tax, wiping out your debt, your asset, the govt's debt and the govt's asset

If it spends more than it taxes, it is a debtor and you are creditor. it pays no interest unless you want to exchange a bank deposit for a treasury (or if your bank wants to exchange reserves for a bond). in that case it will pay interest and does so by crediting bank accts.

You're talking about something totally separate from what I'm talking about. Your explanation isolates the debt to a transaction between taxpaying citizen and taxing government, and completely excludes purchasers of US treasuries, who are often not taxpaying citizens and are definitely not our taxing government. Your story is not the story of our debt. It's like a book missing half of its chapters.

Speaking specifically about the sale of US Treasuries to finance expansion of the US monetary supply, do you identify the US government as the debtor in these transactions and the purchasers of the securities as the creditors?

I'll ask another question of those who insist that the 'US creates its own money' , or who insist that we do not borrow to pay for government operations:

If the US does in fact 'make its own money' free of restrctions placed by the credit market, then why doesn't President Obama request that the Federal Reserve send every American $1,000,000 in cash each, and end our recession?

Please explain why that would not work, without using the phrases

'because no one would lend us that much'

or

'because that would wipe out the asset value of the Treasuries sold to finance all our previous debt'.