No need to worry about federal debt?
Hey guys, I was reading "Deficit Myth" by Stephanie Kelton, who is an MMT economist. In the book, she claims that we don't need to worry about our federal debt piling up. Her reasoning is that foreign buyers of Treasuries are basically moving USD from their "checking account" at the Fed to their "savings account". If we think about Treasuries as simply a different kind of USD that pays interest, we shouldn't worry about how much there is in the "savings account", because when the time is up someone at the Fed simply reduces the balance in the savings account and increases the balance in the checking account with a stroke of a keyboard. In fact, Kelton disagrees calling the selling of Treasuries "borrowing".
This obviously directly contradicts with the notion that our country needs to muster real resources in order to pay back foreign lenders. I find both arguments to make sense, but one of them must be wrong. Would really appreciate if anyone can shed some light on this. Thanks!