High Finances. Or Hi Finances.

There's a 12 year old girl from Canada who wonders why the Canadian Government and the Canadian banks are driving the Canadian debt higher and higher. The same question can be asked of America. Here's the thing. The United States recognizes that American banks need money to operate. So it prints currency, dollars, which it then loans to the banks at approximately zero percent interest. In order for the government to operate and to pay for the money it has just printed, it has to borrow money from the banks at 2% or 3% or more interest. Then it needs to borrow more money to pay the interest on the loan. So it prints more money. The banks then ask for more money to loan to the government so it can pay for the money it just printed. So the government loans this new money to the banks at near 0% interest. But then it has to borrow more money from the banks at 2% or 3% or more interest. Then it has to borrow more money from the banks to pay the banks the interest it owes them for the money it just borrowed from them. The only reason they had enough money to loan us at 2% or 3% or more interest, is because we loaned them the money in the first place, at near 0% interest. Then the banks claim they don't want any supervision in the form of regulations. They claim they can self regulate and that they prefer a free and open market. But isn't a free and open market one that doesn't depend on the government? What would they do if the government stopped loaning them at 0% interest and started borrowing from itself? If the government started loaning the banks at 2% or 3% or more interest and borrowed from itself at near 0% interest, wouldn't the government be way ahead of the game? I'm just asking.