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RE: Knowledge of History + Economics = Disbelief in Government
Well, yeah, of course.
In "healthy" economy the creation of new money is slow enough that nobody notices. They, mostly, don't go and say, Let us create more money so we can spend it.
If the govenment need more money, it usually will borrow it from the citizens and banks. Which is in a way borrowing from yourself as the govenment owns all the money anyway. But atleast it keeps the balance in money value.
The federal government never needs to borrow money to spend it (local governments do). The act of the government spending is what creates the money. Spending is not limited in any way by either taxes or selling of bonds.
In a "healthy" economy that's driven by the state, the creation of new money is enough to keep everyone employed, productive capacity full, as well as for everyone to pay their taxes and have enough money to save. If there isn't enough money to do this, the economy is starved for money.
It never needs, yes. However, it does. Otherwise it would not be such a thing as national debt.
"Debt" is a misnomer. Nobody actually owes it. It's just money that's out there. The government could drop interest rates to zero and federal taxes to almost nothing and have no problem in continuing to spend.