This is reported to be the testimony of Marriner Eccles, Governor of the Federal Reserve Board, before the House Committee on Banking and Currency, on September 30, 1941.
Does this mean that only enough money exists to pay the principal on all debts that exist, leaving nothing to pay the interest and nothing for anything else? One hears that credit card companies like to have customers who run up a lot of debt and then make the minimum payments every month for decades, but that seems like nothing compared to this. The inventors of such a "money system" appear to want the whole universe in that position, and it appears that they've got what they want.
Congressman Patman: "How did you get the money to buy those two billion dollars worth of Government securities in 1933?"
Governor Eccles: "Out of the right to issue credit money."
Patman: "And there is nothing behind it, is there, except our Government's credit?"
Eccles: "That is what our money system is. If there were no debts in our money system, there wouldn't be any money."