Under the current system, that's what has to happen, or the system collapses. Money is loaned into existence and the expectation is that the bonds will pay interest, and that interest can come from only one place: more borrowing, more money printing. And then there's the issue of the world reserve currency. The US can't maintain the dollar as the world reserve currency without accepting more and more debt, and deficit and balance of trade problems. And so those "problems" are always there. It's just a matter of degree. In normal times, new money usually stays in the banking system and may be used for banks to bolster their reserves.. Credit markets also create money, but usually, there's some mechanism at work to limit that from becoming excessive.
In short, it was a system designed to destroy the currency and transfer wealth to the banks,, a scam that has been ongoing since 1913, when the Fed was created.
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