"The repayment of the loan zeroes out the loan principle leaving only the sum of interest payments which, in aggregate across the entire economy, come from another source, ultimately government deficit spending." This "net contribution," as is, equals systemic inflation due to interest on bonds/Treasurys. We can do better. See the NEED Act as a starting place. We don't need the government issuing bonds, period. The government issuing debt-free, interest-free currency exactly pegged to real-productivity growth would equal zero inflation/deflation. Imagine that! I have, and I'm not alone. Join us.