The Federal Government is legally authorized to get financing by issuing US Savings Bonds. These debt securities are issued by the government and offered to all citizens. When a citizen buys a US Savings bond, he or she "loans" an amount of money to the government with the expectation that the government will pay the owner of the bond the amount of money that appears in the paper once the bond reaches maturity.
The federal government can increase its revenue through rises in taxes of the reduction in the federal interest rate in order to comply with the payment of the bonds. Therefore, the Federal Government should be allowed to use credit.
