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It's all printed.
Our gov't pays a much different interest rate than anyone else. It's 0 on printing new currency.
You are spot on in terms of the danger of running a huge debt and printing money to pay for things. It devalues the dollar, puts tremendous pressure on trade and causes other bad things to occur.
This is why getting out of debt is such an important thing - bring in spending. Stop buying things and commit future spending we can't afford.
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