Economic myths and fallacies

Exactly right. The debt terminology for central bank money is completely misleading.

If you look at the Fed’s books, it will say that the bank reserves are all liabilities. But what sort? A fictional sort. These “liabilities” put them under no obligation whatever. They can’t be redeemed for precious metals, as in the past. They’re never rolled over. They don’t pay interest, unless the Fed willingly decides to do so in order to reduce bank lending by slowing monetary velocity.

Just for reference, there’s a thread from 2011 with the same OP, and here’s part of one of my posts from that thread.

That was two years ago.