So, “Where’s the money come from?” It is borrowed into existence, like all money now..
It is impossible to “borrow” money into existence if you assume some investment vehicle, such as Treasury bonds, are involved. The sales of bonds require existing currency. Currency can only be created by an issuer that has sufficient confidence, or fear, in the population to make the currency acceptable as a medium of trade. The federal government does this by imposing taxes only payable in the currency it issues and penalties for non-payment.
When the government spends into the private sector it “creates” every dollar spent and the delivery of goods and services from the private sector to provision government completes the contract with no further debt attached. There is no “debt” or borrowing involved in creating fiat currency any more than a sports stadium incurs a debt when it issues points to the teams that play there. The issuer of the currency neither has, nor doesn’t have, currency to spend at any time. Spending by the currency issuer creates currency and funds taxation which cancels the currency collected. Taxation should never be considered a revenue source that funds spending or the whole system will drive you to drink. The issuer of a fiat currency neither needs, or uses, anyone else’s currency, borrowed or taxed, to spend currency.
Since our currencies are fiat backed, eliminating debt also eliminates the money.. which is not helpful
Only true if you accept the premise that the government must collect every dollar it creates or incur debt. See above. Most of our current problems are the results of self imposed austerity to service a debt because its accounting category label was not changed when we moved from a gold standard to fiat. (And a particular penchant Americans have for electing total idiots to critical management offices.) We (private sector) don’t “owe” $20 Trillion. We “OWN” $20 Trillion of currency created by government to satisfy contractual obligations in the private sector.