@SteveRoth Among other things, a fiat-issuing govt can be understood to be a bank. It issues deposits and banknotes to spend money and purchases assets, just like any other bank. Unlike other banks, it need never default outright on (own currency) claims, but “fails” via inflation, devaluation of its notes and deposits. Also unlike other banks, it can issue taxes to try to prevent or diminish or recover from any such devaluation, but is subject to real and political constraints in doing so. 2/