we produce money as a form of IOU against the future production of the economy, (apples).
This debt is really an increase in the money supply
each year the government borrows some more - increasing the supply by hopefully an accurate guess of future production
if it's a bridge I get it. Gov borrows 1 bn, builds a bridge, there is a new billion dollars worth of value in the economy
but apples? If I eat an apple and throw away the core do we then have to reduce the money supply by the price of an apple? When and how is this done?
I can see some of the value of the IOU I used to buy the apple hanging around in forms of greengrocer shops, farm worker jobs etc. But some of it really is now, gone
maybe I should have listened more carefully in economics lectures.